Lamar Advertising Q1 Earnings Call Highlights

Key Points

• Lamar beat Q1 expectations on revenue and profitability, with adjusted EBITDA of $226.3M, diluted AFFO per share up 7.5% to $1.72, and margins expanding ~130 bps; management says the company is pacing to the top end (or above) of full-year AFFO guidance ($8.50–$8.70) and may revisit guidance in August.
• National demand improved — national revenue rose 5.8% helped by a nearly 25% increase in programmatic to about $11M — and Lamar was 75% booked to its total revenue goal as of May 1, its strongest laid-down bookings since COVID.
• Capital allocation remains active: the company closed 19 acquisitions for $80M, has investment capacity of over $1B while net leverage was about 3.0x, and it paid a $1.60 quarterly dividend and will ask the board to approve another $1.60 with a likely dividend increase in H2.

Lamar Advertising NASDAQ: LAMR reported first-quarter 2026 results that exceeded internal expectations on both revenue and profitability, supported by strength in local advertising and a notable pickup from national customers, according to executives on the company’s earnings call.

CEO Sean Riley said the company is “pacing to the top end, if not above” its previously issued full-year adjusted funds from operations (AFFO) per share guidance range, adding that if current trends continue, Lamar may revisit that outlook during its August call.

National advertising improves, programmatic grows

Riley highlighted improving national demand after what he described as a “bumpy” period through 2023 and 2024. National revenue rose 5.8% versus the first quarter of 2025, helped by a sharp gain in programmatic.

• Programmatic revenue increased by nearly 25% to approximately $11 million in the quarter.
• Excluding programmatic, national revenue increased 4.1%.

Riley said pacings for the balance of 2026 are “even stronger” than the first-quarter growth rate, driven by increased spending from longtime national customers as well as activity from new accounts and categories. During Q&A, Riley told Morgan Stanley analyst Cameron McVeigh that the outlook for Q2, Q3, and Q4 is “very good,” with each quarter “pacing at roughly the same pro forma revenue growth.”

In response to a question from JPMorgan’s Alexei Papalexopoulos about what drove the quarterly upside, Riley said, “National was the surprise that led to the beat,” citing large buys that were not previously contracted as well as political advertising that “came in better and continues to come in better than we anticipated at the beginning of the year.”

Revenue growth across divisions; airports and logos lead

Lamar’s consolidated revenue increased 3.9% on an acquisition-adjusted basis, with growth reported across billboards, airports, transit, and logos, and across all regions. Riley said the company’s pacing suggests revenue growth will accelerate into the second quarter.

EVP and CFO Jay Johnson said the airport business led divisional performance, with acquisition-adjusted revenue up 15.5% in the quarter versus last year. Logos revenue increased 6.3%.

By region, Johnson said Lamar’s billboard markets posted “low to mid single digit” growth overall, with the Midwest and Atlantic regions up 5.7% and 4.8%, respectively. Riley added that the Gulf Coast was the weakest region in Q1, up 1%, but said all regions are “pacing well at up mid-single digits” looking forward.

Johnson also pointed to continued momentum after quarter-end, noting April revenue grew 4.8% and exceeded the company’s original budget. Through the first four months of the year, acquisition-adjusted revenue growth was 4.1%, he said.

Margins expand; EBITDA and AFFO rise

For the quarter, EBITDA grew 5.2% on an acquisition-adjusted basis, and Lamar’s margin improved by about 130 basis points versus the prior-year quarter, Riley said. Johnson reported adjusted EBITDA of $226.3 million, up from $210.2 million in 2025, representing a 7.7% increase (5.2% on an acquisition-adjusted basis). Adjusted EBITDA margin expanded 130 basis points to 42.9%.

Adjusted funds from operations totaled $177.5 million, compared with $164.3 million last year, an 8% increase. Diluted AFFO per share grew 7.5% to $1.72, up from $1.60 in the first quarter of 2025, Johnson said.

During Q&A with Wells Fargo analyst Daniel Ostly, Riley attributed margin strength to several factors, including revenue growth and portfolio changes. He noted that Lamar lost the Vancouver franchise last year, which he described as “essentially a no-margin business,” and said its removal aided margins. He also said acquisitions generally contribute margins of about 65%, which helped results, though he noted Lamar will lap some of that acquisition activity in the back half of the year.

Riley said he would be “disappointed” if Lamar does not generate at least a full percentage point of margin expansion for the full year, adding that with last year at 46.7%, he is looking for “something in the 47.7% range” this year.

Digital mix, bookings, and category trends

Digital revenue again led performance. Riley said same-board digital revenue increased 5% and accounted for more than 30% of revenue in the quarter. He later said digital represented almost 31% of billboard billing in Q1. Lamar ended the quarter with 5,657 digital spaces, up 104 from year-end 2025.

Riley said rates on analog bulletins and posters grew 3%. He also described local growth of 3% in the quarter. Johnson said local and regional sales accounted for about 82% of billboard revenue in Q1 and grew for the 20th consecutive quarter. He added it has been five years since Lamar last experienced a year-over-year decline in local and regional sales, which occurred during COVID.

Riley cited categories of strength including services, restaurants, gaming, political, and insurance, while education and telecom were “a tad weaker.” He also said Lamar’s top 10 verticals—together generating 75% of Q1 revenue—were collectively up 5.4%.

Bookings were another highlight. Riley said that as of May 1, Lamar was 75% booked to its total revenue goal for the year, calling it the strongest laid-down bookings the company has seen since COVID.

On event-driven and political tailwinds, Riley told Morgan Stanley the World Cup impact is “in our book and it’s done and it’s contracted for,” and is helping national results “give or take where we expect it.” He added that political advertising has been the bigger surprise: Lamar is pacing “well ahead of 2024,” which he noted was a presidential year, and said if that continues it would be the first time the company has seen that dynamic in a midterm year.

Capital allocation: acquisitions, easements, leverage, and dividends

Lamar reported an active start to M&A in 2026. Riley said the company completed 19 acquisitions for a total cash purchase price of $80 million and has a “solid pipeline” with potential for additional accretive billboard deals. Johnson said Lamar has investment capacity “well over $1 billion” while remaining at or below the high end of its leverage target range of 3.5 to 4 times net debt to EBITDA.

Riley also said Lamar has ramped up efforts to secure easements beneath its best-performing locations, calling that a “great use of our capital,” and said the company is optimistic about what it can accomplish in 2026.

On the balance sheet, Johnson said Lamar ended the quarter with about $3.5 billion in total consolidated debt, a weighted average interest rate of 4.5%, and a weighted average debt maturity of 4.3 years. He said the company has no maturities until its accounts receivable securitization in October 2027 and no senior notes maturity until February 2028, adding Lamar will likely extend the securitization later this year if market conditions remain favorable. Under the credit facility definition, total leverage was three times net debt to EBITDA at quarter-end, which Johnson said is among the lowest levels for the company.

Guidance was affirmed. Johnson said Lamar maintained full-year AFFO guidance of $8.50 to $8.70 per share. During Q&A, Riley noted that when Lamar provides AFFO per share guidance it does not anticipate layering in acquisitions. Johnson added that from an “actual versus pro forma” perspective, acquisitions are likely to add roughly 20 to 25 basis points to top-line pro forma growth this year.

On dividends, Johnson said Lamar paid a $1.60 per share cash dividend in the first quarter and that management will recommend a second-quarter dividend of $1.60 per share as well, subject to board approval. For the full year, Johnson said the company still expects to distribute a regular dividend of at least $6.40 per share. He also said that given the Q1 outperformance and expectations for Q2, management is likely to ask the board to approve an increased dividend in the back half of the year.

About Lamar Advertising NASDAQ: LAMR

Lamar Advertising Company NASDAQ: LAMR is one of North America's largest outdoor advertising firms, specializing in out-of-home media solutions. Since its founding in 1902, the company has grown through a combination of organic expansion and strategic acquisitions to offer a broad portfolio of advertising products. Its core business centers on billboard advertising, encompassing traditional static billboards and a rapidly expanding network of digital displays. These assets enable advertisers to reach consumers with high-impact messaging along highways, in urban centers, and at high-traffic intersections.

In addition to highway billboards, Lamar offers a variety of supplemental out-of-home formats, including transit advertising on buses and shelters, and logo signage at travel plazas and gas stations.

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