06:43 AM EST, 02/13/2025 (MT Newswires) -- Mullen Group ( MLLGF ) , one of Canada's largest logistics providers, on Thursday reported a decline in fourth-quarter profit on lower than expected sales amid "very challenging market conditions" around demand in 2024 that the company doesn't see getting better this year.

Mullen, which said it is on the lookout for possible acquisitions, reported Q4 earnings per share adjusted of $0.33 versus $0.34 a year earlier. It also recorded Q4 EPS diluted of $0.21 versus 0.32, missing a FactSet estimate of $0.29.

It generated revenue of $499.1 million, up slightly from $498.6 million on incremental revenue from acquisitions being offset by less capital investment in Canada, continued soft freight demand and lower fuel surcharge revenue. But the FactSet estimate was for sales in Q4 of nearer $517 million

"It took a lot of hard work by everyone [last year]...to mitigate the very challenging market conditions," said Murray K. Mullen, chair and senior executive officer. "Not only was demand soft, but pricing pressures intensified, due to undisciplined competition. These were difficult issues to deal with, so for Mullen Group ( MLLGF ) to accomplish what we did last year, keeping revenues flat and improving operating income before depreciation and amortization, is something all of our business associates and teams can be proud of."

He continued: "From a demand perspective, I do not believe that 2025 will be any better than last year. The Canadian economy remains rangebound, at best, with downside risks emerging due to the potential for trade disruptions between Canada and the U.S. And, when you couple trade disruptions along with the fact that Canada is lagging in terms of capital investment, the only conclusion that I come to is that the demand for freight services will continue to underwhelm."

Mullen rose $0.07 to $14.22 on Wednesday.