Lineage, Inc. Reports Q1 2025 Financial Results with $1.292 Billion Revenue

Lineage, Inc. reported its financial results for the first quarter of 2025, revealing a net revenue of $1.292 billion, a decrease of 2.7% from $1.328 billion in the same period last year. The company's income from operations fell to $56 million, down from $101 million in the prior year, primarily due to increased operational costs and a decline in revenue from its Global Warehousing segment. The company recorded a net loss attributable to Lineage, Inc. of $0 for the quarter, compared to a loss of $40 million in the first quarter of 2024. The basic earnings per share for the quarter was $0.01, a recovery from a loss of $0.28 per share in the previous year.

The decline in revenue was attributed to a $38 million decrease in the same warehouse pool, which was partially offset by a $13 million increase in the non-same warehouse pool. The company also faced unfavorable foreign currency translation impacts, which reduced revenues by $11 million. Despite these challenges, the Global Integrated Solutions segment reported revenues of $348 million, a decrease of 3.1% from the previous year, primarily due to lower volumes and unfavorable currency impacts.

Operationally, Lineage expanded its footprint, operating 469 warehouses as of March 31, 2025, compared to 463 a year earlier. The company reported an average economic occupancy of 81.0%, down from 83.6% in the prior year, indicating a rationalization of inventory levels by customers amid ongoing economic pressures. The total number of pallets in the warehouses decreased slightly, reflecting a broader trend of reduced throughput as customers adjusted to changing demand levels.

In terms of strategic developments, Lineage announced the acquisition of three warehouse campuses from Bellingham Cold Storage for $121 million, which is expected to enhance its presence in the Pacific Northwest. Additionally, the company has entered into an agreement to acquire four cold storage warehouses from Tyson Foods for approximately $247 million, which is subject to customary closing conditions. These acquisitions are part of Lineage's strategy to expand its temperature-controlled warehousing network and enhance its service offerings.

Looking ahead, Lineage remains focused on optimizing its operations and expanding its market presence. The company anticipates that its funding sources, including cash flows from operations and available credit facilities, will be sufficient to meet its liquidity requirements and capital commitments over the next twelve months. However, it acknowledges the ongoing challenges posed by inflation, labor costs, and market conditions, which may impact future performance.