Asked about the impact and sizing of upcoming tailwinds like the World Cup and midterm elections.

Reilly indicated the World Cup is contracted and helping national revenue as expected. He highlighted political advertising as a surprise, pacing well ahead of the 2024 presidential year, which would be a first if it continues. “I think the surprise, Cameron, is how strong political is. We were, I think, understandably a little bit conservative on our guide to that when we opened up -- began the year because it's a midterm year, not a presidential year, but we are pacing well ahead of 2024, the presidential year.”

Asked about contributors to Q1 margin strength beyond revenue and expectations for full-year margin expansion compared to 2025, considering easement commentary.

Sean Reilly attributed margin strength to revenue growth, the exit of the no-margin Vancouver franchise, and accretive acquisitions (65% margin contribution). He anticipates at least a full percentage point of margin expansion for the full year, targeting 47.7% from 46.7% in 2025. “I would anticipate, and I would be disappointed if we don't have at least a full point -- percentage point of margin expansion for the full year. Last year, it was 46.7%. And I'm looking for something in the 47.7% range for the full year this year.”

Asked about the monthly dynamics through Q1, whether the beat was due to early momentum or acceleration, and the split between national and local contributions to the beat.

Sean Reilly stated that national advertising was the primary surprise driving the beat, with large buys from customers not previously contracted. Political advertising also performed better than anticipated. He reiterated expectations to revise guidance upward by the August call. “national was the surprise that led to the beat. Clearly, we had some large buys from some large customers that were not contracted for when we last spoke, but now are on the books and contributed nicely. And also political came in better and continues to come in better than we anticipated at the beginning of the year.”

LAMR

Lamar (LAMR) Q1 FY26 earnings call: guidance and Q&A

Earnings call· Mar 2026 (Q1 FY26)· Real Estate· May 7, 2026

Source: earnings call transcript

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

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

Education and telecom categories were slightly weaker in Q1.
Gulf Coast region showed relative weakness with revenues up only 1%.

Guidance & targets

Category	Target	Timeline	Confidence
Full-year AFFO per share	top end, if not above, the guidance that we previously provided high materiality	FY26 · 2026	Medium
Full-year Total Capital Expenditure	$186 million medium materiality	FY26 · 2026	High
Full-year Acquisition-Adjusted Consolidated Expenses Growth	3% range medium materiality	FY26 · 2026	High
Full-year Total Leverage (Net Debt-to-EBITDA)	around 3 turns high materiality	FY26 · 2026	High
Full-year AFFO per share	$8.50 to $8.70 per share high materiality	FY26 · 2026	High
Full-year Cash Interest Expense	$154 million medium materiality	FY26 · 2026	High
Full-year Cash Taxes	$11.5 million low materiality	FY26 · 2026	High
Full-year Regular Dividend per Share	at least $6.40 per share high materiality	FY26 · 2026	High
Potential Dividend Increase	increasing the dividend high materiality	H2 FY26 · 2026	Medium

Segment performance

Segment	Revenue	YoY	QoQ	Margin
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 million	nearly 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	—	—

LAMR operating KPIs by quarter

LAMR operating KPIs stated on its earnings calls, by fiscal quarter
KPI	This call Mar 2026 Q1 FY26	Jun 2026 Q2 FY26	Change vs prior quarter
Capital expenditures Maintenance	$9.3M On the capital expenditure front, total spend for the quarter was $33.1 million, including $9.3 million of maintenance CapEx. Source: earnings call transcript	$14.7M On the capital expenditure front, total spend for the quarter was $42.7 million, including $14.7 million of maintenance CapEx. Source: earnings call transcript	+58.1%
Digital spaces	5,657 We ended Q1 with 5,657 digital spaces, an increase of 104 over the year-end 2025. Source: earnings call transcript	5,730 We ended Q2 with 5,730 digital units in operation, an increase of 177 units over year-end 2025. Source: earnings call transcript	+1.3%

Operating figures the company stated on at least two of the calls shown, checked against each call's transcript. Click a figure to read the sentence. A dash means it was not stated that quarter.

Orderbook & backlog

Total revenue goal booked 75% 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

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

Easement Acquisition Program underway

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

Weakness in specific advertising categories Q1 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 underperformance Q1 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

Full-year AFFO per share guidance revision

August call

Current Affirmed at "$8.50 to $8.70 per share"

Target Upward 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.

Find out whether LAMR delivers this. Inve re-checks your case every morning.

Q&A highlights

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 read 6 chapters

Detailed narrative

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.

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.

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.

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.

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.

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.

Summary of the company's earnings call; see how call summaries are prepared. Not investment advice.