How Superior Strengthens MasTec's Data Center Opportunity

MasTec, Inc. MTZ is expanding its exposure to the fast-growing data center market through its acquisition of The Superior Group, adding electrical expertise to an infrastructure platform already spanning power, civil construction, telecom and maintenance.

Superior, acquired in July, is a full-service electrical contractor with roughly 3,000 employees and a strong position in data center infrastructure. Management believes combining Superior’s electrical capabilities with MasTec’s broader services can provide customers with more integrated solutions, improving speed, quality and execution certainty.

The deal also creates cross-selling opportunities. MasTec expects to pair Superior’s capabilities with its construction management, civil, power and telecom operations, allowing it to participate across more stages of mission-critical projects. Its existing turnkey data center project is progressing well, while the company is pursuing several large opportunities and expects additional awards in 2026.

Importantly, data center growth can benefit multiple MasTec businesses. Power Delivery is seeing rising demand tied to the power requirements of data center development, while Communications is pursuing billions of dollars of hyperscaler connectivity opportunities. Superior adds another important piece by strengthening MasTec’s electrical infrastructure capabilities and expanding its skilled workforce.

The financial impact could become more visible in 2027. MasTec recorded nearly $2.5 billion of backlog growth over the past two quarters, but only a modest portion is expected to contribute to 2026 revenues, with most benefiting 2027. Management believes Superior and its turnkey data center capabilities have fundamentally expanded MasTec’s mission-critical position.

Superior gives MasTec a broader way to capture the AI-driven data center infrastructure buildout rather than relying on a single construction specialty.

MasTec Faces Strong Data Center Competition

MasTec’s expanding data center position puts it against established infrastructure players such as Quanta Services PWR and EMCOR Group EME, both of which are benefiting from rising AI-related infrastructure investment.

Quanta Services is a particularly strong competitor because its capabilities span the power infrastructure needed to support large data centers. Quanta Services provides solutions covering high-voltage transmission, substations and grid interconnections as well as electrical infrastructure inside data centers. Rising AI workloads and power requirements are expanding Quanta Services’ addressable market, making it a major competitor as MasTec combines Superior’s electrical expertise with its existing power and construction capabilities.

EMCOR Group also represents a meaningful competitive threat. EMCOR Group has significant exposure to data centers and high-tech facilities, supported by its electrical and mechanical construction capabilities. EMCOR Group’s established presence in complex facilities overlaps directly with the opportunity MasTec is targeting through Superior. Still, Superior strengthens MasTec’s ability to compete by adding electrical expertise to its broader power, telecom, civil and construction-management platform.

MTZ Stock’s Price Performance, Valuation & Estimate Trend

Shares of this Florida-based infrastructure construction company have gained 23.7% year to date, outperforming the Zacks Building Products - Heavy Construction industry, the broader Zacks Construction sector and the S&P 500 Index.

MTZ Price Performance (YTD)

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MTZ stock is currently trading at a premium compared with its industry peers, with a forward 12-month price-to-earnings (P/E) ratio of 23.78, as shown in the chart below.

MTZ Valuation (P/E F12M)

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MTZ's earnings estimates for 2026 have moved upward in the past 30 days to $9.31 per share, but the same for 2027 moved down to $12.77 per share. The revised estimates for 2026 and 2027 imply a year-over-year surge of 42.1% and 37.2%, respectively.

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MasTec currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

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This article originally published on Zacks Investment Research (zacks.com).

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