Lineage eyes $110M lift from warehouse tech rollout

Core Insights - Lineage, Inc. provided an update on long-term initiatives and the expected financial contribution from its proprietary warehouse execution system, LinOS [1][4] Company Performance - Demand for temperature-controlled warehousing remains muted due to high food costs affecting customer inventory levels [2] - Lineage's occupancy rate across its nearly 500 warehouses is down 300 basis points from 2021, currently at 75% [3] Market Conditions - The temperature-controlled warehousing market has 9.5% excess capacity, with square footage growing 10.5% from 2021 to 2024 [3] - Supply is expected to increase by 4% this year and 1.5% next year [3] Operational Initiatives - Lineage is implementing several initiatives to streamline operations, including digital uniformity, enhanced decision-making algorithms, and energy optimization efforts [4] - The company expects to generate $110 million in incremental annual EBITDA over the next three to five years as LinOS is rolled out to over 250 locations by 2029 [4][6] Technology and Efficiency - The LinOS system automates warehouse operations in real time, improving routing and maximizing forklift operations [5] - High-reach-operations pilots have shown over 30% improvement in hourly movements and a 5% reduction in total labor per pallet [6] Financial Outlook - Lineage has invested $250 million in LinOS, with an additional $200 million committed through 2030, forecasting a 24% return on invested capital [6] - The company reported last-12-month adjusted EBITDA of $1.3 billion, with a potential $110 million increase from labor cost reductions and value-added services [6]