Freight volumes were “not materially” impacted by U.S.-imposed and retaliatory tariffs in the first quarter, Mullen Group reported in its Q1 earnings, however senior executive officer Murray Mullen noted “there are elevated risks” in the near-term.

Mullen Group was able to modestly grow its revenue against year-ago levels, on the back of acquisitions, despite tumultuous market conditions. The company climbed to the second largest for-hire carrier in Canada this year, according to Today’s Trucking’s Top 100 rankings.

“As we have articulated for some time now, we know that acquisitions are the only plausible way to grow given the current market dynamics,” Mullen said in a press release accompanying Q1 earnings.

“This is precisely the case again in the first quarter of 2025. In fact, the acquisitions we completed last year provided the growth in revenues during the current quarter. Our job now is to leverage these new opportunities into profitable businesses.”

He singled out customs brokerage, freight forwarding, and trade consulting firm Cole Group “as a company that provides a much-needed service offering that will be required for a long time.” Mullen announced its acquisition of the company in Q1.

Mullen Group’s revenue climbed 7.5% year over year to $497.1 million, while net income slid 20.3% to $17.7 million. While revenue was up $34.5 million, $37.7 million came from acquisitions. LTL revenue was up 4.9%, logistics and warehousing up 20.2%, and specialized and industrial services ticked up 0.3%.

Mullen’s U.S. 3PL segment saw revenue growth of 1.1%.

On a conference call with analysts, Mullen provided more insights on the current and future market conditions, and did so with a surprisingly upbeat demeanor.

Expectations for remainder of the year

The fact freight volumes weren’t heavily impacted so far by tariffs could also be a factor of shippers pulling forward volumes to get ahead of such tariffs, Mullen noted, adding Q2 will provide more clarity.

As for the macro-economy, he expects it to stay similar to last year. He doesn’t see any growth for the Canadian economy this year, but the company plans to be opportunistic.

“Never let a good crisis go to waste,” Mullen said. “We will not let uncertain times deter us from pursuing our long-term objectives, and it may turn out to be a wonderful time for Mullen Group. As others around us enter full-on panic mode, we keep a steady hand on the wheel and eyes wide open for great opportunities.”

Trucking bankruptcies are at levels not seen in 10 or more years, he added, and Mullen is cashed up and able to absorb some of that business or make acquisitions.

“We will gain market share because our competitors are stretched thin or not pricing properly, so there’s going to be a lot of failures. We’ll pick [that business] up, price it appropriately and away we go.”

A resource resurgence?

A looming federal election has put Canada’s resource development back in the spotlight, and Mullen Group still has a significant specialized and industrial services segment that could be quickly scaled up if oil and gas projects once again become a priority.

But, he cautioned, he needs to see actions – not just words – before deploying capital into the segment.

“When we see that action, we’ll be very aggressive in putting capital to work because it’s a great business when it comes back,” he said. “Until then, they’re words.”

He added Canada is sitting on one of the greatest resource assets in the world, and the job creation and wealth generation it has the potential to unleash won’t be realized by keeping it in the ground.

Cole Group acquisition

Mullen was particularly excited about its recently announced acquisition of customs broker and freight forwarder Cole Group. While the deal is still under review by the Competition Bureau, it’s a space Mullen Group has wanted to get into for some time.

“We’ve always liked the customs brokerage business,” Mullen said, noting the company at one time was a shareholder in Livingston International, recently purchased by Purolator. “Most of our business we have facilitates the movement of freight. We move freight, that’s what our trucks do. By investing in Cole Group, we’re now helping with the transaction of any cross-border importation or export of goods.”

Mullen likes the transactional nature of the business and feels demand will only grow as governments look for greater insights into the product entering and exiting their countries.

“These companies don’t come along very often,” he said, noting many top customs brokerages are 100-year-old companies.

The value of flexibility

Mullen also feels the company will do well in the current environment because of its flexibility. It owns its own real estate, which hedges it against uncertain lease rates.

It also runs a combination of company trucks and those belonging to owner-operators. The latter are increasingly important as the cost of equipment rises, Mullen noted.

“Company trucks don’t really get paid an appropriate return on that capital right now,” he said. “Capital is very expensive and might be more expensive with tariffs coming in.”

Mullen Group, at the moment, is more inclined to invest in technologies to improve efficiency rather than trucks themselves.

“A truck is not a technology,” Mullen said. “A truck is a tool.”

In the end, Mullen Group is poised to capitalize on the uncertain market, Mullen reiterated. “We can weather any storm and invest in the future. How many can say this? I’d say, not many of our peers.”