Core Insights - Lamar Advertising Company has appointed Ross Reilly as President of its Outdoor Division, effective January 1, 2026, to oversee its billboard display business [1] - Mr. Reilly has a strong background in mergers and acquisitions, having closed over $1.5 billion in out-of-home asset acquisitions since 2019 [2] - He has also played a key role in developing Lamar's programmatic sales strategy and has led the investment in Vistar Media, the largest out-of-home programmatic sales platform [2][3] Company Background - Lamar Advertising Company, founded in 1902, is one of the largest outdoor advertising companies in North America, operating over 362,000 displays across the United States and Canada [6] - The company offers a variety of advertising formats, including billboards, interstate logos, transit, and airport advertising, catering to both local businesses and national brands [6] - Lamar boasts the largest network of digital billboards in the United States, with over 5,400 displays [6]

Shares of Lamar Advertising Company ( LAMR ) have been an underwhelming performer over the past year, losing just over 2% of their value. Higher-for-longer rates and a lost contract in Vancouver have weighed on shares. However, its core business has been showing signs of accelerationOver fifteen years of experience making contrarian bets based on my macro view and stock-specific turnaround stories to garner outsized returns with a favorable risk/reward profile. If you want me to cover a specific stock or ha ...

BATON ROUGE, La., Dec. 11, 2025 (GLOBE NEWSWIRE) -- Lamar Advertising Company (Nasdaq: LAMR), a leading owner and operator of outdoor advertising and logo sign displays, announces that its board of directors has declared a quarterly cash dividend of $1.55 per share and a special cash dividend of $0.25 per share, both payable on December 31, 2025 to stockholders of record of Lamar’s Class A common stock and Class B common stock on December 22, 2025. Forward-Looking StatementsThis press release contains “forw ...

Core Insights - Lamar Advertising is a leading player in the outdoor advertising sector, with a significant market share and a strong competitive advantage due to regulatory barriers [2][5][6] Company Overview - Founded in 1902, Lamar Advertising is based in Baton Rouge, Louisiana, and has a market capitalization of $13.5 billion [2][3] - The company operates approximately 360,000 displays across 45 states and Canada, including over 159,000 billboards, which is four times the number of its nearest competitor [2] Competitive Advantage - The company benefits from a "wide and long-lasting moat," which is characterized by regulatory barriers established by the Highway Beautification Act of 1965, making it difficult for competitors to enter the billboard market [4][6] - Lamar Advertising's revenue is primarily generated from billboards, accounting for 88% of total revenue, with a diverse client base that includes major corporations like GEICO, Coca-Cola, and JPMorgan Chase [8][9] Financial Resilience - The company has demonstrated resilience during economic downturns, with revenue dips of only 11% during the 2008-2009 crisis and a 10.8% decline in 2020 due to the pandemic [10][11] - In the most recent quarter, despite economic challenges, Lamar Advertising reported a 2.9% growth in acquisition-adjusted revenue [11] Dividend and Valuation - As a real estate investment trust (REIT), Lamar Advertising is required to return 90% of its net income to shareholders, resulting in a current dividend yield of 4.67% [12] - The company's price-to-earnings ratio stands at 29.5, which is comparable to the S&P 500, while its debt-to-equity ratio of 457% raises some concerns about financial leverage [13] - Despite these concerns, the company is refinancing to manage its debt and is expected to benefit from lower interest rates [13] Investment Outlook - Given the stability of its business model, reasonable valuation, and attractive dividend yield, Lamar Advertising is viewed as a favorable investment opportunity for those seeking growth and income [14]

Industry Insights - The out-of-home advertising industry has maintained a stable share of about 2% to 3% of the total U.S. ad market over the years [1] - There is potential for growth in this sector, particularly at the local level, as traditional media outlets are struggling to retain their audiences [1] - The decline of local media presents an opportunity for out-of-home advertising to capture a portion of the advertising spend that may shift away from these struggling mediums [2] Company Positioning - The company, Lamar, derives 80% of its revenue from local advertising and 20% from national advertising [1] - The company is positioned to benefit from the challenges faced by local media, as it can attract advertisers looking for effective local advertising solutions [2]

Summary of Lamar Advertising Company FY Conference Call Industry Overview - The out-of-home advertising industry has maintained a stable market share of approximately 2-3% of the total US ad market, with expectations for growth driven by the decline of traditional media such as newspapers and radio [3][4] - Lamar Advertising's revenue composition is 80% local and 20% national, indicating a focus on local advertising dynamics [3] Key Insights and Arguments - The shift from traditional media to out-of-home advertising is expected to provide a tailwind for Lamar over the next 3 to 10 years, particularly as local advertisers transition from declining mediums [3][4] - National advertising is showing a positive trend, with a more optimistic outlook for 2026 compared to 2025, driven by a recovery in sectors like auto insurance [5][6] - The introduction of third-party data providers, such as CrossX, has facilitated significant national advertising buys, particularly in the pharmaceutical sector [6][11] - The company is beta testing an automated buying platform for local customers, aiming to enhance self-service capabilities [10] Financial Performance and Projections - Lamar's pacings for 2026 are reportedly stronger than the previous year, indicating a positive outlook for local advertising [21] - Political advertising is expected to contribute positively, with projections of $25 million in political ad revenue for 2026, compared to $30 million in 2024 [22][28] - The company anticipates a GDP-plus growth in top-line revenue, with expense growth expected to remain around 2.5% [29][31] - The completion of an ERP conversion is expected to normalize operating expenses and improve efficiency [33] Capital Allocation and M&A Strategy - Lamar has over $1 billion available for acquisitions and is actively seeking opportunities in both digital conversions and M&A [35][36] - The company is focused on smaller tuck-in acquisitions, which are expected to yield predictable synergies and enhance top-line growth [38][39] - There is a willingness to increase leverage for a significant acquisition, provided there is a clear path to reduce it afterward [41] Market Trends and Strategic Focus - The company aims to expand its inventory in desirable zip codes within larger DMAs, leveraging programmatic advertising capabilities [42] - Lamar is committed to maintaining a disciplined approach to acquisitions, particularly in competitive markets [43] Additional Considerations - The integration of AI tools is being explored to enhance productivity and client engagement [34] - The company is optimistic about the evolving landscape of advertising measurement, particularly with the involvement of third-party vendors [14][15][17] This summary encapsulates the key points discussed during the conference call, highlighting the strategic direction, financial outlook, and market dynamics affecting Lamar Advertising Company.

Core Insights - Lamar Advertising Company is scheduled to participate in a Q&A session at the 9th Annual Wells Fargo TMT Conference on November 18, 2025 [1] - The session will be available via live audio webcast and archived for 30 days on the company's website [1] Company Overview - Founded in 1902, Lamar Advertising Company is one of the largest outdoor advertising companies in North America, operating over 362,000 displays across the United States and Canada [2] - The company provides a variety of advertising formats, including billboards, interstate logos, transit, and airport advertising, catering to both local businesses and national brands [2] - Lamar boasts the largest network of digital billboards in the United States, with over 5,400 displays [2]

Core Insights - Lamar Advertising Company (LAMR) reported third-quarter 2025 adjusted funds from operations (AFFO) per share of $2.20, exceeding the Zacks Consensus Estimate of $2.14 and up from $2.15 in the prior-year quarter [1][8] - The company experienced year-over-year growth in net revenues, which reached $585.5 million, a 3.8% increase compared to the previous year, and also surpassed the consensus mark of $583.8 million [2][8] - LAMR reaffirmed its full-year 2025 guidance, expecting AFFO to be between $8.10 and $8.20 per diluted share, aligning with the Zacks Consensus Estimate of $8.14 [5][8] Financial Performance - Operating income for the third quarter was $189.1 million, reflecting a 1.3% increase from $186.6 million in the same period last year [3] - Adjusted EBITDA rose 3.5% to $280.8 million, while acquisition-adjusted net revenues increased by 2.9% year over year [3] - Free cash flow decreased by 4.5% year over year to $189.2 million [3] Balance Sheet Position - Cash flow from operating activities for the three months ended September 30, 2025, was $235.7 million, up from $227.4 million in the previous year [4] - As of September 30, 2025, total liquidity stood at $834.2 million, which includes $742.2 million available for borrowing under the revolving senior credit facility, $70 million under the Accounts Receivable Securitization Program, and $22 million in cash and cash equivalents [4] Market Sentiment - Following the positive earnings report, shares of Lamar Advertising gained 1.25% during the trading session [1] - The company currently holds a Zacks Rank 3 (Hold) [6]

Revenue Performance - Net revenues increased by $42.7 million or 2.6% to $1.67 billion for the nine months ended September 30, 2025, compared to $1.63 billion for the same period in 2024[174]. - Billboard net revenues contributed an increase of $37.9 million, transit net revenues increased by $0.8 million, and logo net revenues increased by $4.1 million over the same period in 2024[174]. - Net revenues for the three months ended September 30, 2025, increased by $21.4 million, or 3.8%, to $585.5 million compared to $564.1 million in 2024[190]. - Net revenues for the three months ended September 30, 2025, increased by 3.8% to $585.5 million from $564.1 million in 2024, driven by a $22.2 million increase in billboard net revenues[273]. Operating Income and Expenses - Total operating expenses increased by $16.1 million, or 1.8%, to $926.2 million for the nine months ended September 30, 2025, from $910.1 million for the same period in 2024[176]. - Operating income increased by $82.6 million to $578.0 million for the nine months ended September 30, 2025, compared to $495.4 million for the same period in 2024[178]. - Operating income for the three months ended September 30, 2025, increased by $2.5 million to $189.1 million compared to $186.6 million in 2024[194]. - Total operating expenses for the three months ended September 30, 2025, increased by $7.4 million, or 2.4%, to $312.3 million compared to $304.9 million in 2024[192]. Net Income - Net income for the nine months ended September 30, 2025, was $438.3 million, compared to $363.9 million for the same period in 2024[182]. - Net income for the nine months ended September 30, 2025, increased by $74.4 million, or 20.4%, to $438.3 million compared to $363.9 million in 2024[185]. - Net income for the three months ended September 30, 2025, was $144.1 million, a decrease of 2.5% from $147.8 million in 2024[206]. - Net income for the nine months ended September 30, 2025, increased by 20.4% to $438.7 million compared to $364.3 million for the same period in 2024[272]. Cash Flow and Capital Expenditures - Cash provided by operating activities for the nine months ended September 30, 2025, was $592.9 million, slightly down from $594.3 million in 2024[210]. - Cash flows used in investing activities increased to $128.1 million for the nine months ended September 30, 2025, compared to $108.0 million for the same period in 2024[252]. - Total capital expenditures for the nine months ended September 30, 2025, were $117.9 million, compared to $82.3 million for the same period in 2024[165]. - Capital expenditures for the nine months ended September 30, 2025, were approximately $117.9 million, with an anticipated total of $180.0 million for the year[243]. Debt and Interest Expense - Interest expense decreased by $11.5 million to $120.2 million for the nine months ended September 30, 2025, due to repayment of Term A loans and a decrease in interest rates[179]. - Interest expense decreased by $1.7 million for the three months ended September 30, 2025, to $41.2 million, primarily due to lower interest rates[195]. - As of September 30, 2025, the company had approximately $878.3 million in outstanding indebtedness under its senior credit facility and Accounts Receivable Securitization Program, representing about 26.0% of its long-term debt[292]. - The aggregate interest expense for 2025 related to these borrowings was $50.2 million, with a weighted average interest rate of 5.7%[292]. Dividends and Share Repurchase - The Company declared a quarterly cash dividend of $1.55 per share on multiple occasions in 2025, with expected aggregate quarterly distributions of at least $6.20 per share for the year[244]. - The Board of Directors authorized a stock repurchase program of up to $400.0 million, with $150.0 million added on May 15, 2025[246]. Acquisitions and Investments - The company completed multiple acquisitions for a total cash purchase price of approximately $133.9 million during the nine months ended September 30, 2025[164]. - The Company recognized a gain on disposition of assets and investments of $76.1 million, primarily from the sale of equity interest in Vistar Media, Inc.[178]. Adjusted Metrics - Adjusted EBITDA for the nine months ended September 30, 2025, rose 2.0% to $769.4 million, primarily due to a $29.3 million increase in gross margin[188]. - Billboard adjusted EBITDA for the nine months ended September 30, 2025, increased by $20.4 million to $815.7 million, while other adjusted EBITDA decreased by $2.5 million[186]. - Adjusted EBITDA for the three months ended September 30, 2025, increased by 3.5% to $280.8 million, driven by a $16.4 million increase in gross margin[201]. - AFFO for the nine months ended September 30, 2025, increased by 4.0% to $616.1 million compared to $592.5 million in 2024[189].

Financial Data and Key Metrics Changes - Consolidated revenue growth improved to 2.9% on an acquisition-adjusted basis, with Adjusted EBITDA for the quarter at $280.8 million, an increase of 3.5% from $271.2 million in 2024 [3][9] - Adjusted funds from operations totaled $226.5 million, up 2.6% from $220.7 million last year, with diluted AFFO per share increasing 2.3% to $2.20 [9][10] - Acquisition-adjusted operating expenses increased 3.7%, influenced by one-time severance costs and technology implementation expenses [8][9] Business Line Data and Key Metrics Changes - National and programmatic advertising grew by 5.5%, while local advertising grew by 1.6% [4][17] - Digital billing grew 5%, representing about 31% of total billboard billing, with same-store digital revenue increasing 3.4% quarter-over-quarter [5][9] - Categories of strength included services, healthcare, and financial, while beverages and real estate were weaker [4] Market Data and Key Metrics Changes - Billboard regions grew in the low single-digit range, led by the Atlantic and Northeast, which improved by 3.8% and 3.3%, respectively [8] - Airport advertising grew by 5.8%, and logos increased by 5.2% [8] - Political advertising in Q3 was $2.7 million compared to $6.1 million in the previous year, indicating a significant decline [16] Company Strategy and Development Direction - The company is optimistic about 2026, expecting political advertising to act as a tailwind and benefiting from the Verde acquisition [3][24] - The integration of Verde assets is progressing well, and the company plans to continue pursuing acquisitions in the middle-market airport space [6][48] - The company is undergoing an extensive enterprise conversion to leverage AI benefits by 2027, which is expected to enhance operational efficiency [24] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in finishing 2025 successfully and carrying momentum into 2026, with encouraging pacings for November and December [3][7] - The company noted that the local and regional sales have shown resilience, growing for the 18th consecutive quarter [10] - Management highlighted the importance of political advertising in shaping revenue expectations for 2026, especially compared to previous years [33] Other Important Information - The company raised a total of $1.1 billion through capital market transactions, improving its balance sheet and liquidity [11][12] - Total leverage remained at 3x net debt to EBITDA, with secured leverage below 1x [10][11] - A regular cash dividend of $1.55 per share is recommended for the fourth quarter, subject to board approval [15] Q&A Session Summary Question: Growth opportunities and M&A environment for 2026 - Management indicated strong growth drivers for 2026, including the momentum from acquisitions and political advertising as a tailwind [22][23] Question: Impact of AI on national growth - Management noted that AI will enhance operational efficiency and is expected to benefit the out-of-home advertising space [24] Question: Political advertising during midterm cycles - Management provided historical context on political advertising revenue, indicating a significant increase expected in 2026 compared to 2022 [33] Question: Demand for World Cup advertising in 2026 - Management expressed optimism about the World Cup's impact on advertising revenue, especially when combined with political advertising [37][38] Question: Distribution from Vistar Media - Management confirmed that the distribution will be all cash, anticipated to be around $0.25 per share [39][40] Question: National customer spending trends - Management highlighted positive momentum from national accounts and expressed confidence in the sustainability of this growth [45][46]