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    LAMR
    Earnings call· Jun 2026(Q2 FY26)

    LAMAR ADVERTISING CO/NEW Q2 FY26 earnings call LAMR

    Aug 6, 2026 Source

    Executive summary

    Lamar Q2 FY26 — Strong Revenue Growth and Raised AFFO Guidance

    Lamar Advertising delivered strong Q2 FY26 results, with acquisition-adjusted revenue and EBITDA exceeding internal forecasts, driven by broad-based growth across all business offerings and regions. The company raised its full-year AFFO guidance and recommended a dividend increase, reflecting confidence in continued momentum, particularly from digital and political advertising. Management also highlighted an active M&A pipeline, including UPREIT transactions, as a key growth driver.

    Highlights

    5

    • Acquisition-adjusted consolidated revenue grew 6.1% in Q2 FY26, the highest rate since Q2 FY22 and 21st consecutive quarter of growth.

    • Adjusted EBITDA increased 7.3% with a record EBITDA margin of 49.2% in Q2 FY26.

    • Full-year AFFO per share guidance raised to a range of $8.75 to $8.90, representing approximately 7% growth at the midpoint.

    • Quarterly dividend recommended to increase by $0.05 to $1.65 per share.

    • Digital revenue increased 15.4% year-over-year, now comprising 33.3% of total billboard revenues.

    Concerns

    2

    • Acquisition-adjusted consolidated expenses increased 5.1% in Q2, 150 basis points more than anticipated, though primarily driven by variable expenses tied to revenue growth.

    • Real estate and amusements advertising categories were slightly weaker in Q2.

    Guidance & targets

    12
    CategoryTargetConfidence
    Full year AFFO per share
    $8.75 to $8.90 per share
    high materiality
    High
    Quarterly dividend
    $1.65 per share
    medium materiality
    High
    Full year cash spend on M&A
    easily exceed $200 million
    medium materiality
    High
    Full year total CapEx
    approximately $186 million
    medium materiality
    High
    Full year maintenance CapEx
    $65 million
    low materiality
    High
    Full year cash taxes
    around $12 million
    low materiality
    High
    Full year total leverage
    hover around 3 turns
    medium materiality
    High
    Full year secured leverage
    comfortably below 1x net debt-to-EBITDA
    low materiality
    High
    Full year regular dividend
    at least $6.50 per share
    medium materiality
    High
    Political spend
    low to mid-30s of millions
    medium materiality
    High
    Revenue growth rates
    in the same range as Q2 (6.1%)
    high materiality
    Medium
    Expense growth
    in the 4% range
    low materiality
    Medium

    Segment performance

    6
    SegmentRevenueYoYQoQMargin
    Consolidated
    Highest rate of revenue growth since Q2 2022, and 21st consecutive quarter of revenue growth overall. Record EBITDA margin.
    EBITDA growth: 7.3% (acquisition-adjusted)EBITDA margin: 49.2%
    		—6.1% (acquisition-adjusted)——
    Airports
    Outperformed, accelerating from 15.5% growth last quarter.
    		—21.1% (acquisition-adjusted)——
    Billboard - Southwest
    Led billboard regions in top-line growth.
    		—7.7%——
    Billboard - Atlantic
    Led billboard regions in top-line growth.
    		—6.5%——
    Billboard - Local and Regional
    Grew for the 21st consecutive quarter. No year-over-year decline in over 5 years.
    % of billboard revenue: 77%
    		—3.4%——
    Billboard - National and Programmatic
    Strongest increase since COVID rebound in 2021.
    % of total book of business: 22.7%% of billboard revenue: 23% (up from 18% last quarter)
    		—nearly 16%——

    Operational metrics

    34
    Adjusted EBITDA
    $303.4 millionup 9% YoY
    Q2 FY26

    Exceeded internal expectations and consensus estimates.

    Adjusted EBITDA margin
    49.2%expanded 110 bps YoY
    Q2 FY26

    Strongest margin in any quarter of the company's history.

    Adjusted Funds From Operations (AFFO)
    $247.9 millionup 10.1% YoY
    Q2 FY26

    Exceeded internal expectations and consensus estimates.

    Diluted AFFO per share
    $2.40up 8.1% YoY
    Q2 FY26

    Exceeded internal expectations and consensus estimates.

    Digital revenue growth
    15.4%YoY
    Q2 FY26

    Biggest driver of overall growth in Q2.

    Digital revenue as % of total billboard revenues
    33.3%
    Q2 FY26

    Constitutes a full 1/3 of total billboard revenues.

    Same board digital billboard revenue growth
    6.5%YoY
    Q2 FY26

    Management encourages accountability for digital growing faster than static.

    Programmatic sales growth
    over 50%
    Q2 FY26

    Once again a bright spot.

    Programmatic sales as % of digital billboard revenue
    10%
    Q2 FY26

    Accounted for approximately 10% of digital billboard revenue.

    Total CapEx
    $42.7 million
    Q2 FY26

    Total capital expenditure for the quarter.

    Maintenance CapEx
    $14.7 million
    Q2 FY26

    Portion of total CapEx.

    Total consolidated debt
    $3.5 billion
    Q2 FY26

    Well-laddered debt maturity schedule.

    Weighted average interest rate
    4.5%
    Q2 FY26

    On total consolidated debt.

    Weighted average debt maturity
    4 years
    Q2 FY26

    No maturities until AR securitization in October 2027.

    Net debt-to-EBITDA (total leverage)
    2.9x
    Q2 FY26

    As defined under credit facility, among the lowest levels ever for the company.

    Secured debt leverage
    0.7x
    Q2 FY26

    Well within covenant of 4.5x.

    Interest coverage (LTM)
    7.1x
    LTM June 30

    Adjusted EBITDA to cash interest.

    Investment capacity
    over $1 billion
    Q2 FY26

    Ability to deploy capital while remaining at or below target leverage range of 3.5x-4x.

    Total liquidity
    $720 million
    Q2 FY26

    Comprised of cash on hand and available revolver capacity.

    Cash on hand
    $68 million
    Q2 FY26

    Part of total liquidity.

    Available revolver capacity
    $652 million
    Q2 FY26

    Part of total liquidity.

    AR securitization outstanding
    $250 million
    Q2 FY26

    Fully drawn.

    Revolving credit facility outstanding
    $35 millionrepaid $55 million
    subsequent to Q2 FY26

    Subsequent to quarter end, company repaid $55 million.

    Quarterly dividend paid
    $1.60
    Q1 and Q2 FY26

    Paid in each of the first and second quarters.

    Dividend yield
    4.1%
    Q2 FY26

    At yesterday's closing stock price.

    Digital units in operation
    5,730increase of 177 units over year-end 2025
    Q2 FY26

    Actively deploying digital units.

    Marquee bulletin product rate growth
    3.7%
    Q2 FY26

    Bulk of static growth came from rate.

    Political spend
    over $5 millionYoY increase
    Q2 FY26

    Running well ahead of 2024 levels; will continue to be a tailwind in Q4.

    Services category growth
    15.4%YoY
    Q2 FY26

    Set records, propelled by demand from attorneys and technology service providers (including AI).

    Retail category growth
    6.5%YoY
    Q2 FY26

    Category of strength.

    Financial category growth
    9.7%YoY
    Q2 FY26

    Category of strength.

    Gaming category growth
    9.2%YoY
    Q2 FY26

    Category of strength.

    Building and construction category growth
    10.2%YoY
    Q2 FY26

    Category of strength.

    Expense growth
    5.1%YoY
    Q2 FY26

    Acquisition-adjusted consolidated expenses grew 150 bps more than anticipated, driven by variable expenses tied to solid revenue growth.

    Industry KPIs

    1
    MetricValueDetails
    Bookings leasing volume signed85% to 90%%

    Orderbook & backlog

    1
    Booked revenue for H2 FY2685% to 90% of goalQ2 FY26 call date

    10% to 15% left to sell to hit goals; pacings are strong.

    Deals & partnerships

    2
    Multiple (unnamed)Billboard acquisitions and purchases of easements beneath billboards.over $100 million

    Spent through June 30 on nearly 30 billboard acquisitions and easements.

    Unnamed sellerUPREIT transactionmid-30s-ish

    Second UPREIT transaction, smaller in size, demonstrating receptivity for this tax-efficient acquisition method. Expected to close next week.

    Risks & headwinds

    2
    Expense growth outpacing expectationsQ2 FY26

    Acquisition-adjusted consolidated expenses increased 5.1% in Q2, 150 basis points more than anticipated.

    Mitigation: Primarily driven by variable expenses (revenue share leases, sales commissions) tied to solid revenue growth, so viewed as a positive. Full-year expense growth expected around 4%.

    Weakness in specific advertising categoriesQ2 FY26

    Real estate and amusements were slightly weaker.

    Mitigation: Offset by strength in service, political, retail, and financial categories.

    What to watch in Q3 FY26

    5

    Full-year AFFO per share

    Next quarter (Q3 FY26 results)
    Current$8.75 to $8.90 (midpoint $8.825)
    TargetAchievement of guidance, potential for further raise

    Why it matters

    Core earnings metric, directly impacts dividend capacity and valuation.

    With that in mind, we have raised our guidance for full year AFFO to a range of $8.75 to $8.90 per share.

    Q&A highlights

    8

    Confirmation of second UPREIT transaction closing soon.

    Sean Reilly confirmed the second UPREIT transaction is expected to close next week.

    “Yes, we have -- we expect to close our second UPREIT transaction sometime next week.”

    asked by Jonnathan Navarrete · answered by Sean Reilly

    2 min read5 chapters

    Detailed Narrative

    01

    Strong Q2 Performance Across Segments

    Lamar reported acquisition-adjusted consolidated revenue growth of 6.1% and adjusted EBITDA growth of 7.3%, with a record EBITDA margin of 49.2%. This growth was broad-based, with increases across billboards, transit, airports, and logos, as well as all regions and both local and national levels. The airport business notably outperformed with 21.1% acquisition-adjusted revenue growth, accelerating from the prior quarter.

    02

    Digital and Programmatic Driving Growth

    Digital revenue increased 15.4% year-over-year, now constituting 33.3% of total billboard revenues, and was the biggest driver of overall growth in Q2. Programmatic sales were a significant bright spot, growing over 50% and accounting for approximately 10% of digital billboard revenue. This channel, along with national business, contributed to a nearly 16% increase in consolidated national and programmatic revenue, the sharpest increase since the COVID rebound in 2021.

    03

    Political Advertising Tailwinds

    Political spend increased over $5 million year-over-year in Q2 and is running significantly ahead of the 2024 cycle, with expectations to reach low to mid-$30 million this year, compared to $29 million in 2024. Approximately half of this political spend is directed to the digital platform, providing a strong tailwind that is expected to continue into Q4.

    04

    Active M&A and UPREIT Strategy

    The company spent over $100 million on nearly 30 billboard acquisitions and easements through June 30, with a full-year cash spend expected to exceed $200 million. Lamar is also actively pursuing UPREIT transactions, having closed one and expecting to close a second, smaller transaction in the mid-$30 million range, highlighting this as a tax-efficient and accretive acquisition strategy that they anticipate becoming more common.

    05

    Balance Sheet Strength and Capital Allocation

    Lamar maintains a strong balance sheet with total leverage of 2.9x net debt-to-EBITDA, well within covenants, and over $1 billion in investment capacity. The company has $720 million in total liquidity. Management recommended a $0.05 increase in the quarterly dividend to $1.65 per share and anticipates a special dividend at year-end to distribute 100% of taxable income, consistent with past practice.

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