Lamar(LAMR) - 2025 Q2 - Quarterly Results

Company Overview and Business Update Lamar Advertising Company reported Q2 2025 results, noting slight revenue growth acceleration, a landmark UPREIT acquisition, and a revised full-year AFFO per share guidance Introduction and CEO Commentary Lamar Advertising Company, a leading outdoor advertising owner, saw slight Q2 2025 revenue growth, completed a significant UPREIT acquisition, and adjusted its full-year AFFO guidance - Lamar Advertising Company (Nasdaq: LAMR) is a leading owner and operator of outdoor advertising and logo sign displays[2] - Revenue growth accelerated slightly in Q2 2025, with increases at both national and local levels[3] - Completed the first-ever UPREIT transaction in the billboard industry in early July[3] - Revised full-year diluted AFFO per share guidance from $8.13-$8.28 to $8.10-$8.20, anticipating continued year-over-year revenue improvement in H2 2025, though perhaps not as initially expected[3] Financial Performance Highlights Lamar's Q2 2025 financial performance showed increased net revenues, operating income, and net income, with diluted AFFO per share growing by 6.7% Second Quarter Ended June 30, 2025 Q2 2025 saw Lamar's net revenues rise 2.5% to $579.3 million, with operating income and net income also increasing significantly Second Quarter 2025 Key Financials (YoY Change) | Metric | Q2 2025 (Millions) | Q2 2024 (Millions) | Change (%) | | :-------------------------- | :------------------ | :------------------ | :--------- | | Net Revenues | $579.3 | $565.3 | 2.5% | | Operating Income | $197.7 | $184.2 | 7.3% | | Net Income | $155.0 | $137.6 | 12.7% | | Net Income per Diluted Share| $1.52 | $1.34 | 13.4% | | Adjusted EBITDA | $278.4 | $271.6 | 2.5% | | Cash Flow from Operations | $229.5 | $256.3 | -10.4% | | Free Cash Flow | $199.1 | $203.5 | -2.2% | | FFO | $225.3 | $209.3 | 7.7% | | AFFO | $225.3 | $213.5 | 5.5% | | Diluted AFFO per Share | $2.22 | $2.08 | 6.7% | Six Months Ended June 30, 2025 For H1 2025, net revenues grew 2.0% to $1.08 billion, and net income surged 36.2% due to a Vistar Media equity sale gain Six Months 2025 Key Financials (YoY Change) | Metric | 6M 2025 (Millions) | 6M 2024 (Millions) | Change (%) | | :-------------------------- | :------------------ | :------------------ | :--------- | | Net Revenues | $1,084.7 | $1,063.4 | 2.0% | | Operating Income | $388.9 | $308.8 | 25.9% | | Net Income | $294.2 | $216.1 | 36.2% | | Net Income per Diluted Share| $2.87 | $2.10 | 36.7% | | Adjusted EBITDA | $488.6 | $483.5 | 1.1% | | Cash Flow from Operations | $357.2 | $366.9 | -2.6% | | Free Cash Flow | $320.2 | $342.2 | -6.4% | | FFO | $381.5 | $357.8 | 6.6% | | AFFO | $389.6 | $371.8 | 4.8% | | Diluted AFFO per Share | $3.81 | $3.63 | 5.0% | - The 36.2% increase in net income for the six months ended June 30, 2025, was primarily due to a $67.8 million gain from the sale of Lamar's equity interest in Vistar Media, Inc[12] Acquisition-Adjusted Results Acquisition-adjusted results for Q2 2025 showed a 1.9% net revenue increase and a 2.0% Adjusted EBITDA increase, reflecting organic performance Acquisition-Adjusted Results (YoY Change) | Metric | Q2 2025 (Millions) | Q2 2024 (Millions) | Change (%) | | :-------------------------- | :------------------ | :------------------ | :--------- | | Acquisition-Adjusted Net Revenue | $579.3 | $568.4 | 1.9% | | Acquisition-Adjusted EBITDA | $278.4 | $272.9 | 2.0% | - Acquisition-adjusted results account for acquisitions and divestitures in the prior period to match the ownership timeframe in the current period, providing a more consistent comparison[11] Liquidity and Capital Resources As of June 30, 2025, Lamar maintained $363.0 million in total liquidity, including available credit and cash, with outstanding borrowings Liquidity as of June 30, 2025 | Metric | Amount (Millions) | | :----------------------------------------- | :---------------- | | Total Liquidity | $363.0 | | Available under Revolving Senior Credit Facility | $307.3 | | Cash and Cash Equivalents | $55.7 | | Borrowings Outstanding (Revolving Credit Facility) | $434.0 | | Outstanding (Accounts Receivable Securitization Program) | $250.0 | Recent Developments Lamar Advertising Limited Partnership acquired Verde Outdoor assets in July 2025, adding over 1,500 billboard faces through a Common Units issuance - On July 2, 2025, Lamar Advertising Limited Partnership acquired Verde Outdoor assets, including over 1,500 billboard faces across ten states[16] - The acquisition consideration involved issuing 1,187,500 Common Units of Lamar LP to Verde Outdoor owners[16] - Common Units are redeemable by the holder after a general twelve-month holding period for cash or, at the Company's option, for shares of Class A common stock[17] Revised Full-Year Guidance Lamar updated its 2025 full-year guidance, narrowing net income per diluted share and slightly lowering diluted AFFO per share ranges Revised 2025 Full-Year Guidance | Metric | Previous Range | Revised Range | | :-------------------------- | :------------- | :------------ | | Net Income per Diluted Share| N/A | $6.09 - $6.11 |\n| Diluted AFFO per Share | $8.13 - $8.28 | $8.10 - $8.20 | Forward-Looking Statements This section cautions that forward-looking statements are subject to risks and uncertainties, which could cause actual results to differ materially from projections - Forward-looking statements are subject to risks and uncertainties that could cause actual results to differ materially from projections[19] - Key risks include significant indebtedness, the state of the economy and financial markets, demand for advertising, ability to obtain funding, REIT qualification, industry regulation, acquisition integration, and changes in accounting or tax laws[19] - Investors are cautioned not to place undue reliance on these statements, which speak only as of the document's date[19] Use of Non-GAAP Financial Measures This section defines and explains Lamar's non-GAAP financial measures, such as Adjusted EBITDA and AFFO, as supplemental performance indicators with limitations - The Company uses non-GAAP measures like Adjusted EBITDA, Free Cash Flow, FFO, and AFFO to review performance, believing they are meaningful supplemental measures of operating performance[20][22] - These non-GAAP measures should not be considered in isolation or as a substitute for their most directly comparable GAAP financial measures[20][22] - Detailed definitions are provided for Adjusted EBITDA, Adjusted EBITDA margin, Free Cash Flow, FFO (per NAREIT), AFFO, Diluted AFFO per share, Outdoor operating income, Acquisition-adjusted results, and Acquisition-adjusted consolidated expense[21][24] Supplemental Financial Schedules This section provides detailed financial schedules, including condensed consolidated statements of income, balance sheet, cash flow, and non-GAAP reconciliations Condensed Consolidated Statements of Income This schedule presents unaudited condensed consolidated statements of income for Q2 and H1 2025 and 2024, detailing revenues and net income Condensed Consolidated Statements of Income (Selected Data, in thousands) | Metric (in thousands) | 3 Months Ended June 30, 2025 | 3 Months Ended June 30, 2024 | 6 Months Ended June 30, 2025 | 6 Months Ended June 30, 2024 | | :-------------------- | :--------------------------- | :--------------------------- | :--------------------------- | :--------------------------- | | Net revenues | $579,311 | $565,251 | $1,084,741 | $1,063,401 | | Total operating expense | $381,630 | $381,024 | $695,827 | $754,574 | | Operating income | $197,681 | $184,227 | $388,914 | $308,827 | | Net income | $155,016 | $137,594 | $294,245 | $216,093 | | Diluted earnings per share | $1.52 | $1.34 | $2.87 | $2.10 | Selected Balance Sheet and Cash Flow Data This schedule provides selected unaudited balance sheet data as of June 30, 2025, and cash flow data for Q2 and H1 2025 and 2024 Selected Balance Sheet Data (in thousands) | Metric (in thousands) | June 30, 2025 | December 31, 2024 | | :-------------------- | :------------ | :---------------- | | Cash and cash equivalents | $55,726 | $49,461 | | Total assets | $6,673,968 | $6,586,549 | | Total debt, net | $3,363,713 | $3,210,864 | | Total stockholders' equity | $906,883 | $1,048,020 | Selected Cash Flow Data (in thousands) | Metric (in thousands) | 3 Months Ended June 30, 2025 | 3 Months Ended June 30, 2024 | 6 Months Ended June 30, 2025 | 6 Months Ended June 30, 2024 | | :-------------------- | :--------------------------- | :--------------------------- | :--------------------------- | :--------------------------- | | Cash flows provided by operating activities | $229,487 | $256,342 | $357,232 | $366,904 | | Cash flows used in investing activities | $99,202 | $31,645 | $33,776 | $76,661 | | Cash flows used in financing activities | $110,947 | $183,118 | $317,469 | $256,744 | Reconciliation of Non-GAAP Measures This section reconciles non-GAAP measures like Free Cash Flow and Adjusted EBITDA to their comparable GAAP measures for Q2 and H1 2025 and 2024 Reconciliation of Cash Flows Provided By Operating Activities to Free Cash Flow (in thousands) | Metric (in thousands) | 3 Months Ended June 30, 2025 | 3 Months Ended June 30, 2024 | 6 Months Ended June 30, 2025 | 6 Months Ended June 30, 2024 | | :-------------------- | :--------------------------- | :--------------------------- | :--------------------------- | :--------------------------- | | Cash flows provided by operating activities | $229,487 | $256,342 | $357,232 | $366,904 | | Total capital expenditures | $(38,201) | $(22,648) | $(68,088) | $(52,130) | | Free cash flow | $199,082 | $203,508 | $320,196 | $342,192 | Reconciliation of Net Income to Adjusted EBITDA (in thousands) | Metric (in thousands) | 3 Months Ended June 30, 2025 | 3 Months Ended June 30, 2024 | 6 Months Ended June 30, 2025 | 6 Months Ended June 30, 2024 | | :-------------------- | :--------------------------- | :--------------------------- | :--------------------------- | :--------------------------- | | Net income | $155,016 | $137,594 | $294,245 | $216,093 | | Depreciation and amortization | $78,110 | $77,191 | $155,931 | $152,419 | | Adjusted EBITDA | $278,383 | $271,554 | $488,604 | $483,476 | Acquisition-Adjusted Results (in thousands) | Metric (in thousands) | 3 Months Ended June 30, 2025 | 3 Months Ended June 30, 2024 | 6 Months Ended June 30, 2025 | 6 Months Ended June 30, 2024 | | :-------------------- | :--------------------------- | :--------------------------- | :--------------------------- | :--------------------------- | | Acquisition-adjusted net revenue | $579,311 | $568,382 | $1,084,741 | $1,068,422 | | Acquisition-adjusted EBITDA | $278,383 | $272,941 | $488,604 | $485,181 | Unaudited REIT Measures and Reconciliations to GAAP Measures This section reconciles FFO and AFFO to net income, including diluted AFFO per share for reported periods and revised 2025 full-year projections Adjusted Funds from Operations (in thousands) | Metric (in thousands) | 3 Months Ended June 30, 2025 | 3 Months Ended June 30, 2024 | 6 Months Ended June 30, 2025 | 6 Months Ended June 30, 2024 | | :-------------------- | :--------------------------- | :--------------------------- | :--------------------------- | :--------------------------- | | Net income | $155,016 | $137,594 | $294,245 | $216,093 | | Funds from operations | $225,342 | $209,273 | $381,484 | $357,779 | | Adjusted funds from operations | $225,282 | $213,517 | $389,590 | $371,754 | | Diluted AFFO per share | $2.22 | $2.08 | $3.81 | $3.63 | Revised Projected 2025 Adjusted Funds From Operations (in thousands) | Metric (in thousands) | Low (Year ended Dec 31, 2025) | High (Year ended Dec 31, 2025) | | :-------------------- | :---------------------------- | :----------------------------- | | Net income | $625,400 | $627,400 | | Funds from operations | $839,300 | $841,300 | | Adjusted funds from operations | $831,500 | $841,500 | | Diluted earnings per share | $6.09 | $6.11 | | Diluted AFFO per share | $8.10 | $8.20 | Conference Call Information Lamar Advertising Company scheduled a conference call for August 8, 2025, to discuss its operating results, providing details for participation via phone and webcast - A conference call to discuss operating results was scheduled for Friday, August 8, 2025, at 8:00 a.m. central time[25] Conference Call Details | Item | Detail | | :------------ | :---------------------------------------- | | All Callers | 1-800-420-1271 or 1-785-424-1634 | | Passcode | 63104 | | Live Webcast | ir.lamar.com | | Webcast Replay| ir.lamar.com (Available through Aug 15, 2025) | General Company Information Founded in 1902, Lamar Advertising is one of North America's largest outdoor advertising companies, offering a wide range of billboard, transit, and airport advertising formats, including the largest network of digital billboards in the U.S - Founded in 1902, Lamar Advertising (Nasdaq: LAMR) is one of the largest outdoor advertising companies in North America[26] - Operates over 366,000 displays across the United States and Canada[26] - Offers various advertising formats including billboard, interstate logo, transit, and airport advertising, and boasts the largest network of digital billboards in the U.S. with over 5,200 displays[26]