Americold Realty Trust Inc
Q1 2025 Earnings
Market Reaction
S&P 500 over the same 30 days: +6.73%.
Did COLD Beat Earnings? Q1 2025 Results
Americold Realty Trust delivered a disappointing first quarter, missing on both the top and bottom lines as softer warehouse volumes and a difficult year-ago comparison weighed heavily on results. The temperature-controlled REIT reported revenue of $628.98 million, down 5.4% year-over-year and trailing the $666.46 million consensus estimate by 5.62%, while a GAAP loss of $0.06 per diluted share fell well short of the $0.07 per share analysts had expected, a miss of 180.00%. The primary culprit was a combination of lower economic occupancy, which declined 470 basis points to 74.7%, elevated charges tied to its Project Orion ERP rollout, and the unwinding of unusually high counter-cyclical inventory levels that had bolstered Q1 2024 comparisons. Not all was grim; the Global Warehouse segment margin expanded 120 basis points to 34.2%, and the company closed a $108.40 million Houston warehouse acquisition anchored by a major new retail customer. Still, management trimmed its full-year AFFO guidance to $1.42-$1.52 per share and cut same-store revenue growth expectations to 0.0%-2.0%, citing persistent macroeconomic headwinds including inflationary pressures and shifting consumer demand patterns.
- Lower warehouse volumes and throughput pallets due to lapping unusually high counter-cyclical inventory levels in Q1 2024
- Decrease in transportation services revenue primarily due to customer exits
- Annual rate increases in the normal course of operations partially offsetting volume declines
- Improved workforce performance, operational efficiency, and retention driving 120 basis point warehouse margin expansion to 34.2%
- Same store services margin improved to 11.3% from 10.1% in Q1 2024
- Increased Acquisition, cyber incident, and other charges to $25.4M from $15.0M driven by closed site related charges
- Higher SG&A expenses related to Project Orion go-live
- Interest expense increased to $36.1M from $33.4M year-over-year
“We are pleased with our first quarter 2025 results, which included delivering AFFO of $0.34 per share in line with expectations. This performance was enabled by our successful efforts over the past three years to create a more stable and productive workforce, as well as the enhancements we have made to our technology and operating platforms. We believe these initiatives have created a more solid and resilient foundation that allows us to effectively navigate in the current operating environment and positions us well for the long term.”
Americold CEO, on the earnings call
Forward Guidance & Outlook
Americold lowered its full-year 2025 guidance citing macroeconomic headwinds. AFFO per share guidance was reduced to $1.42-$1.52 from the prior $1.51-$1.59. Warehouse segment same store revenue growth (constant currency) was lowered to 0.0%-2.0% from 2.0%-4.0%. Same store NOI growth is expected to be 100 bps higher than associated revenues (down from 200 bps). Warehouse segment non-same store NOI is expected at $7M-$13M (vs. $0M-$7M prior). Transportation and Third-Party Managed segment NOI is guided at $40M-$44M (vs. $44M-$48M). Total SG&A expense is expected at $270M-$280M (vs. $280M-$289M). Interest expense guidance was raised to $153M-$157M from $145M-$150M. Total maintenance capital expenditures are expected at $80M-$85M (vs. $82M-$88M). Development starts are expected at $200M-$300M, unchanged from prior guidance.
COLD YoY Financials
COLD Revenue by Segment
Figures from SEC filings and company reports. Not investment advice.