Americold Realty Trust raised its full-year earnings outlook Thursday after reporting higher third-quarter revenue and improved warehouse margins, while a one-time gain from its joint venture with EQT drove a sharp swing to profit.
The temperature-controlled logistics company (NYSE: COLD) based in Atlanta reported net income of $683.4 million, or $2.38 per diluted share, for the quarter ended Sept. 30, compared with a loss of $11.4 million, or 4 cents per share, a year earlier. The turnaround primarily reflected a $714.1 million after-tax gain tied to the contribution of real estate assets to the joint venture, rather than a comparable increase in recurring earnings.
Revenue rose 4.2% to $691.6 million from $663.7 million. Adjusted funds from operations, or AFFO, totaled $101.3 million, compared with $100.7 million a year earlier, while AFFO per diluted share remained unchanged at 35 cents.
Americold increased its 2026 AFFO forecast to $1.31 to $1.33 per share, its second consecutive increase in the full-year outlook. Its previous range was $1.26 to $1.32 per share.
Chief Executive Rob Chambers in a statement attributed the quarter’s operating improvement to gains in occupancy, the volume of goods moving through facilities and pricing, alongside lower selling, general and administrative costs.
“While the operating environment remains challenging, our efforts are yielding visible results, and we have seen a multi-quarter improvement in key metrics across the business,” Chambers said.
Same-store revenue in the global warehouse segment increased 5.7%, or 4.9% excluding currency movements. Same-store net operating income rose 6%, while the same-store services margin expanded to 15.9% from 13.6%.
Companywide core earnings before interest, taxes, depreciation and amortization rose 7.5% to $159.4 million. The corresponding margin increased to 23% from 22.3%.
Revenue growth also reflected higher transportation services revenue, favorable currency movements and $13.1 million in joint-venture management fees and reimbursed costs. Those gains were partially offset by the transfer of warehouse properties into the EQT partnership.
The EQT transaction, which closed Aug. 31, was central to both the reported profit surge and Americold’s deleveraging. The company said the deal enabled it to reduce outstanding debt by $1.15 billion and lowered its net leverage ratio by a full turn.
Americold retained a 30% stake in the partnership, which owns 12 temperature-controlled warehouse facilities in North America, and continues to serve as day-to-day property manager. Chambers said the arrangement also establishes a development partner for future growth opportunities.
At quarter-end, Americold had approximately $3.3 billion in net debt and $950.4 million in liquidity. Net debt stood at about 6.2 times pro forma core EBITDA, or approximately 6.3 times on a measure incorporating its proportionate share of partially owned entities.
Despite the substantial increase in reported net income, recurring earnings measures were mixed. AFFO per share held steady, while core funds from operations declined to $66.9 million, or 23 cents per diluted share, from $81.7 million, or 29 cents per share, a year earlier.
Why it matters: Americold’s warehouse business is stabilizing while a major debt reduction strengthens its financial footing, though unchanged adjusted EPS shows operating recovery remains gradual.
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