Lineage (NASDAQ:LINE) reported first-quarter 2026 results on Wednesday that came in below analyst expectations, as ongoing weakness in its warehousing business continued to weigh on performance.
The company posted adjusted earnings per share of $0.78, missing Wall Street consensus forecasts. Shares were little changed in after-hours trading following the release.
Revenue remains broadly flat amid softer warehouse activity
Quarterly revenue totaled $1.30 billion, broadly unchanged from the prior-year period and up just 0.4% compared with the same quarter of 2025.
Within the company’s Global Warehousing division, same-warehouse net operating income declined 0.9% year over year.
Physical occupancy rates fell by 30 basis points to 76.4%, reflecting continued pressure on warehouse utilization.
Storage pricing improves but trade uncertainty weighs on services
Despite lower occupancy, same-warehouse storage revenue per physical pallet increased 2.2% to $67.01.
Services revenue per throughput pallet edged up only 0.5% to $32.06.
Lineage said the segment was negatively affected by weaker import and export volumes tied to ongoing trade uncertainty, which impacted higher-margin service activity.
EBITDA rises while AFFO per share declines
Adjusted EBITDA increased 3% year over year to $314 million, compared with $304 million in the first quarter of 2025.
However, adjusted funds from operations (AFFO) per share fell 9% to $0.78 from $0.86 a year earlier.
“Q1 2026 financial results vs prior year: Revenue flat, Adj. EBITDA up 3%, AFFO per share down 9%,” the company said in its statement.
Management added that performance in the Global Warehousing business was largely in line with internal expectations, noting that occupancy declined sequentially in line with normal seasonal trends.
Growth investments continue despite operational pressures
During the quarter, Lineage invested $130 million in growth capital, primarily directed toward development projects supported by large customers.
The company said these projects are expected to generate approximately $150 million in incremental EBITDA once fully stabilized.
Full-year guidance maintained
Lineage reaffirmed its fiscal 2026 guidance, including projected same-store NOI growth of between negative 4% and negative 1%.
The company continues to expect adjusted EBITDA between $1.25 billion and $1.30 billion, alongside AFFO per share guidance of $2.75 to $3.00.
Lineage also reiterated plans to eliminate $50 million in annualized administrative and indirect costs by 2027.