Canada's Mullen Group beats Q2 revenue estimates, driven by acquisitions

Overview

• Mullen Group Q2 revenue rises 9.1%, beating analyst expectations, per LSEG data

• Adjusted EPS for Q2 missed analyst estimates, reflecting pricing pressures

• Co completed Cole Group acquisition and issued new debt for growth

Outlook

• Company sees market conditions as uncertain due to unresolved tariff debates

• Mullen Group optimistic about nation-building projects boosting the economy

• Company plans to strengthen market position through acquisitions

• Mullen Group aims to protect margins until market conditions improve

Result Drivers

• ACQUISITIONS - Revenue growth driven by acquisitions, including Cole Group, contributing C$52.6 mln in incremental revenue

• PRICING PRESSURES - Competitive pricing and cost pressures impacted profitability, particularly in the LTL and S&I segments

• SOLID DEMAND - Overall freight demand remained solid, but economic growth needed to alter supply/demand imbalance

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 8 "strong buy" or "buy", 3 "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the ground freight & logistics peer group is "buy"

• Wall Street's median 12-month price target for Mullen Group Ltd is C$16.75, about 16.4% above its July 23 closing price of C$14.00

• The stock recently traded at 11 times the next 12-month earnings vs. a P/E of 10 three months ago

Press Release: ID:nGNX47lSrm