Mullen Group Ltd. Announces 2025 Fourth Quarter Financial Results and Filing of Disclosure Documents

Executive Summary

• Mullen Group reported Q4 2025 revenue of $533.8 M (up 7.0%) and full‑year 2025 revenue of $2,133.6 M (up 7.3%).
• Net income fell to $14.6 M ($0.16 EPS) versus $18.9 M a year earlier; adjusted net income was $13.5 M.
• OIBDA declined to $73.4 M (adjusted OIBDA $74.7 M), with operating margin falling to 13.8% YoY.

Key Details

• Revenue Drivers
• Incremental $58.8 M revenue from acquisitions (Cole Group and Pacific Northwest Moving) offset by a $21.3 M decline in existing Business Units, mainly the S&I segment.

• Segment breakdown Q4 2025:

  • Less‑Than‑Truckload: $188.7 M (−0.4%)
  • Logistics & Warehousing: $204.6 M (+27.2%)
  • Specialized & Industrial Services: $86.4 M (−16.8%)
  • U.S. & International Logistics: $56.3 M (+18.5%)

• Operating Income

• OIBDA (pre‑depr.) $73.4 M, down $11.6 M YoY; adjusted OIBDA $74.7 M, down $1.9 M.

• Adjusted OIBDA margin fell to 14.0% of revenue (from 15.3%).

• Net Income & EPS

• Net income $14.6 M vs $18.9 M YoY; basic EPS $0.16 vs $0.21.

• Adjusted net income $13.5 M; adjusted EPS $0.15.

• Cash Flow

• Operating cash flow $85.6 M (down 23.2% YoY); per‑share $0.94.

• Full‑year operating cash flow $306.0 M vs $296.1 M (+3.3%).

• Balance Sheet Highlights

• Fully redeemed debentures: $117.9 M converted to common shares, $7.1 M repaid in cash.
• Working capital $303.6 M (cash $144.6 M; derivative hedge $26.6 M).
• Undrawn bank credit facilities $525.0 M available.
• Private placement debt refinanced at 6.1% fixed; principal repayments $402.8 M and $393.5 M due 2034/2037.
• Total net debt $787.2 M; net‑debt to operating cash flow ratio 2.39:1 (below covenant threshold 3.50).

• Repurchased & cancelled 60,000 common shares for $0.8 M ($13.97 average price).

• Dividends

• Cash dividend declared per common share $0.21 (unchanged YoY).

• Non‑IFRS Measures

• Adjusted net income and adjusted EPS provided; OIBDA‑adjusted excludes FX impact on U.S. cash.

Notable Quotes

“The fourth quarter was, in many respects, like previous quarters in 2025… acquisitions drove the revenue increase… they will be valuable contributors to our expanding network for many years.” – Murray Mullen, Chair & Senior Executive Officer
“Our Business Units struggled to maintain margins… their efforts did not result in improved results last year, but I am convinced it will when the economy rebounds.” – Murray Mullen