10-Q · May 6, 2026
Lineage, Inc. reported a Q1 2026 revenue of $1.297 billion alongside an EPS of $(0.18), missing analyst expectations significantly. The company experienced growth in its Global Warehousing segment, but saw a 10.3%…
Earnings analysis · 10-Q
LINE earnings analysis
Filed August 5, 2026 · Our reading of the company's report
The latest report
Lineage delivered Q2 revenue of $1.361 billion, up 0.8% year over year and 4.9% sequentially, but recorded a GAAP loss of $0.13 per diluted share. Growth was concentrated in Global Warehousing and newly added assets,…
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Lineage delivered Q2 revenue of $1.361 billion, up 0.8% year over year and 4.9% sequentially, but recorded a GAAP loss of $0.13 per diluted share. Growth was concentrated in Global Warehousing and newly added assets, while Global Integrated Solutions contracted and Global Warehousing NOI margin fell 130 bps to 36.5%. Operating cash flow improved to $441 million for the first half, although elevated interest expense, $6.249 billion of debt, and an unresolved IT-controls material weakness temper the outlook.
Gross and operating margin
How much of each revenue dollar the business keeps.
One point per quarterly or annual filing. Both margins are shares of that report's revenue.
From revenue to operating profit
Where each $100 of revenue went in this report.
Cost of sales, operating expenses, and what remained. Figures are rounded to whole dollars.
Where revenue came from
The business segments reported by the company.
Shares of the segments disclosed in this filing, largest first.
How we read each report
Our analysis across the last few reports.
Our model's reading of each filing, not the share price or the market's reaction. Annual and quarterly reports each occupy one position.
Reported figures
- Earnings per share
- $-0.13
What stood out
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Revenue rose modestly; EPS remained negative
Q2 revenue was $1.361 billion, up $11 million (0.8%) from $1.350 billion a year earlier and approximately $64 million (4.9%) above the implied Q1 2026 revenue of $1.297 billion. GAAP diluted EPS improved $0.05 sequentially from $(0.18) in Q1 to $(0.13), but remained below the $(0.03) reported in Q2 2025.
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Warehousing growth supported by occupancy
Global Warehousing revenue increased 3.6% to $1.005 billion, led by $31 million of non-same-warehouse growth and $4 million of same-warehouse growth. Economic occupancy increased 90 bps to 80.0%, while warehouse-services revenue increased 7.7% to $491 million.
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New assets added meaningful growth
Non-same-warehouse revenue grew $31 million, or 45.6%, to $99 million, including approximately $21 million from acquisitions and $17 million from greenfield and expansion projects. Non-same-warehouse NOI increased 50.0% to $30 million.
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Operating cash flow funded investment spend
Operating cash flow increased $44 million to $441 million for the first six months of 2026. Cash purchases of property, plant and equipment were $310 million, implying $131 million of operating cash flow less PP&E spending; PP&E represented 70.3% of operating cash flow.
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Cost actions reduced G&A
G&A declined 3.5% to $138 million in Q2 and represented 10.1% of revenue, versus $143 million and 10.6% a year ago. Management attributed the reduction to lower legal, tax and audit fees and broader cost-saving initiatives.
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Revolver capacity supports near-term liquidity
Liquidity included $57 million of cash and cash equivalents plus $1.5 billion available under the revolving credit facility at June 30, 2026. The quarterly dividend was raised by $0.0050 per share year over year to $0.5325 per share.
What to watch
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Warehouse margins compressed on cost growth
Global Warehousing NOI was flat at $367 million despite 3.6% revenue growth, as cost of operations rose 5.8% to $638 million; NOI margin fell 130 bps to 36.5%. Same-warehouse NOI declined $10 million, or 2.9%, to $337 million.
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Integrated Solutions revenue and NOI declined
Global Integrated Solutions revenue declined $24 million, or 6.3%, to $356 million and NOI fell $7 million, or 10.3%, to $61 million. Management cited the August 2025 Spain Transportation divestiture, a $7 million preliminary legal-settlement expense, and higher fuel and third-party labor costs.
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Higher debt and rate exposure pressure earnings
Net interest expense rose $20 million, or 29.9%, to $87 million in Q2, while total debt was $6.249 billion at June 30, including $1.721 billion of unhedged variable-rate debt. A 100-bp increase in rates would increase annualized interest expense by approximately $17 million.
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IT-control material weakness remains open
Management’s CEO and CFO concluded disclosure controls were ineffective at June 30, 2026 because a previously identified IT general-controls material weakness remained unremediated. The weakness involves program-change-management and user-access controls and could potentially affect all financial-statement accounts and disclosures.
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No formal risk-factor update; fire costs incurred
No material changes were reported to the risk factors in the 2025 Form 10-K. However, the quarter included $8 million of impairment loss and legal/administrative costs from a June 2026 Los Angeles warehouse fire.
Management's outlook
The 10-Q does not provide quantitative revenue or EPS guidance. Management stated that $57 million of cash, $1.5 billion of revolver availability, operating cash flow, asset dispositions and financing sources are expected to be adequate for short-term requirements and commitments over the next 12 months.
Earlier filings 3
10-K · February 25, 2026
Lineage positions itself as the world’s largest temperature‑controlled warehouse REIT with a technology‑enabled, networked platform focused on automated, mission‑critical facilities. For the year ended December 31, 2025…
10-Q · April 30, 2025
Lineage reported Q1 net revenues of $1,292 million and GAAP diluted EPS of $0.01, with gross margin roughly stable at 32.2% and operating margin of 4.3%. Operating income declined to $56 million from $101 million a year…
This is our reading of a public filing, not the filing itself. Analysis can contain errors; check the source document for full context.