Mullen Group Ltd. reports revenue growth and net income decrease in first quarter 2025
From GlobeNewswire: 2025-04-23 06:00:00
Mullen Group Ltd. reported financial results for the period ending March 31, 2025, showing revenue of $497.1 million, up 7.5% from the previous year. Operating income before depreciation and amortization was $68.0 million, a 2.7% increase. Net income decreased by 20.3% to $17.7 million. Acquisitions drove revenue growth. Mr. Murray K. Mullen, Chair and Senior Executive Officer, emphasized the importance of acquisitions for growth in the current market.
Despite tariff issues impacting trade, Mullen Group’s freight demand remained steady in the first quarter of 2025. The company believes prolonged disputes could affect the economy and freight demand. Acquisitions remain a key strategy for growth. Mullen Group recently acquired the Cole Group, positioning itself to achieve its 2025 Business Plan. The company maintains a strong balance sheet to fund future growth opportunities.
Revenue for Mullen Group’s Less-Than-Truckload segment increased by 4.9% to $191.5 million, with acquisitions offsetting a decline in fuel surcharge revenue. The Logistics & Warehousing segment saw a 20.2% revenue increase to $151.8 million, driven by acquisitions. The Specialized & Industrial Services segment revenue increased by 0.3% to $112.2 million. The US & International Logistics segment revenue increased by 1.1% to $44.9 million.
Operating income before depreciation and amortization (OIBDA) for the Less-Than-Truckload segment decreased by 4.9% to $29.3 million due to the demarketing of a winter ice road project. The Logistics & Warehousing segment saw a 12.9% increase in OIBDA to $25.4 million. The Specialized & Industrial Services segment’s OIBDA increased by 12.6% to $18.8 million. The US & International Logistics segment’s OIBDA decreased to $0.1 million.
Mullen Group’s net income decreased by 20.3% to $17.7 million, or $0.20 per Common Share. Factors contributing to the decrease included higher depreciation costs and finance charges. However, there were positive variances in OIBDA, net foreign exchange, and gain on sale of assets. The company’s strong balance sheet includes $131.2 million in cash and a borrowing capacity of $525.0 million.
Mullen Group’s strong financial position includes working capital of $286.7 million, with $131.2 million in cash. The company’s total net debt to operating cash flow ratio is 2.23:1, below the threshold set in its 2024 Notes agreement. The net book value of property, plant, and equipment is $1.0 billion, including $658.8 million in real property carrying costs. Mullen Group remains focused on acquisitions for growth and value creation for shareholders.
Read more at GlobeNewswire:: Mullen Group Ltd. Reports 2025 First Quarter Financial