Mullen Group noted in the less-than-truckload segment that acquisitions added C$11.8 million of incremental revenue in Q2. (Mullen Group)
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Mullen Group experienced an increase in revenue that was driven largely by acquisitions during the second quarter of 2025, the company reported July 24.
The Okotoks, Alberta-based company posted net income of C$25.6 million, or 28 cents a diluted share, for the three months ending June 30. That compared with C$32.9 million, 36 cents, during the same time the previous year. Total revenue increased 9.1% to C$540.9 million from C$495.6 million.
“It was a very active and productive quarter from a corporate office perspective,” said Murray Mullen, chairman and senior executive officer. “We completed a very successful, oversubscribed, long-term bond issue ensuring the balance sheet is prudently structured well into the next decade. In addition to raising the funds required to repay the 2026 expiring notes and our current bank indebtedness, we raised additional funds to support the next phase of our acquisition strategy.”
Mullen pointed out that this activity was undertaken despite the uncertainties permeating the economy and the logistics industry. He noted that consolidated revenue during the quarter was positively impacted by acquisitions; company leadership has viewed this as the only plausible means of growing during uncertain times and given the current supply-and-demand imbalance across nearly all segments of trucking.
“Overall freight demand remains solid, but thus far, there has been no sustained economic growth to generate additional demand, a necessity in our view to alter the current excess industry supply situation,” Mullen said. “As it currently stands, shippers hold the balance of power when it comes to pricing, making it difficult to grow profitably or to improve margins.”
Mullen also is optimistic that there have been some early positive signs despite the market remaining so uncertain with the tariff and trade issues still unresolved. Mullen noted those issues have negatively impacted capital investment.
“There appears to be momentum building to approve ‘nation-building’ projects in Canada,” Mullen said. “These projects would be capital intensive and would create high-paying jobs, both ingredients we believe to be positive for the economy. In addition, it is only a matter of time before the freight markets rebalance, providing service providers and carriers with more leverage to negotiate fair pricing with shippers.”
MullenGroupQ2-2025
Less-than-truckload segment revenue increased 6% to C$201.1 million from C$189.8 million during the same time last year. But operating income decreased 4.8% to C$35.7 million from C$37.5 million. The report noted that acquisitions added C$11.8 million of incremental revenue, which was somewhat offset by a C$3.2 million decrease in fuel surcharge revenue due to lower diesel fuel prices.
Logistics and warehousing segment revenue increased 15% to C$173.6 million from C$150.9 million. Operating income increased 10% to C$31.9 million from C$29 million. The report highlighted acquisitions for adding incremental revenue and the decline in fuel surcharge revenue. Revenue from existing business units, when excluding acquisitions and fuel surcharges, increased by C$1.8 million, mainly due to project work associated with an oil-processing facility in Alaska that led to higher revenue at Mullen Trucking Corp.
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Specialized and industrial services segment revenue decreased 3.7% to C$105.5 million from C$109.6 million. Operating income decreased 12.3% to C$20.6 million from C$23.5 million. The decline in revenue was due to a lack of large capital projects being sanctioned in Canada, depressed commodity prices and wildfires that negatively impacted customers with drilling and production plans.
U.S. and international logistics revenue increased 36.7% to C$64.1 million from C$46.9 million. Operating income increased 50% to C$1.2 million from C$800,000. The report noted that many customers remained cautious about ramping up manufacturing and ordering inventory until there is greater certainty around tariffs and trade.
Mullen Group ranks No. 44 on the Transport Topics Top 100 list of the largest for-hire carriers in North America and No. 89 on the TT Top 100 list of the largest logistics companies.
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