Canadian trucking firm Mullen Group's Q2 revenue beats on acquisitions

Overview

• Canada logistics provider's Q2 revenue rose 12.6% yr/yr, beating analyst expectations

• Adjusted EPS for Q2 beat analyst expectations

• Company increased 2026 capital program by C$50 mln to meet expected demand

Outlook

• Company expects increased customer demand and is altering strategy to meet market needs

• Board approves C$50 mln increase in 2026 capital program; further investments and acquisitions supported

Result Drivers

• ACQUISITIONS - Co said acquisitions contributed C$44.7 mln in incremental Q2 revenue, mainly in Logistics Warehousing

• FUEL SURCHARGES - Higher diesel prices led to increased fuel surcharge revenue, boosting results in LTL and LW segments

• MARGIN IMPROVEMENT - Improved margins in LTL and US 3PL segments due to greater lane density, demarketing lower margin freight, and cost recovery efforts

Company press release: ID:nGNXbwh4sb

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 6 "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$23.00, about 10.2% below its July 22 closing price of C$25.60

• The stock recently traded at 19 times the next 12-month earnings vs. a P/E of 14 three months ago

Reuters Recommended Reads

• July 22 - CSX Q2 revenue beats on volume growth, fuel surcharges and higher pricing

• July 22 - Freight group DSV's shares slide 15% as cash flow falls, earnings disappoint

• July 23 - Switzerland's Kuehne+Nagel Q2 net turnover rises on air logistics strength

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)