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    COLD
    Earnings call· Jun 2026(Q2 FY26)

    AMERICOLD REALTY TRUST Q2 FY26 earnings call COLD

    Aug 6, 2026 Source

    Executive summary

    Americold Realty Trust Q2 FY26 — Strong Execution Drives AFFO Beat and Raised Guidance

    Americold delivered a strong Q2 FY26, exceeding AFFO expectations and raising full-year guidance, driven by robust execution against its strategic priorities. The company saw significant sequential and year-over-year improvements in physical and economic occupancy, coupled with increased pricing for storage and handling, despite a challenging inflationary environment. Strategic portfolio management, including the EQT joint venture and divestitures, is strengthening the balance sheet and reallocating capital to higher-return opportunities, positioning Americold for sustainable long-term growth.

    Highlights

    5

    • AFFO per share came in ahead of expectations at $0.35, marking the fourth consecutive quarter of meeting or exceeding analyst consensus.

    • Physical occupancy increased over 200 basis points sequentially and nearly 300 basis points year-over-year.

    • Economic occupancy was up year-over-year, with the gap to physical occupancy tightening by 240 basis points to 860 basis points.

    • Pricing for both stores and handling increased year-over-year, while the churn rate remained low at 2.1%.

    • Full-year AFFO guidance was raised to $1.26 to $1.32 per share, an increase of $0.04 at the midpoint, offsetting $0.05 dilution from the EQT joint venture.

    Concerns

    3

    • The company recorded a $298.8 million noncash impairment charge related to the wind-down of operations at its Lancaster and Plainville facilities.

    • Ongoing cost pressures from power rates are being experienced, though mechanisms are in place to pass through adjustments.

    • The broader industry environment remains challenging due to food inflation, higher input costs for customers, and consumers facing persistent inflation and high interest rates.

    Guidance & targets

    8
    CategoryTargetConfidence
    Full-year AFFO per share
    $1.26 to $1.32 per share
    high materiality
    High
    Full-year same-store revenue (recast pool)
    $2.03 billion to $2.09 billion
    high materiality
    High
    Full-year same-store NOI (recast pool)
    $660 million to $695 million
    high materiality
    High
    Full-year core EBITDA
    $570 million to $600 million
    high materiality
    High
    Full-year interest expense
    $155 million to $160 million
    medium materiality
    High
    Full-year same-store revenue growth (recast pool)
    -1.1% to +1.8%
    high materiality
    High
    Full-year same-store NOI growth (recast pool)
    -5% to +0.1%
    high materiality
    High
    Full-year same-store occupancy (recast pool)
    100 bps up to 200 bps down
    medium materiality
    Medium

    Operational metrics

    21
    AFFO per share
    $0.35ahead of expectations
    Q2 FY26

    fourth consecutive quarter of AFFO per share that either met or exceeded analyst consensus

    Physical occupancy
    up over 200 basis pointssequentially
    Q2 FY26

    also up nearly 300 basis points year-over-year

    Economic occupancy
    upyear-over-year
    Q2 FY26

    results came in ahead of expectations

    Gap between physical and economic occupancy
    860 basis point gaptightened by 240 basis points
    Q2 FY26

    reflects a healthier and more sustainable long-term level

    Pricing for stores and handling
    increasedyear-over-year
    Q2 FY26

    commercial teams are executing extremely well and leading with the Americold value proposition

    Churn rate
    2.1%
    Q2 FY26

    remains low

    Revenue from fixed commitments
    58%stable
    Q2 FY26

    100% of our top 25 customers who account for over 50% of our total revenues utilizing our fixed committed contract structure

    Indirect headcount reduction
    400 positionsover 10% globally
    Q2 FY26

    completed the first phase of this initiative

    Targeted additional savings (fit-for-purpose initiative)
    $25 millionadditional
    by Q1 2027

    focused primarily on SG&A and our support functions

    SG&A
    downyear-over-year
    Q2 FY26

    more than offsetting the impacts of ongoing wage inflation across the business

    MSCI ESG rating
    AAupgraded by 4 categories from BB
    early July

    reflects the continued maturity of Americold's sustainability program

    Debt repayment from EQT JV
    $1.1 billionapproximately 25% reduction in outstanding borrowings
    Q3 FY26

    expected to use the proceeds from this transaction to repay outstanding debt, including all 2026 through 2028 U.S. dollar-denominated debt maturities

    Total debt
    $4.3 billion
    end of Q2 FY26

    prior to debt paydown from EQT JV

    Same-store revenue impact from JV
    lower by approximately $230 million
    FY26

    reported levels will be lower due to the updated asset base as JV properties come out of the same-store pool

    Prior same-store revenue expectation
    decline of approximately 2.5%
    2026

    original expectation coming into the year

    Prior same-store occupancy expectation
    flat to down 300 basis points
    2026

    original planning assumption coming into the year

    Prior same-store pricing expectation
    down by a blended rate of between 100 to 200 basis points
    2026

    original planning assumption coming into the year

    JV pool same-store revenue growth
    down 1%
    full year

    somewhat representative for the full year for the JV pool

    JV pool same-store NOI growth
    down 60 basis points
    full year

    somewhat representative for the full year for the JV pool

    CapEx guidance
    held steady
    FY26

    prioritizing projects during the year, even with the joint venture

    Power costs
    cost pressures
    Q2 FY26

    across the board on rate; mechanisms exist to pass through adjustments, largely driven by power surcharges

    Industry KPIs

    5
    MetricValueDetails
    Occupancy rate860 basis point gapbps
    Net debt adjusted EBITDAcloser to 6x or lessx
    Investment cap rate stabilized yield7%%
    Development starts dollar value and mix$163 millionUSD
    Same store noi growth cash vs net effective-5% to +0.1%%

    Orderbook & backlog

    1
    Disposition volume remainingseveral hundred million dollarsQ2 FY26

    properties currently listed for sale

    Deals & partnerships

    4
    EQTStrategic joint venture for 12 assets$1.3 billion

    Americold will contribute 12 assets at a blended cap rate of approximately 7% or $3,300 per pallet position; teams working through final closing conditions.

    UndisclosedSale of two previously idled facilities$27 million

    Both facilities will be removed from the cold storage industry, eliminating 31,000 power positions.

    Undisclosed customer (Ahold)Mutual agreement to wind down operations at Lancaster and Plainville facilities

    Strategically reallocate capital to other more productive uses; current contribution to NOI was negligible; broader commercial agreement reached to extend and expand customer's business at other assets across the network.

    Good RanchersRenewal of long-standing relationship and expansion of services

    Direct-to-consumer protein provider expanded from a single site to now using 5 facilities across Americold's network for nationwide distribution.

    Capital programs

    3
    McCain Foods plant adjacent projectannounced$163 million

    dedicated to McCain Foods and anchored by a 20-year fixed commitment agreement

    Port St. John, Canada facilitycompleted

    grand opening in June; developed in partnership with both CPKC and DP World; integrated import-export facility, first of its kind globally

    Dallas-Fort Worth expansion projectunderway

    remains on budget and on track for an opening later this year

    Risks & headwinds

    3
    Challenging industry environmentcurrent

    ongoing food inflation, higher input costs for customers, consumers facing inflation and high interest rates

    Mitigation: focused on controlling what is controllable; strong execution, market share gains, new business wins, cost structure optimization; any demand recovery would be upside

    Power cost pressuresQ2 FY26

    cost pressures on rate

    Mitigation: mechanisms to pass through adjustments for increased costs; operational opportunities to keep power from escalating

    Underperforming development projectsQ2 FY26

    $298.8 million noncash impairment charge

    Mitigation: wind-down operations at Lancaster and Plainville facilities; reallocate capital to other more productive uses; focus development spend on lower-risk customer-driven projects

    What to watch in Q3 FY26

    5

    EQT Joint Venture Closing

    Q3 FY26
    CurrentOn track to close in Q3 FY26
    TargetTransaction closed, debt repaid

    Why it matters

    Significant deleveraging event, impacts financial flexibility and leverage ratio.

    Our teams are working through the final closing conditions, and we expect to have the transaction completed in the third quarter.

    Q&A highlights

    6

    How much of the physical occupancy increase is structural market share gains versus temporary inventory rebuilding? Can these gains be sustained through the back half of the year and into 2027?

    The increase is primarily due to successful new business wins (record amount in the last 18 months) and market share gains, especially in North America, by focusing on service excellence and holding steady on rates while smaller competitors cut prices. Customers are returning to Americold due to service reliability. These gains are considered sustainable.

    “I think it's sustainable market share gains and new business wins that's driving that physical occupancy growth.”

    asked by Michael Goldsmith · answered by Robert Chambers

    2 min read6 chapters

    Detailed Narrative

    01

    Strategic Joint Venture with EQT

    Americold is on track to close its $1.3 billion strategic joint venture with EQT in Q3 FY26, contributing 12 assets at a blended cap rate of approximately 7% or $3,300 per pallet position. Americold will hold a 30% interest, recording net income from the JV and earning an annual management fee. Proceeds of approximately $1.1 billion will repay outstanding debt, including all 2026-2028 US dollar-denominated maturities, reducing total debt by 25% and lowering leverage by 0.75x towards a target of 6x or less.

    02

    Active Portfolio Management

    The company sold two previously idled facilities for $27 million, removing 31,000 power positions. Since launching this initiative, 10 underperforming facilities have been exited, with 15 more awaiting exit or actively marketed. Americold also mutually agreed with a customer to wind down operations at its Lancaster and Plainville facilities, resulting in a $298.8 million noncash impairment charge and classifying them as held for sale. This reallocates capital to more productive uses and strengthens customer relationships through broader commercial agreements.

    03

    Expansion into Adjacent Sectors

    Americold is extending capabilities into underpenetrated sectors like retail in Europe, QSR and convenience in Asia Pac, e-commerce, and pet food. New business wins include Good Ranchers, a direct-to-consumer protein provider, expanding from one to five facilities across the network. These initiatives leverage operational expertise for fast-turning products and differentiate Americold from smaller competitors lacking resources for operationally intensive sectors.

    04

    Disciplined Development Spend

    The company announced a new $163 million plant-adjacent project for McCain Foods, anchored by a 20-year fixed commitment agreement. The Port St. John, Canada facility, developed in partnership with CPKC and DP World, opened in June, offering an integrated rail, port, and cold storage solution. The Dallas-Fort Worth expansion remains on budget and on track for a late 2026 opening, reflecting a focus on lower-risk, customer-driven projects.

    05

    Cost Structure Optimization

    Americold completed the first phase of its cost-saving initiative, reducing indirect headcount by 400 positions (over 10% globally) for $30 million in annual savings. A new 'fit-for-purpose' initiative targets an additional $25 million in savings by Q1 FY27, primarily from SG&A and support functions, building on prior investments in labor and technology. SG&A was down year-over-year this quarter, offsetting wage inflation.

    06

    ESG Upgrade and Industry Stabilization

    MSCI upgraded Americold's ESG rating by four categories from BB to AA in early July, reflecting maturity in sustainability efforts. Management noted continued signs of industry stabilization, with inventories aligning with demand and no further destocking. The company's strategy of holding steady on rates and focusing on service excellence has led to market share gains and new business wins, particularly in Europe and Asia Pac. Analysts noted a $0.10 gross guidance increase before the EQT JV dilution, reflecting underlying business strength.

    AI-generated summary of the company’s earnings call. Not investment advice.