LAMAR ADVERTISING CO (LAMR) Q1 2026 Earnings Call Transcript
Bullish REIT - Specialty 13.57B USA
Next Earnings
2026-05-06
Founded in 1902, Lamar Advertising (Nasdaq: LAMR) is one of the largest outdoor advertising companies in North America, with over 362,000 displays across the United States and Canada. Lamar offers advertisers a variety of billboard, interstate logo, transit and airport advertising formats, helping both local businesses and national brands reach broad audiences every day. In addition to its more traditional out-of-home inventory, Lamar is proud to offer its customers the largest network of digital billboards in the United States with over 5,400 displays.
Lamar delivered solid Q4 results with acquisition-driven growth, rising digital share, and raised 2026 AFFO guidance, supported by a strong balance sheet and ongoing M&A momentum.
⭐ Key Highlights
Q4 performance and full-year outperformance
Q4 revenue and AFFO exceeded internal expectations, with AFFO growth continuing and margins near historical highs.
Acquisition momentum and M&A activity
Completed 13 acquisitions in Q4 ($57M cash) and 50 acquisitions in 2025 ($191M cash); started 2026 strong with 7 acquisitions since Jan 1 ($40M total).
Digital and programmatic growth leadership
Digital units rose to 5,553; digital revenues up 3.7% on same-board basis in Q4; programmatic growth ~19% YoY in Q4; digital accounted for 33.7% of book in Q4.
Guidance and margin trajectory for 2026
Guidance for 2026 AFFO of $8.50–$8.70 per share, with ~3.5% revenue growth on an acquisition-adjusted basis and margins above 47% (best in company history).
Balance sheet and liquidity strength
Debt around $3.4B, leverage 2.92x, strong liquidity (~$800M) with secured debt managed; no maturities until 2027 (AR securitization) and 2028 (senior notes).
✔Positive Signals
- AFFO outperformed estimates and guided 2026 AFFO at $8.50–$8.70 per share
- Strong acquisition cadence: 50 acquisitions in 2025, 7 already in 2026 totaling ~$40M
- Record-like operating margins: expected consolidated margins >47% in 2026
- Digital growth: 5,553 units and 33.7% of revenue from digital in Q4; programmatic growth ~18.7% in Q4
- Pharma advertising potential: regulatory changes enabling pharma campaigns via Lamar's media, with attribution via Crossix
✖Negative Signals
- Political advertising headwinds in Q4 2025; expected tailwinds may reverse in 2026
- Weakness in telecom and beer/wine verticals in Q4 and full year
- Near-term OpEx growth higher than long-run trend (ERP and health care cost pressures)
📊Financial Results
- Q4 adjusted EBITDA $288.9M vs $278.5M in Q4 2024 (YoY +3.7%)
- Full-year adjusted EBITDA $1.06B, up 1.4% on an acquisition-adjusted basis
- Full-year revenue on an acquisition-adjusted basis up 2.1% to $2.27B
- Q4 diluted AFFO per share $2.24 vs $2.21 in Q4 2024 (YoY +1.4%)
- Debt: ~$3.4B, leverage 2.92x, cash flow and liquidity metrics remained strong
🔮Future Guidance
- 2026 AFFO guidance of $8.50–$8.70 per share, ~3.6% acquisition-adjusted revenue growth mid-point
- Maintenance CapEx around $64M for 2026; cash taxes ~ $10M
- Regular quarterly dividend of $1.60 per share in Q1 2026 and annualized $6.40 per share for 2026 (yield ~4.8% at recent price)
- SOFR assumed flat for cash interest in guidance; no maturities until AR securitization in Oct 2027 and senior notes until Feb 2028
💡Interesting Insights
- Pharma advertising shift: FDA rule changes allow drug-name ads with disclosures, enabling Lamar to capture a higher share of pharma budgets and provide measurable attribution via Crossix
Detailed Analysis
AI-generated summary of LAMAR ADVERTISING CO earnings call transcript.
Lamar reported a solid Q4 with acquisition-adjusted revenue growth above 4% excluding political headwinds, driven by gains in analog and digital billboards, airports, and logos. The company exceeded its internal expectations for revenue, adjusted EBITDA, and AFFO, and is guiding 2026 AFFO of $8.50–$8.70 per share with about 3.5% acquisition-adjusted revenue growth and margin expansion to over 47%, signaling continued efficiency and profitability gains. Lamar completed 13 acquisitions in Q4 and 50 for the year, including the Verde UPREIT integration, and opened 7 acquisitions early in 2026, underscoring aggressive M&A activity. Digital now represents 33.7% of the book in Q4, with 5,553 digital units end of year, and programmatic growth remained strong at ~19% in Q4. The company also highlighted a favorable mix, led by services, health care, and financial verticals, while telecom and beer/wine were weaker. A robust balance sheet with low leverage, ample liquidity, and a well-structured debt maturity profile supports continued growth and potential World Cup-related incremental revenue in 2026. Management acknowledged political tailwinds in 2026 and anticipated them to reverse in the year, contributing to the outlook. Overall, the call painted a constructive growth path supported by M&A, digital transition, and disciplined expense management, with a positive stance on near-term catalysts like pharma advertising and World Cup exposure.
Get Real-Time Earnings Call Alerts for LAMAR ADVERTISING CO
Create a free MarketAlerts account to add LAMR to your watchlist and receive instant AI-powered alerts when new earnings call transcripts, insider trades, and technical signals are detected.
Other MarketAlerts Features
