Mullen Group Ltd. reported higher first quarter revenue and net income, with acquisitions driving growth while underlying operations remained mixed.
The company posted revenue of $547.7 million for the three months ended March 31, up 10.2% from $497.1 million a year earlier. Net income rose 18.6% to $21.0 million, or $0.22 per share, compared to $17.7 million, or $0.20 per share, a year earlier.
Operating income before depreciation and amortization (OIBDA) increased to $76.0 million from $68.0 million, while adjusted OIBDA came in at $75.1 million. Margins held steady at 13.7%.
Growth was largely acquisition-driven, with recently added businesses contributing more than $50 million in incremental revenue, offsetting weaker performance in some existing operations. The logistics and warehousing and U.S. 3PL segments posted strong gains, while less-than-truckload and the specialized and industrial services segments declined.
Chairman and senior executive officer Murray Mullen said the company delivered “record revenues and solid profitability” despite limited economic growth, adding the results position the company well if conditions improve.
“We’re going to focus on margin over market share,” he said, noting the company will continue to pursue acquisitions while keeping a close eye on costs.
Management pointed to a stronger March, particularly in the logistics and warehousing segment, though April has not matched that momentum. Mullen said recent fuel price volatility may be causing some hesitation among customers.
“We have to watch that carefully,” he said, noting it could take time for the market to adjust.
On pricing, Mullen said tightening conditions in the U.S. market — driven in part by regulatory changes — are beginning to push rates higher, particularly in cross-border freight.
“If you get any demand push in the U.S. with a reduction in supply, that could be outsized in terms of rates,” he said, adding contract pricing has yet to fully respond.
The company also highlighted increasing use of artificial intelligence across its operations, particularly within its U.S. logistics businesses, where tools are being integrated into digital platforms to improve efficiency and support growth.
On the project front, Mullen pointed to a potential opportunity tied to a major LNG development in Alaska, which it described as a multibillion-dollar project with strong political backing, and which dwarfs any of the announced so-called “nation-building” projects in Canada in scale. The company said it is currently involved in discussions with a long-term Alaska-based partner around hauling pipe for the project, noting that only a limited number of contractors have the capability to handle the work.
Looking ahead, Mullen said it expects acquisitions to remain its primary growth driver in the near term, while monitoring potential upside from large-scale infrastructure and energy projects.
Separately, the company confirmed the promotion of Richard Maloney to president, expanding his role overseeing operations.
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