Canada's Mullen Group beats Q2 revenue estimates, driven by acquisitions

Mullen

24/07/2025 11:14

Overview

Mullen Group Q2 revenue rises 9.1%, beating analyst expectations, per LSEG data

Adjusted EPS for Q2 missed analyst estimates, reflecting pricing pressures

Co completed Cole Group acquisition and issued new debt for growth

Outlook

Company sees market conditions as uncertain due to unresolved tariff debates

Mullen Group optimistic about nation-building projects boosting the economy

Company plans to strengthen market position through acquisitions

Mullen Group aims to protect margins until market conditions improve

Result Drivers

ACQUISITIONS - Revenue growth driven by acquisitions, including Cole Group, contributing C$52.6 mln in incremental revenue

PRICING PRESSURES - Competitive pricing and cost pressures impacted profitability, particularly in the LTL and S&I segments

SOLID DEMAND - Overall freight demand remained solid, but economic growth needed to alter supply/demand imbalance

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q2 Revenue
Beat
C$540.90 mln
C$528.80 mln (7 Analysts)
Q2 Adjusted EPS
Miss
C$0.21
C$0.33 (8 Analysts)
Q2 EPS
C$0.28
Q2 Adjusted Net Income
Miss
C$18.50 mln
C$28.80 mln (4 Analysts)
Q2 Net Income
C$25.60 mln
Q2 Adjusted Operating Income
Beat
C$83.80 mln
C$48.50 mln (3 Analysts)

Analyst Coverage

The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 8 "strong buy" or "buy", 3 "hold" and no "sell" or "strong sell"

The average consensus recommendation for the ground freight & logistics peer group is "buy"

Wall Street's median 12-month price target for Mullen Group Ltd is C$16.75, about 16.4% above its July 23 closing price of C$14.00

The stock recently traded at 11 times the next 12-month earnings vs. a P/E of 10 three months ago

Press Release: ID:nGNX47lSrm

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)