MasTec Conference Call on Acquisition of Superior Group | July 08, 2026

Thanks Mark. Good morning everyone and thank you for joining us. Yesterday evening, we announced that MasTec entered into a definitive agreement to acquire the Superior Group, one of the premier electrical infrastructure contractors serving data center and other mission-critical end markets across the United States. We are extremely excited about this transaction because it meaningfully expands MasTec's position in what we believe is one of the largest and most attractive infrastructure opportunities. Just as importantly, this transaction reflects the disciplined acquisition strategy we followed for many years. Partnering with exceptional management teams, acquiring market-leading businesses, and investing in sectors where we see strong long-term demand supported by durable industry trends. We believe Superior is uniquely positioned within this market, making it an outstanding strategic fit for MasTec. Superior has built one of the industry's premier electrical infrastructure businesses with approximately 3,000 highly skilled employees, outstanding customer relationships, and a proven ability to execute some of the nation's most complex electrical projects. Over the last several years, the company has become one of the leading providers of electrical infrastructure services to hyperscalers, data center developers, and other mission-critical customers. We are particularly excited to welcome Brian Stewart, his leadership team, and the 3,000 Superior team members to the MasTec family. Throughout this process, we developed tremendous respect for what Brian and his organization have built. Led by the Stewart family since the mid-1980s, Superior has successfully scaled the business while maintaining a strong culture, exceptional customer relationships, and a disciplined performance-focused operating model. Equally important, we found tremendous alignment between our organizations in terms of values, culture, and operating philosophy. Brian and his management team will remain in place following the transaction and continue leading the business. We believe maintaining the existing leadership, culture, and customer focus is essential to preserving what has made Superior so successful and to maximize the long-term value of the combined organization. From a strategic perspective, we believe this transaction strengthens MasTec's position within one of the most compelling infrastructure opportunities we see today. Over the last several years, we've talked extensively about the increasing convergence of power infrastructure, communications infrastructure, and data center development. The continued growth of AI, cloud computing, and digital infrastructure is driving unprecedented investment across each of these markets. And we believe those trends remain in the early stages. Meeting that demand will require enormous investment not only inside the data centers, but across the entire electrical and power infrastructure ecosystem that supports them. We believe this represents a generational infrastructure investment opportunity for companies with the capabilities, skilled workforce and track record to help build it. Today, MasTec delivers the critical infrastructure that brings power, communications, and energy to data center campuses. Superior extends our capabilities inside the campus through electrical construction, integrated systems, pre-fabrication, commissioning support, and ongoing maintenance services. Together, we can support customers across a much larger portion of the infrastructure value chain with a more complete integrated service offering. We also believe the transaction strengthens our relationship with many of the most important customers in the industry. Increasingly, customers are looking for larger, more integrated infrastructure partners that can self-perform work, mobilize labor at scale, and successfully deliver complex projects with speed, quality, and certainty. The combination of MasTec and Superior enhances our ability to meet those demands while providing Superior and its customers with the benefits of MasTec's financial strength, broader geographic reach, and diversified infrastructure platform. Importantly, we also see meaningful opportunities to expand relationships with existing customers by offering a broader range of services across both organizations. Another highly attractive aspect of the transaction is Superior's labor platform. Access to skilled labor continues to be one of the most important competitive advantages in our industry. And Superior has demonstrated an exceptional ability to recruit, develop, and deploy highly skilled electrical resources across some of the fastest growing construction markets in the country. As we discussed at our investor day in May, we believe labor will continue to be one of the most important differentiators affecting execution, constructibility, and long-term performance. In an environment where skilled labor is increasingly becoming the limiting factor for project execution, we believe Superior's workforce represents one of the industry's most valuable strategic assets. Overall, we believe this acquisition enhances our capabilities, deepens our customer relationships, expands our highly skilled workforce, and broadens our addressable market. More importantly, it positions MasTec to lead through what we believe will be a generational infrastructure investment cycle driven by AI, electrification, and the continued growth of digital infrastructure. We're excited about what this combination can accomplish and believe it meaningfully strengthens MasTec's competitive position while creating long-term value for our customers, our employees, and our shareholders. With that, I'll turn the call over to Paul to discuss the financial aspects of the transaction.

Thank you Jamie. Good morning. So a couple things I'd say that, you know, we got to know the Superior Group during 2026. I think that we spent a lot of time with them at a personal level really getting to know them as individuals, which I think was really important. I think this transaction was all about fit. It wasn't, I think that they did a great job through their sales process of looking at different options, but quite frankly really trying to find what culturally fit them best, which I think is why MasTec was able to close on this transaction and we appreciate the time that we spent with them and I think a lot of the front-end work that went into the transaction. We're super excited about the business. We think the opportunity is unbelievable. You're right, we've got 40 to 50% revenue growth expected for 2027. As Paul stated, it's a relatively conservative estimate. We built in no revenue synergies into that number. And relative to the backlog, we feel really good about that number. Again, we think if anything, it's a conservative number for multiple reasons, and we didn't get into a lot of it. We'll talk a lot more about it in the future, but I think historically a lot of their business has been primarily driven by three states. They've got current contracts that are going to expand them into an additional two states in 2027 with the potential probably of another four to six states not far behind. So that geographic expansion is going to help us with revenue growth obviously, but it's also going to impact margins a little bit as we set up offices and expand into new geographies. That's obviously what we think makes the deal really attractive for MasTec. They're coming off a year from 2025 to 2026 of exceptional growth. They nearly doubled the business in 2026 versus 2025 and we're hoping to find ways to continue to do that. So again, thank you for your questions, Jamie.

Yeah, Justin, I'd say a couple things. One, we expect the earnouts to probably add another turn to the upfront multiple. It's based on a three-year performance level, so they have to hit a certain performance target over the three years to get it. And to be honest, we hope we pay as much as we can in that. It is uncapped. But our expectation would be it would add about a turn to the upfront multiple. I think that one of the things that can't be lost is we would have been really pleased to pay this transaction in all cash. I think this is one of the largest stock percentages that we've done in a deal historically speaking. We normally do not give stock in the deals that we do and I think that was a big driver for Brian. I think Brian sees the value of MasTec stock, he sees the upside in it and I think that was definitely part of how he evaluated the total purchase price. I think he sees, and I don't want to speak for Brian, but I think he sees great value in that as do we and I think that's part of his thinking and how he came to his decision.

Yeah, today it's all union. Again, we think that the market is obviously extremely strong. This is, when we think about the deal in simple terms, this is a bet on labor scarcity. We think this is a market that's extremely tight, it's a market that we think the union provides incredible benefit to, especially as you're growing into different markets. They've got an amazing leadership team and when you can use that leadership team and access labor in different markets through their existing relationships, I think it's only going to help us grow and expand geographically. So, we're excited. Obviously, we've got thousands and thousands of union members across the country. This adds to it and again something that we think it's a competitive advantage in this business today.

Yes. So, Andy, I'd say a couple things. One is we provided in the deck that we put out today an addressable market by 2030 from where it is today. We think it's substantial. Obviously it's what drives us to the decision of doing the transaction. I think this is, I've been in this a long time. I've been doing this a long time. I've never seen a market like this. I've never seen the opportunities that we see in front of us. So for us to be able to expand our presence within this market is something I think we talked a lot about at investor day and it's something we're very excited about. To put it mildly, we view ourselves as we did all the work outside the building and Superior really does a bunch of work inside the building. So it kind of completes our approach of being able to offer our customers really a full turnkey service. And when we think about the general contracting community, which is a significant customer base today of Superior, we just think we can offer them a lot more. We think we can do it in a way where we can hopefully bring cost down for ultimate customers. And I think that's the competitive advantage that we're trying to build. So we're excited about it. To be honest, when you look at what we're building at MasTec, I don't think there is a comp. I don't think there's anybody that has the self-perform capabilities end to end that MasTec has today. And I think that's meaningful. I think it's strategic and I think it really differentiates us which is one of the reasons why we're so excited about this transaction.

I think it's their strength. I think one of the things that we were incredibly impressed by was their rate of growth. I think they've been really intelligent as to how they approach growth. At the start of the cycle, they did a number of joint ventures that allowed them to expand quicker than they would have been able to do it alone. Since then, they've dramatically grown their workforce. I think their workforce is up almost 400% over the last few years. So I think when you look at their ability to scale, add labor, train labor, it's been remarkable. And it's one of the things that we really like about them. I think there's things that we can help them with, especially as we think about geographic expansion, which is probably what we're most excited about. But again, they've predominantly been in a lot of states, but I'd say three states have really driven their revenues over the course of the last couple years. And I think when we look at 2027 and 2028, I think the potential of doubling or tripling the amount of states that they're operating in is very high. They actually we know they will be operating in five states next year under signed contracts. So that's going to almost double their geographic footprint. And I think we've got the opportunity to do a lot better than that. Again, we come with our own set of customers. We've got a really good customer base in this business that we've been building over the last couple years. The customers that we have are in different states than the ones where Superior has been strong. So I think when we combine both of those with MasTec's service offerings and the things that we can help Superior with as they grow, a lot of the outside defense work I think can really bring them into, can help them expand their geographic footprint quicker and give customers a reason to use the combined MasTec entities. So we're again just super excited. We think the cross-selling opportunities are the best part of this deal. Quite frankly, we haven't really assigned any value to it. But I think if there's one thing that excites both companies, it's what we're going to bring to each other and hopefully that'll reflect itself in the numbers in the coming years.

Yeah, Alex. So, thank you. We spent a lot of time on that. Obviously, we had the experience of IIA in 2022 where we struggled a little bit through 2023. So, it's something that I think we did very differently in this transaction. I think when we look at our guidance for 2027, we have enormous conviction over those numbers. We again think if anything they might end up being conservative. We spent a lot of time and we feel like that's fully identified. So we had the chance of actually going project by project and understanding what that meant. And quite frankly, beyond 2027 there's an enormous amount of visibility as well. So we're not really concerned by it. We don't think work and revenues are going to be the issue here. We think there's going to be plenty to do and it's going to be about our ability to execute and bring value to our customers to hopefully grow the business.

Thanks, Alex.

Yeah, it's been 100% organic, which again is one of the things that we just found incredibly impressive, their ability to grow into this market. You know, they've been around a long time quite frankly. They've got a lot of history, but at the same time, they've had unbelievable growth over the course of the last five years and their ability to execute to that and the management team's ability to do that I think has been quite remarkable. I think, kudos to them. I think they've done a fantastic job and I think it's going to add a lot to MasTec. And I think the combined entity will be stronger based on the experiences that they've had with some of the experiences that we've had. And I think what's in front of us for the combined entity is how do we keep doing it and how do we take advantage of the full market opportunity that exists for the combined entity?

Well, I think that's a great question and I think it's one that we don't have a full answer to today. There's no question that this is an unbelievable platform and if we decided to look at other things and really to add around it, I think that's going to be available to us. We've had a lot of discussions about that internally with them. But the reality is that we've also got an incredible organic opportunity in front of us. I think that as you know, we've been really focused on the organic side of our business. We're going to continue to do that. So we're excited about that, but there's no question that this is an incredible platform investment with a substantial opportunity to build around it if we desire.

Morning, Liam.

Yeah, look, this is a great cash flow generating business. So, we do not believe that we will require any investments above and beyond what they're able to generate internally. I think the commentary was around the overall market spend, the dollars that have to be invested in the industry to accomplish what it is that they want to accomplish. It was more of an external comment than really an internal comment. But the cash flow dynamics around these businesses are fantastic which is one of the reasons we like it so much. Obviously the expense comes in really in our geographic expansion but we find that to be relatively limited and have tremendous upside and a quick payback.

I for sure, right. And I think again one of the things that we spent a lot of time talking about in our investor day was career path at MasTec, right? Having people come into this company, build a career, build a lifetime at MasTec and be able to provide a better future for their families which I think is everybody's goal. I think this only adds to that platform, right? The ability for people to enter into the space. These are incredibly good paying jobs, important jobs and I think our ability to help Superior attract resources, find new resources is critically important. You know, again, predominantly union, but the reality is the unions have the same issues, right? They got to bring new people into the workforce and I think our ability to help them do that is a critical ingredient of our ability to grow over time and one that we're going to be very focused on.

Yes, how are you?

I'd say a couple things. One, it's changing, right? I think they've got five really large customers. Tremendous opportunities across those, some of the strongest names within the industry today. I think we fully expect backlog to grow significantly through the balance of the year and are very comfortable in saying that to support the 2027 build which again we think we have high conviction towards. Look, at the end of the day, blue chip customer base, the creme of the creme in this industry. We're excited to be a part of it, we're excited to cross-sell into it, and we're excited to bring the customer base that we built which is quite different to them to hopefully cross-sell and grow with as well. So, critical part of this deal. I think again, not a lot of overlap between the two companies which I think only adds to the opportunities.

That just that page in the presentation was just pro forma of the full year outlook for Superior with our current guidance. So if you just superimposed the 2026 financial numbers that we disclosed for Superior on top of our guidance, it would take the power delivery segment to low double digits. And there are no synergies built into that. That's correct.

Yeah, I think a couple things, right? On our investor day, we laid out what our potential could be. We basically spelled out that we think we'll have $5 billion of capacity for capital allocation, which includes M&A. Obviously, this is the first deal we've done since investor day. So we've got tremendous availability, tremendous capacity to keep going. I think while we're super excited about this industry and the potential for further capital deployment around this sector, the reality is the balance of our business is doing really really well and we see tremendous opportunities across our entire portfolio. So we're seeing really strong other opportunities in some of those other areas of the business as well. So again, we talked about it earlier. This could be a great platform investment that we can keep building on. We're going to work with Superior and really try to model that out and map that out over time. We've had a lot of discussions about it to date. But there are other parts of our business that we think are incredibly strong, offer us great upside as well. So I don't, and I think you'll see capital allocation across our entire portfolio.

Well, that's what we said in investor day, right? I think that our best use of capital today is on funding organic growth and then looking at M&A. And again, we talked about creating $5 billion of capacity between now and 2028. I think we'll definitely do that and I think a significant portion of that will go towards M&A over that time frame.

Sure. Let me be clear. I think you read a roster of fantastic competitors. They are competitors of Superior. There are some great companies in this space. When we were talking about really the competitive difference was about the combined offering. So I think all of those are unbelievable electrical contractors that all have a place in the market. It's a huge market. It's a robust market. Everybody's going to do well. But I think scale is really important. So when we think about MasTec and what we're building, we're building the capabilities to do as much turnkey as you can imagine. So everything from civil construction at the front end of a site which very few of those offer, through all of the outside defense work, which is things like substation and bringing all the utilities to the building, actually building construction which we've talked about through our buildings group where we can actually build the walls of the facility, again we don't think there's anybody that offers that within that peer group that you just mentioned, and now we're inside the building. So I think when you think about the full life cycle of the project today, MasTec offers that internally on a self-performed basis. I think that's really the differentiator that we're building. It's our job to sell it. It's our job to create value by offering that. It doesn't mean that everybody's going to buy that. We're happy to sell those individually to anybody that needs it and to help support anybody that needs it. But we're also happy to bring that together and try to help our customers from a value proposition plan. And I think that's one of the really interesting parts of this deal that will only develop over time.

So Brian, I would say a couple things. In the states where they're strongest, we have decent presence but not presence in that market. So I think it immediately expands our opportunity within our current business to offer more services within this business segment. When you think about the future states and the opportunities that Superior has been looking at that I think will develop later in 2027 into 2028, there are states where MasTec has a lot of strength and has a lot more to offer in helping Superior grow into those states. So again, I think that Superior offers us tremendous opportunity for our existing businesses to grow meaningfully in a very short period of time and MasTec offers Superior the opportunity to enhance its workforce in states that they're planning to grow into over the next year or so. So again, I think it's just a perfect combination.

So Adam, it's a good question. I know that it's on everybody's mind. We spend a lot of time and we spent a lot of time in this deal talking to our customers, understanding their longer-term build plans. We went out and talked to directly to the hyperscalers, their advisors, everybody that we could get time with. And I think what we came away with was an understanding that this market in our opinion is bigger than people think. It's got longer legs than people think and we're in the very early end of that cycle with tremendous upside. And even if that's wrong, the opportunity for growth is going to be substantial if it's anywhere near what people are telling us it's going to be. We talk about the difficulty in meeting the demands that are going to be out there. I think it's going to be very difficult to meet the demands as they stand. But either way we think it's an unbelievable market. It's got tremendous legs. We're in conversations with customers many, many years out on specific projects, which is almost unbelievable. So we're super excited. We think that there's going to be a lot of noise in the market. There's going to be ups and downs. We get that. But we're just very very bullish on the long-term outlook of what's happening. And then when you think about the fact that our geographic footprint in this deal is relatively small with an opportunity to significantly grow it, we think that also insulates us from any significant risk. And to your earlier point, we bought this well obviously, but you got to think about the business. It's a business that's had unbelievable growth. I think the Stewart family is coming away very pleased with the transaction. I think they're in a position that they could have only dreamed of five years ago. We're excited for them. They deserve it. They built a great business. I think they're going to make a lot of money on the MasTec stock and that's our goal. And I think in retrospect, it's going to be a great deal for both parties. So again, we're excited. We're excited about what they bring. We can't wait to work with their team. But we feel again like we're in very early innings of what's going to be an unbelievable generational opportunity.

Thanks Adam.

Yes. So, part of their operating philosophy, I think they've teamed up with some other great electrical contractors as they've grown in states beyond their current presence. Those are active. Some of them are still active. We're excited about that. We're excited to continue to grow that and continue to study that philosophy as we expand across America. We think it's a great way to really provide customers with a lot of value and derisk everybody. So we'll keep looking at it. From a manufacturing perspective, they have, I think that's one of their strengths. I think they've done a great job of significantly expanding that. There's more work to do there, especially as we grow geographically. We're in a lot of discussions around that as well. It's something that we're excited about and trying to help them. But a big part of the business. I think they're really good at it. I think it's one of their strengths and I think we'll be talking about that more in the quarters to come.

Thanks, Steve.

Yeah. Again, just a giant welcome to everybody from Superior. The entire team. Couldn't be more excited about what we're going to do together. Again, appreciate all of the MasTec team members and their hard work that put us in a position to be able to do this. And we look forward to updating everybody on our earnings call in a few short weeks. So, thank you for joining us today.