Andlauer Healthcare Group (AND) Q2 2025 earnings summary

Executive summary

• Q2 2025 revenue declined 3.0% year-over-year to $156.6 million, mainly due to lower fuel surcharge revenue, US truckload challenges, and deconsolidation of Nova Pack.

• Operating income fell 14.9% to $18.9 million, and net income decreased 14.5% to $13.5 million compared to Q2 2024.

• EBITDA was $38.1 million, down 4.9% year-over-year, with an EBITDA margin of 24.3%, within the target range.

• Shareholders approved an all-cash acquisition by UPS at C$55.00 per share, valuing the company at $2.2 billion; closing expected in H2 2025 pending Competition Act approval.

Financial highlights

• Healthcare logistics segment revenue dropped 6.0% to $41.6 million, mainly from an 85.6% decline in packaging revenue after Nova Pack deconsolidation.

• Specialized transportation segment revenue decreased 1.9% to $115.0 million, with Canadian ground transportation (excluding fuel) up 6.3% and US truckload down 15.8%.

• Cost of transportation and services was $78.2 million (50.0% of revenue), down from $80.9 million (50.1%) in Q2 2024.

• Direct operating expenses fell to $24.6 million (15.7% of revenue) from $26.6 million (16.5%).

• Selling, general, and administrative expenses rose to $16.9 million (10.8% of revenue) due to transaction-related legal and professional fees.

Outlook and guidance

• Transaction with UPS expected to close in the second half of 2025, subject to Competition Act approval and customary conditions.

• Quarterly dividend of $0.12 per share intended to continue until transaction closing, subject to board discretion.