Mullen Group’s third-quarter profit slipped compared with last year as rising costs and price competition pressured margins, though recent acquisitions helped lift revenue.
BNN Bloomberg spoke with Murray Mullen, chair, senior executive officer and president of Mullen Group, about the company’s growth strategy, competitive market conditions and how trade and tariff issues are shaping its outlook for Canada’s logistics industry.
Key Takeaways
- Third-quarter profit fell to $33.2 million, or 36 cents per share, down from $38.3 million a year earlier.
- Revenue rose to $561.8 million, driven by acquisitions including Cole International and Pacific Northwest Moving.
- Mullen said price competition and cost pressures are limiting profit growth across business units.
- The company is relying on acquisitions to expand services and offset weak domestic investment.
- Mullen expects long-term gains from trade and mining activity, particularly in northern and western Canada.
Read the full transcript below:
LINDSAY: Alberta-based trucking company Mullen Group reported a drop in profit from last year, but revenue rose with the help of some acquisitions. Here to talk more about those numbers is Murray Mullen, chair, senior executive officer and president of Mullen Group. It’s good to have you join us. Thanks for taking the time.
MURRAY: Good morning.
LINDSAY: I do want to talk about the acquisitions, but I’m going to start with the profit decline in the third quarter, down about $5 million from the same time last year. Why is that?
MURRAY: I think what you’re hearing from most businesses is that it’s a very competitive market. Customers are struggling, and at the end of the day, it really comes down to pricing. You can’t cut costs fast enough when competition is this tight.
That’s the number one reason we’re seeing a decline in profit across our business units. There’s still freight to move and business to do, but cost pressures — whether it’s labour, new equipment prices or taxes — are high, and we couldn’t pass those increases on to customers. There’s also an imbalance between the amount of freight available and the amount of equipment and capacity in the system. Hopefully it’s not forever, but right now it’s a very price-competitive environment.
LINDSAY: You said you didn’t want to pass on those costs to customers. Are you going to continue to absorb them moving forward, depending on how long this lasts?
MURRAY: That’s the debate every business has to have — how long you can go without generating the appropriate return. You can’t reinvest in the business without profits. It’s very competitive right now, and we’ve cut back on capital spending as a result.
You can’t do that forever. Eventually you need acceptable returns to make capital investments. Imported trucks and trailers are expensive, and most aren’t made in Canada. That’s a challenge we’ll have to address. We can’t manage it all on the cost side — eventually we’ll need price stability in the market or new technology to improve efficiency.
We’re asking suppliers to help — better fuel mileage, lower costs — and that’s the kind of market we’re in. Our revenue rose because of acquisitions, but profits were down because of price sensitivity across the market.
LINDSAY: Got it. You’ve said your top-line growth is being driven by acquisitions. What kind of acquisitions are we talking about?
MURRAY: Most were earlier this year, so this was our first full quarter of results from them. For example, Cole International, a major customs brokerage company in Canada and the U.S., was acquired June 1. That was a sizable transaction — the second largest in our 30-year history.
We believe tariffs and trade duties aren’t going away, which is why we invested in Cole. It adds to our service offering — we can now transport, store and handle customs paperwork for imported goods. It gives customers a full-service package. Cole was already a strong company, and we think we can leverage it across our logistics network. It’s still early, but so far, so good.
LINDSAY: Cole International and Pacific Northwest are two key deals. You touched on this, but what are your expectations for long-term earnings from these acquisitions?
MURRAY: You never do an acquisition unless you believe in the long-term payoff. We think the trend around trade, tariffs and government oversight on goods movement isn’t going away. Customs brokerage is a strong platform for that.
Pacific Northwest Transport is another interesting one. They handle less-than-truckload freight into the Yukon and Whitehorse. If Canada invests in mining — which is mostly in hard rock regions like the Northwest Territories, Yukon, northern Ontario, Quebec and Manitoba — those communities will need consistent service. That’s why we made these long-term investments.
LINDSAY: Murray Mullen, chair, senior executive officer and president of Mullen Group — appreciate you taking the time. Thanks for joining us.
MURRAY: Thank you very much. Have a great day.
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This BNN Bloomberg summary and transcript of the Oct. 22, 2025 interview with Murray Mullen are published with the assistance of AI. Original research, interview questions and added context was created by BNN Bloomberg journalists. An editor also reviewed this material before it was published to ensure its accuracy and adherence with BNN Bloomberg editorial policies and standards.
