Lamar Advertising NASDAQ: LAMR reported second-quarter 2026 results that exceeded its internal forecasts, driven by broad-based growth across its billboard, transit, airport and logo businesses, as well as continued strength in digital, programmatic and political advertising.
Chief Executive Officer and President Sean Reilly said acquisition-adjusted consolidated revenue increased 6.1% from a year earlier, while acquisition-adjusted EBITDA rose 7.3%. The company posted a record adjusted EBITDA margin of 49.2% for the quarter and marked its 21st consecutive quarter of revenue growth.
“Our business is in a terrific place right now,” Reilly said, citing advertiser demand for out-of-home media amid a fragmented broader media environment. He said the company’s revenue and EBITDA growth exceeded internal expectations, with gains across all regions and at both local and national levels.
Digital, Programmatic and National Sales Drive Growth
Digital revenue increased 15.4% year over year in the second quarter and accounted for one-third of total billboard revenue. On a same-board basis, digital billboard revenue rose 6.5%. Lamar ended the quarter with 5,730 digital units in operation, up 177 from year-end 2025.
Programmatic sales grew by more than 50% and represented about 10% of the company’s digital billboard revenue during the quarter. Reilly said national and programmatic revenue combined increased nearly 16%, marking the sharpest increase in that category since the post-pandemic rebound in 2021. National sales represented 23% of Lamar’s business, compared with 18% in the prior quarter.
Local and regional sales increased 3.4% and accounted for approximately 77% of billboard revenue. Chief Financial Officer Jay Johnson said local and regional sales have now grown for 21 consecutive quarters.
Johnson said revenue growth accelerated through the second quarter, rising from 4.8% in April to about 5.5% in May and 8% in June. Acquisition-adjusted revenue rose 6% in July, bringing year-to-date growth through the first seven months of 2026 to 5.2%.
Airport Business and Advertising Categories Add Momentum
The airport business continued to outperform, with acquisition-adjusted revenue rising 21.1% from the prior year, accelerating from 15.5% growth in the first quarter. All billboard regions posted mid-single-digit top-line growth, led by the Southwest, up 7.7%, and Atlantic regions, up 6.5%.
Among advertising categories, Lamar cited strength in services, political, retail, financial, gaming, and building and construction. Services revenue rose 15.4%, supported by demand from attorneys and technology-service providers, including companies in the artificial intelligence space. Retail increased 6.5%, financial rose 9.7%, gaming advanced 9.2%, and building and construction climbed 10.2%.
Political advertising increased by more than $5 million year over year in the second quarter and is pacing well ahead of the 2024 election cycle, according to Reilly. About half of political advertising dollars are being spent on Lamar’s digital platform. The company generated about $29 million in political revenue during 2024, and Reilly said he would be disappointed if political revenue does not reach the low-to-mid-$30 million range in 2026.
Reilly attributed some of the industry’s momentum to challenges facing other local media channels, including radio, print and local network-affiliate television. He also said some advertisers have become dissatisfied with portions of the digital advertising market and are turning to out-of-home platforms for clearer placement and measurement.
Profit Growth, Outlook and Dividend Proposal
Adjusted EBITDA totaled $303.4 million, up 9% from $278.4 million a year earlier. The 49.2% adjusted EBITDA margin expanded 110 basis points and was the strongest quarterly margin in Lamar’s history, Johnson said.
Adjusted funds from operations rose 10.1% to $247.9 million. Diluted AFFO per share increased 8.1% to $2.40, compared with $2.22 in the second quarter of 2025.
Lamar raised its full-year outlook for diluted AFFO per share to a range of $8.75 to $8.90, an increase of $0.22 at the midpoint of the prior outlook. At the midpoint, the outlook would represent approximately 7% growth from 2025, Reilly said. Management expects the revenue growth rate during the rest of 2026 to remain in a range similar to the second quarter, and Reilly said the company’s implied pro forma growth outlook is “north of 5-ish.”
The company said it is booked to its goals for the second half, with about 85% to 90% of the required business already booked and 10% to 15% remaining to sell to reach those goals.
Management plans to recommend that the board increase the quarterly dividend by $0.05 to $1.65 per share for the third quarter, subject to board approval. Lamar paid dividends of $1.60 per share in each of the first two quarters and expects regular full-year distributions of at least $6.50 per share. Johnson also said the company may seek approval for a special dividend at year-end to distribute 100% of taxable income.
Acquisitions, UPREIT Activity and Balance Sheet
Through June 30, Lamar had spent more than $100 million on nearly 30 billboard acquisitions and purchases of easements beneath billboards. Reilly said the company has a healthy pipeline of additional deals and expects cash spending on acquisitions and easements to exceed $200 million for the full year.
The company expects to close its second UPREIT transaction the following week. Reilly described the transaction as smaller than the company’s previous UPREIT deal, with an asset value in the mid-$30 million range. He said Lamar views UPREIT structures as another option for completing AFFO-accretive acquisitions, particularly for sellers seeking tax-efficient monetization while retaining participation in Lamar’s upside.
Lamar reported approximately $3.5 billion in total consolidated debt at quarter-end, with a weighted average interest rate of 4.5% and weighted average maturity of four years. Total leverage stood at 2.9 times net debt to EBITDA, while secured debt leverage was 0.7 times. The company had $720 million in total liquidity, including $68 million in cash and $652 million available under its revolving credit facility.
Total capital expenditures were $42.7 million in the quarter, including $14.7 million of maintenance capital expenditures. Lamar expects approximately $186 million of total capital expenditures in 2026, including $65 million of maintenance spending.
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.
This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.
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