Mullen Group (MTL) investor relations material

Executive summary

• Q1 2026 revenue rose 10.2% year-over-year to $547.7 million, driven by acquisitions such as Cole Group, Thrive Management Group, and Lac La Biche Transport, despite modest declines in some segments.

• Net income increased 18.6% to $21.0 million, with EPS up to $0.22 from $0.20 last year.

• OIBDA-adjusted was $75.1 million, up 10.1% year-over-year, maintaining a 13.7% margin.

• Management team expanded with new senior roles and a focus on cost control, margin over market share, and selective acquisitions.

• Monetized a derivative for $26.4 million, enhancing liquidity.

Financial highlights

• Revenue: $547.7 million (+10.2% YoY); OIBDA-adjusted: $75.1 million (+10.1% YoY); Net income: $21.0 million (+18.6% YoY).

• March was a particularly strong month, driving organic growth in the L&W segment and improving market conditions.

• LTL segment faced negative same-store sales, mainly due to demarketing and severe weather in January; revenue down 4.2% YoY to $183.5 million.

• Fuel surcharge revenue increased, with March 2026 at CAD 22 million, up from CAD 19 million in March 2022.

• Net cash from operating activities: $27.3 million; Working capital: $298.8 million; Cash: $141.7 million.

Outlook and guidance

• Full-year revenue guidance remains at CAD 2.3–2.4 billion and EBITDA at CAD 365 million.

• Management sees evidence of a freight market inflection point, with solid demand and tightening supply potentially leading to improved pricing if trends continue.

• Guidance excludes potential nation-building projects and additional acquisitions.

• Management is cautious due to recent fuel price spikes, global uncertainties, and risks from Middle East conflicts.

• Acquisitions and "Nation Building Projects" in Canada seen as future growth drivers.