Lineage Cuts 2026 Outlook After Oil and Trucking Squeeze

The Tip Desk · November 9, 2026 · 3 min read

Adjusted EBITDA fell 7.0% to $317 million in the third quarter as the company lowered full-year 2026 adjusted EBITDA guidance to $1.25–$1.27 billion.

Lineage, Inc. (LINE), the world’s largest global temperature-controlled warehouse REIT, reported a GAAP net loss of $173 million, or $0.68 a share, for the third quarter of 2026.

Total revenue was $1,361 million, down 1.2% from a year earlier. Adjusted EBITDA declined 7.0% to $317 million and the adjusted EBITDA margin fell 150 basis points to 23.3%. AFFO dropped 14.9% to $188 million, or $0.73 a share.

President and chief executive officer Greg Lehmkuhl said overall results were generally in line with expectations, though the environment became more challenging later in the quarter, particularly in Global Integrated Solutions. The company said it expects those pressures to continue into the fourth quarter and has adjusted guidance accordingly, viewing them as cyclical rather than a change in trajectory.

Lineage now expects full-year 2026 adjusted EBITDA of $1.25 billion to $1.27 billion, down from the $1.26 billion to $1.29 billion range issued after the second quarter. AFFO per share guidance was revised to $2.86 to $2.98, with the low end higher and the high end lower than the prior $2.80 to $3.05 range. The company declared a quarterly dividend of $0.5325 a share, an annualized rate of $2.13.

Global Warehousing, the core of the business, generated $1,009 million of revenue in the three months ended September 30, 2026, down 0.4% from a year earlier, with warehouse storage at $516 million and warehouse services at $493 million. Segment NOI was $361 million and the margin compressed 210 basis points to 35.8%. Average economic occupied pallets were 8,168 thousand, while economic occupancy rose 60 basis points to 80.9% and storage revenue per economic occupied pallet was $63.11. Throughput pallets were 13,955 thousand.

Lehmkuhl said same-store occupancy grew year-over-year for the second consecutive quarter, which the company cited as further confirmation that customer inventory levels have normalized.

Same warehouses, 419 sites, posted $917 million of revenue, up 0.4% from a year earlier, with warehouse storage down 0.8% to $474 million and warehouse services up 1.8% to $443 million. Same warehouse NOI was $342 million and the margin compressed 180 basis points to 37.3%. Economic occupancy rose 30 basis points to 82.5% on 7,558 thousand occupied economic pallets; storage revenue per economic occupied pallet fell 1.1% to $62.70. Physical occupancy rose 110 basis points to 76.2% on 6,980 thousand occupied physical pallets; storage revenue per physical occupied pallet fell 2.2% to $67.90. Same warehouse throughput pallets were 12,334 thousand, with warehouse services revenue per throughput pallet up 2.1% to $32.30.

Non-same warehouses, 59 sites, contributed $92 million of revenue, down 8.0% from a year earlier, with warehouse services down 16.7% to $50 million. Non-same warehouse NOI was $19 million and the margin compressed 630 basis points to 20.7%.

Global Integrated Solutions revenue was $352 million, down 3.3% from a year earlier, and segment NOI was $56 million, with the margin compressing 200 basis points to 15.9%.

The company said it expects the oil, trucking and tariff headwinds to persist into the fourth quarter, particularly in Global Integrated Solutions, and that it has adjusted full-year 2026 guidance accordingly.