Mullen Group (MTL) investor relations material

Executive summary

• Achieved record consolidated revenues of over CAD540 million in Q2 2025, up 9.1% year-over-year, primarily driven by acquisitions such as Coal/Cole Group despite a stagnant Canadian economy and industry headwinds.

• Same-store sales remained virtually flat year-over-year after adjusting for fuel surcharges, reflecting strong operational management.

• Focus remains on protecting margins over market share, with cost-saving initiatives and acquisitions mitigating profitability pressures.

• Completed an oversubscribed long-term bond issue, strengthening the balance sheet and providing over $100 million in available cash for future growth.

• Core business units maintained revenues and margins close to last year amid challenging market conditions.

Financial highlights

• Q2 2025 revenue reached $540.9M, up 9.1% year-over-year, with $52.6M from acquisitions.

• OIBDA was $76.6M, down $9.1M or 10.6% year-over-year; adjusted OIBDA was $83.8M, down $1.8M or 2.1%.

• Net income fell 22.2% to $25.6M; adjusted net income dropped 43.6% to $18.5M compared to Q2 2024.

• Basic EPS was $0.29, down 21.6%; adjusted EPS was $0.21, down 43.2% year-over-year.

• Cash dividends per share increased 16.7% to $0.21.

Outlook and guidance

• Revenue growth for the next year expected to be driven by recent acquisitions, with internal growth limited by a no-growth economy.

• Focus for the remainder of 2025 is on margin protection and cost management, with no significant rebound in organic business anticipated.

• Full-year EBITDA target of $350 million remains achievable on a run-rate basis, but timing of acquisitions may impact current year results.

• Management remains cautious due to unresolved tariff/trade issues and supply/demand imbalances.

• High-margin growth expected when capital projects and nation-building initiatives commence, though timing remains uncertain.