Lamar Advertising Company

In Q2 2026, Lamar reported adjusted EBITDA of $303.4 million versus $278.4 million last year, up 9%; acquisition-adjusted EBITDA was up 7.3%. Adjusted funds from operations totaled $247.9 million versus $225.3 million last year, and diluted AFFO per share was $2.40 versus $2.22, up 8.1%. Acquisition-adjusted consolidated revenue grew 6.1%, and EBITDA margin expanded 110 basis points to a record 49.2%. On the revenue mix side, digital revenue increased 15.4%, same-board digital revenue rose 6.5%, and national/programmatic revenue increased nearly 16%; local and regional revenue increased 3.4%. For the full year, management raised diluted AFFO per share guidance to $8.75 to $8.90, expects cash interest of $155 million, maintenance CapEx of $65 million, total CapEx of about $186 million, and cash taxes of around $12 million. Management also said full-year regular dividends should be at least $6.50 per share, with a recommended increase in the quarterly dividend to $1.65 per share.

Sean Reilly struck an upbeat tone, saying the business is in a “terrific place” and that advertisers value Lamar’s ability to connect with audiences in a fragmented media landscape. He emphasized broad strength across business lines and geographies, with especially strong momentum in digital, programmatic, political, and service categories. He also highlighted that Q3 pacing is strong and that revenue growth for the rest of 2026 should stay in the same range as Q2.

Jay Johnson focused on the numbers behind the quarter: adjusted EBITDA of $303.4 million, adjusted FFO of $247.9 million, and AFFO per share of $2.40. He said acquisition-adjusted expenses rose 5.1%, largely because of variable costs tied to revenue growth, and suggested full-year expense growth should be closer to the 4% range. On the balance sheet, he cited $3.5 billion of total consolidated debt, a 4.5% weighted average interest rate, 2.9x net debt-to-EBITDA leverage, $720 million of liquidity at quarter-end, and no major debt maturities until 2027/2028; he also noted the company repaid $55 million on the revolver after quarter-end.

Analysts focused on the cadence of second-half demand, the source of the revenue acceleration, expense growth, and the size/role of the second UPREIT transaction. Management said it is booked to about 85% to 90% for the period, leaving 10% to 15% still to sell, and described July as strong at 6% revenue growth. On the UPREIT, Sean Reilly said the next transaction should close next week and will be smaller, in the mid-$30 million range, and that Lamar views UPREITs as an accretive acquisition tool rather than a one-off structure. Management also said the revenue strength is being helped by services, political, digital, and some AI-adjacent tech spending, while expense growth should normalize somewhat in the back half.