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Acquisitions Lift Mullen Group Revenue to Q1 Record
Chairman Says Company Delivered Solid Financials Despite Limited Economic Growth
Key Takeaways:
- Mullen Group’s first-quarter revenue rose 10.2% to C$547.7 million, primarily driven by acquisitions.
- Net income increased to C$21 million as logistics and U.S. segments posted strong gains.
- Management said it will continue focusing on margins and selective acquisitions, particularly in energy.
Mullen Group’s record first-quarter revenue was primarily driven by acquisitions, the Canadian carrier noted in its earnings report April 23.
The Okotoks, Alberta-based company posted net income of C$21 million, or 22 cents a diluted share, for the three months ending March 31. That compared with C$17.7 million, 20 cents, during the same time the previous year. Total revenue increased 10.2% to C$547.7 million from C$497.1 million.
“I like the fact that we generated record revenues and solid profitability even during a period of basically no economic growth,” Murray Mullen, chairman and senior executive officer, said during a call with investors. “This bodes very well when the economic conditions improve.”
Revenue mainly was boosted from the acquisitions of Cole Group in 2025, Lac La Biche Transport Ltd. on Jan. 1, 2026, and the remaining 70% of Thrive Fluid Management Group Ltd. on Feb. 1.
Mullen added that the focus will also be on margins over market share, alongside its ongoing efforts to find companies that would be a good fit for its network of independently managed business units. The acquisitions done during the first quarter mainly focused on energy.
He said Canada is unlikely to see meaningful economic stimulus without progress on large-scale nation‑building projects.
“We’re buying the thesis that is being messaged by the governments that nation-building projects are going to go ahead,” he said.
Mullen added that the timing for when these projects will proceed is less certain, but he noted that the acquisitions are doing well in the current market regardless. He anticipates that they are well positioned for when the energy sector starts seeing growth.
Mullen said the company will continue pursuing acquisitions but will remain selective, focusing on deals that add value rather than expanding simply for growth’s sake.
Revenue by Segment
- Less-than-truckload: Decreased 4.2% to C$183.5 million from C$191.5 million during the 2025 period. Operating income declined 5.8% to C$27.6 million from C$29.3 million. The revenue decrease was due to demarketing some customers in certain markets, inclement weather early in the quarter and a decline in fuel surcharges in March.
- Logistics and warehousing: Increased 31.8% to C$200 million from C$151.8 million. Operating income increased 24.8% to C$31.7 million from C$25.4 million. The revenue increase was due to a rise in demand for services at Mullen Trucking Corp., Kleysen Group and Bandstra Transportation Systems while fuel surcharge revenue increased. The report also noted that acquisitions added C$40.3 million in incremental revenue.
- Specialized and industrial services: Decreased 2.5% to C$109.4 million from C$112.2 million. Operating income declined 4.8% to C$17.9 million from C$18.8 million. The report noted that revenue generated from specialized business units decreased mainly due to lower demand for pipeline hauling and stringing services. It also noted that fuel surcharge revenue declined due to the price of diesel in the first two months of 2026.
- U.S. and international logistics: Increased 26.7% to C$56.9 million from C$44.9 million. Operating income surged 3,800% to C$3.9 million from C$100,000. The report noted that acquisitions added incremental revenue as the freight market has started tightening.
Mullen Group ranks No. 44 on the Transport Topics Top 100 list of the largest for-hire carriers in North America and No. 79 on the TT Top 100 list of the largest logistics companies.
