Lineage reported lower revenue and profitability for the third quarter of 2026, while saying that warehouse occupancy continued to improve year over year. The temperature-controlled logistics company also lowered its full-year outlook, citing operating pressures it expects to persist into the fourth quarter.
The company released its quarterly results and accompanying supplemental financial materials on Nov. 9.
- Revenue and earnings declined: Revenue fell 1.2% to $1.361 billion. Lineage recorded a GAAP net loss of $173 million, or 68 cents per diluted share.
- Adjusted operating performance weakened: Adjusted EBITDA was $317 million, down 7.0% from a year earlier. Its adjusted EBITDA margin fell 150 basis points to 23.3%.
- AFFO fell more sharply: Adjusted funds from operations (AFFO) declined 14.9% to $188 million. AFFO per share was 73 cents, down 14.1%.
- Occupancy showed improvement: Same-store occupancy increased year over year for the second consecutive quarter. CEO Greg Lehmkuhl said customer inventory levels had normalized.
- Management cited near-term operating headwinds: Sharply higher oil prices, constrained trucking capacity and tariff uncertainty weighed on results late in the quarter, particularly in the Global Integrated Solutions business. Lineage expects those pressures to continue into the fourth quarter and describes them as cyclical rather than a change in its business trajectory.
- Full-year outlook: Lineage expects 2026 adjusted EBITDA of $1.25 billion to $1.27 billion and AFFO per share of $2.86 to $2.98.
- Dividend: The company declared a quarterly dividend of 53.25 cents per share, equivalent to an annualized rate of $2.13 per share.
The improving same-store occupancy trend points to continued recovery in a core operating measure, but the quarterly declines in adjusted EBITDA and AFFO show that higher operating pressures affected profitability. The revised outlook reflects management’s expectation that those pressures will extend into the final quarter of the year.