By Adriano Marchese

Mullen Group reported lower first-quarter profit due to higher costs, while acquisitions helped drive revenue growth.

The Canadian trucking company on Wednesday posted a lowered net income of 17.7 million Canadian dollars ($12.8 million), or C$0.20 a share, down from C$22.2 million, or C$0.25 a share, in the comparable quarter a year ago.

Mullen cited primarily higher depreciation of right-of-use assets and financing costs.

Adjusted earnings, which strips out exceptional costs and one-off items, were C$0.21 a share, missing expectations of C$0.24 a share, according to analyst estimates on FactSet.

Revenue rose 7.5% to C$497.1 million, just slightly below analyst projections of C$497.8 million. Mullen credits the growth to the incremental revenue from its acquisitions, while among its segments, its two largest logged the biggest increases in revenue growth.

Revenue at its less-than-truckload unit rose 4.9% to C$191.5 million, while its logistics and warehousing segment rose 20% to C$151.8 million.

Chair and Senior Executive Officer Murray Mullen said that the company's acquisitions have been the key to its growth in an environment where tariff issues restrict trade and stymie growth.

"We know that acquisitions are the only plausible way to grow given the current market dynamics," Mullen said.

The executive added that while a prolonged tariff stalemate could weigh on the company through its effects on the economy and demand, in the longer term, he expected the markets will adjust and that negotiated agreements will "calm the situation."

Mullen said that acquisitions have been and will continue to be the only viable means of growth in this market "and we will continue to look at opportunities that add long term value for our shareholders."

Write to Adriano Marchese at adriano.marchese@wsj.com

(END) Dow Jones Newswires

April 23, 2025 06:32 ET (10:32 GMT)

Copyright (c) 2025 Dow Jones & Company, Inc.