Mullen Group Ltd. Internal Growth Drives Record Quarterly Financial Results

“As good as the third quarter was for the Mullen Group, I am of the view that it can be even better. Consider the logistics requirements associated with those Nation Building Projects the politicians are promoting, once they come to fruition. We are uniquely positioned to meet the increased demand associated with these massive capital projects. Plus, we will continue to do what we do best: invest in quality acquisition opportunities, like the recent Willson International announcement. None of this is possible, however, without our people. We have over 8,500 associates in our organization who make things happen every day, often without recognition and rarely with any fanfare. I know it, and I want you to know that your professionalism and efforts are valued. On behalf of the Senior Executive and all Shareholders, THANK YOU,” added Mr. Mullen.

Third Quarter Highlights

• Generated record quarterly revenues of $653.2 million – up $91.4 million or 16.3 percent on $44.3 million of internal growth, a $37.7 million increase in fuel surcharge revenue while acquisitions added $9.4 million of incremental revenues. Internal growth was most notable in the US 3PL, S&I and L&W segments while revenues within the LTL segment remained relatively stable compared to prior year. The majority of the increase in fuel surcharge revenue occurred in the LTL and L&W segments. The incremental revenue from acquisitions supplemented the growth experienced in the S&I segment.
• Generated record operating income before depreciation and amortization ("OIBDA") of $118.4 million – up $20.8 million or 21.3 percent from last year with gains recognized in all four segments. Excluding the impact of foreign exchange gains and losses on U.S. dollar denominated cash held within Corporate, operating income before depreciation and amortization – adjusted ("OIBDA – adjusted") was $118.6 million, up $22.2 million or 23.0 percent due to a $19.2 million increase at our existing Business Units (excluding acquisitions), reflecting improved market conditions, from $2.6 million of incremental OIBDA from acquisitions and from a $0.4 million decline in Corporate costs.
• OIBDA – adjusted as a percentage of consolidated revenue was 18.2 percent compared to 17.2 percent last year on lower selling and administrative expenses while direct operating expenses as a percentage of consolidated revenue increased slightly year over year. This improvement mainly resulted from greater margins in the LTL and S&I segments.
• Generated record third quarter net income of $51.5 million.

Third Quarter Commentary

Refer to the sections entitled "Non-IFRS Financial Measures" and "Other Financial Measures".

Revenue: Increased by $91.4 million or 16.3 percent to $653.2 million, led by higher revenue in all segments driven by internal growth, higher fuel surcharge revenues and incremental revenue from acquisitions.

• LTL segment up $20.5 million, or 10.4 percent, to $218.3 million – fuel surcharge revenue increased by $18.6 million due to higher diesel fuel prices while revenue from our Business Units (excluding fuel surcharge) increased modestly by $1.9 million despite certain Business Units demarketing lower rate customers to prioritize higher quality freight.
• L&W segment up $28.1 million, or 13.5 percent, to $236.2 million – fuel surcharge revenue increased by $16.4 million due to higher diesel fuel prices while revenue from our Business Units (excluding fuel surcharge and acquisitions) increased by $10.5 million led by greater demand for mining related freight at Bandstra Transportation Systems Ltd. ("Bandstra"), greater demand for cross border shipments and higher freight forwarding revenue at Abco International Freight Inc. ("Abco"). Acquisitions added $1.2 million of incremental revenue.
• S&I segment up $26.0 million, or 24.7 percent, to $131.1 million – revenues from our Business Units (excluding fuel surcharge and acquisitions) increased by $15.1 million consisting of $12.1 million from higher demand for pipeline hauling and stringing and water management services being somewhat offset by lower demand for civil construction services in northern Manitoba; and from a $7.4 million increase from our drilling related services Business Units due to higher drilling activity. These increases were somewhat offset by a $3.3 million decline in revenues from our production services Business Units resulting from demarketing customers in certain markets and from a reduction in facility maintenance and turnaround projects. Acquisitions also added $8.3 million of incremental revenue and fuel surcharge revenue increased by $2.6 million to $3.6 million due to higher diesel fuel prices.
• US 3PL segment up $16.4 million, or 30.4 percent to $70.3 million – revenue from our existing Business Units increased as HAUListic has seen greater demand for its services as the U.S. freight market continues to tighten.

OIBDA – adjusted: Generated $118.6 million of OIBDA – adjusted, an increase of $22.2 million, or 23.0 percent. OIBDA – adjusted as a percentage of consolidated revenue was 18.2 percent as compared to 17.2 percent last year. OIBDA was $118.4 million, up $20.8 million or 21.3 percent due to a $19.2 million increase at our existing Business Units (excluding acquisitions), reflecting improved market conditions, and from $2.6 million of incremental OIBDA from acquisitions.

• LTL segment up $7.4 million, or 20.3 percent, to $43.8 million – OIBDA improved due to a greater proportion of higher margin freight, improved lane density and cost recovery efforts associated with implementing fuel surcharges to mitigate the rise in diesel fuel prices. Operating margin increased by 1.7 percent to 20.1 percent as compared to the prior year period, primarily due to greater lane density, demarketing lower margin freight and cost recovery efforts.
• L&W segment up $4.8 million, or 12.6 percent, to $42.8 million – OIBDA from our existing Business Units (excluding acquisitions) increased as compared to the same period in the prior year and was mainly due to an increase in demand for services at Bandstra. Operating margin declined by 0.2 percent to 18.1 percent as compared to the prior year, primarily due to the increase in contractors revenue at Abco and the asset light nature of their operations and margin decline at Kleysen Group Ltd. and Mullen Trucking Corp. as certain project work in 2025 was not repeated in the current year.
• S&I segment up $8.8 million, or 37.3 percent, to $32.4 million – OIBDA from our existing Business Units (excluding acquisitions) increased by $6.7 million due to stronger demand for water management and pipeline hauling and stringing services, and higher activity levels for our drilling related services Business Units, which was somewhat offset by lower demand for both civil construction services and for production services due to demarketing customers in certain markets and from the timing of facility maintenance and turnaround projects. Operating margin increased by 2.2 percent to 24.7 percent compared to the prior year due to generating a greater proportion of higher margin revenue.

Refer to the sections entitled "Non-IFRS Financial Measures" and "Other Financial Measures".

• US 3PL segment up $0.8 million, to $4.8 million – OIBDA increased at both Cole USA and HAUListic as the U.S. customs business remains stable and the freight market continues to tighten. Operating margin decreased to 6.8 percent from 7.4 percent primarily due to generating a greater proportion of lower margin freight forwarding revenue.
• Corporate costs down $0.4 million to $5.2 million – Corporate costs (excluding foreign exchange) decreased due to various cost control efforts.

Net income: Generated record third quarter net income of $51.5 million, increasing by $18.3 million, or 55.1 percent, or $0.54 per Common Share due to:

• A $20.8 million increase in OIBDA, a $3.1 million decrease in finance costs, a $0.9 million decrease in depreciation of right-of-use assets, a $0.8 million increase in earnings from equity investments and a $0.6 million positive variance in net foreign exchange.
• These increases were somewhat offset by a $4.9 million increase in income tax expense, a $2.0 million increase in loss on sale of property, plant and equipment, a $0.6 million increase in depreciation of property, plant and equipment, a $0.3 million increase in amortization of intangible assets, and a $0.1 million change in the fair value of investments.

Financial Position

The following summarizes our financial position as at September 30, 2026, along with some key changes that occurred during the third quarter:

• Working capital at September 30, 2026 was $381.3 million, a $43.3 million increase as compared to June 30, 2026. There was $213.9 million of cash included within working capital, a $42.9 million increase as compared to June 30, 2026.
• Total net debt ($817.5 million) to operating cash flow ($377.8 million) of 2.16:1 as defined per our Private Placement Debt agreements (threshold of 3.50:1).
• If total net debt was reduced by cash and cash equivalents, total net debt – adjusted ($603.6 million) to operating cash flow ($377.8 million) would have been 1.60:1.
• Undrawn Bank Credit Facilities with a borrowing capacity of $525.0 million.
• Private Placement Debt of $797.8 million (6.1 percent per annum average annual fixed rate) with principal repayments of $406.4 million and $395.9 million due in July 2034 and July 2037, respectively.
• Net book value of property, plant and equipment of $1.1 billion, which includes $689.8 million of carrying costs of owned real property.

Refer to the sections entitled "Non-IFRS Financial Measures" and "Other Financial Measures".

Non-IFRS Financial Measures

Mullen Group reports its financial results in accordance with International Financial Reporting Standards ("IFRS"). Mullen Group reports on certain non-IFRS financial measures and ratios, which do not have a standard meaning under IFRS and, therefore, may not be comparable to similar measures presented by other issuers. Management uses these non-IFRS financial measures and ratios in its evaluation of performance and believes these are useful supplementary measures. We provide shareholders and potential investors with certain non-IFRS financial measures and ratios to evaluate our ability to fund our operations and provide information regarding liquidity. Specifically, net income - adjusted, earnings per share - adjusted, OIBDA – adjusted and net revenue are not measures recognized by IFRS and do not have standardized meanings prescribed by IFRS. For the reader's reference, the definition, calculation and reconciliation of non-IFRS financial measures are provided in this section. These non-IFRS financial measures should not be considered in isolation or as a substitute for measures prepared in accordance with IFRS. Investors are cautioned that these indicators should not replace the forgoing IFRS terms: net income, earnings per share, and revenue.

Net Income – Adjusted and Earnings per Share – Adjusted

The following table illustrates net income and basic earnings per share before considering the impact of the net foreign exchange gains or losses, the change in fair value of investments, and the gain on fair value of equity investments. Management adjusts net income and earnings per share by excluding these specific factors to more clearly reflect earnings from an operating perspective.

OIBDA – Adjusted

OIBDA – adjusted is calculated by subtracting foreign exchange gains and losses recognized on U.S. denominated cash held with the Corporate Office from OIBDA. Management relies on OIBDA – adjusted as a measurement since it provides an indication of Mullen Group's ability to generate cash from its principal business activities prior to depreciation and amortization, financing, taxation in various jurisdictions and gains and losses recognized on U.S. cash held within the Corporate Office. Net income is also an indicator of financial performance, however, net income includes expenses that are not a direct result of Mullen Group's operating activities.

Other Financial Measures

Other financial measures consist of supplementary financial measures and capital management measures.

Supplementary Financial Measures

Supplementary financial measures are financial measures disclosed by a company that (a) are, or are intended to be, disclosed on a periodic basis to depict the historical or expected future financial performance, financial position or cash flow of a company, (b) are not disclosed in the financial statements of a company, (c) are not non-IFRS financial measures, and (d) are not non-IFRS ratios. The Corporation has disclosed the following supplementary financial measure.

Operating Margin

Operating margin is a supplementary financial measure and is defined as OIBDA divided by revenue. Management relies on operating margin as a measurement since it provides an indication of our ability to generate an appropriate return as compared to the associated risk and the amount of assets employed within our principal business activities.

OIBDA – Adjusted as a Percentage of Consolidated Revenue

OIBDA – adjusted as a percentage of consolidated revenue is a supplementary financial measure and is defined as OIBDA – adjusted divided by revenue. Management relies on this adjusted operating margin as a measurement since it provides an indication of our ability to generate an appropriate return from our principal business activities prior to depreciation and amortization, financing, taxation in various jurisdictions and gains and losses recognized on U.S. cash held within Corporate Office as compared to the associated risk of our principal business activities.

Net Cash From Operating Activities Per Share

Net cash from operating activities per share is calculated by dividing net cash from operating activities by the weighted average number of Common Shares outstanding. Management measures cash flow per share to provide investors with an indication of the amount of cash being generated on a per share basis, after consideration of working capital and income taxes paid.

Refer to the section entitled "Non-IFRS Financial Measures".

Capital Management Measures

Capital management measures are financial measures disclosed by a company that (a) are intended to enable users to evaluate a company's objectives, policies and processes for managing the entity's capital, (b) are not a component of a line item disclosed in the primary financial statements of the company, (c) are disclosed in the notes of the financial statements of the company, and (d) are not disclosed in the primary financial statements of the company. The Corporation has disclosed the following capital management measure.

Total Net Debt

The term "total net debt" is defined in the Private Placement Debt agreements as all debt including the Debentures, the Private Placement Debt, lease liabilities associated with operating equipment, the Bank Credit Facilities and letters of credit less any unrealized gain on Cross-Currency Swaps plus any unrealized loss on Cross-Currency Swaps, as disclosed within Derivatives on the condensed consolidated statement of financial position. Total net debt specifically excludes any real property lease liabilities. Total net debt is defined within our Private Placement Debt agreements and is used to calculate our total net debt to operating cash flow covenant. Total net debt – adjusted is defined as total net debt less cash and cash equivalents. Total net debt – adjusted is not defined within our Private Placement Debt agreements, it provides users of this MD&A with our net financial leverage. Management calculates and discloses total net debt to provide users of this MD&A with an understanding of how our debt covenant is calculated.

About Mullen Group Ltd.

Mullen Group is a public company with a long history of acquiring companies in the transportation and logistics industries. Today, we have one of the largest portfolios of logistics companies in North America, providing a wide range of transportation, customs brokerage, warehousing, and distribution services through a network of independently operated businesses. Service offerings include less-than-truckload, truckload, warehousing, logistics, transload, oversized, third-party logistics, customs brokerage, and specialized hauling transportation. In addition, our businesses provide a diverse set of specialized services related to the energy, mining, forestry and construction industries in western Canada, including water management, fluid hauling and environmental reclamation. The corporate office provides the capital and financial expertise, legal support, technology and systems support, shared services and strategic planning to its independent businesses.

Mullen Group is listed on the Toronto Stock Exchange under the symbol " MTL ". Additional information is available on our website at www.mullen-group.com or on the Corporation's issuer profile on SEDAR+ at www.sedarplus.ca.

Contact Information

Mr. Murray Mullen - Chair and Senior Executive Officer Mr. Richard Maloney - President and Senior Operating Officer Mr. Carson Urlacher - Senior Financial Officer Ms. Joanna Scott - Senior Corporate Officer Mr. Lee Hellyer - Senior Commercial Officer

121A - 31 Southridge Drive Okotoks, Alberta, Canada T1S 2N3 Telephone: 403-995-5200 Fax: 403-995-5296

Disclaimer

Mullen Group may make statements in this news release that reflect its current beliefs and assumptions and are based on information currently available to it and contains forward-looking statements and forward-looking information (collectively, "forward-looking statements") within the meaning of applicable securities laws. This news release may contain forward-looking statements that are subject to risk factors associated with the overall economy and the energy sector and more particularly described on page 46 of the 2025 Financial Review. These forward-looking statements relate to future events and Mullen Group's future performance. All forward looking statements and information contained herein that are not clearly historical in nature constitute forward-looking statements, and the words "may", "will", "should", "could", "expect", "plan", "intend", "anticipate", "believe", "estimate", "propose", "predict", "potential", "continue", "aim", or the negative of these terms or other comparable terminology are generally intended to identify forward-looking statements. Such forward-looking statements represent Mullen Group's internal projections, estimates, expectations, beliefs, plans, objectives, assumptions, intentions or statements about future events or performance. These forward-looking statements involve known or unknown risks, uncertainties and other factors that may cause actual results or events to differ materially from those anticipated in such forward-looking statements. Mullen Group believes that the expectations reflected in these forward-looking statements are reasonable; however, undue reliance should not be placed on these forward-looking statements, as there can be no assurance that the plans, intentions or expectations upon which they are based will occur. In particular, forward-looking statements include but are not limited to the following: (i) Mullen Group's belief that as good as the third quarter was for the Mullen Group, we are of the view that it can be even better; (ii) Mullen Group's belief that when the Nation Building projects come to fruition, there will be logistics requirements; and (iii) Mullen Group's expectation that we will continue to do what we do best: invest in quality acquisition opportunities, like the recent Willson International announcement. These forward-looking statements are based on certain assumptions and analyses made by Mullen Group in light of our experience and our perception of historical trends, current conditions, expected future developments and other factors we believe are appropriate under the circumstances. These assumptions include but are not limited to the following: (i) that once the Nation Building projects, that the politicians are promoting come to fruition, there will be logistics requirements that Mullen Group and its Business Units can service; (ii) that Mullen Group is uniquely positioned to meet the increase demand associated with the massive capital Nation Building projects; and (iii) that acquisition opportunities will present themselves to Mullen Group during the remainder of 2026. For further information on any strategic, financial, operational and other outlook on Mullen Group's business please refer to Mullen Group's Management's Discussion and Analysis available for viewing on Mullen Group's issuer profile on SEDAR+ at www.sedarplus.ca. Additional information on risks that could affect the operations or financial results of Mullen Group may be found under the heading "Principal Risks and Uncertainties" starting on page 46 of the 2025 Financial Review as well as in reports on file with applicable securities regulatory authorities and may be accessed through Mullen Group's issuer profile on the SEDAR+ website at www.sedarplus.ca. The forward-looking statements contained in this news release are expressly qualified by this cautionary statement. The forward-looking statements contained herein is made as of the date of this news release and Mullen Group disclaims any intent or obligation to update publicly any such forward-looking statements, whether as a result of new information, future events or results or otherwise, other than as required by applicable Canadian securities laws. Mullen Group relies on litigation protection for forward-looking statements.

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