LINE is reaffirming its guidance for both adjusted EBITDA and AFFO per share, thanks in part to new acquisitions. However, the company is also facing increased uncertainty within the industry. This is largely due to the potential effects of shifting U.S. tariff policies, which have led to some customer caution. Despite these challenges, LINE remains optimistic, citing its advanced network, cutting-edge technology, and strong client relationships as key advantages in navigating the uncertainties ahead.
LINE Key Business Developments
Release Date: February 26, 2025
- Total Revenue (Q4 2024): $1.34 billion, flat versus prior year.
- Adjusted EBITDA (Q4 2024): $335 million, a 10% increase.
- Adjusted EBITDA Margin (Q4 2024): Increased 210 basis points to 25%.
- AFFO (Q4 2024): $213 million, up over 145%.
- AFFO per Share (Q4 2024): $0.83, a 73% increase versus prior year.
- Total Revenue (Full Year 2024): $5.34 billion.
- Adjusted EBITDA Growth (Full Year 2024): 4% increase.
- Adjusted EBITDA Margin (Full Year 2024): Increased 100 basis points to 24.9%.
- AFFO (Full Year 2024): $705 million, up 25%.
- AFFO per Share (Full Year 2024): $3.29, a 6.5% increase versus prior year.
- Warehouse NOI Margin (2024): 39.5%, a 40 basis points increase.
- Net Debt (End of 2024): $6.5 billion.
- Total Liquidity (End of 2024): $1.8 billion.
- Leverage Ratio (End of 2024): 4.9 times net debt to adjusted EBITDA.
- 2025 Guidance - Adjusted EBITDA: $1.35 billion to $1.4 billion.
- 2025 Guidance - AFFO per Share: $3.40 to $3.60.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- Lineage Inc (LINE, Financial) executed the largest IPO of the year, reducing leverage to under 5 times and earning investment-grade ratings from Moody's and Fitch.
- The company delivered 4% adjusted EBITDA growth and 6% AFFO per share growth, and initiated a dividend at an annualized rate of $2.11 per share.
- Operational achievements include record new business wins, best-ever truck turn times, and best warehouse labor productivity in the company's history.
- Lineage Inc (LINE) received market recognition and awards, including being listed on the CNBC Disrupter 50 list for the fourth consecutive year.
- The company successfully deployed $760 million of growth capital, including opening a state-of-the-art automated cold store in Hazleton, Pennsylvania, and acquiring Cold Point Logistics.
Negative Points
- Total revenue for the fourth quarter was flat year-over-year at $1.34 billion, indicating challenges in revenue growth.
- The global integrated solution segment saw a 2% decrease in total segment revenue and a 5% decrease in NOI, with specific weakness in some European markets.
- Inventory levels remained elevated in the first half of 2024, creating challenging comps for the first half of 2025.
- The company faces pressure from new competitors and speculative developers entering the cold storage market.
- Despite strong operational performance, the stock has underperformed since the IPO, indicating potential market skepticism or misunderstanding of the company's value proposition.
