Temperature-controlled warehouse operator Lineage said the market is shaking off the effects of excessive facility construction and post-pandemic inventory destocking. 5% from 2021 through 2025 while demand increased only 5%. 5% this year and customer inventories appear to be at trough levels.
Lineage ( NASDAQ: LINE ) reported net income of $6 million for the fourth quarter on Wednesday before the market opened. Adjusted funds from operations, which exclude depreciation, acquisition and restructuring costs (among other items), of 83 cents per share, came in flat year over year. 38 billion.
display('div-gpt-ad-1709668545404-0'); }); Table: Lineage’s key performance indicators On a same-warehouse comparison, pallet throughput declined 3% y/y, but storage revenue per pallet was up 2%. 3% in the quarter, 50 basis points lower y/y, but 410 bps better sequentially. S.
markets don’t have excess supply, but capacity overhangs still persist in areas like Dallas, Houston and New Jersey. Lineage idled 10 sites last year, reallocating resources and labor to other parts of its network. It also sold a location in Southern California for $60 million during the fourth quarter.
The company has 24 facilities currently under construction, which will add $150 million in annual EBITDA. ) The company’s 2026 outlook calls for net pricing increases of 1% to 2% now that the post-Covid inventory drawdown has passed. It has already repriced 65% of its contracts for the year.
The guidance assumes no material change in the economy. Occupancy normally declines 300 bps from the fourth quarter to the first quarter. Management expects a similar decline this year as import volumes remain under pressure.
Lineage has $50 million in annual cost reductions planned, with implementation occurring throughout the year and into 2027. The company previously outlined a plan to generate $110 million in incremental annual EBITDA over the next three to five years from the rollout of its proprietary warehouse automation system, LinOS. 1 billion cubic feet of space across North America, Europe and the Asia-Pacific region.
It also provides freight forwarding, customs brokerage, drayage and truck transportation. m. 5%.
More FreightWaves articles by Todd Maiden: RXO: TL market seeing ‘biggest structural change’ since deregulation 2026: The year TL carriers turn the tide? B.
