Profit doubling is still not enough! MasTec (MTZ.US) is investing another $1.65 billion to strengthen the electrical layout of data centers.

American infrastructure engineering and construction company MasTec (MTZ.US) announced on Tuesday that it will acquire electrical contractor The Superior Group for approximately $1.65 billion to enhance its electrical service capabilities in the rapidly expanding data center infrastructure market. The transaction will be completed in late July using a combination of cash and stock. Under the terms of the deal, the transaction includes approximately $475 million in MasTec stock and $1.175 billion in cash. MasTec stated that this acquisition will immediately contribute positively to the company's revenue, adjusted EBITDA, earnings per share, and operational cash flow. Headquartered in Columbus, Ohio, Superior has around 3,000 employees and is one of the largest electrical contractors in the United States, specializing in providing electrical design, construction, prefabrication, and maintenance services for data centers, healthcare, entertainment, and industrial facilities. The company expects to achieve revenues of $1.6 billion to $1.7 billion for the full year 2026, with adjusted EBITDA between $225 million and $250 million. MasTec CEO Jose Mas stated in a press release, "Superior expands our capabilities, allowing us to capitalize on one of the most attractive infrastructure opportunities in the current market, the ongoing construction of data centers, power, and critical mission infrastructure." After the acquisition is completed, Superior will operate as an independent business under MasTec's Power Delivery segment, with current Chairman and CEO Bryan Stewart and his management team remaining in place. MasTec has benefited in recent years from the wave of data center investments driven by the artificial intelligence (AI) boom. The company reported a 35% revenue growth to $3.83 billion in the first quarter of this year, with adjusted earnings per share of $1.39, nearly doubling year-over-year. MasTec expects that in the remaining time of 2026 after the completion of the transaction, Superior will contribute approximately $800 million to $900 million in revenue, and adjusted earnings per share of $0.50 to $0.65.