Lineage, Inc. reported third‑quarter 2025 results that included $1.377 billion in revenue, a 3% year‑over‑year increase from the $1.300 billion reported in Q3 2024. The company posted a net loss of $0.44 per share, a miss against the consensus estimate of a small loss and a far‑greater loss than the $0.90 per share loss recorded in the same quarter last year. Adjusted EBITDA rose to $333 million, up from $333 million in Q3 2024, while adjusted funds from operations (AFFO) increased to $0.85 per share, beating the consensus estimate of $0.78 per share.
The adjusted EBITDA margin contracted slightly to 24.8% from 24.9% in the prior year, reflecting modest pricing pressure in the Global Warehousing segment and higher operating costs associated with tariff uncertainty. Despite the margin squeeze, the company’s cost‑control initiatives helped keep operating expenses in line with revenue growth, allowing AFFO to grow even as net income turned negative. The company’s operating costs for the quarter were reported at $932 million, a figure that aligns with the overall cost structure but was not independently verified in the public filings.
Segment performance was uneven. The Global Warehousing division saw a decline in same‑warehouse net operating income, driven by lower occupancy in the U.S. and increased competition in the cold‑storage market. In contrast, the Global Integrated Solutions segment delivered strong growth, benefiting from higher demand for frozen‑food logistics and technology‑enabled supply‑chain services. The mix shift toward the higher‑margin Integrated Solutions helped offset the weakness in Warehousing and contributed to the overall EBITDA growth.
Management trimmed full‑year adjusted EBITDA guidance to $1.290‑$1.305 billion from the previous $1.290‑$1.340 billion range, citing tariff uncertainty and a modest decline in U.S. occupancy. AFFO per share guidance was lowered to $3.20‑$3.30 from $3.20‑$3.40. For the fourth quarter, the company now expects adjusted EBITDA of $319‑$334 million and AFFO per share of $0.68‑$0.78, reflecting a cautious outlook amid ongoing macro‑economic headwinds.
President and CEO Greg Lehmkuhl emphasized that the company’s operational resilience remains strong, noting that “we delivered adjusted EBITDA and AFFO growth in the third quarter, despite continued challenging market conditions.” He added that the firm is “using our network size and the strength of our operations to perform relatively well in a very challenging environment” and that “new supply deliveries are declining and demand for frozen food is growing,” signaling long‑term optimism despite short‑term uncertainty.
The earnings miss on EPS highlights the impact of tariff volatility and a modest U.S. occupancy decline, which have pressured margins and increased operating costs. The FFO beat, however, demonstrates that Lineage’s core logistics operations continue to generate robust cash flow, a key metric for REITs. The guidance cut signals management’s cautious stance on near‑term demand, while the continued growth in the Integrated Solutions segment and the company’s focus on cost discipline suggest a path toward profitability as macro conditions improve.
The content on BeyondSPX is for informational purposes only and should not be construed as financial or investment advice. We are not financial advisors. Consult with a qualified professional before making any investment decisions. Any actions you take based on information from this site are solely at your own risk.