Logistics provider Mullen misses Q3 revenue estimates on weak private investment

Mullen

22/10/2025 11:10

Overview

Mullen Group Q3 revenue up 5.6% yr/yr but missed analyst expectations

Adjusted EPS for Q3 beats analyst estimates

Net income for Q3 decreased by 13.3% due to higher finance costs

Outlook

Company continues to rely on acquisitions for growth due to economic conditions

Mullen Group sees opportunities in expanding service offerings through acquisitions

Company anticipates nation-building projects could boost economic activity

Result Drivers

ACQUISITIONS DRIVE REVENUE - Mullen Group attributes Q3 revenue growth to acquisitions, particularly Cole Group and PNW Group

WEAK PRIVATE INVESTMENT - Revenue from existing business units declined due to weak private capital investment in Canada

SEGMENT PERFORMANCE - Logistics & Warehousing segment grew due to acquisitions, while Specialized & Industrial Services declined due to fewer capital projects

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q3 Revenue
Miss
C$561.80 mln
C$615.70 mln (5 Analysts)
Q3 Adjusted EPS
Beat
C$0.38
C$0.37 (6 Analysts)
Q3 EPS
C$0.36
Q3 Adjusted Net Income
Miss
C$33 mln
C$33.70 mln (4 Analysts)
Q3 Net Income
C$33.20 mln


Analyst Coverage

The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 7 "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$16.13, about 10.6% above its October 21 closing price of C$14.42

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

Press Release: ID:nGNX8G8YtS

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(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.)