Lineage, Inc. ( (LINE) ) has released its Q1 earnings. Here is a breakdown of the information Lineage, Inc. presented to its investors.
Lineage, Inc. is the world’s largest global temperature-controlled warehouse REIT, operating over 485 facilities across North America, Europe, and Asia-Pacific, providing end-to-end supply chain solutions to major food and beverage companies. In its first-quarter 2025 financial results, Lineage, Inc. reported a slight decrease in total revenue by 2.7% to $1,292 million, with a breakeven GAAP net income of $0.01 per diluted share. Despite a 7% decrease in adjusted EBITDA to $304 million, the company saw a significant 48% increase in AFFO to $219 million. A quarterly dividend of $0.5275 per share was declared, maintaining an annualized rate of $2.11 per share.
A major highlight of the quarter was Lineage’s landmark agreements with Tyson Foods, which include acquiring four cold storage warehouses for $247 million and a multi-year warehousing agreement to build and operate two automated cold storage facilities in the U.S. This strategic partnership is expected to deploy approximately $1 billion in capital, enhancing Lineage’s service to Tyson Foods as an anchor customer.
Financially, Lineage faced challenges with a decrease in adjusted EBITDA margin to 23.5% and a decline in global warehousing segment revenues by 2.6%. However, the company managed to increase its AFFO per share by 6.2% to $0.86, showcasing its ability to generate cash flow despite revenue pressures. The company’s strategic focus on automation and technology, as demonstrated by the Tyson Foods agreements, positions it well for future growth.
Looking ahead, Lineage, Inc. maintains its full-year 2025 guidance for adjusted EBITDA between $1.35 to $1.40 billion and AFFO per share between $3.40 to $3.60. While acknowledging industry uncertainties, particularly around U.S. tariff policies, the company’s leadership remains confident in its robust network and customer relationships to navigate the evolving market landscape.