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%, an expansion of 40 basis points year-over-year [10][11] 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 total revenue for the quarter [20][21] - 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][19] 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 company is well-positioned for acquisitions, with an investment capacity exceeding $1 billion while maintaining leverage within the target range of 3.5x-4x net debt to EBITDA [15][16] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the advertising climate for 2026, citing political tailwinds and increased spending around World Cup venues [29] - The company anticipates a conservative start to Q1 but expects momentum to build throughout the year, particularly in political advertising [42] Other Important Information - The company completed 13 acquisitions in Q4 for approximately $57 million, bringing the total for the year to 50 acquisitions for $191 million [8] - The proposed cash dividend for Q1 2026 is $1.60 per share, with an expected total of $6.40 per share for the year [18] Q&A Session Summary Question: What is the state of the macro in the U.S. ad market? - Management expects to maintain acquisition spending close to $200 million in 2026, with a positive ad spend climate anticipated [28][29] Question: What are the implications of Clear Channel's acquisition? - Management does not foresee significant changes in the industry structure and believes Clear Channel may not need to sell assets [33][34] Question: What are the expectations for acquisition-adjusted growth in Q1? - Management anticipates Q1 growth may be slightly below guidance but expects momentum to increase as the year progresses [40][42] Question: How much benefit is expected from political advertising? - Management estimates around $12 million to $14 million in incremental political advertising revenue compared to the previous year [59]