Lineage, Inc. (NASDAQ: LINE) Reports Q1 2026 Financial Results: Revenue Growth, Net Loss, and Updated Guidance

Key Highlights from the First Quarter 2026 Financial Report

• Total revenue increased 0.4% year-over-year to \$1.297 billion.
• GAAP net loss of \$51 million, or \$(0.18) per diluted share.
• Adjusted EBITDA rose 3.3% to \$314 million; margin expanded 70bps to 24.2%.
• Adjusted Funds From Operations (AFFO) decreased 8.2% to \$201 million; AFFO per share down 9.3% to \$0.78.
• Quarterly dividend increased 1% to \$0.5325 per share, annualized to \$2.13 per share.
• Management reaffirmed full-year 2026 guidance for adjusted EBITDA between \$1.25B-\$1.3B and AFFO per share between \$2.75-\$3.00.

CEO Commentary and Market Outlook

Greg Lehmkuhl, President and CEO, noted that Lineage delivered results ahead of expectations in a “highly dynamic operating environment.” He emphasized the stabilization of core business trends and the company’s ability to respond effectively to tariff uncertainty and geopolitical disruptions. Management highlighted Lineage’s flexible network, strong service levels, and cost control as key factors enabling the company to navigate ongoing supply chain challenges.

The company expects ongoing volatility in tariffs, geopolitical events, and supply chain disruptions, but believes its operating model positions it for durable performance throughout 2026 and beyond.

Detailed Financial Performance

Condensed Consolidated Balance Sheet (as of March 31, 2026)

• Total assets: \$19.05 billion
• Total liabilities: \$9.99 billion
• Total stockholders’ equity: \$8.09 billion
• Cash, cash equivalents, and restricted cash: \$67 million (relatively flat from year-end 2025)
• Long-term debt (net): \$6.26 billion

Income Statement (Three months ended March 31, 2026 vs. 2025)

• Revenues: \$1.297 billion (up from \$1.292 billion)
• Cost of operations: \$880 million (up from \$876 million)
• General & Administrative expense: \$141 million (down from \$154 million)
• Depreciation & Amortization: \$233 million (up from \$212 million)
• Interest expense: \$84 million (up from \$60 million)
• Net loss: \$51 million, compared to breakeven in Q1 2025
• Comprehensive loss attributable to Lineage: \$71 million, compared to income of \$42 million last year

Cash Flow Statement

• Net cash provided by operating activities: \$130 million (down from \$139 million)
• Net cash used in investing activities: \$164 million (up from \$138 million)
• Net cash provided by financing activities: \$36 million (up from \$21 million)

Segment Results

• Global Warehousing Segment:
  • Revenue up 4.3% to \$985 million
  • Warehouse storage revenue up 4.7% to \$514 million
  • Warehouse services revenue up 4.0% to \$471 million
  • Segment NOI up 1.1% to \$364 million; margin decreased 110bps to 37.0%
  • Labor and power costs rose, impacting margins
• Global Integrated Solutions Segment:
  • Revenue down 10.3% to \$312 million
  • Segment NOI flat at \$57 million; margin increased to 18.3% (+190bps)
• Same Warehouse Results: Revenue flat; NOI decreased slightly (-0.9%) due to higher power costs and slightly lower occupancy.
• Non-Same Warehouse Results: Revenue more than doubled to \$77 million as a result of new or acquired warehouses, though margin contracted year-over-year.

Capital Expenditures and Investments

• Recurring maintenance capital expenditures: \$31 million (flat year-over-year)
• Integration capital expenditures: \$13 million (up from \$12 million)
• External growth capital investments: \$130 million (up significantly from \$67 million in Q1 2025), reflecting increased investment in greenfield sites, expansions, energy, and technology initiatives.

Dividend Update

The board declared a quarterly dividend of \$0.5325 per share, up 1% from the prior annualized rate, representing an annualized dividend of \$2.13 per share. This indicates confidence in future cash flows and may be viewed positively by dividend-focused investors.

Updated Guidance & Forward-Looking Statements

• Full-year 2026 adjusted EBITDA expected between \$1.25 billion and \$1.30 billion.
• AFFO per share guidance reaffirmed at \$2.75 to \$3.00.
• Guidance excludes the impact of any unannounced future acquisitions or developments.

The company warns of ongoing risks including tariff and geopolitical uncertainty, supply chain disruptions, increased costs, credit market volatility, and challenges integrating new acquisitions. Management encourages investors to monitor its SEC filings and investor relations website for updates.

Potential Price-Sensitive Issues for Shareholders

• Net loss of \$51 million may be a concern for some investors, especially as interest and depreciation costs rose.
• Dividend increase and reaffirmed guidance could support share price stability or upside, signaling management’s confidence in future earnings and cash flows.
• Accelerated capital investments may signal growth, but also increase short-term expenditures and leverage.
• Margin compression in the warehousing segment due to rising labor and power costs may warrant close monitoring.
• Revenue growth in non-same warehouses highlights expansion success but also integration and margin risks.
• Ongoing risks and uncertainties (interest rates, tariffs, supply chain, labor costs) remain significant and could impact future results—investors should be aware of these persistent headwinds.

Conference Call and Further Information

Lineage will host a conference call and webcast at 8:00 a.m. Eastern Time to discuss these results. A replay will be available on the investor relations section of the company’s website for approximately one year.

For further information, investors and analysts are encouraged to review the full earnings presentation and supplemental materials on the company’s investor relations website.

About Lineage, Inc.

Lineage, Inc. is the world’s largest global temperature-controlled warehouse REIT, operating more than 500 facilities with over 88 million square feet and 3.1 billion cubic feet of capacity across North America, Europe, and Asia-Pacific. The company provides end-to-end supply chain solutions to major food and beverage companies, retailers, and distributors, with a focus on efficiency, sustainability, and minimizing supply chain waste.

Disclaimer: This article is for informational purposes only and does not constitute investment advice or a recommendation to buy or sell any securities. Investors should conduct their own due diligence and consult with financial advisors before making investment decisions. All forward-looking statements are subject to risks and uncertainties, and actual results may differ materially.

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