Q3 2025 Mullen Group Ltd Earnings Call

Operator: Call and webcast. As a reminder, all participants are in listen-only mode, and the conference is being recorded. After the presentation, there will be an opportunity to ask questions. To join the question queue, you may press star then one on your telephone keypad. Should you need assistance during the conference, you may signal an operator by pressing star then zero. I would now like to turn the conference over to Murray K. Mullen, Chair, Senior Executive Officer, and President. Please go ahead.

All participants are in listen only mode and the conference is being recorded after the presentation. There will be an opportunity to ask questions to join the question queue. You May Press Star then one on your telephone keypad should you need assistance. During the conference you may signal, an operator by pressing Star then zero.

Operator: Call and webcast. As a reminder, all participants are in listen-only mode, and the conference is being recorded. After the presentation, there will be an opportunity to ask questions. To join the question queue, you may press star, then one on your telephone keypad. Should you need assistance during the conference, you may signal an operator by pressing star, then zero. I would now like to turn the conference over to Murray K. Mullen, Chair, Senior Executive Officer, and President. Please go ahead.

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I would now like to turn the conference over to Murray K Mullen Chair Senior Executive Officer and President. Please go ahead.

Thank you and welcome all to our Mullen group's quarterly conference call.

Murray K. Mullen: Thank you. Welcome all to Mullen Group's Quarterly Conference Call. This morning, I'll provide a brief overview of the quarter. I'll turn the call over to Carson for a more in-depth look at the results. For those of you that are interested in all of the numbers, the team headed by Carson and by Nik Woodworth, they prepared the MD&A for the period ending 30 September 2025. This 42-page document contains all of the details which can be found on our website also at www.mullen-group.com or on SEDAR+. Our intent this morning is to provide the highlights. I will close with some outlook commentary before turning the call over to you for the Q&A session.

Murray K. Mullen: Thank you, and welcome all to Mullen Group's quarterly conference call. This morning, I'll provide a brief overview of the quarter, then I'll turn the call over to Carson for a more in-depth look at the results. For those of you that are interested in all of the numbers, the team headed by Carson and by Nick Woodward, they prepared the MD&A for the period ending September 30, 2025. This 42-page document contains all of the details, which can be found on our website also at www.mullen-group.com or on SEDAR Plus. Our intent this morning is to provide the highlights. I will close with some outlook commentary before turning the call over to you for the Q&A session.

This morning, I'll provide a brief overview of the quarter, then I'll turn the call over to Carsten for a more in depth look at the results.

But for those of you that are interested in all of the numbers the team headed by Carson and by Nic would work.

They prepare the MD&A for the period ending December September 32025. This 42 page document contains all of the details which can be found on our website also at www Dot Mullen.

Hyphen group Dot com or on SEDAR, plus so our intent. This morning is to provide the highlights I will close with some outlook commentary before turning the call over to you for the Q&A session.

So before I commence today's review.

Murray K. Mullen: Before I commence today's review, I shall remind you once again that the presentation contains forward-looking statements that are based upon current expectations and are subject to a number of risks and uncertainties. As such, actual results may differ materially. Further information identifying the risks, the uncertainties, and assumptions can be found in the disclosure documents. Once again, with me this morning, I'm in Okotoks with the entire senior executive team. I got Richard Maloney, who's the Senior Operating Officer, Carson Urlacher, Senior Financial Officer, and Joanna Scott, who's our Senior Corporate Officer. Moving right into, let's start by talking about the impact of acquisitions are having on our results and why I believe that shareholders should be pleased with how this well-thought-out acquisition strategy sets our organization apart from many of our industry peers.

Murray K. Mullen: Before I commence today's review, I shall remind you once again that the presentation contains forward-looking statements that are based upon current expectations and are subject to a number of risks and uncertainties. As such, actual results may differ materially. Further information identifying the risks, the uncertainties, and assumptions can be found in the disclosure documents. Once again, with me this morning, I'm in Okotoks with the entire Senior Executive Team. I've got Richard Maloney, who's a Senior Operating Officer, Carson Urlacher, Senior Financial Officer, and Joanna Scott, who's our Senior Corporate Officer. Moving right into, let's start by talking about the impact acquisitions are having on our results and why I believe that shareholders should be pleased with how this well-thought-out acquisition strategy sets our organization apart from many of our industry peers. Acquisitions are really a critical component of our growth strategy.

Sure I'll remind you once again that the presentation contains forward looking statements that are based upon current expectations and are subject to a number of risks and uncertainties and as such actual results may differ materially.

Further information identifying the risks uncertainties and assumptions can be found in the disclosure documents.

Once again with me this morning, I am in Orca talks with the entire senior executive team, who got Richard Maloney as senior operating Officer, Carson Urlacher Senior financial Officer, and Joanna Scott Who's our senior corporate officer.

Moving right into let's start by talking about the impact of acquisitions are having on our results.

And why I believe that shareholders should be pleased with how old is well thought out acquisition strategy sets our organization apart.

From many of our industry peers.

So acquisitions are really a critical component of our growth strategy. However.

Murray K. Mullen: Acquisitions are really a critical component of our growth strategy. However, this is not the only means. What do I mean by that? Well, basically, we look at growth this way. It is derived from two sources, internal, some call that same-store sales growth, and external, which is clearly acquisitions. When we take a view that the economy is strong, when economic activity is robust, when capital is being invested, we work with our business units to take advantage of these trends to expand service offerings. We aggressively deploy capital, and we raise rates. In other words, this is when we rely upon internal growth. I suspect that you're all well aware that we do not believe that Canada's economy is currently in a growth mode. Actually, I don't know of anyone that believes this other than a few misinformed politicians.

This is not the only means so what do I mean, but what basically we look at growth. This way. It is derived from two sources internal.

Murray K. Mullen: However, this is not the only means. What do I mean by that? Basically, we look at growth this way. It is derived from two sources: internal, some call that same store sales growth, and external, which is clearly acquisitions. When we take a view that the economy is strong, when economic activity is robust, when capital isn't being invested, we work with our business units to take advantage of these trends to expand service offerings. We aggressively deploy capital, and we raise rates. In other words, this is when we rely upon internal growth. I suspect that you're all well aware that we do not believe that Canada's economy is currently in a growth mode. Actually, I don't know of anyone that believes this other than a few misinformed politicians. This does not imply that the economy is in decline either, because I do not believe it is.

Some call that same store sales growth and external which is clearly acquisitions.

So when we take a view that the economy is strong and economic activity is robust when capital is being invested we work with our business units to take advantage of these trends to expand service offerings.

We aggressively deploy capital and we've raised rates and <unk>.

Other words this is when we rely upon internal growth now.

Now I suspect that you are all well aware that we do not believe that candidates economy is currently in a growth mode.

Actually I don't know of anyone that believes this up in a few misinformed politicians.

But this does not imply that the economy is in decline either because I do not believe it is in other words it is okay.

Murray K. Mullen: This does not imply that the economy is in decline either, because I do not believe it is. In other words, it is okay. There is work to do. There's freight to haul. However, in the absence of growth in the economy, the balance of negotiating power shifts to the customer, and I will tell you that customers are demanding these days. Why? Because they can. This forces us to focus on managing costs as well as limit capital investment because the returns just cannot be justified when rates are too low. I'd also add that new capital is very expensive to acquire these days. New trucks, new trailers, new everything. Given the current market conditions, we cannot rely upon increased rates to mitigate cost pressures. This is why we must manage the cost. We strive for productivity gains in order to maintain margin.

Murray K. Mullen: In other words, it is okay. There is work to do. There's freight to haul. However, in the absence of growth in the economy, the balance of negotiating power shifts to the customer. I will tell you, the customers are demanding these days. Why? Because they can. This forces us to focus on managing costs as well as limit capital investment because the returns just cannot be justified when rates are too low. I'd also add that new capital is very expensive to acquire these days: new trucks, new trailers, new everything. Given the current market conditions, we cannot rely upon increased rates to mitigate cost pressures. This is why we must manage the cost. We strive for productivity gains in order to maintain margin. On this front, I'm telling you, I'm very pleased with how the vast majority of our business units are handling the difficult market conditions.

There is work to do there is freight to haul however in the absence of growth in the economy, the balance of negotiating power shifts to the customer and I will tell you that customers are demanding these days why because they can.

So this forces us to focus on managing costs as well as limit capital investment because the returns just cannot be justified when rates are too low.

I would also add that new capital is very expensive to acquire these days, new trucks and trailers new everything.

So given the current market conditions, we cannot rely upon increase rates to mitigate cost pressures. This is why we must manage the costs, we strive for productivity gains in order to maintain margin and on this front.

I'm, telling you I am very pleased with how the vast majority of our business units are handling the difficult market conditions. They are staying focused with a steady hand on the wheel as I like to say.

Murray K. Mullen: On this front, I'm telling you, I'm very pleased with how the vast majority of our business units are handling the difficult market conditions. They are staying focused with a steady hand on the wheel, as I like to say. Let me turn to the other source of growth, the one that Mullen has relied upon for over 30 years. It's via acquisitions. These are the quickest ways to grow. However, once again, if not done carefully with a well thought out as to how the investment will work out in the future, the early wins can fade away very, very quickly. This is why we refer to our well-thought-out acquisition strategy. We stay focused and invest only in opportunities and in verticals in the economy that we believe have strong fundamentals, and hopefully future growth potential when market conditions turn more favorable. Okay.

Murray K. Mullen: They are staying focused with a steady hand on the wheel, as I like to say. Let me turn to the other source of growth, the one that Mullen Group Ltd. has relied upon for over 30 years. It's via acquisitions. These are the quickest ways to grow. However, once again, if not done carefully with a well-thought-out plan as to how the investment will work out in the future, the early wins can fade away very, very quickly. This is why we refer to our well-thought-out acquisition strategy. We stay focused and invest only in opportunities and in verticals in the economy that we believe have strong fundamentals and hopefully future growth potential when market conditions turn more favorable. With this short strategy overview, how did we do last quarter?

So let me turn to the other source of growth one that Marlin has relied upon for over 30 years.

Acquisitions.

These are the quickest ways to grow however, once again, if not done carefully with a wealth well thought out as to how the investment will work out in the future.

Of the early wins can fade away very very quickly. So this is why we refer to are well thought out acquisition strategy, we stayed focused and invest only in the opportunities in our verticals in the economy.

That we believe have strong fundamentals.

And hopefully future growth potential when market conditions turn more favorable.

Okay with this short strategy overview, how did we do last quarter as predicted we grew the topline nicely with acquisitions being the main reason.

Murray K. Mullen: With this short strategy overview, how did we do last quarter? As predicted, we grew the top line nicely, with acquisitions being the main reason. Too was that steady performance of our existing business units. The lone exception being those business units that provide service to the oil and natural gas business in Western Canada. I will lay the blame squarely on low commodity prices, not the good folks that operate these business units we have, because customers either delayed spending or they pivoted to playing the lowest price game, and that is a game we do not partake in, especially if the business is very capital intensive like it is on the oil and gas service side. We took a few lumps, and we moved on.

Murray K. Mullen: As predicted, we grew the top line nicely with acquisitions being the main reason, but so too was that steady performance of our existing business units, the lone exception being those business units that provide service to the oil and natural gas business in Western Canada. I will lay the blame squarely on low commodity prices, not the good folks that operate these business units we have, because customers either delayed spending or they pivoted to playing the lowest price game. That is a game we do not partake in, especially if the business is very capital-intensive like it is in the oil and gas service side. We took a few lumps, and we moved on. I'll just tell you this, folks, sometimes things aren't fair, but at Mullen Group Ltd., it's not a reason to complain or vent.

But so too was that steady performance of our existing business units, though.

The lone exception being those business units that provide service to the oil and natural gas business in Western Canada. So I will lay the blame squarely on lower commodity prices not the good folks that operate these business units, we have because customers either delayed spending or they pivoted to playing the lowest price game.

And that is again, we do not partake in especially if the business is very capital intensive like it is in the oil and gas service side.

So we took a few lumps and we moved on.

And I will just tell you this folks sometimes things arent fair, but it <unk>. It is not a reason to complain or event, we simply go about our business and fix what needs to be fixing fixes fixed.

Murray K. Mullen: I'll just tell you this, folks, you know, sometimes things aren't fair, but at Mullen, it's not a reason to complain or vent. We simply go about our business and fix what needs to be fixed. Carson will now provide some color and discuss the reasons behind our record revenues and cash from operations. Don't forget that. Record cash, right, Carson? Carson, you're on.

Murray K. Mullen: We simply go about our business and fix what needs to be fixed. Carson will now provide some color and discuss the reasons behind our record revenues and cash from operations. Don't forget that. Record cash, right, Cars? Carson, you're up.

So Carson.

I will now provide some color and discuss the reasons behind our record revenues and cash from operations will forget that record cash requires so of course in Europe.

Okay, well, thank you Mary and welcome everyone I will provide some additional highlights from the third quarter. The details of which are fully explained in our third quarter interim report.

Carson Urlacher: Thank you, Murray, and welcome, everyone. I'll provide some additional highlights from the third quarter, the details of which are fully explained in our third-quarter interim report. Our third-quarter financial results were impacted mainly by acquisitions, as we continue to grow and build out our network by adding additional logistics service offerings to our customers. This quarter is the first in which we recognize the full three months of financial results from the Coal Group. We generated record revenues compared to any previous quarter at just over $560 million, an increase of $29.8 million or 5.6% from the same period last year. Acquisitions drove revenue growth by adding $66.4 million of incremental revenue and consisted mainly from the results from the Coal Group and from Pacific Northwest.

Carson Urlacher: Okay. Well, thank you, Murray, and welcome everyone. I'll provide some additional highlights from the Q3, the details of which are fully explained in our Q3 interim report. Our Q3 financial results were impacted mainly by acquisitions as we continue to grow and build out our network by adding additional logistics service offerings to our customers. This quarter is the first in which we recognize the full 3 months of financial results from the Cole Group. We generated record revenues compared to any previous quarter at just over CAD 560 million, an increase of CAD 29.8 million or 5.6% from the same period last year. Acquisitions drove revenue growth by adding CAD 66.4 million of incremental revenue, and consisted mainly from the results from the Cole Group and from Pacific Northwest.

Our third quarter financial results were impacted mainly by acquisitions as we continue to grow and build out our network by adding additional logistics service offerings to our customers.

This quarter is the first in which we recognized a full three months of financial results from the KOL group.

We generated record revenues compared to any previous quarter at just over $560 million, an increase of $29 8 million or five 6% from the same period last year.

Acquisitions drove revenue growth by adding $66 4 million of incremental revenue and consisted mainly from the results from the KOL group and from Pacific Northwest.

Revenues from our existing business units, excluding acquisitions and fuel surcharge decreased by $30 5 million and was primarily due to a reduction in the <unk> segment.

Carson Urlacher: Revenues from our existing business units, excluding acquisitions and fuel surcharge, decreased by $30.5 million and was primarily due to a reduction in the S&I segment. Not only did we generate record revenues, but more importantly, we also generated a record amount of cash, as cash from operating activities increased over $100 million or $1.18 per common share in the quarter, well above our cash requirements. This strong cash generation creates value for our long-term shareholders, and along with our well-structured balance sheet, provides us with optionality regarding capital allocation. This enviable financial position enabled us to announce our intention to redeem in full, prior to maturity, the $125 million of convertible debentures that are outstanding. Conversion of the debentures into Mullen Group common shares is permitted at the discretion of the holders of the debentures until November 21, 2025.

Carson Urlacher: Revenues from our existing business units, excluding acquisitions and fuel surcharge, decreased by CAD 30.5 million and was primarily due to a reduction in the S&I segment. Not only did we generate record revenues, more importantly, we also generated a record amount of cash as cash from operating activities increased over CAD 100 million, or CAD 1.18 per common share in the quarter, well above our cash requirements. This strong cash generation creates value for our long-term shareholders, and along with our well-structured balance sheet, provides us with optionality regarding capital allocation. This enviable financial position enabled us to announce our intention to redeem in full prior to maturity the CAD 125 million of convertible debentures that are outstanding.

Not only did we generate record revenues, but more importantly, we also generated a record amount of cash is cash from operating activities increased over $100 million.

Or $1 18 per common share in the quarter.

Well above our cash requirements.

This strong cash generation creates value for our long term shareholders and along with our well structured balance sheet provides us with optionality regarding capital allocation.

This enviable financial position enabled us to announce our intention to redeem in full prior to maturity the $125 million of convertible debentures that are outstanding.

Conversion of the debentures into Mullen group common shares as permitted at the discretion of the holders of the of the debentures until November 21 of 2025.

Carson Urlacher: Conversion of the debentures into Mullen Group common shares is permitted at the discretion of the holders of the debentures until 21 November 2025. Any debentures not converted into Mullen Group common shares will be settled in cash. We generated OIBDA of CAD 97.6 million, a slight increase compared to the prior year period. Excluding the impact of foreign exchange gains and losses on US dollar-denominated cash within our corporate segment, a term we've called OIBDA - adjusted, was $96.4 million, virtually flat compared to the prior year. OIBDA from our existing business units was down CAD 8.9 million, and corporate costs were up as we expanded our team to accommodate future growth. These declines were offset by CAD 11.2 million of incremental OIBDA from acquisitions.

Any debentures not converted into Mullen group common shares will be settled in cash.

Carson Urlacher: Any debentures not converted into Mullen Group common shares will be settled with cash. We generated OIBDA of $97.6 million, a slight increase compared to the prior year period. Excluding the impact of foreign exchange gains and losses on U.S. dollar-denominated cash within our corporate segment, a term we've called OIBDA adjusted, was $96.4 million, virtually flat compared to the prior year. OIBDA from our existing business units was down $8.9 million, and corporate costs were up as we expanded our team to accommodate future growth. These declines were offset by $11.2 million of incremental OIBDA from acquisitions. OIBDA adjusted as a percentage of consolidated revenue decreased to 17.2% from 18.2%, mainly due to lower margins generated from the asset-light business model of the Coal Group and from a lower proportion of higher margin specialized business. Now let's take a look at some of the highlights by segment.

We generated <unk> of $97 6 million, a slight increase compared to the prior year period excluding.

Excluding the impact of foreign exchange gains and losses on US dollar denominated cash within our corporate segment a term we called OE DDA adjusted was $96 4 million virtually flat compared to the prior year.

<unk> from our existing business units was down $8 9 million and corporate costs were up as we expanded our team to accommodate future growth.

These declines were offset by $11 2 million of incremental <unk> from acquisitions.

<unk> adjusted as a percentage of consolidated revenue decreased to 17, 2% from 18, 2%, mainly due to lower margins generated from the asset light business model of the KOL group.

Carson Urlacher: OIBDA-adjusted as a percentage of consolidated revenue decreased to 17.2% from 18.2%, mainly due to lower margins generated from the asset-light business model of the Cole Group, and from a lower proportion of higher-margin specialized business. Let's take a look at some of the highlights by segment. In the consumer-driven LTL segment, which remains stable and consistent. Revenues in the LTL segment were CAD 197.8 million, an increase of CAD 9.1 million from last year due to CAD 10.2 million of incremental revenue from acquisitions. This was somewhat offset by a CAD 2.2 million decline in fuel surcharge revenue. Revenues from our existing business units, excluding acquisitions and fuel surcharge, increased by CAD 1.1 million due to steady customer demand and from some market share gains.

And from a lower proportion of higher margin specialized business.

Now, let's take a look at some of the highlights by segment.

First in the consumer driven <unk> segment, which remains stable and consistent.

Carson Urlacher: First, in the consumer-driven LTL segment, which remains stable and consistent, revenues in the LTL segment were $197.8 million, an increase of $9.1 million from last year due to $10.2 million of incremental revenue from acquisitions. This was somewhat offset by a $2.2 million decline in fuel surcharge revenue. Revenues from our existing business units, excluding acquisitions and fuel surcharge, increased by $1.1 million due to steady customer demand and from some market share gains. OIBDA was $36.4 million, which was up slightly from last year. This increase was due to $2.6 million of incremental OIBDA from acquisitions, while cost pressures and competitive pricing resulted in lower OIBDA from our existing business units. Operating margin, while still very respectable, decreased slightly to 18.4% due to the inability to implement customer rate increases to offset greater cost pressures. Second is our LNW segment.

Revenues in the <unk> segment were $197 8 million, an increase of $9 1 million from last year due to $10 $2 million of incremental revenue from acquisitions. This was somewhat offset by a $2 2 million decline in fuel surcharge revenue.

Revenues from our existing business business units, excluding acquisitions and fuel surcharge increased by $1 1 million due to steady customer demand and from from some market share gains.

<unk> was $36 4 million, which was up slightly from last year.

Carson Urlacher: OIBDA was CAD 36.4 million, which was up slightly from last year. This increase was due to CAD 2.6 million of incremental OIBDA from acquisitions, while cost pressures and competitive pricing resulted in lower OIBDA from our existing business units. Operating margin, while still very respectable, decreased slightly to 18.4% due to the inability to implement customer rate increases to offset greater cost pressures. Second is our L&W segment. Revenues in the L&W segment were CAD 208.1 million, up CAD 39 million from last year. Acquisitions added CAD 46.4 million of incremental revenue and was mainly driven by Cole Group's Canadian operations, which was somewhat offset by a CAD 2.8 million decline in fuel surcharge revenue.

This increase was due to $2 6 million of incremental EBITDA from acquisitions, while cost pressures and competitive pricing resulted in lower <unk> from our existing business units.

Operating margin, while still very respectable decreased slightly to 18, 4% due to the inability to implement to.

To implement customer rate increases to offset offset greater cost pressures.

Second is our <unk> segment.

Revenues in the <unk> segment were $208 1 million up $39 million from last year.

Carson Urlacher: Revenues in the LNW segment were $208.1 million, up $39 million from last year. Acquisitions added $46.4 million of incremental revenue and was mainly driven by Coal Group's Canadian operations, which was somewhat offset by a $2.8 million decline in fuel surcharge revenue. Revenue from our existing business units, excluding acquisitions and fuel surcharge revenues, decreased by $4.4 million and was mainly due to a decline in freight and logistics demand resulting from a lack of private capital investment in Canada. OIBDA was $38 million, up $2.8 million from prior year, with acquisitions adding $5.2 million of incremental OIBDA, while our business units, excluding acquisitions, generated lower OIBDA due to a lack of demand for their services. Operating margins decreased by 2.5% to 18.3%, primarily due to the impact of the lower margins generated by the asset-light acquisition of Coal Group's Canadian operations.

Acquisitions added $46 $4 million of incremental revenue and was mainly driven by KOL groups Canadian operations, which was somewhat offset by a $2 $8 million decline in fuel surcharge revenue.

Revenue from our existing business units, excluding acquisitions and fuel surcharge revenues decreased by $4 4 million and was mainly due to a decline in freight and logistics demand, resulting from a lack of private capital investment in Canada.

Carson Urlacher: Revenue from our existing business units, excluding acquisitions and fuel surcharge revenues, decreased by CAD 4.4 million, was mainly due to a decline in freight and logistics demand resulting from a lack of private capital investment in Canada. OIBDA was CAD 38 million, up CAD 2.8 million from prior year, with acquisitions adding CAD 5.2 million of incremental OIBDA, while our business units, excluding acquisitions, generated lower OIBDA due to a lack of demand for their services. Operating margins decreased by 2.5% to 18.3%, primarily due to the impact of the lower margins generated by the asset-light acquisition of Cole Group's Canadian operations. If you exclude Cole, operating margin would have been virtually flat compared to the prior year period at 20.6%.

<unk> was 38 million up $2 8 million from prior year with acquisitions, adding $5 2 million of incremental EBITDA.

While our business units, excluding acquisitions generated lower OID eight due to a lack of demand for their services.

Operating margins decreased by two 5% to 18, 3% primarily due to the impact of the lower margins generated by the asset light acquisition of KOL groups Canadian operations now.

If you exclude coal operating margin would have been virtually flat compared to the prior year period at 26%.

Carson Urlacher: Now, if you exclude Coal, operating margin would have been virtually flat compared to the prior year period at 20.6%. What this says is our existing business units, excluding acquisitions, did a great job in protecting margin under difficult market conditions. Moving to the S&I segment, revenues were $105.1 million, down $26.7 million from last year due to a lack of large capital projects being sanctioned in Canada, from demarketing some customers in certain markets, and from depressed commodity prices that negatively impacted our customers' drilling and production plans. These factors led to a decline in revenue from our production services and drilling-related business units. Somewhat offsetting these declines were revenue gains made within our specialized services business units that were tied to infrastructure and mining, as Canadian dewatering and smoke contractors saw greater demand for their services.

So really what this says is our existing business units, excluding acquisitions did a great job in protecting margin under difficult market conditions.

Carson Urlacher: Really what this says is our existing business units, excluding acquisitions, did a great job in protecting margin under difficult market conditions. Moving to the S&I segment, revenues were CAD 105.1 million, down CAD 26.7 million from last year due to a lack of large capital projects being sanctioned in Canada, from demarketing some customers in certain markets, and from depressed commodity prices that negatively impacted our customers' drilling and production plans. These factors led to a decline in revenue from our production services and drilling-related business units. Somewhat offsetting these declines were revenue gains made within our specialized services business units that were tied to infrastructure and mining as Canadian Dewatering and Smook Contractors Ltd. saw greater demand for their services.

Moving to the F&I segment revenues were $105 1 million down $26 7 million from last year due to a lack of large capital projects being sanctioned in Canada from.

From de marketing some customers in certain markets and from depressed commodity prices that negatively impacted our customers' drilling and production plans.

These factors led to a decline in revenue from our production services and drilling related business units.

Somewhat offsetting these declines will revenue gains made within our specialized services business units that were tied to infrastructure and mining is Canadian dewatering and smooth contractor saw greater demand for their service.

Services or <unk> was $23 6 million down $4 9 million from the prior year as.

Carson Urlacher: OIBDA was $23.6 million, down $4.9 million from the prior year, as our production services business units recorded a decrease in OIBDA due to E&P customers choosing to delay facility maintenance and turnaround projects. The specialized services business units had an increase in OIBDA, primarily due to greater customer demand at smoke and Canadian dewatering, which was somewhat offset by a decline in demand for services at pre-made pipelines. The drilling-related services business units recognized a $1 million increase in OIBDA despite that lower revenue that I spoke of. Operating margins increased to 22.5% from 21.6%, which was mainly due to demarketing low-margin business and from cost control measures and more efficient operations.

Carson Urlacher: OIBDA was CAD 23.6 million, down CAD 4.9 million from the prior year. Our Production Services business units recorded a decrease in OIBDA due to E&P customers choosing to delay facility maintenance and turnaround projects. The Specialized Services business units had an increase in OIBDA, primarily due to greater customer demand at Smook and Canadian Dewatering, which was somewhat offset by a decline in demand for services at Premay pipelines. The drilling-related services business units recognized a CAD 1 million increase in OIBDA despite that lower revenue that I spoke of. Operating margins increased to 22.5% from 21.6%, which was mainly due to demarketing low-margin business and from cost control measures and more efficient operations.

As our production services business units recorded a decrease in the IBD due to E&P customers choosing to delay facility maintenance and turnaround projects.

The specialized services business units had an increase in <unk>, primarily due to a greater customer demand its smoke and Canadian dewatering, which was somewhat offset by a decline in demand for services at <unk> pipeline.

The drilling related services business units recognized a $1 million increase in <unk>, despite that lower revenue that I spoke of.

Operating margins increased to 22, 5%.

From 21, 6%, which was mainly due to a demarketing low margin business.

And from cost control measures and more efficient operations.

Another highlight was that we deployed over $10 million of Capex into this segment in the quarter, mainly to drill two new disposal wells four involve energy services to increase capacity at our processing and disposal facility to meet strong customer demand.

Carson Urlacher: Another highlight was that we deployed over $10 million of CapEx into this segment in the quarter, mainly to drill two new disposal wells for Envolve Energy Services to increase capacity at our processing and disposal facility to meet strong customer demand. Our diverse business model enables us to deploy capital where we see acceptable returns. Within our non-asset-based U.S. 3PL segments, revenues were $53.9 million, up $8.2 million from last year, as Coal Group's U.S. operations added $9.8 million of incremental revenue in the quarter. In transitioning Coal Group's U.S. operations to IFRS accounting standards, we determined that duties and taxes collected by Coal USA and remitted to the government agencies on behalf of customers should be presented on a net basis. Presenting this revenue on a net basis has no impact on OIBDA, cash flow, or net income.

Carson Urlacher: Another highlight was that we deployed over CAD 10 million of CapEx into this segment in the quarter, mainly to drill 2 new disposal wells for Evolve Energy Services to increase capacity at our processing and disposal facility to meet strong customer demand. Our diverse business model enables us to deploy capital where we see acceptable returns. Within our non-asset-based US 3PL segment, revenues were CAD 53.9 million, up CAD 8.2 million from last year as Cole Group's US operations added CAD 9.8 million of incremental revenue in the quarter. In transitioning Cole Group's US operations to IFRS accounting standards, we determined that duties and taxes collected by Cole USA and remitted to government agencies on behalf of customers should be presented on a net basis.

Our diverse business model enables us to deploy capital, where we see acceptable returns.

Within our non asset based <unk> segment revenues were $53 9 million up $8 2 million from last year as KOL Group U S operations added $9 8 million of incremental revenue in the quarter.

And transitioning KOL groups U S operations to <unk> accounting standards, we determined that duties and taxes collected on coal USA by call USA and remitted to the government agencies on behalf of customers should be presented on a net basis.

Now presenting this revenue on a net basis has no impact on <unk> cash flow or net income.

Carson Urlacher: Presenting this revenue on a net basis has no impact on OIBDA cash flow or net income. HAUListic LLC generated lower revenues compared to the prior year, as many customers remained cautious on ramping up manufacturing and ordering inventory. OIBDA was CAD 4 million, up CAD 3.7 million from the prior year, with Cole USA adding CAD 3.4 million of incremental OIBDA, while HAUListic LLC's results also improved compared to the same period last year. Operating margins improved to 7.4% from 0.7% due to the higher margins experienced at Cole USA. Moving to the balance sheet. In July, we closed a private placement debt offering of 12-year long-term notes of approximately CAD 400 million.

<unk> generated lower revenues compared to the prior year as many customers remained cautious on ramping up manufacturing in ordering inventory.

Carson Urlacher: Ballistic generated lower revenues compared to the prior year, as many customers remained cautious on ramping up manufacturing and ordering inventory. OIBDA was $4 million, up $3.7 million from the prior year, with Coal Group's U.S. operations adding $3.4 million of incremental OIBDA, while Ballistic's results also improved compared to the same period last year. Operating margins improved to 7.4% from 0.7% due to the higher margins experienced at Coal USA. Now moving to the balance sheet. In July, we closed a private placement debt offering of 12-year long-term notes of approximately $400 million. We used these funds to prepay approximately $237 million of private placement notes that were set to mature in October of 2026 and $207 million of amounts that were drawn on our bank credit facilities, which was mainly used to fund the Coal Group acquisition.

EBITDA was $4 million up $3 7 million from the prior year with KOL groups U S operations, adding $3 4 million of incremental or IBD. While holistic results also improved compared to the same period last year.

Operating margins improved to seven 4% from 0.7% due to the higher margins experienced at coal USA.

Now moving to the balance sheet.

In July we closed a private placement debt offering of 12 year long term notes of approximately $400 million.

We use these funds to prepay approximately $237 million of private placement notes that were set to mature in October of 2026.

Carson Urlacher: We used these funds to prepay approximately CAD 237 million of private placement notes that were set to mature in October 2026 and CAD 207 million of amounts that were drawn on our bank credit facilities, which was mainly used to fund the Cole Group acquisition. At 30 September, we had working capital of CAD 286 million, which included CAD 151 million of cash on hand. Not included within this working capital is our derivative that hedges $112 million US dollars into Canadian dollars at a foreign exchange rate of 1.1148. This derivative has an economic cash value of approximately CAD 32 million, and since it matures in November 2026, it will be included within working capital at year-end.

And $207 million of amounts that were drawn on our bank credit facilities, which was mainly used to fund the accrual group acquisition.

At September 30, we had working capital of $286 million, which.

Carson Urlacher: At September 30th, we had working capital of $286 million, which included $151 million of cash on hand. Not included within this working capital is our derivative that hedges $112 million U.S. dollars in the Canadian dollars at a foreign exchange rate of 1.1148. This derivative has an economic cash value of approximately $32 million, and since it matures in November of 2026, it will be included within working capital at year-end. We also have access to $525 million of undrawn bank lines. In terms of our debt covenants, total net debt to operating cash flow at September 30th was 2.6 to 1. With the announcement of the redemption of the convertible debentures, our pro forma total net debt to operating cash flow covenant, assuming all other factors remain constant, would have been approximately 2.25 to 1. In summary, we continue to generate cash in excess of our needs.

<unk> $151 million of cash on hand.

Not included within this working capital is our derivatives that hedge is $112 million in the Canadian dollars had a foreign exchange rate of $1 1148.

This derivative has an economic cash value of approximately $32 million and since it matures in November of 2026. It will be included within working capital at year end.

We also have access to $525 million of Undrawn bank lines in.

Carson Urlacher: We also have access to CAD 525 million of undrawn bank lines. In terms of our debt covenants, total net debt to operating cash flow at 30 September was 2.6 to 1. With the announcement of the redemption of the convertible debt debentures, our pro forma total net debt to operating cash flow covenant, assuming all other factors remain constant, would have been approximately 2.25 to 1. In summary, we continue to generate cash in excess of our needs. Our balance sheet is well structured, and we have ample short-term liquidity of over CAD 150 million of cash, providing us with the ability to continue to build out our network and grow when the right opportunities come along. With that, Murray, I will pass the call back to you.

In terms of our debt covenants total net debt to operating cash flow at September 30 was $2 six to one.

With the announcement of the redemption of the convertible debentures, our pro forma total net debt to operating cash flow covenant, assuming all other factors remain constant.

It would've been approximately $2 25 to one.

In summary.

We continue to generate cash estimate cash in excess of our needs. Our balance sheet is well structured and we have ample short term liquidity of over $150 million of cash providing us with the ability to continue to build out our network and grow when the right opportunities come along.

Carson Urlacher: Our balance sheet is well structured, and we have ample short-term liquidity of over $150 million of cash, providing us with the ability to continue to build out our network and grow when the right opportunities come along. With that, Murray, I will pass the call back to you.

So with that Murray I will pass the call back to you. Thanks.

Thanks Carl.

Well then again.

Murray K. Mullen: Yeah, thanks, Carson. Well done again. You provided our listeners with a really nice detailed report. There's a lot of information there, but let me just, there's a couple of highlights I'd like to reiterate because I believe these will impact how we can take advantage of opportunities that I personally believe are just inevitable to arise in this market. The first is record revenues from acquisitions, which really means that we've entered new verticals to expand in as and when the economy improves, and we believe that eventually it does. We're going to be larger and bigger in more verticals that we can sell to customers in the future with our acquisition strategy. The second is, and Carson alluded to this at the end, the record cash from operations.

Murray K. Mullen: Thanks, Cars. Well done again. You know, you provided our listeners with a really nice detailed report. There's a lot of information there, but let me just. There's a couple highlights I'd like to reiterate because I believe these will impact how we can take advantage of opportunities that I personally believe are just inevitable to arise in this market. The first is record revenues from acquisitions. Which really means is that we've entered new verticals to expand in and as and when the economy improves, and we believe that eventually it does. We're gonna be larger and bigger in more verticals that we can sell to customers in the future with our acquisition strategy. The second is, and Carson alluded to this at the end, is the record cash from operations.

You provided.

Our listeners.

Really nice detailed report.

So there's a lot of information there, but let me just there's a couple of highlights I would like to reiterate because.

I believe these will impact how we can take advantage of opportunities that.

I personally believe will or just inevitable to arise in this market.

So the first is record revenues from acquisitions, which really means is that we have entered new verticals to expand in and as and when the economy improves.

We believe that eventually it does.

So we're going to be larger and bigger and more verticals that we can sell to customers in the future.

With our acquisition strategy the second is.

In Carson alluded to this at the end is the record cash from operations.

Funds, along with our strong current strong balance sheet, we can use to pursue acquisitions that meet our investment criteria. So we're going to continue to grow.

Murray K. Mullen: Funds that, along with our strong current strong balance sheet, we can use to pursue acquisitions that meet our investment criteria. We're going to continue to grow, pay the acquisition strategy. We just have to pick where should we put that money to work, and that's what the Senior Executive Team is highly focused on. In other words, I sure like the way that we position this organization. Let me just now give you my best take on what I think the near term might look like. As evidenced by our results last quarter, it appears the general economy has found what appears to be stable ground. Economic activity is in a better spot than we've seen for quite some time. That is good for freight demand. We see it in our results. There's freight to move, and it's reasonably active.

Murray K. Mullen: You know, funds that, along with our current strong balance sheet, you know, we can use to pursue acquisitions that meet our investment criteria. We're gonna continue to grow via the acquisition strategy. We just have to pick where should we put that money to work, and that's what the senior executive team is highly focused on. In other words, I sure like the way that we position this organization. Let me just now give you my best take on what I think the near term might look like. As evidenced by our results last quarter, it appears the general economy's found what appears to be stable ground. Economic activity is in a better spot than we've seen for quite some time. That is good for freight demand. We see it in our results.

Maybe the acquisition strategy, we just have to pick.

Where should we put that money to work and Thats, what the senior executive team is highly focused on.

So in other words I'm not sure like the way that we've positioned this organization.

So let me just give you my best taken what I think the near term might look like as evidenced by our rock salt <unk> last quarter.

It appears the general economies found what appears to be stable ground.

Economic activity is in a better spot than we've seen for quite some time.

That is good for freight demand we.

See it in our results.

There is freight to move in.

Murray K. Mullen: There's freight to move, and it's reasonably active. Yes, there are still remaining issues like tariffs and trade concerns that have impacted the cross-border traffic, but I believe these things will subside over time. In fact, if you get beyond all the headlines, really there's not much tariffs on trade between Canada and United States. Nearly everything's been exempted. We gotta be careful on what we listen to all the time. It definitely has impacted the psyche of people that invest capital. We also think that the primary reason why Canada will continue to underperform is the lack of private investment capital. This is our view. The reality is, in the meantime, the Canadian government will deficit finance to sustain the current economy.

And it's reasonably reasonably active.

Yes, there are still remaining issues like tariffs and trade concerns that have impacted cross border traffic.

Murray K. Mullen: Yes, there still remain the issues like tariffs and trade concerns that have impacted cross-border traffic, but I believe these things will subside over time. In fact, if you get beyond all the headlines, really, there's not much tariffs on trade between Canada and the U.S. Nearly everything's been exempted. We got to be careful on what we listen to all the time. It definitely has impacted the psyche of people that invest capital. We also think that the primary reason why Canada will continue to underperform is the lack of private investment capital. This is our view. The reality is, in the meantime, the Canadian government will deficit finance to sustain the current economy. From my perspective, the Canadian economy is in a balanced spot, not the deficit. I said the economy. It's not growing rapidly, but it's not declining either. It's okay.

I believe these things will subside over time.

In fact, if you get beyond.

All the headlines really there is not much tariffs.

On trade between Kennedy United States, nearly everything has been exempted. So we've got to be careful on what we listen to all the time, but it definitely has impacted the psyche of people that invest capital.

We also think.

But.

The primary reason why Canada will continue to.

Underperform is the lack of private investment capital.

So this is our view.

But the reality is in the meantime, the Canadian government will deficit finance to sustain the current economy.

So from my perspective, the Canadian economy is in a balanced spot.

Murray K. Mullen: From my perspective, the Canadian economy is in a balanced spot, not the deficit, I said the economy. It's not growing rapidly, but it's not declining either. It's okay in that. From within this perspective, that's what we have to manage the business within. On that front, pricing still remains a challenge. Here too, I'm starting to see some emerging signals that could impact supply, especially as it relates to the availability of certified drivers. For example, in the United States, if the United States Department of Transportation is accurate in their analysis, and they remove over 190,000 CDL-authorized drivers from the market, there will be a shortage of professional drivers in the United States. We're watching this very carefully because once the market tightens in the US, it will also tighten in Canada.

Now if the deficit I said think of economy.

It's not growing rapidly, but its not declining either so it's okay and thats from within this perspective thats, what we have to manage the business with him.

Murray K. Mullen: From within this perspective, that's what we have to manage the business within. On that front, pricing still remains a challenge. Here too, I'm starting to see some emerging signals that could impact supply, especially as it relates to the availability of certified drivers. For example, in the U.S., if the United States Department of Transportation is accurate in their analysis and they remove over 190,000 CDL authorized drivers from the market, there will be a shortage of professional drivers in the U.S. We're watching this very carefully because once the market tightens in the U.S., it will also tighten in Canada. In addition, there appears to be a shift happening in Canada where there's more of a focus by the regulatory authorities and the government on ensuring that safety standards are enforced across all carriers.

And on that front pricing is.

Is <unk>.

Still remains a challenge.

But here too I am starting to see some emerging signals that could impact supply.

Especially as it relates to the availability of certified drivers for example in.

In the United States, if the United States Department of Transportation is accurate in their analysis and they remove over 190000 CDL.

Authorized drivers from the market there will be a shortage of professional drivers in the United States. So we're watching this very carefully because once the market tightens in the U S. It will also tightened in Canada.

In addition, there appears to be a shift happening in Canada, where there's more of a focus.

Murray K. Mullen: In addition, there appears to be a shift happening in Canada, where there's more of a focus by the regulatory authorities and the government on ensuring that safety standards are enforced across all carriers. We also know that industry capacity is really not growing, as evidenced by the lack of Class 8 truck orders sales. Based upon these factors, it appears that there's a new demand supply balance forming, which will be good for margins eventually, perhaps even as early as next year. I suspect we will know in early 2026 if the market tightens enough for our business units to start having a little more leverage with customers and having some thoughtful discussion about what the rates should be. This is not the case today.

By the regulatory authorities and the government on ensuring that safety standards are enforced across all carriers.

So we also know.

Murray K. Mullen: We also know that industry capacity is really not growing, as evidenced by the lack of Class A truck orders sales. Based upon these factors, it appears that there's a new demand-supply balance forming, which will be good for margins eventually, perhaps even as early as next year. I suspect we will know in early 2026 if the market tightens enough for our business units to start having a little more leverage with customers and having some thoughtful discussion about what the rates should be. This is not the case today. As such, we continue to ask our business units to focus on controlling costs and look at ways to improve productivity. Now, here's an example of what I mean by improving productivity. We're investing in new technologies. We're investing in robotics for our warehouse operations, initiatives that will reduce costs and improve efficiencies and safety.

That industry capacity is really not growing.

Excuse me as is evidenced by the lack of class a truck orders sales.

So based upon these factors it appears that theres, a new demand supply balance, forming which will be good for margins eventually perhaps even as early as next year I suspect we will know in early 'twenty six if the market tightens enough for our business units to start.

Having a little more leverage with customers and having.

Some thoughtful discussion about what the rates should be but this is not the case today.

As such we continue to ask our business unit to focus on controlling costs and look at ways to improve productivity. Here's an example, what I mean by improved productivity, we're investing in new technologies, we're investing in robotics for warehouse operations initiatives that will reduce costs and improve efficiencies and safety. So we're not stopping because we think the future.

Murray K. Mullen: As such, we continue to ask our business units to focus on controlling costs and looking at ways to improve productivity. Here's an example of what I mean by improving productivity. We're investing in new technologies. We're investing in robotics for our warehouse operations, initiatives that will reduce costs and improve efficiencies and safety. We're not stopping because we think the future will eventually come around our way. One vertical that we think will continue to struggle in the short term, I don't think long term, but in the short term, that's the reality, is the oil and natural gas service sector, which is included in our S&I segment. Commodity prices have been under pressure all year, and this has impacted the cash flow for the E&P industry. In response, our customers have curtailed capital investment.

Murray K. Mullen: We're not stopping because we think the future will eventually come around our way. One vertical that we think will continue to struggle in the short term, I don't think long term, but in the short term, that's the reality, is the oil and natural gas service sector, which is included in our S&I segment. Commodity prices have been under pressure all year, and this has impacted the cash flow for the E&P industry. In response, our customers have curtailed capital investment. They delayed major turnarounds and aggressively pursued lower costs throughout their supply chain. As I suggested, I don't think this is a long-term scenario, but it is a reality in the short term, and we expect this portion of our business to underperform until commodity prices improve.

We'll eventually.

I'm around our way.

No one vertical that we think will continue to struggle in the short term I.

I don't think long term, but in the short term. That's the reality is the oil and natural gas service sector, which is included in our C&I segment I'll commodity prices have been under pressure all year.

And this has impacted the cash flow for the E&P industry and.

And in response, our customers have curtailed capital investment they delayed major turnarounds and aggressively pursued lower costs throughout the supply chain.

Murray K. Mullen: They delayed major turnarounds and aggressively pursued lower costs throughout the supply chain. As I suggested, I don't think this is a long-term scenario, but it is a reality in the short term, and we expect this portion of our business to underperform until commodity prices improve. We are, however, still, as I think Carson alluded to, investing in this segment and invested CAD 8.1 million in 2 new disposal wells that are Evolve Energy Services Group facility in Grande Prairie. It's a first-class facility, and we drill 2 new wells that will give us additional capacity to handle customers' fluids. This investment will undoubtedly double our capacity. One day, there will be a day when new pipelines are built to feed natural gas to LNG facilities on the West Coast, and we'll be ready to handle our customers' fluid disposal requirements.

And as I suggested I don't think this is long term scenario, but it is a reality in the short term and we expect this portion of our business to underperform until commodity prices improve.

We are however, still I think Carson alluded to investing in this segment.

Murray K. Mullen: We are, however, still, as I think Carson alluded to, investing in this segment and invested $8.1 million in two new disposal wells at our Envolve Energy Services facility in Grand Prairie. It's a first-class facility, and we drilled two new wells that will give us additional capacity to handle customers' fluids. This investment will undoubtedly double our capacity, and one day there will be a day when new pipelines are built to feed natural gas to the LNG facilities on the West Coast, and we'll be ready to handle our customers' fluid disposal requirements. This is another example of how we think about deploying capital and we think about tomorrow. Lastly, before I turn it over to you, what about future acquisitions? As Carson highlighted, the balance sheet is structured in a manner that we can pursue opportunities.

First at $8 1 million in two new disposal wells that are involved in energy services group facility in Grand Prairie.

So first class facility, we drilled two new wells that will give us additional capacity to handle customers' fluids.

So this.

The investment will undoubtedly double our capacity in one day.

There will be a day when new pipelines are built.

To feed natural gas to LNG facilities on the West coast.

And we will be ready to handle our customers' fluid disposal requirements. So this is another example.

Murray K. Mullen: This is another example of how we think about deploying capital and how we think about tomorrow. Lastly, before I turn it over to you, what about future acquisitions? Well, as Carson highlighted, the balance sheet is structured in a manner that we can pursue opportunities. We really like the tuck-in model because this is how we can improve margins quickly. We just roll them into one of our best-in-class business units, we got 41. We got lots of really good talent out there that we can roll in tuck-in acquisitions. When you do that, you can reduce overall costs and improve density quickly. Lastly, if the right platform company comes available, and a platform company, let's say like a Cole did, this is a company that's in the right vertical with lots of future potential, we'll consider it.

Of how we think about deploying capital and we think about tomorrow.

So lastly.

Before I turn it over to you what about future acquisitions Oscarsson highlight of the balance sheet structured in a manner that we can pursue opportunities.

We really like the tuck in model.

Murray K. Mullen: We really like the tuck-in model because this is how we can improve margins quickly. We just roll them into one of our best-in-class business units in my GOT 41. We got lots of really good talent out there that we can roll in tuck-in acquisitions. When you do that, you can reduce overall costs and improve density quickly. Lastly, if the right platform company comes available, and a platform company, let's say, like Coal Group did, this is a company that's in the right vertical with lots of future potential, we'll consider it. Folks, now it's your turn. I'll turn the call over to the operator, and we can go straight to the Q&A session.

Because this is how we can improve margins quickly, we just roll them into one of our best in class business units and my got 41. So we've got lots of really good talent out there that we can roll in tuck in acquisitions.

And when you do that you can reduce overall costs and improve density quickly.

And lastly, if the right platform company comes available.

On a platform company, let's say like a cold period.

This is a company that's in the right vertical with lots of future potential we will consider it.

So folks and Alex short turn I'll turn the call over to the operator, and we can go straight to the Q&A session.

Murray K. Mullen: Folks, now it's your turn. I'll turn the call over to the operator, and we can go straight to the Q&A session.

Thank you.

We will now begin the question and answer session to join the question queue. You May Press Star then one on your telephone keypad, you'll hear retuned acknowledging your request if youre using a speakerphone. Please pick up your handset before pressing any keys to withdraw your question.

Operator: Thank you. We will now begin the question-and-answer session. The first question comes from Walter Spracklen with RBC. Please go ahead.

Operator: Thank you. We will now begin the question and answer session. To join the question queue, you may press star then one on your telephone keypad. You will hear a tone acknowledging your request. If you're using a speakerphone, please pick up your handset before pressing any keys. To withdraw your question, please press star then two. The first question comes from Walter Spracklin with RBC. Please go ahead.

Press Star then two.

The first question comes from Walter <unk> with RBC. Please go ahead, yeah, thanks very much.

Hey, everyone, who are you doing.

[Analyst 1]: Yeah, thanks very much. Hey, everyone. How are you doing?

Walter Spracklin: Yeah, thanks very much. Hey, everyone. How are you doing?

Hey, good morning Walter.

Marie this one's for you.

Carson Urlacher: Hey, good morning, Walter.

Murray K. Mullen: Hey, good morning, Walter.

Start with their guidance.

Walter Spracklin: Murray, this one's for you. Let's start with your guidance. You've got CAD 350 million out there, of which CAD 30 was to come from acquisitions. You mentioned that's in your release, that's going to be or it's uncertain as to achieving that, and that it should be achievable on a 12-month forward basis. Is that suggestive then that this is now gonna be your 2026? Or are you saying that this is now the 2026 guidance of CAD 350 for 2026? Am I reading that correctly?

[Analyst 1]: Murray, this one's for you. Let's start with their guidance. You've got $350 million out there, of which $30 million was to come from acquisitions. You mentioned that in your release that's going to be, or it's uncertain as to achieving that, and that it should be achievable on a 12-month forward basis. Is that suggestive then that this is now going to be your 26, or are you saying that this is now the 26th guidance of $350 million for 2026? Am I reading that correctly?

You've got $350 million out there of which 30 was to come from acquisitions, you mentioned that.

In your release Thats going to be or it's uncertain as to achieving that and then it should be achievable on a 12 month forward basis, no I might.

Is that suggesting then that this is now going to be your 'twenty or are you, saying that this is now the 26 guidance of $3 54.

For 2026 am I reading that correctly.

No.

Pretty good observation Walter we did guide to.

Murray K. Mullen: You know, that's a pretty good observation, Walter Spracklen. We did guide to, I think, CAD 2.25 billion and CAD 350 for this year. Two things that I missed, I'll be blunt. I missed that the commodity prices were gonna be as soft as they were, and that's really impacted our S&I segment. I didn't think that was gonna occur. You saw how last quarter our S&I was down, like, CAD 25 million.

Carson Urlacher: That's a pretty good observation, Walter. We did guide to, I think, $2.25 billion and $350 million for this year. Two things that I missed, I'll be blunt. I missed that the commodity prices were going to be as soft as they were, and that's really impacted our S&I segment. I didn't think that that was going to occur. You saw how last quarter our S&I was down like $25 million. Yep. I missed that part, there's no doubt. Do I think it's permanent? No, I don't believe that. I think the second one we missed is that when we had originally evaluated our Coal Group on the revenue side, we had thought that the revenues were up around $300 million. When we did our final purchase price equations, we did not like the way they accounted for revenue in terms of tariff and taxes and tariffs.

I think $2 to $5 billion and 350 for this year.

Two things that I missed I'll be blunt I missed that the commodity prices were going to be as soft as it were and thats really impacted our <unk> segment.

I didn't think that that was going to.

But that was going to occur. So you saw how last quarter, our F&I was down like $25 million okay.

So I missed that part.

Walter Spracklin: Yep.

Murray K. Mullen: I missed that part. There's no doubt. Do I think it's permanent? No, I don't believe that. I think second one we missed is that when we had originally evaluated our Coal Group on the revenue side, we had thought that the revenues were up around CAD 300. When we did our final purchase price equations, we did not like the way they accounted for revenue in terms of tariff.

No doubt do I think it's permanent no I don't believe that.

And then I think second one we missed is when we had originally evaluated.

<unk>.

Core growth on the revenue side, we had thought.

The revenues were up around 300, but when we did our final purchase price equation, we did not like the way they accounted for revenue.

In terms of tariff.

Okay.

Taxes and tariffs. So we can just consider that a flow through so we just netted those out so on those two fronts, where we missed the revenue side on the EBITDA side.

Walter Spracklin: Taxes.

Murray K. Mullen: We just considered that a flow-through, so we just netted those out. On those two fronts, that's where we missed the revenue side. On the EBITDA side, or OIBDA side, whatever you wanna call it.

Carson Urlacher: We just considered that a flow-through, so we just netted those out. On those two fronts, that's where we missed the revenue side. On the EBITDA side, or OIBDA side, whatever you want to call it, Coal, we didn't get done as fast as we thought it was going to be. Early, we thought we had this in the bag. We had a deal, and Mr. Lucky, unfortunately, passed away before we went to sign the night before we went to sign. That delayed the deal. We had to go to the courts to get, that delayed it. The Competition Bureau delayed us by about two months. We probably lost a quarter, Walter, that we were counting on when we gave the guidance early on. I think that's why we missed.

Our Oi VGA side, whatever you want to call it.

While coal we didn't get done as fast as we thought it was going to be early we thought we had this in the bag we had a deal in.

Murray K. Mullen: Well, Coal, we didn't get done as fast as we thought it was gonna be. Early we thought we had this in the bag. We had a deal, and Mr. Lucky, unfortunately passed away before we went to sign the night before we went to sign, so that delayed the deal. Had to go to the courts to get. That delayed it. The Competition Bureau delayed us by about 2 months. We probably lost a quarter, Walter, that we were counting on when we gave the guidance early on. I think that's why we missed. We're gonna be off by a little bit, but it's not gonna be off by significant.

Mr Lucky.

Fortunately passed away, but if we were went to sign that the night before we went to sign so that delayed the deal.

We had to go to the courts to get so that delayed and then.

The competition Bureau of the latest by about two months, so when we probably lost a quarter Walter.

We were counting on when we gave the guidance early on so I think thats. The Thats why we missed we might we're going to be off by a little bit.

Carson Urlacher: We might, we're going to be off by a little bit, but it's not going to be off by significant. I think if you pro forma, really is what you're saying, is 2026, you're taking away our thunder for the December 3rd budget meeting. You can see the business we've got. We've made all the right steps to get us to that $2.25 billion and $350 million. We'll articulate in December what we really think is happening in the market. Is the market changing for 2026? I gave a couple of suggestions that said, maybe the market tightens a little bit next year. If that does, then you know we got a bigger book of business that you maybe get a margin improvement in 1%. Just a 1% margin improvement is pretty significant, Walter.

But it's not going to be off by.

Bye Bye significant I think if you pro forma.

Murray K. Mullen: I think if you pro forma, really is what you're saying, is 2026, you're taking away our thunder for the 3 December budget meeting. You can see the business we've got. We've made all the right steps to get us to that, 225 and 350. We'll articulate in December what we really think is happening in the market. Is the market changing for 2026? You know, I gave a couple suggestions that said, you know, maybe the market tightens a little bit next year, and if that does, then, you know, we got a bigger book of business that you maybe get a margin improvement of 1%. Just a 1% margin improvement.

Or at least what you are saying is 2026, you are taking away our thunder for the December 3rd.

Okay.

But.

You can you can see the business. We've got we've made all the right steps to get us to that.

Two five and.

$3 50.

And then we will articulate in December what we really think is happening in the market.

Is the market changing for 2026.

I gave a couple suggestions that said, maybe the market tightens, a little bit next year and if that does.

Then we got a bigger book of business that you maybe get a margin improvement of 1%.

Just a 1% margin improvement.

It is a pretty significant Walter so we'll give our best analysis on that.

Walter Spracklin: Yeah

Murray K. Mullen: is pretty significant, Walter. We'll give our best analysis on that in December when we after we've collated and talked with all of our business units. For right now, I think our pro forma 12-month, we would've been pretty close to the 2025 guidance. We'll be off a little bit for calendar 2025, yes.

Carson Urlacher: We'll give our best analysis on that in December after we've collated and talked with all of our business units. For right now, I think our pro forma 12-month, we would have been pretty close to the 2025 guidance, but we'll be off a little bit for calendar 2025, yes.

In December one.

After we've correlated.

Talk with all of our business units, but for right now.

I think our pro forma 12 month.

We would have been pretty close to 2025 guidance, but will be off a little bit for calendar 'twenty five yes right. Okay.

Makes sense.

[Analyst 1]: Right. Okay. That makes sense. You made reference to the U.S. clampdown, and that's certainly creating an effect, and that's good. I mean, I'd prefer a demand solution rather than a supply solution to this, but we'll take the supply solution if it is. Is it as big a problem in Canada? Is there any avenue where you know regulators or authorities are seeing what the success it's having in the U.S.? Is there any view that perhaps it'll happen in Canada? If your answer to the first question is yes, it is as big an issue in Canada, then is there any avenue that's seeing the success they're having in the U.S. that they might do it in Canada in short order?

Walter Spracklin: Right. Okay. That makes sense. You made reference to the US clampdown, and that's certainly creating an effect, and that's good. I mean, I'd prefer a demand solution rather than a supply solution to this, but we'll take the supply solution if it is. Is it as big a problem in Canada? Second, is there any avenue where, you know, regulators or authorities are seeing the success it's having in the US, and is there any view that perhaps it'll happen in Canada?

On the you made reference to the U S clamped down in and Thats, certainly, creating an effect and that's good I mean, I prefer a demand solution rather supply solution to this but we'll take the supply solution. If it is is.

Is it a is it as big a problem in Canada and second is there even.

Any avenue, where.

<unk> or authorities are seeing what the success it's having.

In the U S and is there any any view that perhaps it'll happen in Canada. If it if your answer to the first question is yes. It is as big an issue in Canada. Then is there any avenue that seeing the success theyre, having the U S that they might do it in the in Canada and in short order.

Walter Spracklin: If your answer to the first question is, yes, it is as big an issue in Canada, is there any avenue that's seeing the success they're having in the US that they might do it in Canada in short order?

I think the the systemic problem is the.

Murray K. Mullen: I think the systemic problem is the same on both sides of the border.

Carson Urlacher: I think the systemic problem is the same on both sides of the border. We had too many new entrants come into the business that were not properly trained and certified, and there was some gamesmanship going on on some of the certification, i.e. CDLs. As a result, you just had inexperienced people out driving on the highways, and that led to a number of high-profile, very serious incidents on the road by participants of our industry. From our perspective, those people were not properly trained. We've had them in Canada. They've got them in the U.S. Where the U.S. is taking a more aggressive stand, Walter, is they've gone that you've got to be fluent in English. Now, what does that mean? I have no idea.

The same on both sides of the border.

Too many new entrants come into the business that were not properly trained.

Walter Spracklin: Okay.

Murray K. Mullen: We had too many new entrants come into the business that were not properly trained and certified, and there was some gamesmanship going on on some of the certification, i.e., CDLs. As a result that, you know, you just had inexperienced people out driving on the highways, and that led to a number of high-profile, very serious incidents on the road.

And certified and there was some gamesmanship going on on some of the certification.

E Cdls.

And.

And as a result that you just heard inexperience people out driving on the highway and that led to a number of high profile.

Very serious incidents on the road.

By participants of our industry, but from our perspective those.

Murray K. Mullen: by participants of our industry. From our perspective, those, you know, the people were not properly trained. We've had them in Canada. They've got them in the US. Where the US is taking a more aggressive stand, Walter, is they've gone that you've gotta be fluent in English. What does that mean? I have no idea. If they are right that they're gonna take off 190,000, and that's their prerogative. They didn't ask me for my opinion. If you take off 190,000, that's too many at once, and that will really tighten the market in the US.

People were not properly trained so we've had them in Canada, they've got them in the U S.

The U S is taking a more aggressive stand Walter is they've gone that you've gotta be fluent in English.

What does that mean I have no idea, but they.

<unk>.

Carson Urlacher: If they are right that they're going to take off 190,000, and that's their prerogative, I have, they didn't ask me for my opinion. If you take off 190,000, that's too many at once, and that will really tighten the market in the U.S. There's already some indication that the enforcement standards on both sides of the border have been accelerated over the last bit to make sure that the regulations that are currently in place are applied equally to all carriers. If that happens, that will force everybody into compliance, and that will tighten the market in our view.

If they are right that theyre going to take off a 190000 that's there.

Prerogative I have they didn't ask me for my opinion, but if you take off a 190000 thats too many at once and that will really tighten the market in the U S. Theres already some indication that.

Murray K. Mullen: There's already some indication that the enforcement standards on both sides of the border have been accelerated over the last bit to make sure that the regulations that are currently in place are applied equally to all carriers. If that happens, that will force everybody into compliance, and that will tighten the market, in our view.

The enforcement standards on both sides of the border have been accelerated over the last bit to make sure that the regulations that are currently in place.

Our applied equally to all carriers, if that happens that will force everybody into compliance and that will tighten the market and RV and.

And you mentioned that a tightening in the U S will create a bit of a tightening here is that essentially because theyre drawing worker qualified workers from Canada, and lowering them down in the U S and that's that's tightening is that the logic. There is there any other reason that would cause it to tightened in Canada as well.

[Analyst 1]: Okay. You mentioned that a tightening in the U.S. will create a bit of a tightening here. Is that just essentially because they're drawing qualified workers from Canada and luring them down in the U.S., and that's tightening it up? Is that the logic there? Is there any other reason that would cause it to tighten in Canada as well?

Walter Spracklin: You mentioned that a tightening in the US will create a bit of a tightening here. Is that just essentially because they're drawing qualified workers from Canada and luring them down to the US, that's tightening it up? Is that the logic there, or is there any other reason that would cause it to tighten in Canada as well?

Well I just think that it's.

It will when the market tightens in terms <unk> I don't know about the availability of drivers, but when the market tightens.

Murray K. Mullen: Well, I just think that it will when the market tightens I don't know about the availability of drivers, but when the market tightens and rates go up in the US, then if you're-

Carson Urlacher: I just think that it's the, it will, when the market tightens in terms, I don't know about the availability of drivers, but when the market tightens and rates go up in the U.S., then if you're Canadian.

And rates go up in the U S. Then if you're Canadian got it that's where you could benefit from you'll follow up yes. Okay. And then last question is on M&A you mentioned some of the you mentioned that.

Walter Spracklin: Okay. Got it.

Murray K. Mullen: Canadian-based, that's where you benefit from that.

[Analyst 1]: Okay, got it.

Carson Urlacher: That's where you benefit from that.

Walter Spracklin: You'll follow. Yeah. Okay. Last question is on M&A. You mentioned that your acquisitions have been a good surrogate for, you know, for offsetting any macro-driven declines. Presumably, they've been modest in terms of covering off what would have been declines in 2025. You indicated that 2026 should be similar. You mentioned that, you know, you touched on platform, and that's what I think get people excited. How much of that is really you waiting for what comes available? 'Cause I know you have to have a seller in order to buy something.

[Analyst 1]: You'll follow up. Okay. Last questions on M&A. You mentioned that your acquisitions have been a good surrogate for you for offsetting any macro-driven declines. Presumably, they've been modest in terms of covering off what would have been declines in 2025. You indicated that 2026 should be similar. You mentioned that you made a, you touched on platform, and that's what I think gets people excited. How much of that is really you waiting for what comes available? I know you have to have a seller in order to buy something, but are you waiting for those sellers to just come to you, or are there any areas, and I'm talking in terms of platform, not tuck-in, but platform verticals or what have you, that you're looking at and you're exploring proactively, rather than waiting for sellers to pop up and come to you?

Your acquisitions have been a good surrogate for you for <unk>.

Offsetting any macro driven declines so presumably they've been modest in terms of covering off what would have been.

Declines in 2025, you indicated that 2026 should be similar you mentioned that you made it.

Touched on platform and that's what I think it gets people excited.

How much of that is really.

You waiting for what comes available because I know you have to have a seller in order to buy something but are you waiting for those sellers to just come to you or are there any areas and I'm talking in terms of platform not tuck in but platform verticals or or what have you that youre looking at.

Walter Spracklin: Are you waiting for those sellers to just come to you, or are there any areas, and I'm talking in terms of platform, not tuck-in, but platform verticals or what have you, that you're looking at and you're exploring proactively, rather than waiting for kind of sellers to pop up and come to you?

And you're exploring proactively.

Rather than waiting for kind of sellers to pop up and come to you.

Yes, it's a combination of both Walter.

Murray K. Mullen: Yeah. It's a combination of both, Walter. We have certain, you know, certain parts of our business that we really think is investable. We like the LTL business.

Carson Urlacher: Yeah, it's a combination of both, Walter. We have certain parts of our business that we really think is investable. We like the LTL business. That's in our thesis. It's now not the biggest, though, Carson. That acquisition, because we put Coal Group into L&W, is now, L&W is now the largest segment. Those are the two primary ones for platform companies. Not really interested in the long-haul trucking business. I get a call all day, Rich, Joanna, yes, on these. We're not really interested in that part of the business because we don't see what's the long-term strategic advantage that having trucks has. We like warehousing. We like technology. We like LTL where you can drive the margin improvement over time by being smart and employing technology. There's no doubt. You got to be careful when you're talking, and most of the time you're talking about entrepreneurs.

We have certain.

Certain parts of our business that we are.

That we really think is investable, we normally like the <unk> business.

Our thesis is now not the big installed coarse.

Murray K. Mullen: in our thesis. It's now not the biggest, though, of course.

Well until that acquisition with because we put coal and <unk> is now <unk> largest segment, but.

Walter Spracklin: No, L&W is.

Murray K. Mullen: that acquisition with, because we put Cole Group into L&W is now the largest segment. Those are the two primary ones for platform companies. Not really interested in the long-haul trucking business. I get a call all day, Richard Maloney, Joanna Scott.

Those are the two primary.

One is for platform companies.

<unk>.

Not really interested in the long haul trucking business I get a call a day rich Joanna.

On these were not really interested in that part of the business because we don't see what's the long term strategic.

Richard Maloney: Yes

Murray K. Mullen: on these. We're not really interested in that part of the business 'cause we don't see what's the long-term strategic advantage that having trucks has. We like warehousing, we like technology, we like LTL, where you can, you can drive the margin improvement over time by being smart and employing technology.

The advantage that having.

Having trucks has.

We like warehousing, we like technology, we'd like.

We like <unk>, where you can you can drive the margin improvement over time by being smart and endpoint technology.

So we've got some.

There is no doubt but.

You got to be careful when youre talking to most of the time youre talking about entrepreneurs entrepreneurs.

Murray K. Mullen: There's no doubt. You know, you gotta be careful when you're talking, and most of the time you're talking about entrepreneurs. Entrepreneurs are different ducks. They decide when they wanna sell. Not you decide when you wanna buy. That's. You're trying to pry something out of a, out of a piece of cement that doesn't work very easy. We just kinda take the high road. Everybody knows, I know, everybody knows, and it's been in our thesis and our strategy plan since day one, everybody needs liquidity. Just bide your time, make sure you got the balance sheet when the good ones come around, and I think we've done the right thing there.

Entrepreneurs are different doxy, they decide when they want to sell you.

Carson Urlacher: Entrepreneurs are different ducks. They decide when they want to sell, not you decide when you want to buy. You're trying to pry something out of a piece of cement that doesn't work very easy. We just got to take the high road. Everybody knows. I know. Everybody knows. It's been in our thesis and our strategy plan since day one. Everybody needs liquidity. Just bide your time. Make sure you got the balance sheet when the good ones come around. I think we've done the right thing there.

Decide when you want to buy that.

I'm trying to pry.

Somewhat of a piece of cement that doesn't work for AC.

We just kind of take the high road everybody knows I know everybody knows and it's been in our thesis and our strategy plan since day one.

Everybody needs liquidity.

Despite your time.

Make sure you got the balance sheet when the good ones come around and I think we've done the right thing there.

Sounds like a good plan and I appreciate your time as always Mary. Thank you. Thank you very much good Jen.

[Analyst 1]: That sounds like a good plan. I appreciate your time as always, Murray. Thank you.

Walter Spracklin: Sounds like a good plan. I appreciate your time, as always, Murray. Thank you.

Yeah.

Murray K. Mullen: Thank you very much. Good chat.

Carson Urlacher: Thank you very much. Good job.

The next question comes from Cameron <unk> with National Bank Financial. Please go ahead.

Operator: The next question comes from Cameron Dirksen with National Bank Financial. Please go ahead.

Operator: The next question comes from Cameron Doerksen with National Bank Financial. Please go ahead.

Yes, thank you very much.

Good morning, just wanted to ask I guess about the outlook and the specialized <unk> industrial segment.

[Analyst 2]: Yeah, thanks very much. Good morning. Just wanted to ask, I guess, about the outlook in the Specialized & Industrial segment. I mean, you explained the reasons for the revenue decline. Just wondering if some of the deferral of turnaround work and maintenance work that you've seen in 2025 is something that can't be deferred forever and may come back in 2026. I'm just wondering if you have a sort of an early look into next year, you know, how that segment might trend, you know, just based on some of the deferrals we see this year.

Cameron Doerksen: Yeah, thanks very much. Good morning. Just wanted to ask, I guess, about the outlook on the specialized industrial segment. I mean, you explained the reasons for the revenue decline. Just wondering if, you know, some of that, I guess, the deferral of, you know, turnaround work and maintenance work that you've seen in 2025 is something that, you know, can't be deferred forever and may come back in 2026. I'm just, you know, wondering if you have a sort of an early look into next year, you know, how that segment might trend, you know, just based on some of the deferrals you've seen this year.

You.

Explain to you the reason for the revenue decline.

Just wondering if you will.

Some of that gets the deferral of turnaround work and maintenance work that you've seen in 2025 is something that.

You can't be deferred forever and it may come back in 2026 I'm just.

Wondering if you have that sort of an early look into into next year.

But how that how that something it might trend.

Just beyond this year I think once again thats a really good observation is that for sure. Some of the big turnarounds were delayed because they're very expensive and everybody was really everybody was managing cash flow. I mean, we were here we cut off capex, we really reduce capex quite significantly here, so really ever.

Murray K. Mullen: Yeah. Once again, that's a really good observation, is that for sure some of the big turnarounds were delayed because they're very expensive, and everybody was managing cash flow. I mean, we were here. We cut off CapEx. We really reduced CapEx quite significantly here. Really, everybody did that. Some of it was uncertainty, some of it was commodity prices. There's no doubt they delayed them. You can delay, but you can't quit. Our thesis is, well, they'll come back. It's just a matter of timing, and we'll be positioned to do it. You know, you gotta be in business. Once you miss the deal, doesn't mean you're guaranteed to get it next time.

Carson Urlacher: Once again, that's a really good observation, is that for sure that some of the big turnarounds were delayed because they're very expensive and everybody was really, everybody was managing cash flow. I mean, we were here. We cut off CapEx. We really reduced CapEx quite significantly here. Really, everybody did that. Some of it was uncertainty. Some of it was commodity prices. There's no doubt they delayed them. You can delay, but you can't quit. Our thesis is, well, they'll come back. It's just a matter of timing, and we'll be positioned to do it. You got to be in business. Once you miss the deal, it doesn't mean you're guaranteed to get it next time. I'd rather get it done when it's hot. We'll make sure that our business units are in the best position to take advantage of that.

<unk> did that some of it was uncertainty some of those commodity prices, but theres no doubt they delayed them.

You can delay, but you can.

Okay quit.

So our thesis is while it will come back it's just a matter of timing.

And we will be positioned to do it.

But you got to be in business. Once you Miss the deal doesn't mean, you're guaranteed to get it next time, so I'd, rather get I'd, rather get it done when it's hot but we'll make sure that our business units are in the best position to take advantage of that because when those when those turnarounds goal.

Murray K. Mullen: I'd rather get it done when it's hot, but we'll make sure that our business units are in the best position to take advantage of that. Cause when those when those turnarounds go, and this is exactly what we had last year with our Cascade Energy Services Group. They just blew it out of the park with major projects 'cause why? We invested in technology, in robotics. We went in, aced it, did a great job for the customer. The customer was happy. They go back online faster, and we made a nice profit on that. They've delayed it this year, let's see what happens again next year.

Carson Urlacher: When those turnarounds go, and this is exactly what we had last year with our Cascade Energy Services Group, they just blew it out of the park with major projects. Why? We invested in technology, in robotics. We went in, aced it, did a great job for the customer. The customer was happy. They got back online faster, and we made a nice profit on that. They've delayed it this year. Let's see what happens again next year. I'm hopeful, Cameron, but you know we'll have more to say on that when we get. Hopefully, it wasn't one and done. It was just delayed. For this year, definitely been delayed. As I said, the other part of this equation was, you know, boy, some of these big oil companies, they really became very, very sensitive on cost. We will not take a long-term contract at the bottom of the market.

And this is exactly what we had last year with our Cascade Energy services group. They had they just blew it out of the park.

With major projects because why we invested in technology in robotics, we went in <unk> did a great job for the customer or the customer was happy to go back online faster and we made a nice profit on that.

But they've delayed this year, let's see what happens again next year I'm hopeful.

Cameron, but.

Murray K. Mullen: I'm hopeful, Cameron. You know, we'll have more to say on that when we get to Hopefully, it wasn't one and done, it was just delayed. For this year, it has definitely been delayed. As I said, the other part of this equation was, you know, boy, some of these big oil companies, they really became very sensitive on cost, and we will not take a long-term contract at the bottom of the market. Forget it. We protect margin rather than market share 'cause when business returns, I'd rather have our price than a low price.

Yeah.

We'll have more to say on that when we get to.

Hopefully it wasn't.

One and done it was just delayed.

For this year definitely been delayed.

And then as I said the other part of this equation was.

Some of these big oil companies, they really became very very.

Sensitive on cost and we will not.

Take a long term contract at the bottom of the market forget it we protect margin rather than market share because when business returns.

Carson Urlacher: Forget it. We protect margin rather than market share. When business returns, I'd rather have our price than a low price.

Rather have our price of oil price.

And I think Cameron as well Richard me, when we're going into the typical budgeting planning cycle for the.

[Analyst 2]: I think Cameron, as well as Richard, me, we're going into the typical budgeting plan cycle for the big oil and gas companies. Over the next month or two, we'll get a better idea of what will be happening and what they're projecting for the future. It'll all be subject to commodity prices and everything else. We follow that and look and see what comes from there. We are well positioned. Murray said we've made investments, particularly in turnaround-related equipment, and we're ready to roll whenever it comes. It will come. It's just a matter of when.

Richard Maloney: I think, Cameron, as well as Richard, We're going into the typical budgeting planning cycle for the big oil and gas companies. Over the next month or two, we will get a better

Oil and gas companies in them over the next month or two we will get better.

What will be happening and what they are projecting for the future and will be subject to commodity prices and everything else. So we follow that and look and see what comes from there, but we are well positioned Murray said, we've made investments, particularly in turnaround related equipment number red enroll whenever it comes so and it will come it's just a matter of win.

Murray K. Mullen: Idea of what will be happening and what they're projecting for the future will all be subject to commodity prices and everything else. We follow that and look and see what comes from there. We are well positioned. Murray said we've made investments, particularly in turnaround related equipment, and we're ready to roll whenever it comes. It will come, it's just a matter of when. Some parts of our SNI did fantastic. Of course, they did. Our dewatering group is an example.

Some parts of our <unk> fantastic.

Carson Urlacher: Some parts of our S&I did fantastic, Carson. They did. Our dewatering group is an example that did well.

Our dewatering group as an example did well smaller construction up in northern months more than Manitoba did very well.

Cameron Doerksen: Yeah.

Murray K. Mullen: It did well. Schlumberger Construction, up in northern Manitoba, did very well. Our involved group, we've already made the capital investment. That'll help us next year because we've doubled capacity. You know, yeah, like I said, when things happen, they happen. Just move on. We don't whine about it. We don't cry. We just go about our business. Let's go.

[Analyst 2]: Yeah, Mullen Group.

Carson Urlacher: Construction up in northern Manitoba did very well. Our Envolve Energy Services group, we've already made the capital investment. That'll help us next year because we've doubled capacity. Like I said, when things happen, they happen. Just move on. We don't whine about it. We don't cry. We just go about our business. Let's go.

Our involve group we've already made the capital investment that will help us next year, because we've doubled capacity.

Yeah, like I said when things happen.

Happened just move on we don't want about it we don't crowd, which is good about our business let's call.

Okay. That's super helpful and just on the I guess at Newbury interim here in the next couple of quarters, just wondering about the margins in that segment.

[Analyst 2]: Okay. No, that's super helpful. Just on the, I guess, in the very interim here in the next couple of quarters, just wondering about the margins in that segment. Obviously, business mix makes a big difference on the margin, and it was pretty strong in the third quarter, just given where the revenue was. I mean, should we expect kind of that strength in margin just based on the business mix the next couple of quarters?

Cameron Doerksen: Okay. No, that's super helpful. Just on the, I guess, in the very interim here in the next couple of quarters, just wondering about the margins in that segment. Obviously, business mix makes a big difference on the margin, it was, you know, pretty strong in Q3, just given where the revenue was. I mean, should we expect kind of that strength in margin just based on the business mix the next couple of quarters?

Business mix makes a big difference on the margin and it was a pretty pretty strong in the third quarter, just given where the revenue wise I mean should we expect kind of that strength in margin just based on the business mix. The next next couple of quarters.

The reason the margin stayed strong as some of our businesses did well when we gave up the low margin business.

Carson Urlacher: Yeah. The reason the margin stayed strong is some of our businesses did well when we gave up the low margin business, in which they wanted lower rates. I didn't like that scenario.

Murray K. Mullen: Yeah. The reason the margin stayed strong is some of our businesses did well, and we gave up the low margin business in which they wanted lower rates. I didn't like that scenario.

And which they wanted lower rates.

I didn't like that scenario.

Okay makes sense just one quick final clarification from me just on the U S International logistics segments, I mean, do you spin this accounting change.

[Analyst 2]: Okay. Makes sense. Just one quick final clarification for me. Just on the US international logistics segment, I mean, there's been this accounting change. I guess it reduces revenue but has no impact on EBITDA. I'm just wondering about, I guess, the reported EBITDA margin, which is obviously much higher than what we've seen in that segment for throughout its history. Is that kind of the sort of the sustainable kind of go-forward margin? You know, obviously, there's some seasonality to it, but just wondering if you can provide any context there.

Cameron Doerksen: Okay. Makes sense. Just one quick final clarification for me. Just on the US international logistics segment, I mean, in this accounting change, I guess, you know, it reduces revenue but has no impact on EBITDA. I'm just wondering about, I guess, the reported EBITDA margin, which is obviously much higher than what we've seen in that segment for, you know, throughout its history. Is that kind of sort of the sustainable kind of go forward margin? You know, obviously, there's some seasonality to it, but just wondering if you can provide any context there.

I guess.

It reduces revenue, but has no impact on EBITDA, just wondering about I guess the reported EBITDA margin, which is obviously much higher than what we've seen in that segment for <unk>.

Throughout its history is that kind of a sort of a sustainable kind of go forward margin.

There's some seasonality to it but just wonder if you can provide any context there.

Yes, Cameron I would say.

Carson Urlacher: Yeah, Cameron, I would say you're pretty spot on there with the U.S. 3PL segment. The Q3 numbers kind of give you a good run rate to benchmark going forward in terms of revenue and margin. This is all things considered constant, obviously. Yeah, you know.

Carson Urlacher: Yeah, Cameron Doerksen, I would say you're pretty spot on there with the US 3PL segment. That, you know, the Q3 numbers kinda give you a good run rate to kinda benchmark going forward in terms of revenue and margin. Now, this is all things, you know, all things considered constant, obviously. But yeah, you know.

Youre pretty spot on there with the U S. <unk> segment that's been.

The Q Q3 numbers kind of give you a.

A good run rate to kind of benchmark going forward.

In terms of revenue and margin now this is all things you know all things considered.

Constant obviously, but.

Again the.

Thesis, that's our thesis tariffs are going to impact that obviously, but.

Murray K. Mullen: That's our thesis.

Carson Urlacher: That's our thesis. You know, tariffs are gonna impact that, obviously. We've taken that duties and taxes and tariff noise out of the revenue line, so you can see a true clear indication for Q3 as to what that would look like going forward.

[Analyst 2]: That's our thesis.

Carson Urlacher: That's our thesis. You know, tariffs are going to impact that, obviously. We've taken that duties and taxes and tariff noise out of the revenue line, so you can see a true clear indication for Q3 as to what that would look like going forward. You know.

We've taken that duties and taxes and tariff noise out of the revenue line.

So you can see.

A true clear.

Indication for Q3 as to what that would look like going forward.

And all in all honesty.

Murray K. Mullen: You know, in all honesty, when we did our final purchase price equation on this, Cameron, when you go in and really tariffs are relatively new this year, so I'm not gonna blame that they gave us the wrong information when we bought the company. Tariffs are relatively new this year. Taxes and duties and all that stuff, that was always embedded within the revenue side. The tariff thing, I mean, you know, all of a sudden one day you had 100% tariffs. Well, you know, that all of a sudden inflated the revenue number up. When we did our final purchase price equation, we went, Well, hold it. That doesn't. We're not gonna add tariffs in as revenue. That's really where that change came from.

[Analyst 2]: In all honesty, when we did our final purchase price equation on this, Cameron, you go in, really, tariffs are relatively new this year. I'm not going to blame that they gave us the wrong information when we bought the company. Tariffs are relatively new this year. Taxes and duties and all that stuff, that was always embedded within the revenue side. The tariff thing, I mean, you know, all of a sudden, one day you had 100% tariffs. You know, that all of a sudden inflated the revenue number up. When we did our final purchase price equation, we went, "Hold it. That doesn't, we're not going to add tariffs in as revenue." That's really where that change came from. You can see from the margin, that was a very good investment. Yeah. Okay. No, that's great. Very helpful. Thanks very much.

When we did our.

Final purchase price equation on this camera and when you go in and really tariffs are relatively new this year, so I'm not going to blame that that they gave us the wrong information when we bought the company tariffs are relatively new this year.

So taxes and duties and all that stuff that was always embedded within the revenue side.

But the tariff thing I mean.

The sudden one day, you had 100% tariff as well.

That all of a sudden inflated the revenue number up.

And when we did our final purchase price equation, we will hold it that says we're not going to add tariffs in as revenue.

So thats really where that change came from.

But.

You can see from the margin that was a very good investment.

Cameron Doerksen: Okay

Murray K. Mullen: You can see from the margin, that was a very good investment.

Yeah, Okay, no that's great very helpful. Thanks, very much thank.

Cameron Doerksen: Yeah. Okay. No, that, that's great. Very helpful. Thanks very much.

Thank you.

The next question comes from Tim James with TD Securities. Please go ahead.

Carson Urlacher: Thank you.

Murray K. Mullen: Thank you.

Operator: The next question comes from Tim James with TD Securities. Please go ahead.

Operator: The next question comes from Tim James with TD Securities. Please go ahead.

Thanks, very much good morning.

Tim James: Thanks very much. Good morning.

[Analyst 3]: Thanks very much. Good morning.

Two quick I guess a question for Mary here I'm wondering if.

Carson Urlacher: Morning to you.

Murray K. Mullen: Morning, Tim.

Tim James: I guess a question for Murray here. I'm wondering if, you know, this approach out of Washington that we've seen kinda this year, and some might say unpredictable or maybe volatile, does that change? Obviously this could last for 4 years. Does that change how you approach your business at all? I mean, you know, hopefully there'll be some stability and some visibility that improves. I mean, is there a part of you that says, Hey, let's be cautious 'cause we don't know how long this will last? I'm just wondering if it kinda changes any aspect of how you approach, whether it's capital allocation or how you run any of these businesses.

[Analyst 3]: I guess a question for Murray here. I'm wondering if, you know, this approach out of Washington that we've seen kind of this year, and some might say unpredictable or maybe volatile, does that change? Obviously, this could last for four years. Does that change how you approach your business at all? I mean, you know, hopefully, there'll be some stability and some visibility that improves. I mean, is there a part of you that says, "Hey, let's be cautious because we don't know how long this will last"? I'm just wondering if it kind of changes any aspect of how you approach, whether it's capital allocation or how you run any of these businesses.

This approach.

Washington that we've seen kind of this year and some might say unpredictable or maybe.

Volatile.

Does that change and let me say this could last for three or four years.

Does that change how you approach your business at all I mean, hopefully there'll be some stability and some visibility that improves but I mean is there a part of you that says hey, let's let's be cautious because we don't know how long. This will last I'm just wondering if it kind of changes.

In any aspect of how you approach, whether it's capital allocation or how you read any of these businesses.

From a personal take on it is Tim is that I think there has been.

Murray K. Mullen: Well, my personal take on it is, Tim, is that I think there's been a lot of noise around tariffs and trade and Canada against US against Canada, and those kind of things. If you take a look at the detail, there really hasn't been that much tariff put on Most of the product under the US free trade, US, Mexico, Canada, US Free Trade Agreement is duty free. It's really hasn't been impacted. If you talk to the average person, Oh my God, everything's got big tariffs on it. That's not the case. There's been a couple, and that's, you know, that's for reasons that are I don't understand them.

Carson Urlacher: My personal take on it is, Tim, is that I think there's been a lot of noise around tariffs and trade and Canada against U.S., U.S. against Canada, and those kind of things. If you take a look at the detail, it really hasn't been that much tariff put on most of the product under the U.S. free trade. U.S., Mexico, Canada, U.S. free trade agreement is duty-free. It really hasn't been impacted. If you talk to the average person, "Oh my God, everything's got big tariffs on it." That's not the case. There's been a couple, and that's for reasons that I don't understand them. It's not as, I don't think it's as quite as big an issue as what everybody thought it was going to be. I think that eventually common sense will rule, and everybody will go back to make the business the best decision they can.

A lot of noise.

Around tariffs and trade.

Canada against the U S. You'll see gains can in those buildings, but if you if.

If you take a look at the detailed it really hasnt been that much tariff put on most of most of the product under the U S trade U S Mexico, Canada U S. Free trade agreement is duty free so it's really hasn't been impacted but if you talk to the average person Oh My God Everything's good got big tariffs on it that's not the case there has been a capo.

And Thats.

Oh, that's for reasons that are idle.

I don't understand them, but.

But it's not as I don't think its quite as big an issue as wood.

Murray K. Mullen: It's not, I don't think it's as quite as big a issue as what, you know, what everybody thought it was gonna be. I think that will eventually common sense will rule and everybody will go back to make the business the best decision they can. We're a little bit optimistic that all the big noise is over. I mean, if you, if you read the headlines and they're correct, and Carney's saying, you know, we're gonna be able to sign an agreement here pretty quick. The biggest risk that we see to the economy, Tim, is that the US is winning the private capital game.

So what everybody thought it was going to be so I think that.

Eventually common sense will rule in everybody to go back to make a business decision they can.

So we're a little bit optimistic.

Carson Urlacher: We're a little bit optimistic that all the big noise is over. I mean, if you read the headlines and they're correct, then Carney's saying, "You know, we're going to be able to sign an agreement here pretty quick." The biggest risk that we see to the economy, Tim, is that the U.S. is winning the private capital game. The amount of private capital going to work in the United States, which is good jobs, and I'm assuming long-term jobs, is that the U.S. has won that game hands down. We don't even, Canada's really not even participating in that side. That leaves all the heavy lifting to the Canadian government to publicly fund any project because we haven't seen too many private companies step up yet. I haven't seen them. We haven't heard from our customers that they're aggressive on that.

All the big noises over.

I mean, if you read the headlines and they're correct in Kearney, saying, we're going to have be able to sign an agreement here pretty quick.

<unk>.

The biggest the biggest risk that we see to the economy is that the.

The us is winning the private capital game, the amount of private capital going to work in the United States, which is good jobs.

Murray K. Mullen: The amount of private capital going to work in the United States, which is good jobs, and I'm assuming long-term jobs, is. The US is winning that game hands down. We don't even. Canada's really not even participating in that side. That leaves all the heavy lifting to the Canadian government to publicly fund any project. We haven't seen too many private companies step up yet. I haven't seen them.

I'm, assuming long term jobs is the.

U S has won that game hands down we don't need them.

Canada is really not even participating in that site. So that leaves all of the heavy lifting to the Canadian government too.

Publicly fund any project.

We haven't seen too many private companies step up yet I haven't seen them.

Okay.

Haven't heard from our customers.

Tim James: Okay.

They are aggressive on that so.

Murray K. Mullen: We haven't heard from our customers that they are-

Tim James: Okay

Murray K. Mullen: aggressive on that. you know, that's just all the heavy lifting is gonna go to the federal government, and higher deficits is what we suspect.

That's just all the heavy lifting is going to go to the federal government.

Carson Urlacher: All the heavy lifting is going to go to the federal government, and the higher deficits is what we suspect. Hey, from our perspective, just make a decision. Let's quit talking and let's get some things done because that's when you create good jobs, and that's when you know we can, you know, there'll be more freight to haul and the economy gets going. You got to quit talking and get going. There are some major, I will tell you right now, there are some major, major capital projects that are happening in the United States, and we are looking at, particularly through our pre-made pipeline hauling side, as to how we participate in those projects. We've been having serious discussions with the contractors on that, and that happens. To us, our trucks and our, we're in both countries. We'll go where the business goes. That's what we'll do.

We've hired emphasis is what we suspected.

But we.

From our perspective.

Tim James: Okay

Hence the decision.

Murray K. Mullen: From our perspective, just make a decision. You know, let's quit talking, and let's get some things done because that's when you create good jobs, and that's when, you know, we can, you know, there'll be more freight to haul and the economy gets going. You gotta quit talking and get going. There are some major I will tell you right now, there are some major capital projects that are happening in the United States, and we are looking at, particularly through our Premay pipeline hauling side, as to how we participate in those projects. We've been having serious discussions with the contractors on that, and that happens. You know, to us, our trucks and our we're in both countries, so we'll go where the business goes. That's what we'll do.

Let's quit talking and lets get some things done because thats when you create good jobs and Thats, where we can.

There'll be more freight to haul them.

If the economy gets going but you've got to quit talking and get going.

Now there are some major I will tell you right now there are some major major capital projects that are happening in the United States.

And we are looking at.

Particularly through our <unk> pipeline hauling side as to how we participate in those projects we've been having.

Serious discussions with the contractors on that.

That happens.

To us our trucks sooner.

We're in both countries. So we will go.

Where the business goes that's what we'll do on our capital go where we think we can get the best return.

Carson Urlacher: Our capital will go where we think we can get the best return.

Murray K. Mullen: Our capital will go where we think we can get the best return.

Okay. Thank you that's a good segue actually my next question.

Tim James: Okay. Thank you. That's a good segue, actually, to my next question. You know, the Q3 report calls out the nation-building projects and some, you know, some optimism there. Are there any particular projects that you would call out as maybe potentially offering more opportunity to the Mullen Group companies? Any that are kind of noteworthy that we should, you know, watch more closely to see progress with positive implications for the businesses?

[Analyst 3]: Okay. Thank you. That's a good segue actually to my next question. You know, the Q3 report calls out the nation-building projects and some optimism there. Are there any particular projects that you would call out as maybe potentially offering more opportunity to the Mullen Group companies? Any that are kind of noteworthy that we should watch more closely to see progress with positive implications for the businesses?

The Q3 report closeout, the nation building projects and some.

Some optimism there.

Are there any particular projects that you would call out as maybe potentially offering more opportunity too.

The Mullen group companies and either kind of noteworthy that we should watch more closely to see progress with positive implications for the businesses.

I think the one that we're seeing the early wins on those probably on the mining side.

Murray K. Mullen: I think the one that we're seeing the early wins on is probably on the mining side. For example, our Canadian Dewatering set up in Northwest Ontario.

Carson Urlacher: I think the one that we're seeing the early wins on is probably on the mining side, for example, our Canadian dewatering setup in Northwest Ontario.

For example, our Canadian dewatering setup.

In north.

Northwest, Ontario.

We set up in Thunder Bay and.

Richard Maloney: Yeah, Thunder Bay.

That's why our they've grown.

Murray K. Mullen: We set up in Thunder Bay, and that's why our they've grown with as the capital's gone into the mining sector. You hear a lot about rare earth minerals and, you know, and those kind of things. Well, that's mining, and that's just hard rock. You still gotta have water. You still move water. You need water. You gotta move water. We'll be involved in those projects. Lots of talk about big projects, mining projects happening in British Columbia. Of course, that's where Advancedar Group is situated. We'll be up in Prince Rupert, looking at opportunities up there and scoping out with our Advancedar Group here in a couple of weeks, Rich.

[Analyst 2]: Yeah, Thunder Bay.

Carson Urlacher: We set up in Thunder Bay, and that's why they've grown as the capital's gone into the mining sector. You hear a lot about rare earth minerals and those kind of things. That's mining, and that's just hard rock. You still got to have water. You still move water. You need water. You got to move water. We'll be involved in those projects. Lots of talk about big projects, mining projects happening in British Columbia. Of course, that's where our master group is situated. We'll be up in Prince Rupert looking at opportunities up there and scoping up with our master group here in a couple of weeks, Rich.

Yeah.

Capital has gone into the mining sector. So you heard a lot about rare earth minerals.

And those kind of things so thats mining.

<unk>.

That's just hard rock.

But you still got to have one are you still more water you need water you know to move water. So it will be involved in those projects.

Lots of talk about big projects mining projects happening in British Columbia and of course, that's where events group is situated will be up in Prince Rupert.

Looking at opportunities up there and scoping out with our Master group here in a couple of weeks.

Myself and Richard and we're going to go up to that.

Richard Maloney: Yes.

[Analyst 2]: Yeah, that's right.

Murray K. Mullen: Myself and Richard and Lee are gonna go up to that. There's opportunities, but it hasn't happened yet, Tim. There's a lot of chatter. After chatter, maybe that turns into activity. On the energy side, oil pipelines, I think that makes for good headlines, but I don't see it. Probably not in the short term for sure. LNG, yes, there's lots of talk about Prince Rupert and the Pacific, that project of LNG. That's a big project, you know. That would be what we're really after, Tim, what does one project do? One project comes, then it's gone. We need to have a strategy that says it's gonna be a decade or two-decade-long strategy, that's what would really get us excited.

Carson Urlacher: Myself, Richard, and Lee are going to go up to that. There are opportunities, but it hasn't happened yet, Tim. There is a lot of chatter. After chatter, maybe that turns into activity. On the energy side, oil pipelines make for good headlines, but I don't see it, probably not in the short term for sure. LNG, yes, there's lots of talk about Prince Rupert and the Pacific, that project of LNG. That is a big project. You know, that would be, but what we're really after, Tim, I don't, you know, what does one project do? One project comes, then it's gone. We need to have a strategy that says it's going to be a decade or two decade-long strategy. That is what would really get us excited. That is what we're waiting to hear from the federal government.

So there's opportunities.

But it hasnt happened, yet, Tim, but theres lots of there's a lot of chatter and after chatter maybe that turns in the activity on the energy side.

Oil pipelines I think thanks for good headlines, but I don't see it.

<unk>.

Probably not.

Not on the short term for sure LNG, Yes, there's lots of talk about <unk>.

Prince Rupert.

The Pacific.

That project of LNG so.

That's a big project.

But what we're really after.

What is the one project. One project comes then is gone we need to have a strategy that says it's going to be a decade or two decade long strategy and then thats what would really get us excited.

What we're waiting to hear from the federal government.

Murray K. Mullen: That's what we're waiting to hear from the federal government.

And we've been here at soon because we know as Murray mentioned Theres major LNG projects going on.

[Analyst 2]: We better hear it soon because we know, as Murray mentioned, there's major LNG projects going on up in Alaska. It's coming. They're planning and thinking.

Richard Maloney: We better hear it soon because we know, as Murray mentioned, there's major LNG projects going on up in Alaska, and it's coming, and they're planning and thinking.

Up in Alaska.

Thats common in their planning and thinking so I think there's only so much capacity for this for specialty equipment and whoever goes first gets it gets the capacity and O&M.

Carson Urlacher: I think there's only so much capacity for this, especially equipment. Whoever goes first gets the capacity. What I'm afraid of is Canada keeps talking and the U.S. says go, and then they say, "Okay, we're going to go," and the capacity is already used up. There's only so much capacity for big hinge pipeline. There are only so many places that's built in the world. You have to code it, you have to move it, and then you have to lay it in the ground. There are only so many people that do that. Those are highly skilled jobs. We're hopeful that Canada, you know, the business world, if you sit and wait too long, it's over. Somebody else gets the market. These are big hinge pipelines. We're talking 5 BCF a day of natural gas that would hit the LNG market.

Murray K. Mullen: Like, there's only so much capacity for this.

Richard Maloney: Correct

Murray K. Mullen: specialty equipment, and whoever goes first gets the capacity.

Im afraid of this kind of keeps talking in the U S. Those go and then is it okay. We're going to go and then the capacity is already used up.

Richard Maloney: I know.

Murray K. Mullen: What I'm afraid of is Canada keeps talking, and the US says, Go, and then they say, Okay, we're gonna go, and then the capacity is already used up. There's only so much capacity for bringing each pipeline. There's only so many places that's built in the world. You gotta code it, you gotta move it, and then you gotta lay it in the ground. There's only so many people that do that. That's kinda highly skilled jobs.

So theres only so much capacity for <unk> pipeline Theres only so many places so that's built in the world and you've got a cold it you've got to move it.

And then you've got to lay it in the ground and there's only so many people will do that soon.

Kind of highly skilled jobs.

So we're very much we're hopeful with Canada.

Richard Maloney: Yeah.

Murray K. Mullen: We're hopeful.

Tim James: Thank you very much.

Murray K. Mullen: We're hopeful that Canada, you in the business world, if you sit and wait too long, it's over. Like, somebody else gets the market. You know, these are big inch pipelines. We're talking 5 Bcf a day of natural gas that would hit the LNG market. Well, you know, there's only so many countries in the world that are gonna take 5 Bcf a day of production. I don't like the fact when a high commissioner for India says, you know, Canada's not a really a stable and secure supplier of energy supply yet. That's a wake-up call which says, Get your damn butt in gear and make a decision.

Okay.

The business World, if you sit and wait too long.

It's over.

Somebody else gets the market.

So these are big inch pipelines, we're talking five Bcf a day of natural gas that would hit the LNG market.

Well theres only.

There's only so many countries in the world that are going to take five five Bcf a day of production.

Carson Urlacher: There are only so many countries in the world that are going to take 5 BCF a day of production. I don't like the fact when the High Commissioner for India says, "You know, Canada's not a really stable and secure supplier of energy supply yet." That's a wake-up call, which says, "Get your damn butt in gear and make a decision. Either be a secured supplier or quit talking to us because we have to do what's best for our economy and for our country." I hope today that the government can make a good business case for LNG because we missed it in the last.

So.

I Didnt I don't like the fact, when the when the high Commissioner for India says, Canada is not is not really a stable and secure supplier of energy supplier.

That's a wake up call, which says.

Damn button gear and make a decision.

Either either via secured supplier or quit talking to us because we got to we got to do what's best for our economy.

Murray K. Mullen: Either be a secure supplier or quit talking to us, 'cause we gotta do what's best for our economy and for our country. I hope today that the government can make a good business case for LNG, 'cause we missed it.

For our country.

So I hope today, but the government can make a good business case for LNG.

Because we missed it in the last.

Three years in the last 10 years, we missed that opportunity.

Richard Maloney: Three years.

[Analyst 2]: Three years.

Murray K. Mullen: in the last 10 years. Yeah.

Carson Urlacher: In the last 10 years, yeah, we missed that opportunity. We're behind the eight ball here. Let's get going.

We're behind the eight ball here, let's get going.

Richard Maloney: Yeah.

Murray K. Mullen: We missed that opportunity, so we're behind the eight ball here. Let's get going.

The next question comes from Qunar Gupta with Scotiabank. Please go ahead.

Operator: Okay. The next question comes from Konark Gupta with Scotiabank. Please go ahead.

Operator: Okay. The next question comes from Conor Gupta with Scotiabank. Please go ahead.

Thanks, Anthony and good morning, everyone.

Konark Gupta: Thanks, Patrick. Good morning, everyone.

I have a few.

[Analyst 4]: Thanks, Albert. Good morning, everyone.

Good morning, guys I have a few questions actually we went through years.

Carson Urlacher: Good morning.

Konark Gupta: Morning, guys. I have a few questions actually to run through here, hopefully I will try to be quick on each here. First on the clarification on the Coal revenue side. I get it, you have to net out these duties and taxes in that 3PL segment. Is there any ripple effect on Coal's other revenue that is reported in the L&W segment?

Carson Urlacher: Good morning.

[Analyst 4]: Good morning, guys. I have a few questions actually to run through here. Hopefully, I'll try to be quick on each here. First one, the clarification on the Coal Group revenue side. I get it, you have to net out those duties and taxes in that 3PL segment. Is there any ripple effect on Coal Group's other revenue that is reported in the LNW segment?

Hopefully I'll try to be quick on each year.

One the clarification on the core revenue side, so I get it you have to net out the duties and taxes in that <unk> segment, but is there any ripple effect on other revenue that supported in the <unk> segment.

No <unk> there is no impact on the.

Carson Urlacher: No, Konark. There's no impact on the revenue that we recorded within the Canadian operation.

Carson Urlacher: No, Conor. There's no impact on the revenue that we recorded within the Canadian operation. There's just.

On the revenue that we recorded within the Canadian operations. So there is.

CBS Com, yes, we've got com here in Canada, and you don't in the U S. So really.

Murray K. Mullen: We have CARM.

[Analyst 4]: We have CARM.

Carson Urlacher: Yeah. We've got CARM here in Canada and you don't in the US. Really it's a, this issue is just related specifically, right, to the US 3PL segment. Full stop.

Carson Urlacher: Yeah, we've got CARM here in Canada and you don't in the U.S. This issue is just related specifically to the U.S. 3PL segment. Full stop.

This issue is just.

Related specifically to the U S. Three PL segment.

Full stop.

Yes. Thank.

Thank you so much.

For full disclosure on that.

Konark Gupta: Yeah, that makes sense. Thank you so much for that. Yeah.

[Analyst 4]: Yeah, that makes sense. Thank you so much for that.

Murray K. Mullen: For full disclosure on that, Canada and the US were always the same. The customs broker always collected the duties on behalf of the customer and the intermediary for the government. They collected it from the customer, cleared it, and then they sent the money to the government, either to Canada, Canadian government or the US government. Canada implemented a new program or just earlier started this year, did it not, Joe? It's called CARM. That really meant that every importer had to register directly with the government, not with the go through the intermediary, which is the broker. All those duties and taxes and whatever going go direct to the government now. They don't go through our Cole Group. In the US, that's not the case. It's still handled by the customs brokerage company.

Carson Urlacher: For full disclosure on that, Canada and the U.S. were always the same. The customs broker always collected the duties on behalf of the customer and the intermediary for the government. They collected it from the customer, cleared it, and then they sent the money to the government, either the Canadian government or the U.S. government. Canada implemented a new program just earlier, started this year, did it not, Joel?

Canada and the U S. We are always the same the customs broker always collected the duties on behalf of the customer and the intermediate fruit for the government.

We collected from the customer cleared it and they may set the money too.

The government either to Canada Canadian government for their U S government.

Canada implemented a new program.

Just earlier started this year did not Joel is going to harm.

<unk>.

[Analyst 4]: Yeah.

Carson Urlacher: It's called CARM. That really meant that every importer had to register directly with the government, not go through the intermediary, which is the broker. All those duties and taxes and whatever go direct to the government now, they don't go through our Coal Group. In the US, that's not the case. It's still handled by the customs brokerage company. Hopefully, that brings some clarity to that.

That really meant that every importer had to register directly with the government not with the go through the intermediary, which is the broker so all those duties and taxes and whenever we're going go direct to the government now they don't go through our KOL group, but in the U S. That's not the case, it's still handled by there.

Customs brokerage company.

Hopefully that brings some clarity to that.

Murray K. Mullen: Hopefully, that brings some clarity to that.

Absolutely that's really helpful. Thank you.

[Analyst 4]: No, absolutely. That's really helpful. Thank you. I think on the CapEx side, I think I heard you guys saying that you are taking down your CapEx numbers as well. I think the original budget you had when you set out the 2025 was not $100 million, I believe. I think you're tracking much lower. Any sense in terms of how much lower can we see this year? Are you preserving the CapEx that CapEx you're not spending this year maybe to spend next year, or it's gone?

Konark Gupta: Yeah, absolutely. That's, that's really helpful. Thank you. I think on the CapEx side, I think I heard you guys saying that you are taking down your CapEx numbers as well. I think the original budget you had, when you set out the 2025, was not CAD 100 million, I believe. I think you're tracking much lower. Any sense in terms of, you know, how much lower can we see this year? Are you preserving the CapEx, that CapEx you're not spending this year maybe to spend next year, or it's gone?

And I think on the Capex side, I think I heard you guys, saying that you are taking down your capex numbers sits relative to the original budget. You had said on the 2025 was not 100 million dollar I believe I think you're tracking much lower.

Any sense in terms of how much lower can we see this year and are you preserving the capex.

That's capex spending this year, maybe just spend next year it's gone.

Yeah. Our original guide Connor was was a $100 million.

Carson Urlacher: Yeah, our original guide, Conor, was $100 million, is what we originally came out with. We're sitting at $50 million net here at the end of the third quarter. Obviously, we're going to be well below that. I would say in terms of our maintenance CapEx, what do we need on an annualized run rate? That's pretty close to what our depreciation is, is around $70, $75 million, I think is your kind of maintenance CapEx budget. We deferred and delayed a lot of CapEx, as Murray alluded to earlier. There are many factors. Obviously, the demand isn't there, and the rates aren't there from our customers to support expensive equipment. You're looking at $250,000 a truck now. They're not cheap, and they don't give you better fuel mileage. They don't, they're a tool. They're not a technology.

Carson Urlacher: Our original guide, Konark Gupta, was CAD 100 million is what we originally came out with. We're sitting at CAD 50 million net here at the end of Q3. Obviously, we're gonna be well below that. I would say in terms of our maintenance CapEx, what do we need on an annualized run rate? That's pretty close to what our depreciation is around 70, 75, I think is your, you know, your kind of maintenance CapEx budget. We'd deferred and delayed a lot of CapEx as Murray K. Mullen alluded to earlier. There's many factors. Obviously, the demand isn't there, and the rates aren't there from our customers to support expensive equipment. You know, you're looking at CAD 250,000 a truck now.

As what we originally came out with we're sitting at $50 million net here at the end of the third quarter. So obviously, we're going to be well below that.

I would say in terms of our maintenance Capex, what do we need on an annualized run rate that's pretty close to what our depreciation is around 70%, 75% I think is easier.

Youre kind of maintenance Capex budget.

We deferred and delayed a lot of.

Capex as Mary alluded to earlier.

Theres many factors obviously.

The demand isn't there.

And the rates aren't there from our customers to support them.

Expensive equipment.

When youre looking at a $250000 a truck now.

Theyre not cheap and they don't give you a better fuel mileage. They don't there are two there.

Carson Urlacher: They're not cheap, and they don't give you better fuel mileage. They're a tool. They're not a technology. We're just looking at that and waiting for some normalization before we put in some big orders.

We're not a technology.

And we're just looking at that and waiting for for some normalization before.

Carson Urlacher: We're just looking at that and waiting for some normalization before we put in some big orders.

Before we put in some big orders on two fronts. One is the customers have to realize is that.

Murray K. Mullen: Yeah, on two fronts. One is the customers have to realize is that, you know, you can't go invest in new capital, and you keep asking for lower rates. Like, we're not gonna invest in new capital. That's the marketplace trying to figure out what's the right equilibrium there, Konark. For right now, the customers have been overly aggressive on the rate side, and the rates that we're seeing don't justify a CAD 250,000 truck. The trucks have got a little bit older. We had to run them a little bit longer. The second part of that equation, what Carson a little bit alluded to is we have been really aggressive with our suppliers to say, "Quit raising your prices.

Murray K. Mullen: Yeah, on two fronts. One is the customers have to realize that, you know, you can't go invest in new capital and you keep asking for lower rates. We're not going to invest in new capital. That's the marketplace trying to figure out what's the right equilibrium there, Conor. For right now, the customers have been overly aggressive on the rate side, and the rates that we're seeing don't justify a $250,000 truck. The trucks have got a little bit older. We had to run them a little bit longer. The second part of that equation, and what Carson a little bit alluded to, is we have been really aggressive with our suppliers to say, "Quit raising your prices. Give us a better product, not just a higher price and a newer, pretty-looking truck." I don't want a pretty truck. I want an effective, efficient truck.

You can't go invest in new capital and new key.

So asking for lower rates like we're not going to invest in new capital. So that's the marketplace trying to figure out what's the right equilibrium there Connor, but for right now.

The customers have been overly aggressive on the rate side and the rates that we're seeing don't justify a $250000 truck silver trucks, we've got a little bit older. We had to run them a little bit longer the second part of that equation.

Of course, I'm, a little bit alluded to is.

We have been you have been really aggressive with our suppliers to say quick raising your prices gives us a better product not just a higher price than our newer pretty look in truck I don't want a pretty truck I want an effective efficient truck.

Murray K. Mullen: Give us a better product, not just a higher price and a newer pretty-looking truck. I don't want a pretty truck. I want an effective, efficient truck. We had to put pressure on them, and you can't put pressure on them if you keep buying trucks from them. We quit buying for a bit until you get your prices in line. Prices have come down, Richard.

So we had to put pressure on them and you can't put pressure of them. If you keep buying trucks from them. So we are quite mindful of it.

Murray K. Mullen: We had to put pressure on them. You can't put pressure off them if you keep buying trucks from them. We quit buying for a bit until you get your prices in line. Prices have come down, Richard.

<unk> prices in line so.

Prices have come down Richard.

And we are working on that side.

Richard Maloney: They are.

Carson Urlacher: They are.

Murray K. Mullen: You know, yeah, you and Lee are working on that side. I think they've got the message loud and clear, not just from me, but from other, you know, large buyers where we're going, We need a better product, not just higher price.

Murray K. Mullen: You and Lee are working on that side. I think they've got the message loud and clear, not just from me, but from other large buyers where we're going, "We need a better product, not just higher price.

And I think they've got the message loud and clear not just from me but from other.

Large buyers, where we're going we need a better product.

Not just higher pricing and realistically the.

The entire trucking industry, particularly in Canada, and you'll see that when you look at the big operators in the state.

Richard Maloney: Realistically, the entire trucking industry, particularly in Canada, and you see that when you look at the big operators in the you know, the OEMs, their sales are down. People are just, you know, it's hard to go out and justify a CAD 250,000 plus, you know, expenditure. If you wanna have a CNG truck, add another CAD 80,000 to that. It just doesn't make sense at this point. You're not getting the fuel mileage, as Murray and Carson alluded to, and it's across the industry.

Carson Urlacher: Realistically, the entire trucking industry, particularly in Canada, and you see that when you look at the big operators in the U.S., you know, the OEMs, their sales are down. People are just, you know, it's hard to go out and justify a $250,000-plus expenditure. If you want to have a CNG truck, add another $80,000 to that. It just doesn't make sense at this point. You're not getting the fuel mileages Murray and Carson alluded to, and it's across the industry.

Oems their sales are down so people are just.

It's hard to go out and justify a 250000 plus.

Expenditure and if you want to have a <unk> truck add another 80 granted to that.

It just doesn't make sense at this point, you're not getting a few mileages Murray and Carson alluded to it's across the industry. So just to sum or a part of it was economics. It just didn't make sense, but part of it was messaging.

Murray K. Mullen: Conor, just to summarize, part of it was economics. It just didn't make sense. Part of it was messaging.

Murray K. Mullen: Konark, just to summarize, part of it was economics. It just didn't make sense, but part of it was messaging.

Great that makes sense, thank you and yes.

Konark Gupta: Great. That makes sense. Thank you. On the convertible debentures side, you guys are redeeming on 1 December. Given the converts are in the money right now, they're likely to probably convert to some degree. If they convert to equity, that does not take away your cash. Do you see the use of cash to maybe incrementally buy back some of your stock in December or after?

[Analyst 4]: Right. No, it makes sense. Thank you. On the convertible debenture side, I think you guys are deeming on December 1. I mean, given the converts and the money right now, they're likely to probably convert, I think, to some degree. If they convert to equity, that does not take away your cash. Do you see the use of cash to maybe incrementally buy back some of your stock in December or after?

Analytical debenture side I think for you guys to redeeming on December.

Given the converts and the money right now they are likely to probably convert I think to some degree.

If they convert to equity.

Yes, I mean that does not take away your cash do you see the use of cash to maybe incrementally buy back some of your stock in December.

Yeah, we'll we'll do one of two things.

Murray K. Mullen: We'll do one of two things, Konark. If the debenture holders convert to equity in Mullen, that increases our share count, but it sure strengthens our balance sheet. We go from CAD 2.6 to down to CAD 2.2.

Carson Urlacher: Yeah, we'll do one of two things, Conor. If the debenture holders convert to equity in Mullen Group Ltd., that increases our share count, but it sure strengthens our balance sheet. We go from 2.6 cars down to 2.2.

Conor if the debenture holders convert to equity in Marlin and increases our share count.

But it sure strengthens our balance sheet. So we go from $2 six cars to down to two two yes, maybe a net out cash.

Carson Urlacher: Yeah.

Murray K. Mullen: Maybe a net out cash.

[Analyst 4]: Yeah.

Carson Urlacher: Maybe you net out cash.

802 to one.

[Analyst 4]: You net out cash down the road.

Carson Urlacher: You net out cash on the road.

Murray K. Mullen: We'd be down to two to one.

Two.

Carson Urlacher: We'd be down to 2:1.

Time's right EBITA.

Carson Urlacher: Yeah.

[Analyst 4]: Yeah.

Murray K. Mullen: 2 to x, right, on EBITDA. We're gonna have We still got all the cash on the balance sheet and lots of room on the credit side. You know, we'll just make the best decision as the board as to, you know, what we do. Do we buy back stock or what do we do? Our, our first objective is, I will tell you right now, we are a growth company, so we would look at adding really good companies into our network. That would be our first priority. We wanna be a growth company. If we don't see the right opportunities, we'll go buy 'em back and invest in a really good company I know of. It's called Mullen. There are various levers we could pull, right?

Carson Urlacher: Two times, right, on EBITDA. We're going to have, we still got all the cash on the balance sheet and lots of room on the credit side. We'll just make the best decision as the board as to what we do. Do we buy back stock or what do we do? Our first objective is, I will tell you right now, we are a growth company. We would look at adding really good companies into our network. That would be our first priority. We want to be a growth company. If we don't see the right opportunities, we'll go buy them back and invest in a really good company I know of. It's called Mullen.

And then we're going to have we still got all the cash on the balance sheet and lots of lots of room on the credit side. So.

We'll have.

We will just make the best decision as the board.

As to.

What we do do we buy back stock or what do we do but our first objective is I will tell you right. Now we are a growth company. So we would look at adding really good companies into our network.

That would be our first priority, we want to be a growth company. If we don't see the right opportunities will go buying back.

Invest in a really good company I know off what's called Malone.

The various levers we can pull right.

[Analyst 4]: There are various levers we could pull, right?

Good news is our balance sheet is probably as well structured as good a shape as it's been a long time.

Carson Urlacher: Yeah.

Carson Urlacher: Yeah. Yeah.

Murray K. Mullen: Good, the good news is our balance sheet is probably as well structured, as good a shape as it's been in a long time. We got lots of potential options for us to do that. You know, the debenture thing actually worked out, I gotta tell you, because we did it in 2019, CAD 125 million.

[Analyst 4]: The good news is our balance sheet is probably as well structured, as good a shape as it's been in a long time. We got lots of potential options for us to do that. You know, the debenture thing actually worked out, I got to tell you, because we did it in 2019, $125 million.

And we have lots of lots of.

Also.

<unk> options for us to do that.

Interesting actually worked out I got to tell you because we did it in 2019 $125 million.

We more than double the company since we took that $125 million, we raised no other equity yeah at the time.

Carson Urlacher: Yeah.

Carson Urlacher: Yep.

Murray K. Mullen: We more than doubled the company since we took that CAD 125 million. We raised no other equity.

[Analyst 4]: We more than doubled the company since we took that $125 million. We raised no other equity.

Our stock price when we did the debenture deal was $7 and we had a strike price of 14 on the convert.

Carson Urlacher: Yeah. At the time, our stock price when we did the debenture deal was CAD 7, and we had a strike price of 14 on the convert. If you look at our EBITDA in 2019, we were CAD 200 million. We deployed that capital in 2021, and by the end of that year, we were CAD 260 million of EBITDA. Now you're well in excess of 300. The debentures served its purpose for Mullen shareholders back then, and we deployed it quite nicely. I think it's run its course.

Carson Urlacher: Yeah, at the time, our stock price when we did the debenture deal was $7. We had a strike price of $14 on the convert. If you look at our EBITDA in 2019, we were $200 million. We deployed that capital in 2021, and by the end of that year, we were $260 million of EBITDA. Now you're well in excess of $300 million. The debentures served its purpose for Mullen shareholders back then, and we deployed it quite nicely. I think it's run its course.

If you look at our our EBITDA in 2019, we were $200 million.

We deployed that capital in 2021 and by the end of that year, we were 260.

<unk> of EBITDA and now you are now you're well in excess of 300 zone.

Debentures served its purpose for Mylan shareholders back then and we deployed it quite nicely but.

But I think it is run of course, yes.

Yes, we are done with the debentures and.

[Analyst 4]: Yeah, we're done with the debentures. We thank those that invested in us back then, but it's time to move on. We're in a different spot than we were in 2019.

Murray K. Mullen: Yeah, we're done with the debentures and we thank those that invested in us back then, but it's time to move on and we're in a different spot than we were in 2019.

We thank those who have invested in US back then but it was time to move on and then we're in a different spot than we were in 2019.

Yeah, that's fair absolutely and then perhaps just wrap up.

Carson Urlacher: Yeah, that's fair. Absolutely. Perhaps just wrap up from a high-level perspective, Murray, I guess. You know, what is the right M&A strategy in this current environment? I mean, you mentioned a lot of things in terms of like, you know, how Canada is probably slow in inviting private capital and the U.S. is kind of, you know, accelerating on that front, perhaps. Obviously, there's a lot of complications in the U.S. and all that, right? It's like tariff policies and whatnot. How do you pursue M&A here in this market? Just.

Konark Gupta: Yeah, that's fair. Absolutely. Perhaps just wrap up, from a high level perspective, Murray, I guess, you know, what is the right M&A strategy in this current environment? I mean, you mentioned a lot of things in terms of like, you know, how Canada's probably slow in inviting private capital and US is kind of, you know, accelerating on that front perhaps. Obviously there's a lot of complications in the US and all that, right? Like it's like tariff policies and whatnot. How do you pursue M&A here in this market?

From a high level perspective.

Yes.

What is what is the right M&A strategy.

And this kind of environment, you mentioned a lot of things synced up somebody get all candidates, probably slow and Whiting private capital in U S as kind of.

Accelerating on that front, perhaps.

There's a lot of complications in the U S and all of that right.

Policies and whatnot, how do you pursue M&A here in this market.

Just I think.

We'll just stick to our knitting, which is will be pinpoint accurate of where we see.

Murray K. Mullen: Just I think we'll just stick to our knitting, which is we'll be pinpoint accurate of where we see really good companies. You know, the first Our M&A is really this. I'm a Warren Buffett and Charlie Munger. I look for good, great companies at a fair price, not at poor companies at a really good price, because that's just our strategy. We look for really good companies. We wanna be fair. In our view, they have much longer run room to them, and you can get a better return over time. The key thing is just look for really good companies. You can't go find them every day. Over 30-some years, we've acquired a number. Nothing's gonna change on our, on our M&A side, Konark. I'm patient.

[Analyst 4]: I think we'll just stick to our netting, which is what we pinpoint accurate of where we see really good companies. The first thing, our M&A is really this. I'm a Warren Buffett and Charlie Munger. I look for great companies at a fair price, not at poor companies at a really good price because that's just our strategy. We look for really good companies. We want to be fair. In our view, they have much longer run room to them, and you can get a better return over time. The key thing is just look for really good companies. You can't go, you can't go find them every day. Over 30-some years, we've acquired a number. Nothing's going to change on our M&A side. I'm patient. I don't push just to grow. I push to make sure we get the right deals and the right companies.

Really good companies.

Our M&A is really this.

I'm I'm, a Warren Buffett and Charlie Munger I'll look for good great companies at a fair price.

Not a poor companies that are really good price because.

That's just our strategy, we look for really good companies, we want to be fair.

They have in <unk>.

They have much longer run room to them and get a better return overtime. So the key thing is just look for really good companies, but you can't go you can't go find them everyday.

But over 30 years, we've acquired a number nothing's going to change on our on our M&A side.

But on patient.

I don't.

Murray K. Mullen: I don't push just to grow. I push to make sure we get the right deals and the right companies.

Pushed just to grow a push to make sure we get the right deals and the right companies.

Came up earlier on the call to Colin argue about platform companies and you know whether we go looking for them, whether they come looking for us and I can tell you within our space right now that.

Carson Urlacher: Came up earlier on the call too, Conor, about platform companies and, you know, whether we go looking for them, whether they come looking for us. I can tell you within our space right now that there's not many companies in our space that have the financial position that we do. Platform companies, when they do become available, we're one of few options that they have to go to to monetize. We get to see pretty much all of them that become available.

Carson Urlacher: Came up earlier on the call too, Conor, about platform companies and you know whether we go looking for them, whether they come looking for us. I can tell you within our space right now that there's not many companies in our space that have the financial position that we do. Platform companies, when they do become available, we're one of few options that they have to go to to monetize. We get to see pretty much all of them that become available.

There is not many companies in our space that have the financial position that we do.

So a platform companies when they do become available.

We're one of few options that they have to go to two.

To monetize.

So we get to see pretty much all of them.

Come available.

Alright, alright, so in your coverage space.

[Analyst 4]: Right. In your coverage space, Conor, which is in the logistics and transits, there's not a lot that can go out and do M&A today. That's why we say we're kind of in a unique position. There's only a couple of us that can do it.

Konark Gupta: Right. Right.

Murray K. Mullen: In your coverage space, Konark, which is in the logistics and transits, there's not a lot that can go out and do M&A today. That's why we say we're kind of in a unique position. There's only a couple of us that can do it.

<unk>, which is in the logistics and transit.

Theres not a lot that can go out and do M&A today, where that is.

Why we say, we're kind of in a unique position there.

Only a couple of them do it.

No. It makes sense patience is what's your I guess and timing.

Carson Urlacher: Yeah.

Konark Gupta: No, it makes sense. Patience is virtue, I guess. Yeah, timing is important.

[Analyst 4]: No, it makes sense. Patience is a virtue, I guess. Timing is important.

Timing is important.

But there is very we don't have a lot of competition when it comes to.

Carson Urlacher: We don't have a lot of competition when it comes to acquisitions. There's only a few that can do it, and there's only a couple of us that have the balance sheet to do it. You've got to have both of those to be able to get it done. It's just a matter of what's your disciplined approach to it or what's your strategy. That's ours. Ours is being pinpoint accurate and waiting till we get really good companies. That's our strategy.

Murray K. Mullen: The thing is, we don't have a lot of competition when it comes to acquisitions. There's only a few that can do it. There's only a couple of us that have the balance sheet to do it. You gotta have both of those to be able to get it done. It's just a matter of what's your disciplined approach to it or what's your strategy. That's ours. Ours is being pinpoint accurate and waiting till we get really good companies. That's our strategy.

Acquisitions Theres only a few that can do it.

And theirs.

Theres only a couple of us that have the balance sheet to do it.

So you've got to have both of those to.

To be able to get it done and it's just a matter what youre a disciplined approach to it or whats your strategy. So thats ours ours is being pinpoint accurate and waiting till we get really good companies that's our strategy.

Right no understood. Thank you so much for the time I appreciate it guys. Thank you.

Konark Gupta: Right. No, understood. Thank you so much for the time. Appreciate you guys.

[Analyst 4]: Right. No, understood. Thank you so much for the time. I appreciate it, guys.

The next question comes from Ben <unk> with Desjardin capital markets. Please go ahead.

Murray K. Mullen: Thank you.

Carson Urlacher: Thank you.

Operator: The next question comes from Benoit Poirier with Desjardins Capital Markets. Please go ahead.

Operator: The next question comes from Benoit Dorier with Desjardins Capital Markets. Please go ahead.

Yes, good morning, Murray Good morning Carson.

Benoit Poirier: Good morning, Murray. Good morning, Carson. Just to follow up very quickly on Coal Group. You gave a lot of explanation with respect to revenue. Quick one, should we expect the 55 million contribution in the quarter? Is this kind of the number we should expect going forward? Is there some seasonality that we should take into account?

[Analyst 5]: Yeah, good morning, Murray. Good morning, Carson. Just to follow up very quickly on Coal Group, you gave a lot of explanation with respect to revenue. Quick one, should we expect a $55 million contribution in the quarter? Is it kind of the number we should expect going forward? Is there some seasonality that we should take into account?

Doug just to follow up very quickly on KOL group you gave a lot of explanation with respect to revenue. So quick one should we expect that $55 million contribution in the quarter or is it kind of the number we should expect going forward is there some seasonality that we should.

Take into account.

Okay.

Hey, there's a lot of seasonality to that we know of yet.

Carson Urlacher: I wouldn't say there's a lot of seasonality to the.

Carson Urlacher: I wouldn't say there's a lot of seasonality to the.

If it does that would totally surprise has been wrong.

Murray K. Mullen: Not we know of yet.

[Analyst 5]: Not that we know of yet. If it does, that would totally surprise us, Benoit.

Carson Urlacher: Yeah.

Murray K. Mullen: If it does, that would totally surprise us, Benoit.

So everything we've looked at.

Carson Urlacher: Yeah.

Carson Urlacher: Yeah.

Murray K. Mullen: Everything we've looked at. Not just at Cole, but in other companies that we've looked at, we don't see a lot of seasonality with it.

[Analyst 5]: Everything we've looked at, not just at Coal Group, but in other companies that we've looked at, we don't see a lot of seasonality with it. If there is, it will be something that would catch us off guard. Our view right now is, no, we don't see a lot of seasonality.

Not just coal, but in other companies that we've looked at we don't see a lot of seasonality with it so.

If there is it will be a.

Murray K. Mullen: If there is, it will be That would catch us off guard. Our view right now is no, we don't see a lot of seasonality.

That would catch us off guard so.

Our view right now is not we don't see a lawsuit.

Okay.

We've only had it for one quarter.

Benoit Poirier: Okay.

Murray K. Mullen: But, but-

Carson Urlacher: We've only had it for one quarter. I'm giving you my best advice. We don't think it is, but don't hold my feet to the fire on that until we get it. We'll know more after we've been able, if we've had one full year underneath our belt. We're giving you our best estimate right now. Once we've had it for a year, we'll know.

Benoit Poirier: Okay.

Murray K. Mullen: We've only had it for 1 quarter. I'm giving you my best advice is we don't think it is, but, you know, don't hold my feet to the fire on that until we get it. We'll know more after we've had 1 full year underneath our belt. We're giving you our best estimate right now. Once we've had it for 1 year, we'll know.

So I'm, giving you my best advice is we don't think it is.

<unk>.

Don't home might be to the fire on that until we get it we'll know more after we have been able if we had one full year underneath our belt, we're giving you our best estimate right now once we've had it for a year we will know.

Okay and perfect.

[Analyst 5]: Okay. Perfect. SG&A was up, obviously, versus a year ago due to some acquisitions. I'm just wondering, how should we look at SG&A expenses going forward? If you see maybe an opportunity to bring the number a bit lower as you integrate those acquisitions?

Benoit Poirier: Okay. Perfect. SG&A was up obviously versus a year ago due to some acquisitions. I'm just wondering how should we look at SG&A expenses going forward? If you see maybe an opportunity to bring the number a bit lower as you integrate those acquisitions.

<unk> was up.

Versus the year Gil go due to some acquisition. So just wondering how should we look at <unk> expenses going forward and if you see maybe an opportunity to bring the the number a bit lower.

Integrate those acquisition.

Well.

<unk>.

Murray K. Mullen: Well, you know, honestly, Benoit, that's gonna really be determined, I think by what happens with the strength of the economy. If the economy strengthens, you'll probably see us pivot away from using capital to go by do acquisitions to putting capital work in the business units if the economy starts growing. You know more or know better than we do. You have your economists. You do your own analysis. If you see strong nation-building projects come in and strong economic and growth in Canada, then we will have to pivot and add more to CapEx, Carson.

Carson Urlacher: Honestly, Benoit, that's going to really be determined, I think, by what happens with the strength of the economy. If the economy strengthens, you'll probably see us pivot away from using capital to go about do acquisitions to putting capital to work in the business units. If the economy starts growing, you know more or know better than we do. You have your economists that, and you do your own analysis. If you see strong nation-building projects come in and strong economic growth in Canada, then we will have to pivot and add more to CapEx, Carson.

And you don't honestly been one thats going to really determine be determined I think by.

By what happens with the strength of the economy, if the economy strengthens.

Youll, probably see us pivot away from you.

Using capital to go Baidu acquisitions to putting capital to work in the business units if the economy starts growing.

You know more or no better than we do you have your economists that and you do your own analysis, but if you see strong nation building projects come in and strong economic growth in Canada then.

We will have to pivot and add more.

Capex question.

Those kind of things and then M&A will take a backseat to internal growth.

Benoit Poirier: Gotcha. Yeah.

[Analyst 4]: Yeah.

Carson Urlacher: Those kind of things. M&A will take a back seat to internal growth. I'm not quite at that space yet. We still think we would like to add some more, use our balance sheet, but we need great quality companies. We're not just going to trade dollars to get growth, Benoit. We want great companies in the verticals that we see long-term potential, period.

Murray K. Mullen: Those kind of things. M&A will take a back seat to internal growth. I'm not quite at that space yet. We still think we would like to add some more, use our balance sheet, but we need great quality companies. We're not just gonna trade dollars to get growth, Benoit Poirier. We want great companies in the verticals that we see long-term potential, period.

I am not quite at that space, yet, we still think we would like to add some more use our balance sheet and but we need great quality companies.

Not just going to trade dollars to get growth.

We want great companies in the verticals that we see long term potential period.

Okay, that's great and Murray, you're always very rational when looking at the market fundamentals with demand and supply and obviously you provided the great color on the call about the.

Benoit Poirier: That's great. Murray, you're always very rational when looking at the market fundamentals with demand and supply, and obviously, you provided a great color on the call about the supply and the re-regulation enforcement we are seeing in the US that will eventually and also in Canada. When you look at the pricing these days, would you say that the slight uptick we see in the pricing is mostly driven by hope that capacity is coming down?

[Analyst 5]: That's great. Murray, you're always very rational when looking at the market fundamentals with demand and supply. You provided the great color on the call about the supply and the regulation enforcement we are seeing in the U.S. that will eventually, and also in Canada. When you look at the pricing these days, would you say that the slight uptick we see in the pricing is mostly driven by hope that capacity is coming down?

Supply and their regulation enforcement, we are seeing in the U S that will eventually also in Canada and when you look at the pricing. These days would you say that the slight uptick we see and the pricing is mostly driven by a whole debt capacities.

Coming down.

Yeah.

It's kind of a mixed bag right now risks, we hear from some of our customers, where we've taken a strong stand.

Murray K. Mullen: It's kind of a mixed bag right now, Richard. We hear from some of our customers where we've taken a strong stand with some customers, we lose the contract, then, you know, lo and behold, they come back 2 weeks later and say, Well, you know, we took the low price, but they can't service. Well, we tried to tell you that. You know, you went with low price. Okay, we had a very major client come to us and wanted a major rate reduction. I said, Well, we'll give you the major rate reduction if we need a load from you. Well, yeah, but we want the service. No, that's the other price. You gotta pick your poison. What do you want?

Operator: Kind of a mixed bag right now, Rich. We hear from some of our customers where we've taken a strong stand with some customers, and we lose the contract, and then, you know, lo and behold, they come back a couple of weeks later and say, "Well, you know, we took the low price, but they can't service us." We try to tell you that, but you know, you went with low price. If you want, but we had a very major client come to us and wanted a major rate reduction, and I said, "We'll give you the major rate reduction if we need your loads, if we need a load from you." "Yeah, but we want the service." "No, no, no, that's the other price." You got to pick your poison. What do you want? You want service or price? If it's just price, it's at our convenience.

Some customers and we lose the contract and then OMB hold to come back in a couple of weeks later and say well, we took the low price, but they can't service.

We tried to tell you that.

But.

With low price.

Okay. If you want but we had a very major client come to us and wanted a major rate reduction.

So while we will give you the major rate reduction if we need your loads, if we need a load from you well, yes, but we want the service no no that's the other price so.

You got to pick your poison what do you want you want service or price because if it's just price it's at our convenience.

Murray K. Mullen: Do you want service or price? If it's just price, it's at our convenience. If it's you want service, it's at your convenience, we need a little higher price, so we can commit our capacity. We're seeing a mixed bag. You know, I'm hearing more now that customers are coming back and saying, Well, I, you know, maybe the low price wasn't as good as what I thought it was.

If it's you want service it's at your convenience, we need a little higher price. So we can commit our capacity.

Operator: If you want service, it's at your convenience. We need a little higher price so we can commit our capacity. We're seeing a mixed bag. I'm hearing more now that customers are coming back and saying, I, you know, maybe the low price wasn't as good as what I thought it was.

But we're seeing a mixed bag.

But im seeing im hearing more now.

Customers are coming back and saying.

Oh Wow.

Maybe the low price wasn't as good as what I thought it was and we didn't hear that as much last year as we are now.

Richard Maloney: We didn't hear that as much last year as we are now.

Murray K. Mullen: We didn't hear that as much last year as we hear it now.

The only bit more of it it needs could tighten a little bit more so that customers understand just sit with us and make the right deal.

Murray K. Mullen: Yeah. Yeah. We're hearing a little bit more of it. It needs to tighten a little bit more so that customers understand, you know, just sit with us and make the right deal. If you try and game us and go for all low price, we're happy to walk away and say, "Go try it out. We know this business. Good luck.

Operator: We're hearing a little bit more of it. It needs to tighten a little bit more so that customers understand, you know, just sit with us and make the right deal. If you try and game us and go for all low price, we're happy to walk away and say, "Go try it out. We know this business. Good luck.

But if you try and game us and go for all oil price, we're happy to walk away and say.

We'll try it out.

We know this business good luck.

Okay.

Great. That's a great comment and just on M&A, you mentioned a lot of color about the M&A. The way you approach M&A of UC and the leverage also with the converts that is poised to grow from two six to $2 two time to with the cash so what is kind of.

Benoit Poirier: Yeah. That's great. That's a great comment. Just on M&A, you mentioned a lot of color about the M&A, the way you approach M&A, obviously, and the leverage also with the converts that is poised to go from 2.6 to 2.2 times two with the cash. What is kind of your comfort level, where do you see the optimal or the willingness to increase the leverage with M&A or kind of the flexibility you would have to pursue the M&A?

Murray K. Mullen: That's a great comment. Just on M&A, you mentioned a lot of color about the M&A, the way you approach M&A, obviously, and the leverage also with the converts that is poised to go from 2.6 to 2.2 times with the cash. What is kind of your comfort level? Where do you see the optimal or the willingness to increase the leverage with M&A or kind of the flexibility you would have to pursue the M&A?

Your comfort level, where do you see the optimal or.

Their willingness to increase the leverage with them any or kind of the flexibility you would have to pursue the M&A <unk>.

Five.

We'd like to be a full turn away from from the covenant.

Carson Urlacher: 2.5. We like to be a full turn away from the covenant.

Carson Urlacher: 2.5. We like to be a full turn away from the covenant.

Okay, and if you grow your business you grow the <unk> so it actually.

Benoit Poirier: Okay.

Operator: Okay. And.

Murray K. Mullen: If you grow your business, you grow the OIBDA, it actually increases the amount of debt you could take, right? Let's just say 2.5.

Carson Urlacher: Because you grow your business, you grow the EBITDA. It actually increases the amount of debt you could take, right? Let's just say 2.5.

It actually increases the amount of debt you could take rate, so, but let's just say $2 five.

Perfect.

Five at where we're at today running.

Benoit Poirier: Okay. Perfect.

Operator: Okay, perfect.

Murray K. Mullen: 2.5 at where we're at today, running probably 3 and a quarter, 3 something, you know, somewhere between 3 and a quarter, 350. You can just pick and say, what's the number at 3 and a quarter, 350? You know, we think our company, the way it's structured right now, once the market returns to some stability where, you know, the rates aren't being totally sewered, is that, you know, we're somewhere around 25 and 400, that this business unit could do with just a little bit of strengthening in the market and tightening on the supply side.

Carson Urlacher: 2.5 at where we're at today, running probably 3.25, three something, you know, somewhere between 3.25 to 3.50. You can just pick and say, "What's the number at 3.25, 3.50?" We think our company, the way it's structured right now, once the market returns to some stability where the rates aren't being totally sewered, is that we're somewhere around 2.5 and 4.00, that this business unit could do with just a little bit of strengthening in the market and tightening on the supply side.

Probably three and a quarter three something through some recurring dream quarter $3 50. So you can just back and say, what's the number at three in the quarter $3 15.

We think our company the way its structured right now once the market returns to some stability, where the rates arent being totally Seward has that worked somewhere around two 5% and 400.

But this business unit could do with just a little bit of strengthening in the market.

Tightening on the supply side.

Okay very good color folks thank you.

Benoit Poirier: Okay. Very good color, folks. Thank you.

Operator: Great. Very good color, folks. Thank you.

Thank you.

Again, if you have a question. Please press Star then one.

Murray K. Mullen: Thank you.

Carson Urlacher: Thank you.

Operator: Again, if you have a question, please press star then one. The next question comes from Kevin Chiang with CIBC. Please go ahead.

[Analyst 1]: Again, if you have a question, please press star then one. The next question comes from Kevin Chang with CIBC. Please go ahead.

The next question comes from Kevin Chiang with CIBC. Please go ahead.

Hey, gentlemen, and Joanna Thanks for thanks for taking my questions here, just two quick ones, maybe I guess, one just on the debentures.

Kevin Chiang: Hey, gentlemen, and Joanna, thanks for taking my questions here. Just two quick ones maybe. I guess one, just on the debentures, maybe from a bigger picture perspective, it sounds like you wanna simplify your capital structure. Just looking to see if this is part of that broader strategy where maybe debentures aren't the right source of funding moving forward if you do need to tap the market. Is that kind of the right read as well, too?

[Analyst 2]: Hey, gentlemen, and Joanna, thanks for taking my questions here. Just two quick ones maybe. I guess one, just on the debentures, just as a maybe from a bigger picture perspective, it sounds like you want to simplify your capital structure, just looking to see if this is part of that broader strategy where maybe debentures aren't the right source of funding moving forward. If you do need to tap the market, is that kind of the right read as well too?

Maybe from a bigger picture perspective, it sounds like you wanted to simplify our capital structure just looking at this as part of that broader strategy, where we're maybe debentures.

Right source of funding moving forward, if you do need to tap the market is that kind of the.

The right read as well too.

Yes, I think.

I think what <unk>.

Murray K. Mullen: Yeah, I think you know, I'll tell you what I've learned from the debentures, Kevin, is that the debt guys consider debentures debt, and the equity guys consider it equity. So you kind of don't please anybody. You know, so you go, Well, what is it? Is it debt? Well, it's a this or that. The other thing that you had, you can take a look at the short position on our company.

Operator: I think what I'll tell you what I've learned from the debentures, Kevin, is that the debt guys consider debentures debt, and the equity guys consider it equity. You kind of don't please anybody. You go, "What is it? Is it debt? It's a high. It's a this or that." The other thing that you had, you can take a look at the short position on our company.

I've learned from the debentures.

Kevin is that.

The debt guys consider debentures debt and the equity guys.

<unk> equity so you kind of don't please anybody.

No.

Vehicle, what is it that well into high well into this or that and the other thing that you had you can take a look at the short position on our company.

Yes.

Im not im not the one doing the trading that there's a direct correlation between the number of shorts in our company that are shorted, our kind of our stock.

Kevin Chiang: Yeah.

[Analyst 2]: Yeah.

Operator: I'm not the one doing the trading, but there's a direct correlation between the number of shorts in our company that have shorted our stock and when we did debentures. If I was sitting at a table and had to make a guess, I would say they were using the debentures as a form to trade, and that hurt our stock price.

Murray K. Mullen: You know, I'm not the one doing the trading, but there's a direct correlation between the number of shorts in our company that have shorted our stock and when we did debentures. If I was sitting at a table and had to make a guess, I would say they were using the debentures as a form to trade, and that hurt our stock price.

And when we do debentures so.

If I was.

Sitting at the table and had to make a guess I would say.

They were using the debentures as a form to trade and that hurt our stock price.

Yeah, that's a fair point when they short at this point and they shorted the stock they de facto put more stock into the market right.

Kevin Chiang: Yep. That's a fair point.

[Analyst 2]: Yep, that's a fair point.

Murray K. Mullen: When they shorted-

Kevin Chiang: That's a fair point.

Murray K. Mullen: When they shorted the stock, they de facto put more stock into the market, right?

Operator: When they shorted the stock, they de facto put more stock into the market, right?

So.

[Analyst 2]: Mm-hmm.

Kevin Chiang: Mm-hmm. Mm-hmm.

I think in answer to I think they served a purpose for us when we were at seven.

Murray K. Mullen: Yeah.

Operator: Yeah, I.

Kevin Chiang: That makes sense.

[Analyst 2]: That makes sense.

Murray K. Mullen: You know what? I think it's. I said to you, I think they served a purpose for us when we were at seven. You know, we, you know, I mean, let's talk about valuation. Where does our valuation relative to our peers? You know what? We don't worry about what somebody else does or what they're valued at. We worried about what we're doing, and we let the market tell us what they think the value of us is. Well, let's see what happens once the converts are out, and we get rid of that noise, and let's see where we come from. At the end of the day, we're gonna continue to grow this business and do the right things for shareholders, I can tell you that.

Operator: You know what? I think it's, I think they served a purpose for us when we were at seven. I mean, we went, let's talk about valuation. Where does our valuation relative to our peers? You know what? We don't worry about what somebody else does or what they're valued at. We worried about what we're doing, and we let the market tell us what they think the value of us is. Let's see what happens once the converts are out and we get rid of that noise, and let's see where we come from. At the end of the day, we're going to continue to grow this business and do the right things for shareholders. I can tell you that.

We.

I mean one.

Let's talk about valuation, whereas our valuation relative to our peers.

We don't worry about what somebody else does or what they are valued at we worried about what we're doing and we let the market tell us what they think the value of us as well, let's see what happens once the converts are out and we get rid of that noise.

And let's see where we come from but at the end of the day, we're going to continue to grow this business and do the right things for shareholders I can tell you that.

Yes.

That makes sense to me and maybe and maybe this is a difficult question to answer on a call like this but you did mentioned earlier.

[Analyst 2]: Yeah, that makes sense to me. Maybe this is a difficult question to answer on a call like this, but you did mention earlier, Murray, that you know full truckload really isn't a strategic interest to you. You do have a minority interest in CRISCA. I guess if I think back almost 10 years or more than 10 years ago, I had the assumption that that was something you probably would vend in over time, but maybe that's the wrong assumption moving forward. Just how you think about strategically that minority investment in the context of.

Kevin Chiang: Yeah. That makes sense to me. Maybe this is a difficult question to answer on a call like this, but you did mention earlier, Murray, that, you know, full truckload really isn't a strategic interest to you.

Marie that full truckload really isn't a strategic interest to you you do have a minority interest in Chris go ahead, I guess, if I think back almost 10 years ago more than 10 years ago, I guess I had the assumption that that was something you probably would then over time, but maybe that's the wrong assumption moving forward I guess, how you think about strategically that.

Murray K. Mullen: No.

Kevin Chiang: You do have a minority interest in CRISCA, and I guess as I think back almost 10 years ago, more than 10 years ago, I guess, I had the assumption that that was something you probably would vend in over time, but maybe that's the wrong assumption moving forward. Just I guess how you think about strategically that minority investment in the context of?

Yes.

Very good point, yes, so for clarity to everybody we own a nice position in a what I think is a really really good company and Christa.

Murray K. Mullen: Yeah, no, that's a very good point. Yeah.

Operator: Yeah, that's a very good point. For clarity to everybody, we own a nice position in what I think is a really, really good company in CRISCA. Otherwise, why in the heck did we invest in them? They're trapped in the, they're more full truckload. The more company trucks you've had, the more truckload business you do, this is a terrible market for them. They could be the best-run company, and they are a first-class organization, but they're in a terrible vertical right now. Now, will that vertical stay terrible forever? Probably not, Kevin. For today, full truckload ones are just, it's just awful. Eventually, it will turn. At that point in time, we'll work with our CRISCA group and monetize that investment. For right now, we're just working with them to make sure that they just do the same thing as what we're doing here.

Kevin Chiang: Yeah.

Murray K. Mullen: For clarity to everybody, we own a nice position in what I think is a really, really good company in CRISCA.

Otherwise why the heck that we invest in them, but they are trapped in the.

Kevin Chiang: Yeah.

Murray K. Mullen: Otherwise, why the heck did we invest in them? They're more full truckload. The more company trucks you've had, the more truckload business you do, this is a terrible market for them. They could be the best run company, and they are a first-class organization, but they're in a terrible vertical right now. Now, will that vertical stay terrible forever? Probably not, Kevin.

They are more full truckload, so more truckload the more company trucks, you've had the more truckload business. You do this is a terrible market for them they could be the best run company and they are a first class organization, but they are in a terrible vertical right now.

We will then vertical state terrible forever, probably not Kevin.

Yeah.

But for today.

Full truckload ones are just it's just awful.

Murray K. Mullen: for today, full truckload ones are it's just awful.

Yes.

So, but eventually it will turn and then at that point in time.

Kevin Chiang: Yeah.

Murray K. Mullen: You know, eventually it will turn. Then at that point in time, you know, we'll work with our CRISCA Group and monetize that investment. For right now, we're just working with them to make sure that, you know, they just do the same thing as what we're doing here. Watch your cost, stay in your lane, and just wait. Wait for a cue that the market's changing, then we'll go all in. I haven't seen that cue card yet, though.

With our CRISPR group and monetize that investment for right now, we're just working with them to make sure that.

They just do the same thing as what we're doing here and watch your cost stay in your lane and just wait wait for Q that the market's changing then we will go all in.

Operator: Watch your cost, stay in your lane, and just wait, wait for a cue that the market's changing, then we'll go all in. I haven't seen that cue card yet, though.

I haven't seen that Q card yet.

That makes a ton of sense I. Appreciate you taking the time to answer that question best of luck as you close out the year here. Thank you very much. Thank.

Kevin Chiang: That's, that makes a ton of sense. I appreciate you taking the time to answer that question. Best of luck as you, close out the year here. Thank you very much.

[Analyst 2]: That makes a ton of sense. I appreciate you taking the time to answer that question. Best of luck as you close out the year here. Thank you very much.

Thank you Kevin Thanks, Ken and thank you to all.

Operator: Thank you, Kevin.

Tim James: Thank you, Kevin.

Carson Urlacher: Thanks, Kevin.

Tim James: Thanks, Kevin.

Operator: Thank you to all.

Murray K. Mullen: Thank you to all.

This concludes the question and answer session I would like to turn the conference back over to Mr. Mullen for any closing remarks.

Operator: This concludes the question and answer session. I would like to turn the conference back over to Mr. Mullen for any closing remarks.

[Analyst 3]: This concludes the question and answer session. I would like to turn the conference back over to Mr. Mullen for any closing remarks.

Thanks, everyone look we've already started I think we mentioned as we start to work on the budget.

Murray K. Mullen: Thanks, everyone. We've already started, I think we mentioned this, we've started work on the budget. The good news is we knew that we were just finishing the Q3, everybody was gonna be asking our 2026 budget. We're prepared for that. We're gonna be releasing our 2026 budget and business plan before the end of the year. We're gonna meet with our board on 4 December.

Operator: Thanks, everyone. We've already started, I think we mentioned this, we've started work on the budget. The good news is we knew that we were just finishing the Q3, but then everybody was going to be asking our 2026 budget. We're prepared for that. We're going to be releasing our 2026 budget and business plan before the end of the year. We're going to meet with our board on December 4th. We'll present as a Senior Executive Team to the board that we'll have the business plan, what we're going to focus on, that here's our budget, and here's our capital requirements for next year. We will press release out to you and then be open to chat with you about then. Until then, thanks, everybody. Good questions, and thanks for participating today. We'll talk to you soon. Bye-bye.

<unk>.

The good news is we knew that.

We were just finishing the Q3, but then everybody who is going to be asking our 'twenty 'twenty six budget. So we're prepared for that.

We're kind of heat.

We're going to be releasing.

Our 2026 budget and business plan before the end of the year. So we're going to meet with our board on December the fourth yes, we'll present is our senior executive team to the board that will have the business plan, what we're going to focus on that here's our budget and here's our capital requirements for next year and then we will press release out.

Joanna Scott: Yeah.

Joanna Scott: We'll present as a senior executive team to the board. That will have the business plan, what we're gonna focus on, that here's our budget, and here's our capital requirements for next year. Then we will press release out to you and then be open to chat with you about then. Until then, thanks, everybody. Good questions, and thanks for participating today. We'll talk to you soon. Bye-bye.

And then the open to chat with you about that until then thanks, everybody good questions and thanks for participating today, we will talk to you soon bye bye.

This brings to a close today's conference call. You may disconnect. Your lines. Thank you for participating and have a pleasant day.

Operator: This brings to a close today's conference call. You may disconnect your lines. Thank you for participating, and have a pleasant day.

[Analyst 3]: This brings to a close today's conference call. You may disconnect your lines. Thank you for participating and have a pleasant day.