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Mullen Group Ltd. Acquisitions Drive Growth in the Second Quarter of 2025
Globenewswireยท2025-07-24 10:00

Core Insights - Mullen Group Ltd. reported a solid revenue increase of 9.1% year-over-year for Q2 2025, driven by acquisitions despite challenging market conditions [3][10][9] - The company completed a successful bond issue to strengthen its balance sheet and support future acquisitions, including the Cole Group acquisition [2][3] - Current market conditions remain uncertain, with pricing pressures affecting profitability, but there are signs of potential economic improvement through infrastructure projects in Canada [3][10] Financial Performance - Consolidated revenues for Q2 2025 reached $540.9 million, up from $495.6 million in Q2 2024, reflecting a $45.3 million increase [10][9] - Operating income before depreciation and amortization (OIBDA) was $76.6 million, a decrease of 10.6% from the previous year, while adjusted OIBDA was $83.8 million, down 2.1% [10][11] - Net income fell to $25.6 million, a decrease of 22.2% compared to $32.9 million in Q2 2024, with earnings per share dropping to $0.29 from $0.37 [13][5] Segment Performance - The Less-Than-Truckload (LTL) segment reported revenues of $201.1 million, up 6.0%, while the Logistics & Warehousing (L&W) segment increased by 15.0% to $173.6 million [12][10] - The Specialized & Industrial Services (S&I) segment saw a decline of 3.7% to $105.5 million due to reduced capital projects and commodity prices [12][10] - The U.S. & International Logistics segment experienced significant growth, with revenues rising 36.7% to $64.1 million, largely due to acquisitions [12][10] Strategic Initiatives - The company is focusing on acquisitions to enhance its market position and protect margins amid current pricing pressures [3][10] - Mullen Group's strategy includes preparing for future growth by increasing staffing levels and managing corporate costs, which rose to $12.8 million [12][10] - The successful completion of the Cole Group acquisition is expected to strengthen the company's portfolio and operational capabilities [2][3]