Temperature-controlled warehouse operator Lineage Inc. has begun construction of an automated cold-storage facility near Dallas — an expansion that comes as the company scales its U.S. footprint while navigating a softer financial outlook tied to tariff pressures.
The facility, located in Hutchins, Texas, is the first of two next-generation automated warehouses Lineage plans to design, build and operate for a long-time customer. The site will feature advanced automation and is expected to open in late 2027, according to a news release.
“Dallas has long been a key market for Lineage, serving as a critical connecting point between food producers and the global food supply chain,” Tim Smith, chief commercial officer at Lineage, said in a statement.
The facility is located in the Prime Pointe Park, adjacent to Union Pacific’s Dallas Intermodal Terminal — positioning Lineage to serve both domestic and cross-border markets. The facility will extend its reach in a region that can access most of the U.S. population — and major export corridors into Mexico — within one to two days, the company said.
The Dallas project follows another major expansion just weeks earlier at Lineage’s cold-storage campus in Hobart, Indiana — now the company’s largest facility in North America after adding 188,000 square feet and 58,000 pallet positions.
In August, Lineage also expanded capabilities at a Port of New Orleans facility allowing it to act as both a customs bonded warehouse, as well as a USDA-approved import house.
Related: Why Lineage’s third expansion in Hobart is a game-changer
Lineage (NASDAQ: LINE) operates more than 485 temperature-controlled facilities globally, with 3.1 billion cubic feet of space. It also provides freight forwarding, customs brokerage, drayage and truck transportation.
The company’s expansion push comes as its near-term outlook has softened. Earlier this month, Lineage trimmed the high end of its full-year 2025 guidance, citing persistent tariff uncertainty and elevated food prices that are prompting many customers to hold less inventory.
Lineage posted a third-quarter net loss of $112 million, though consolidated revenue climbed 3% year over year to $1.38 billion. Physical occupancy remained at 75.2%, slightly below last year but improving sequentially. With seafood importers and other food customers trimming stock levels into year end, pallet throughput declined 2% year over year.
“In spite of continued pressure from tariffs, consumer price inflation and other headwinds, consumer demand for the products that flow through our network has been and continues to grow,” Rob Crisci, chief financial officer of Lineage, said during the company’s third-quarter earnings call with analysts on Nov. 5.
Related: Lineage trims full-year outlook on tariff overhang
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