MasTec, one of the country’s largest infrastructure builders, said after Tuesday’s close that it will acquire The Superior Group for about $1.65 billion — roughly $1.175 billion in cash and $475 million in MasTec stock, plus a three-year earnout tied to how the business performs after closing. Superior, based in Columbus, Ohio, is a full-service electrical contractor: design, engineering, prefabrication, modular manufacturing, construction and long-term maintenance, with about 3,000 workers. What makes it a trophy is the customer list. Roughly 90% of Superior’s work is data centers, and about 70% of that comes from hyperscalers — the handful of cloud giants spending hundreds of billions to stand up AI capacity.
The price isn’t cheap. Superior is guiding to $1.6–1.7 billion in revenue and $225–250 million in adjusted EBITDA this year at a 14–15% margin, which puts MasTec’s $1.65 billion at roughly 6.9 times this year’s expected adjusted EBITDA — rich for a contractor. But the logic is what MasTec calls “inside-the-fence.” It already builds the power, communications and civil work that surround a data center; Superior lets it own the electrical systems inside the building too. Mizuho lifted its price target to $502 and said the deal completes the “multidimensional data center framework” MasTec sketched out at its May analyst day. KeyBanc ($500) and Stifel ($455) stayed bullish as well.
And yet the tape balked. Shares rose about 3% in after-hours trading when the deal landed Tuesday night, then reversed hard on Wednesday, falling roughly 5.7% to close near $358.85. Some of that was a red day for the whole market as an oil spike hit stocks. But some was the deal itself: MasTec is funding the cash with existing cash, its revolving credit line and two new delayed-draw term loans, while issuing $475 million in new stock — taking on leverage and dilution at once, for a business whose fortunes now ride almost entirely on hyperscaler spending staying vertical.
Our take: The story of 2026’s AI trade is that the money keeps moving down the stack. First it funded the model labs, then the chips, then the power and the real estate — and now the trades. MasTec isn’t betting on AI software; it’s betting that someone has to physically wire these buildings, and that someone is worth owning outright. It’s a durable position: high-voltage electrical work at hyperscale is hard to offshore and harder to fake. The catch is concentration. A contractor that does 90% data centers and 70% hyperscalers has no shock absorber if the capex cycle cools. MasTec made a picks-and-shovels bet and paid a picks-and-shovels premium — and Wednesday’s selloff wasn’t a vote against the logic so much as a question about the price and the timing.
What to watch
- Hyperscaler capex. Superior’s entire thesis rests on the cloud giants keeping data-center budgets vertical. Watch the next round of big-tech capex guidance.
- The earnout. A three-year, performance-based earnout means the real purchase price isn’t settled yet. Watch what MasTec discloses about the targets.
- Leverage. Two delayed-draw term loans plus revolver borrowings pile on debt while rates stay sticky. Watch the balance sheet on the next earnings call.
- Concentration. Ninety percent data centers and 70% hyperscalers is a superpower today and a single point of failure tomorrow. Watch whether MasTec broadens Superior’s book or leans further in.