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    LAMR
    Earnings call· Mar 2026(Q1 FY26)

    LAMAR ADVERTISING CO/NEW Q1 FY26 earnings call LAMR

    May 7, 2026 Source

    Executive summary

    Lamar Q1 FY26 — Strong National Ad Market and AFFO Growth

    Lamar Advertising delivered a strong first quarter, surpassing internal expectations for revenue, EBITDA, and AFFO, primarily fueled by a robust national advertising market and significant programmatic growth. The company is actively pursuing accretive acquisitions and easement opportunities, while also benefiting from strong forward bookings and a healthy balance sheet, positioning it to potentially raise full-year AFFO guidance.

    Highlights

    5

    • Q1 revenue exceeded internal expectations, with consolidated revenue up 3.9% on an acquisition-adjusted basis.

    • National revenue increased 5.8% YoY, driven by programmatic growth of nearly 25% to approximately $11 million.

    • Adjusted EBITDA grew 7.7% to $226.3 million, with margin expanding 130 bps to 42.9%.

    • Diluted AFFO per share grew 7.5% to $1.72, exceeding estimates.

    • Completed 19 acquisitions for a total cash purchase price of $80 million, with a solid pipeline for accretive billboard deals.

    Concerns

    2

    • Education and telecom categories were slightly weaker in Q1.

    • Gulf Coast region showed relative weakness with revenues up only 1%.

    Guidance & targets

    9
    CategoryTargetConfidence
    Full-year AFFO per share
    top end, if not above, the guidance that we previously provided
    high materiality
    Medium
    Full-year Total Capital Expenditure
    $186 million
    medium materiality
    High
    Full-year Acquisition-Adjusted Consolidated Expenses Growth
    3% range
    medium materiality
    High
    Full-year Total Leverage (Net Debt-to-EBITDA)
    around 3 turns
    high materiality
    High
    Full-year AFFO per share
    $8.50 to $8.70 per share
    high materiality
    High
    Full-year Cash Interest Expense
    $154 million
    medium materiality
    High
    Full-year Cash Taxes
    $11.5 million
    low materiality
    High
    Full-year Regular Dividend per Share
    at least $6.40 per share
    high materiality
    High
    Potential Dividend Increase
    increasing the dividend
    high materiality
    Medium

    Segment performance

    12
    SegmentRevenueYoYQoQMargin
    Consolidated
    Acquisition-adjusted revenue growth across all divisions (billboards, airports, transit, logos) and regions. Pacing suggests acceleration into Q2.
    		—3.9%——
    National
    Ex-programmatic national revenue was up 4.1%. Pacing for the balance of 2026 is even stronger.
    		—5.8%——
    Programmatic
    Part of national revenue, showing strong growth.
    		$11 millionnearly 25%——
    Local
    Accounted for approximately 82% of billboard revenue in Q1, growing for the 20th consecutive quarter.
    		—3%——
    Digital (same board)
    Led the way in revenue growth. Ended Q1 with 5,657 digital spaces, an increase of 104 over year-end 2025.
    Digital revenue as % of total revenue: >30%Digital revenue as % of billboard billing: almost 31%
    		—5%——
    Analog (bulletins and posters)
    Showed healthy growth.
    		—3%——
    Airport business
    Led the way in acquisition-adjusted revenue growth.
    		—15.5%——
    Logos
    Strong growth in the quarter.
    		—6.3%——
    Midwest region
    Strongest region in Q1 with pro forma revenue growth.
    		—5.7%——
    Atlantic region
    Experienced strong top-line growth.
    		—4.8%——
    Gulf Coast region
    Region showing relative weakness in Q1.
    		—1%——
    All regions (forward pacing)
    All regions are pacing well looking forward.
    		—mid-single digits——

    Operational metrics

    21
    Adjusted EBITDA
    $226.3 millionup 7.7% (vs $210.2 million in 2025), up 5.2% on an acquisition-adjusted basis
    Q1 FY26

    Strongest growth seen in almost 2 years.

    Adjusted EBITDA margin
    42.9%expanded 130 basis points
    Q1 FY26

    Expanded over a year ago.

    Adjusted Funds From Operations (AFFO)
    $177.5 millionup 8% (vs $164.3 million last year)
    Q1 FY26
    Diluted AFFO per share
    $1.72up 7.5% (vs $1.60 in Q1 2025)
    Q1 FY26
    Local and regional sales as % of billboard revenue
    82%
    Q1 FY26

    Grew for the 20th consecutive quarter.

    Total Capital Expenditure
    $33.1 million
    Q1 FY26
    Total Consolidated Debt
    $3.5 billion
    Q1 FY26
    Weighted Average Interest Rate
    4.5%
    Q1 FY26
    Weighted Average Debt Maturity
    4.3 years
    Q1 FY26
    Net Debt-to-EBITDA (Total Leverage)
    3x
    Q1 FY26

    Amongst the lowest level ever for the company. Target leverage range is 3.5x to 4x.

    Secured Debt Leverage
    0.7x
    Q1 FY26

    Covenants are 7x for total debt incurrence and 4.5x for secured debt maintenance.

    LTM Interest Coverage (Adjusted EBITDA to Cash Interest)
    7x
    LTM March 31
    Investment Capacity
    well over $1 billion
    Q1 FY26

    Ability to deploy capital while remaining at or below target leverage range.

    Total Liquidity
    $700 million
    March 31
    AR Securitization Outstanding
    $242.1 million
    Q1 FY26

    Fully drawn at $250 million subsequent to quarter end.

    Revolving Credit Facility Outstanding
    $40 million$40 million repaid
    Subsequent to Q1 FY26

    Repaid $40 million on the revolving credit facility subsequent to quarter end.

    Dividend per share
    $1.60
    Q1 FY26

    Cash dividend paid in Q1.

    Proposed Dividend per share
    $1.60
    Q2 FY26

    Management's recommendation, subject to Board approval.

    Annualized Dividend Yield
    4.5%
    Q2 FY26

    Based on yesterday's closing stock price and Q2 proposed dividend.

    Digital spaces
    5,657increase of 104
    End of Q1 FY26

    Increase over year-end 2025.

    Top 10 verticals revenue growth
    5.4%
    Q1 FY26

    These verticals generate 75% of Q1 revenues.

    Industry KPIs

    1
    MetricValueDetails
    Bookings leasing volume signed75%%

    Orderbook & backlog

    1
    Total revenue goal booked75%May 1, 2026

    strongest laid down bookings since COVID

    Refers to the percentage of the full-year revenue goal that is already booked.

    Deals & partnerships

    2
    Multiple (unnamed)Acquisition of billboard assets.$80 million

    19 acquisitions completed so far in 2026 for a total cash purchase price.

    Multiple (unnamed sellers)UPREIT transactions, allowing sellers to exchange property for operating partnership units.

    Several inbound inquiries for UPREIT deals, hopeful to complete a couple in 2026.

    Capital programs

    1
    Easement Acquisition Programunderway
    Funding: capital

    Benefit: securing long-term access/control of best-performing locations

    Ramped up efforts to secure easements beneath best-performing locations, considered a great use of capital.

    Risks & headwinds

    2
    Weakness in specific advertising categoriesQ1 FY26

    Education and telecom categories were "a tad weaker" in Q1.

    Mitigation: Overall portfolio strength and diversification across verticals (top 10 verticals up 5.4%) helps offset.

    Regional underperformanceQ1 FY26

    Gulf Coast region revenues up only 1% in Q1.

    Mitigation: Management noted that all regions are pacing well at mid-single digits looking forward.

    What to watch in Q2 FY26

    5

    Full-year AFFO per share guidance revision

    August call
    CurrentAffirmed at "$8.50 to $8.70 per share"
    TargetUpward revision

    Why it matters

    Indicates stronger-than-expected operational performance and potential for increased shareholder returns.

    If that trend continues, we will need to revisit that guidance on the August call.

    Q&A highlights

    6

    Inquired about the broader macro view, specific verticals driving national ad market strength, and the expected cadence of revenue acceleration throughout the year.

    Sean Reilly stated that Q2, Q3, and Q4 are all looking very good with roughly the same pro forma revenue growth. He noted health across all top 10 verticals, which were up 5.4% in Q1.

    “Q2, 3, 4 are all looking very good, Cameron, and pacing, I would call, roughly the same pro forma revenue growth.”

    asked by Cameron McVeigh · answered by Sean Reilly

    2 min read6 chapters

    Detailed Narrative

    01

    Strong Q1 Performance and Outlook

    Lamar exceeded Q1 internal expectations for revenue and profitability, driven by both local and national advertising. The company is pacing towards the high end of its full-year AFFO per share guidance, with potential for an upward revision on the next call, reflecting strong momentum continuing into Q2 and beyond.

    02

    National Advertising Rebound

    National revenue saw a significant 5.8% increase, with programmatic advertising growing nearly 25% to $11 million. This rebound, following a bumpy 2023-2024, indicates out-of-home's increasing resonance with large brands in an algorithm-driven world, with pacings for the rest of 2026 looking even stronger.

    03

    Digital and Static Billboard Growth

    Digital billboards continued to lead, with revenues increasing 5% on a same-board basis and contributing over 30% of total revenue. Analog bulletins and posters also showed healthy growth of 3%, demonstrating broad strength across the portfolio. The company added 104 digital spaces in Q1, ending with 5,657.

    04

    Active M&A and Capital Allocation

    Lamar completed 19 acquisitions totaling $80 million in Q1, with a robust pipeline for further accretive billboard deals. The company is also ramping up efforts to secure easements beneath high-performing locations, viewing this as an efficient use of capital and a key growth driver for 2026.

    05

    Healthy Balance Sheet and Liquidity

    The company maintains a strong financial position with total leverage at 3x net debt-to-EBITDA, well within its target range of 3.5x to 4x. With over $700 million in total liquidity, including $662.2 million available under its revolver, Lamar has ample capacity for investments and capital deployment.

    06

    Dividend Policy and Potential Increase

    Lamar affirmed its full-year regular dividend guidance of at least $6.40 per share, based on its policy to distribute 100% of taxable income. Given the strong Q1 performance and positive Q2 outlook, management anticipates requesting a dividend increase from the Board in the latter half of the year.

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