Lamar(US:LAMR)2026-02-20 15:02Financial Data and Key Metrics Changes - The company ended Q4 2025 with a diluted AFFO per share of $2.24, an increase of 1.4% from $2.21 in Q4 2024 [10] - Full-year AFFO guidance for 2026 is projected to be between $8.50 and $8.70 per share, indicating a year-over-year growth of 4.1% at the midpoint [5][16] - Adjusted EBITDA for Q4 was $288.9 million, up 3.7% from $278.5 million in Q4 2024, with an adjusted EBITDA margin of 48.5%, expanding by 40 basis points year-over-year [10][12] Business Line Data and Key Metrics Changes - Local revenue increased by 1.7% in Q4, while national programmatic revenue grew by 3.3%, marking the third consecutive quarter of growth for national [6] - Digital revenue on a same-store basis increased by 3.7% in Q4, with digital billboards representing 33.7% of the company's business [20] - The company added 111 digital units in Q4, ending the year with 5,553 operating units [7] Market Data and Key Metrics Changes - The Atlantic and Southwest regions showed relative strength in Q4, while the Northeast region exhibited weakness [19] - Political advertising was a headwind in Q4, down approximately $11 million compared to 2024, but is expected to reverse in 2026 [6][58] Company Strategy and Development Direction - The company plans to remain aggressive in digital deployments, targeting a similar number of internal digital deployments as in the previous year [8] - The integration of recent acquisitions is progressing well, with expectations for another active M&A year in 2026 [8] - The company anticipates a cash acquisition spend of at least $200 million in 2026, maintaining a strong ad spend climate [27] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the macro environment for the U.S. ad market in 2026, citing political tailwinds and increased spending around World Cup venues [28] - The company expects to see a gradual increase in growth throughout 2026, with Q1 potentially coming in slightly below guidance [40] Other Important Information - The company has a well-laddered debt maturity schedule with no maturities until October 2027, and total consolidated debt stands at approximately $3.4 billion [14][15] - The proposed cash dividend for Q1 2026 is $1.60 per share, reflecting a yield of 4.8% at the previous closing stock price [18] Q&A Session Summary Question: What is the state of the macro in the U.S. ad market? - Management indicated a strong start to 2026, with expectations for at least $200 million in cash acquisitions and a favorable ad spend climate [27][28] Question: What are the implications of Clear Channel's acquisition? - Management believes there will be no significant changes in the industry structure and does not anticipate asset sales from Clear Channel [32] Question: How should acquisition-adjusted growth be viewed for Q1? - Management expects Q1 growth to be slightly below guidance, with momentum picking up as the year progresses [40] Question: What are the expectations for local versus national growth? - Management anticipates $3 million-$4 million in incremental World Cup business, with positive trends in national advertising [44]