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New capital currently is expensive, so there aren’t many opportunities to invest in new equipment, Chairman Murray Mullen says. (Mullen Group via Facebook)

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continued to see its acquisition strategy drive revenue growth during the third quarter of 2025, the company reported Oct. 22.

The Okotoks, Alberta-based company posted net income of C$33.2 million, or 36 cents a diluted share, for the three months ending Sept. 30. That compared with C$38.3 million, 41 cents, during the same time the previous year. Total revenue increased 5.6% to C$561.8 million from C$532 million.

“Acquisitions are really a critical component of our growth strategy,” , chairman and senior executive officer at Mullen Group, said during a call with investors. “However, this is not the only means. So what do I mean by that? Basically, we look at growth this way: It is derived from two sources.”

Mullen explained that there is internal growth driven by improving operations, and then there is external growth that is primarily driven by acquisitions. The company relies more on internal growth when there is robust economic activity and capital investments.

“We do not believe that Canada’s economy is currently in a growth mode,” Mullen said. “Actually, I don’t know of anyone that believes this other than a few misinformed politicians. But this does not imply that the economy is in decline either, because I do not believe it is. In other words, it is OK […]. However, in the absence of growth in the economy, the balance of negotiating power shifts to the customer, and I will tell you, the customers are demanding these days. Why? Because they can.”

This forces the company to focus on managing costs as well as limiting capital investment. When rates are as low as they have been, potential returns are small enough that company leadership can’t justify the expenditure.

Mullen also pointed out that new capital is currently on the expensive side, so there aren’t many opportunities to invest in new equipment. The company has instead focused on managing costs and productivity gains to maintain margin.

Mullen then turned to acquisitions, which he said the company has relied upon for more than 30 years as a source of growth.

“These are the quickest ways to grow,” Mullen said. “However, once again, if not done carefully, well thought out as to how the investment will work out in the future, the early wins can fade away very quickly. So this is why we refer to our well-thought-out acquisition strategy. We stay focused and invest only in opportunities, and in verticals in the economy, that we believe have strong fundamentals.”

Mullen Group ranks No. 44 on the Transport Topics Top 100 list of the largest for-hire carriers in North America and No. 89 on the TT Top 100 list of the largest logistics companies.

Segment Breakdown

• Less-than-truckload revenue increased 4.8% to C$197.8 million from C$188.7 million during the same time last year. Acquisitions contributed C$10.2 million of the gain, primarily from the PNW Group, while lower diesel prices reduced fuel surcharge revenue by C$2.2 million. Stable customer demand and market share gains also helped drive growth. Operating income rose 2% to C$36.4 million from C$35.7 million.
   
• Logistics and warehousing revenue jumped 23.2% to C$208.1 million from C$168.9 million. Cole Group’s Canadian operations accounted for C$46.4 million in acquisition-driven revenue, though this was partially offset by a C$2.8 million drop in fuel surcharge revenue, as well as a C$4.4 million decline tied to weak freight and logistics demand. Operating income grew 8% to C$38 million from C$35.2 million.
   
• Specialized and industrial services revenue fell 20.3% to C$105.1 million from C$131.8 million. The decline reflected a C$21.3 million hit from several factors: A lack of large capital projects in Canada, the company’s decision to demarket customers in some markets and depressed commodity prices that hampered drilling and production plans. Fuel surcharge revenue dropped another C$1.2 million. However, gains in infrastructure and mining-related specialized services partly cushioned the blow. Operating income slipped 17.2% to C$23.6 million from C$28.5 million.
   
• U.S. and international logistics segment revenue climbed 17.9% to C$53.9 million from C$45.7 million. Cole Group’s U.S. operations added C$9.8 million through acquisitions, but Haulistic saw weaker results as customers remained hesitant to ramp up manufacturing and inventory orders amid tariff and trade uncertainty. Operating income surged to C$4 million from C$300,000.

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