Mullen Says New Capital Should Earn About 25% EBITDA Margins

Mullen Group Chair and Senior Executive Officer Murray Mullen said new capital for large projects should generate EBITDA margins around 25%, while the company will not deploy it without customer rate increases.

On the company’s earnings call at 10 a.m. ET (14:00 UTC) Thursday, Oct. 22, Mullen said, “Because new capital really implies that we should be making way north of 20% EBITDA margins, up around 25% for new capital.” He described an expected return profile for large projects, but did not specify a formal calculation method or present 25% as a binding investment policy.

Mullen said the company had not seen purchase orders for LNG-related opportunities. “We’ve had lots of ceremonies and ceremonial signings … but we haven’t seen the purchase orders yet,” he said. He thought the opportunities might be closer in 2027, but could not commit to when they would proceed.

For the quarter ended Sept. 30, Mullen Group revenue rose 16.3% year over year to C$653.2 million. Adjusted operating income before depreciation and amortization (OIBDA) was C$118.6 million, equal to 18.2% of revenue, compared with 17.2% a year earlier. The 25% figure was Mullen’s expectation for new capital; the reported third-quarter margin was 18.2%.

At quarter-end, the company reported C$381.3 million in working capital, including C$213.9 million in cash. Its undrawn bank credit facilities had borrowing capacity of C$525 million.

Mullen Group operates a North American logistics business and serves western Canadian customers in energy, mining, forestry and construction. Its U.S. & International Logistics segment recorded C$70.3 million in third-quarter revenue, up 30.4% from a year earlier.

Separately, Mullen Group announced definitive agreements to acquire Willson International on Oct. 19. The deal was expected to close in the fourth quarter of 2026 and be funded from existing cash; the company projected about C$80 million in annual revenue from Willson.