Mullen Group (MTL) investor relations material

Executive summary

• Achieved record Q2 revenue of $609.3 million, up 12.6% year-over-year, and net income of $36.0 million, up 40.6%, driven by acquisitions and higher fuel surcharges.

• All four operating segments contributed to growth, with Logistics & Warehousing and US 3PL segments showing the strongest gains.

• Continued focus on margin improvement, productivity, and strategic acquisitions, including Thrive and Lac La Biche.

• Board approved a $50 million increase in the 2026 capital program, with further investments and acquisitions anticipated.

• Major capital projects are being contemplated, positioning the business for future growth.

Financial highlights

• Q2 revenue: $609.3 million (+12.6% YoY); OIBDA adjusted: $102.1 million (+21.8% YoY); OIBDA margin improved to 16.8%.

• Q2 net income: $36.0 million (+40.6% YoY); adjusted net income: $39.0 million (+110.8% YoY); adjusted EPS: $0.41.

• LTL segment delivered over 20% EBITDA margin in Q2, ahead of budget and historical averages.

• Net cash from operating activities: $98.7 million (Q2), $126.0 million (YTD).

• Revenue quality improved, even as overall revenue growth was modest.

Outlook and guidance

• All segments expected to outperform 2025 for the remainder of 2026, supported by steady demand and potential major project approvals.

• Optimistic about exceeding original 2024 EBITDA guidance of CAD 365 million if current trends persist.

• Major project wins could drive significant upside, but guidance remains cautious until contracts are formalized.

• Management sees signs that the Canadian freight recession has ended, with June being the best month in years.

• S&I segment budgeted for CAD 450 million revenue in 2026, with potential to return to historical peaks if major projects and M&A materialize.