Lineage 2025 Q2 Earnings Losses Narrow Sharply, Net Income Down 91.3%

Lineage reported Q2 2025 earnings on August 7, 2025, with results in line with expectations. The company significantly narrowed its net loss to $7 million, a 91.3% reduction from the $80 million loss in the prior-year period. However, the firm revised its full-year guidance downward, reflecting ongoing industry challenges and softer demand.

Revenue
Lineage posted total revenue of $1.35 billion for Q2 2025, an increase of 0.9% compared to $1.34 billion in Q2 2024. The Global Warehousing segment generated $970 million, with Warehousing operations leading the segment at $855 million. Additionally, $83 million in Warehouse lease revenues and $27 million in Managed services contributed to the segment’s performance. The Global Integrated Solutions segment brought in $380 million, with Transportation at $198 million, Food sales at $61 million, and Redistribution revenues at $59 million. E-commerce and other activities accounted for $44 million, while Railcar lease revenues added $18 million.

Earnings/Net Income
Lineage significantly improved its bottom-line performance, with the net loss narrowing to $-7 million in Q2 2025, a 91.3% reduction from the $-80 million loss in the same period last year. The company’s earnings per share also improved from a loss of $0.46 to $0.03, representing a 93.5% improvement in per-share performance.

Price Action
The stock of Lineage declined 4.31% during the latest trading day, with a 0.81% drop over the past week and a 1.65% decrease month-to-date, reflecting investor caution following the earnings release.

Post Earnings Price Action Review
A strategy of purchasing Lineage shares following earnings beats and holding for 30 days has demonstrated strong outperformance compared to the buy-and-hold approach. This approach not only maintains a high win rate but also minimizes maximum drawdown, offering enhanced risk-adjusted returns. The 30-day holding period allows for effective risk management during market volatility. By using earnings beats as a trigger, investors align their entry points with fundamental performance rather than short-term market noise, contributing to the strategy’s consistent and reliable returns.

CEO Commentary
Greg Lehmkuhl, President and CEO, remarked that second-quarter results aligned with expectations, with AFFO per share growth driven by operational excellence and customer focus. He highlighted muted seasonal inventory levels late in Q2 and early Q3 as a factor prompting a lowered full-year outlook. Lehmkuhl expressed confidence in sequential improvement in same warehouse and total NOI in the second half of the year and reiterated a strategic focus on revenue growth, labor productivity optimization, and cost control to position the company for strong operating leverage as the industry recovers.

Guidance
Lineage now expects full-year 2025 adjusted EBITDA of $1.29–$1.34 billion and AFFO per share of $3.20–$3.40, down from prior guidance of $1.35–$1.40 billion and $3.40–$3.60, respectively. For Q3, adjusted EBITDA is guided to $326–$336 million and AFFO per share of $0.75–$0.79. The guidance excludes the impact of unannounced future acquisitions or developments and reflects a measured outlook amid current industry dynamics.

Additional News
A class-action lawsuit has been filed against Lineage, Inc. and certain senior executives and directors, alleging violations of the federal securities laws. The lawsuit stems from claims that IPO documents misleadingly portrayed Lineage as benefiting from consistent cold chain demand and growth from pandemic-related trends. In reality, Lineage was allegedly facing a customer-led inventory destocking and a broader industry slowdown. The firm’s stock, which was priced at $78 per share during its July 2024 IPO, has since fallen to around $40, nearly halving in value. Investors with losses are advised to contact Bleichmar Fonti & Auld LLP before the September 30 deadline. The case is pending in the U.S. District Court for the Eastern District of Michigan.