Medline breaks ground on 1.2 million sq ft Texas center; Citi assigns $60 target
Medline plans to build a 1.2 million sq ft distribution center in Midlothian, Texas, its first new DC since its December IPO, set to go live in Q2 2027. Citi resumed coverage with a Buy rating and $60 price target after Medline’s Q4 results outpaced expectations.
1. Midlothian Distribution Center Groundbreaking
Medline has initiated construction of a 1.2 million square foot distribution center in Midlothian, Texas, marking its first facility announcement since going public in December 2025. The center is scheduled to be operational in Q2 2027 and will complement Medline’s existing Wilmer site in the Dallas–Fort Worth region.
2. Network and Technology Enhancements
This new facility will integrate Medline’s AutoStore storage and retrieval system and add to the company’s 26 million square feet of U.S. warehouse space. With ownership of its fleet and an approach that maintains 80 days of on-hand inventory, Medline achieves next-day delivery for 95% of its customers.
3. Citi Resumes Coverage with Buy
Citi reinstated coverage of Medline with a Buy rating and set a $60 price target after the company’s Q4 performance exceeded consensus forecasts. The firm cited broad-based strength and a “compelling set-up” into fiscal 2026, positioning Medline as a defensive industry play.