Americold Realty Trust Reports 5.4% Revenue Decline and Net Loss in Q1 2025

Americold Realty Trust, Inc. reported a decline in financial performance for the first quarter of 2025, with total revenues of $628.98 million, down from $664.98 million in the same period of 2024, representing a decrease of approximately 5.4%. The company's net loss for the quarter was $16.47 million, compared to a net income of $9.80 million in the prior year. This shift in profitability was attributed to lower revenues across its warehouse and transportation segments, alongside increased operational costs, particularly in acquisition and cyber incident-related expenses.

The company's warehouse segment generated revenues of $575.36 million, a decrease from $597.71 million in the previous year, while transportation services revenues fell to $43.99 million from $56.85 million. Operating expenses also increased, totaling $606.76 million compared to $623.15 million in the prior year. Notably, the company incurred $25.41 million in acquisition and cyber incident-related costs, significantly higher than the $14.99 million recorded in the same quarter of 2024.

Strategically, Americold completed the acquisition of a temperature-controlled storage facility in Baytown, Texas, for $108.4 million on March 17, 2025. This acquisition is expected to enhance the company's operational capacity and support a new retail contract. Additionally, the company is progressing with its Project Orion initiative, aimed at transforming its technology systems and business processes, with implementation costs reaching $175.6 million to date.

Operationally, Americold managed 238 warehouses globally as of March 31, 2025, with a total capacity of approximately 1.4 billion cubic feet. The company reported a decrease in average economic occupancy to 74.7% from 79.4% year-over-year, reflecting challenges in customer demand and inventory levels. The company also experienced a decline in throughput, which is critical for revenue generation in its warehouse services segment.

Looking ahead, Americold anticipates continued challenges due to inflationary pressures, rising interest rates, and competitive market conditions. The company remains focused on enhancing operational efficiency and expanding its market presence through strategic acquisitions and technology investments. Despite the current financial setbacks, Americold's management is optimistic about the long-term benefits of its ongoing initiatives and expects to navigate the evolving market landscape effectively.