Lineage Reports Q1 Results and $1B Expansion with Tyson
Lineage, Inc., the world’s largest temperature-controlled warehouse REIT, announced its first-quarter financial results before the market opened, showing revenue of $1.29 billion and earnings per share of 86 cents. While slightly below analysts’ expectations of $1.34 billion, the company beat earnings estimates. Revenue declined modestly from $1.32 billion in the same quarter last year, partly due to ongoing tariff uncertainties affecting the industry.
CEO Greg Lehmkuhl explained that tariffs and trade tensions are creating a lot of uncertainty for customers. “Many are delaying major decisions on inventory buildup, new facilities, or sourcing strategies,” he said. “While we remain confident in our medium- and long-term support for their needs, the short-term disruption is clear.”
Despite these challenges, Lineage continues to focus on growth opportunities. The company announced a strategic agreement to acquire multiple existing cold storage warehouses from Tyson Foods for $247 million. These facilities, located in Pennsylvania, Kansas, Illinois, and Arizona, total approximately 49 million cubic feet of storage with 160,000 pallet positions. Tyson will be the primary customer, and over 1,000 Tyson employees will join Lineage as part of the transition. The deal is expected to close in the second quarter.
In addition, Lineage plans to develop two fully automated warehouses at a cost of $740 million. These new facilities will add over 80 million cubic feet of capacity and nearly 260,000 pallet positions, with opening scheduled for 2028. CEO Lehmkuhl emphasized the importance of working closely with Tyson: “They are very strategic about their future supply chain, and we’ve spent a year designing facilities that meet their evolving needs.”
Lineage maintained its full-year guidance, expecting adjusted EBITDA of $1.35 billion to $1.4 billion, and adjusted EPS of $3.40 to $3.60. Despite ongoing industry headwinds, Lehmkuhl expressed confidence that these investments and strategic partnerships will support continued growth.
He also highlighted the industry’s current challenges: “Many clients are delaying expansion or sourcing decisions as they wait for clarity on trade policies. The rapid changes in tariffs are causing short-term disruptions, but we believe in the long-term potential of the industry and our ability to support it.”
As global trade tensions and tariffs continue to evolve, companies like Lineage are investing heavily in automation and expansion to position themselves for future growth, even in uncertain times.
