Earnings

Mullen Group Ltd. Acquisitions Continue to Drive Growth in the Third Quarter of 2025

By The Northwire Desk — AI Analysis Oct 22, 2025 · 06:00 MTL · 14.42 MULLEN GROUP LTD.

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Mullen Group reported Q3 2025 revenue of $561.8 M, up 5.6% YoY, but net income fell 13.3% to $33.2 M ($0.38 EPS), a material negative result.
Record quarterly operating cash flow of $102.7 M was generated, driven by acquisition‑related revenue (+$66.4 M) offset by lower existing‑business performance, especially in the Specialized & Industrial (S&I) segment.
The company closed a $325 M private placement on July 10 2025 and repaid its October 2026 notes; total net debt stands at $907.6 M with a net‑debt‑to‑cash‑flow ratio of 2.60:1.

Revenue: $561.8 M (Q3 2025) vs. $532.0 M (Q3 2024); +5.6% YoY.
Operating Income (OIBDA): $97.6 M vs. $95.3 M; +2.4% YoY. Adjusted OIBDA: $96.4 M vs. $96.6 M; –0.2%.
Net Income: $33.2 M vs. $38.3 M; –13.3% YoY. Adjusted net income: $33.0 M vs. $35.8 M; –7.0% YoY.
EPS (basic): $0.38 vs. $0.44; –13.6%. EPS (diluted): $0.36 vs. $0.41; –12.2%. Adjusted EPS: $0.38 vs. $0.41; –7.3%.
Operating Cash Flow: $102.7 M (record) vs. $66.2 M prior year; +55.1% YoY. Cash flow per share: $1.18 vs. $0.75.
Dividends: Declared cash dividend of $0.21 per common share, up 5.0% YoY.

Less‑Than‑Truckload (LTL): Revenue $197.8 M (+4.8%); OIBDA $36.4 M (+2.0%).
Logistics & Warehousing (L&W): Revenue $208.1 M (+23.2%); OIBDA $38.0 M (+8.0%).
Specialized & Industrial Services (S&I): Revenue $105.1 M (‑20.3%); OIBDA $23.6 M (‑17.2%).
U.S. & International Logistics: Revenue $53.9 M (+17.9%); OIBDA $4.0 M (+1,233.3%).

Acquisition revenue of $66.4 M primarily from Cole Group (Canada) and Pacific Northwest Moving (Yukon).
Incremental OIBDA from acquisitions: $11.2 M; offset by $8.9 M lower OIBDA in existing units.

Closed a private placement of $325 M CAD + US$50 M on July 10 2025, with covenants aligned to 2024 notes.
Pre‑paid October 2026 notes and repaid all outstanding bank credit facilities.
Share repurchase: 352,960 common shares cancelled for $4.8 M (average $13.74 per share).

Working capital $286.3 M (includes cash $151.2 M).
Total net debt $907.6 M; net‑debt‑to‑operating‑cash‑flow ratio 2.60:1 (below covenant threshold of 3.50:1).
Net book value of PP&E $1.1 B (including $678.8 M owned real property).

Murray Mullen, Chair & Senior Executive Officer: “Our acquisition strategy continued to drive top‑line growth… we rely upon acquisitions to grow our business today.”
Murray Mullen: “I’m proud to represent over 8,500 people in our organization…”

Materiality Assessment: Material – Negative (significant decline in net income and EPS despite revenue growth).

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