Mullen Group Ltd. Announces 2025 Fourth Quarter Financial Results and Filing of Disclosure Documents

Core Insights - Mullen Group Ltd. reported a revenue increase of 7.0% in Q4 2025, driven entirely by incremental revenues from acquisitions, amidst a challenging economic environment in Canada [2][6][11] - The company faced pressure on margins due to a soft economy and lower demand, which affected overall operating results throughout 2025 [3][12] Financial Performance - Q4 2025 revenue reached $533.8 million, up from $499.1 million in Q4 2024, with $58.8 million attributed to acquisitions [4][6] - Operating income before depreciation and amortization (OIBDA) was $73.4 million, down from $85.0 million in the previous year, reflecting ongoing market challenges [12][25] - Net income decreased to $14.6 million in Q4 2025 from $18.9 million in Q4 2024, with earnings per share dropping to $0.16 from $0.21 [4][15] Segment Performance - The Logistics & Warehousing (L&W) segment saw a revenue increase of 27.2% to $204.6 million, primarily due to acquisitions, while the Specialized & Industrial Services (S&I) segment revenue fell by 16.8% to $86.4 million due to reduced capital projects [11][17] - The U.S. & International Logistics segment grew by 18.5% to $56.3 million, benefiting from acquisitions [11][17] Operational Challenges - The company noted that existing Business Units struggled to maintain margins, with overall demand remaining below prior year levels and downward pressure on rates [3][12] - Increased selling and administrative expenses contributed to a decline in operating margin, which decreased to 14.0% from 15.3% year-over-year [12][31] Financial Position - As of December 31, 2025, Mullen Group had total net debt of $787.2 million, with a net debt to operating cash flow ratio of 2.39:1 [22][34] - The company maintained undrawn bank credit facilities with a borrowing capacity of $525.0 million, indicating a solid liquidity position [22]