Lineage sees cold storage inventories stabilize after capacity reductions
Temperature-controlled warehouse operator Lineage reported on its third-quarter call Tuesday that customer inventories have stabilized at lower levels and that it continues shuttering underutilized facilities to tighten supply and reduce debt leverage.
Cold storage facility operator Lineage said customer inventories have stabilized, though some accounts are holding lower stock levels. The Novi, Michigan-based company said Tuesday on its third-quarter call that it continues to shutter underutilized facilities in efforts to tighten supply and reduce debt leverage.
Lineage (NASDAQ: LINE) noted that it and Americold (NYSE: COLD), the top two operators in the space, have reduced overall capacity by 4% (9 million square feet) over the past two years. Lineage has idled 16 locations since the start of 2025, representing 2.6 million square feet and 212,000 pallet positions.
The company reported a third-quarter net loss of $173 million, or 68 cents per share. Adjusted funds from operations (AFFO) were 73 cents per share, down 12 cents year over year. (AFFO excludes depreciation, acquisition costs, restructuring expenses and other non-recurring items.)
Consolidated net revenue of $1.36 billion was down 1% y/y and just shy of the $1.37-billion consensus estimate.
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