Lineage Inc reported better-than-expected second-quarter 2026 results, with adjusted EBITDA of approximately $320 million and adjusted funds from operations of $0.76 per share, both ahead of internal expectations and consensus estimates. Same-store physical occupancy increased 90 basis points year-over-year, marking the first year-over-year increase since the company went public, while same-store net operating income declined 2.9% year-over-year, widening from the prior quarter's negative 0.9% due to a step-down in foreign exchange benefits and elevated international services activity. The company raised its full-year 2026 guidance for same-store net operating income to a range of negative 3% to 0% and adjusted funds from operations per share to $2.80 to $3.05, reflecting better-than-expected operational performance and cost management. Lineage also highlighted progress on its LinOS technology rollout, with all 14 conventional sites hitting internal savings targets and plans to deliver 20 conventional buildings by year-end, supporting a goal of $110 million in EBITDA impact. The Big Bear facility fire in Los Angeles is expected to create a drag of approximately $15 million on adjusted EBITDA in the third and fourth quarters, and the company's reported leverage remains elevated at approximately 6.0 times, with a commitment to bring it down to a targeted range of 5.0 to 5.5 times.
Lineage, Inc. Common StockQ2 results beat expectations and full-year guidance raised, indicating better operational performance and cost management.
