Mullen Group (MTL) investor relations material

Executive summary

• Achieved record quarterly revenue of $561.8 million, up 5.6% year-over-year, driven primarily by acquisitions, notably the Cole Group and Pacific Northwest, offsetting weakness in legacy business units.

• Record cash from operations exceeded $100 million, providing significant financial flexibility.

• Existing business units remained stable except for those exposed to oil and gas, which faced headwinds from low commodity prices and a sluggish Canadian economy.

• Acquisition strategy remains central, with a focus on tuck-in and platform opportunities in strong verticals.

• Net income fell 13.3% to $33.2 million, or $0.38 per share, due to higher finance costs, increased amortization, and negative foreign exchange impacts.

Financial highlights

• Revenue increased by $29.8 million year-over-year, with $66.4 million of incremental revenue from acquisitions; nine-month revenue was $1,599.8 million, up 7.4% year-over-year.

• Net cash from operating activities reached a record $102.7 million for the quarter, up 55.1% year-over-year.

• OIBDA was $97.6 million, up 2.4% from last year; adjusted OIBDA was $96.4 million, flat year-over-year.

• OIBDA margin decreased to 17.2% from 18.2% due to lower-margin acquisitions and business mix.

• Cash dividends declared per share increased 5% to $0.21 for the quarter.

Outlook and guidance

• Economic activity is stable but not growing; freight demand is steady, with continued reliance on acquisitions for growth amid economic uncertainty.

• Guidance for 2025 will be slightly below initial targets due to softer commodity prices and acquisition timing.

• Management remains cautious due to weak private sector investment and trade/tariff issues but anticipates benefits from future nation-building projects.

• Anticipates potential market tightening in 2026, which could improve margins.

• 2026 budget and business plan to be released before year-end.