Mullen Group declares monthly dividend for shareholders

Published 21/03/2025, 17:50
Mullen Group declares monthly dividend for shareholders

OKOTOKS, Alberta - Mullen Group Ltd. (TSX:MTL), a transportation and logistics services company with a market capitalization of $191.47 million, has announced a monthly dividend payment to its shareholders. The declared dividend is set at $0.07 per Common Share for shareholders on record as of March 31, 2025, with the payment due on April 15, 2025.

The company specified that this dividend would be considered an "eligible dividend" for Canadian resident shareholders, which implies eligibility for the enhanced dividend tax credit rules under the Income Tax Act (Canada) and corresponding provincial and territorial legislation. According to InvestingPro analysis, Mullen Group maintains a strong financial position with a "GREAT" overall health score of 3.59 and appears undervalued based on its Fair Value assessment.

Mullen Group has established itself in North America with a sizable portfolio of logistics companies, offering services that include less-than-truckload, truckload, warehousing, logistics, oversized and specialized hauling transportation. The company has demonstrated strong performance with a 35% return over the past year and maintains healthy operational metrics, including an EBITDA of $76.16 million and a solid current ratio of 2.67. Additionally, the group provides various specialized services for the energy, mining, forestry, and construction industries in western Canada, such as water management, fluid hauling, and environmental reclamation.

The corporation’s support structure includes capital and financial expertise, legal support, technology and systems support, shared services, and strategic planning, aiding the independent operation of its businesses. Mullen Group is publicly traded on the Toronto Stock Exchange with the ticker symbol "MTL". For detailed analysis and additional insights, investors can access the comprehensive Pro Research Report available on InvestingPro, which provides in-depth coverage of the company’s financial health, valuation metrics, and growth prospects.

This dividend announcement is part of the company’s ongoing financial activities and is based on a press release statement from Mullen Group Ltd. The information provided is intended to keep current and potential investors informed about the latest financial distributions by the company.

In other recent news, Mullen Group Limited announced its financial results for the fourth quarter of 2024, reporting stable revenue of approximately $500 million, consistent with the previous year. The company achieved an operating income before depreciation and amortization (OIBDA) of $85 million for the quarter and $332.2 million for the entire year. Mullen Group is actively exploring expansion into the U.S. market, aiming to capitalize on potential growth opportunities there. The company completed five acquisitions in 2024 and plans further investments in 2025, with a target of $2.2 billion in revenue. Mullen Group’s operating margin improved to 17% from the previous year’s 15.9%. Analysts have noted the company’s cautious approach amid economic challenges and its strategic focus on margin improvements. The firm has a strong balance sheet, which it plans to leverage for future mergers and acquisitions.

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