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. The post Lineage sees cold storage inventories stabilize after capacity reductions appeared first on FreightWaves .
Cold storage operator Lineage reported stabilizing customer inventories and shut down underutilized facilities to reduce debt leverage. The company idled 16 locations since 2025, representing 2.6 million square feet and 212,000 pallet positions. Lineage and Americold reduced overall capacity by 4% (9 million square feet) in the past two years.
Net revenue fell 1% year-over-year to $1.36 billion, with food-related container volumes declining 8% year-over-year due to seafood sector weakness and higher fuel costs. Facility occupancy improved, with physical occupancy up 76.2% year-over-year. Adjusted EBITDA was $317 million, down 7% year-over-year, and AFFO guidance was tightened to $2.86 to $2.98 per share.
Lineage has 17 facilities under construction, adding $141 million in net operating income. The company aims to lower its debt-to-EBITDA ratio to 5 to 5.5x by the first half of 2027.
Written by urgent.news from FreightWaves's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
