Lamar Advertising Company Q4 2025 Earnings Call Summary

Moby Intelligence

Fri, February 20, 2026 astatine 11:32 AM CST 3 min read

• Excluding governmental advertising, revenues grew much than 4% connected an acquisition-adjusted ground successful the 4th quarter, portion full-year acquisition-adjusted gross accrued 2.1%.

• Local and determination sales, representing 78% of billboard revenue, grew for the 19th consecutive quarter, providing a antiaircraft instauration against macro volatility.

• National gross maturation of 3.3% was bolstered by a 19% surge successful programmatic income and a important pharmaceutical campaign.

• The midpoint of the company's full-year guidance implies consolidated operating margins of implicit 47%, which would beryllium the champion successful the company's history, driven by gross maturation and coagulated subject connected expenses.

• The institution maintained an assertive integer strategy, adding 559 units successful 2025 done a premix of interior deployments and strategical acquisitions.

• Management attributed top-line gains chiefly to complaint increases alternatively than occupancy, arsenic the portfolio is presently astatine highest mean yearly occupancy.

• Vertical spot successful services and healthcare, which comprise astir 30% of the book, offset weakness successful the telecom and beverage sectors.

• Full-year AFFO guidance of $8.50 to $8.70 per stock assumes acquisition-adjusted gross maturation of astir 3.5%.

• Management expects disbursal maturation to taper successful the 2nd fractional of 2026 arsenic exertion initiatives and ERP implementation costs moderate.

• The 2026 strategy includes a people of astir $200 cardinal successful currency acquisitions, maintaining a disciplined 10x to 11x post-synergy multiple.

• Guidance assumes a reversal of governmental headwinds, with an anticipated $12 cardinal to $14 cardinal successful incremental governmental walk breaking precocious successful the year.

• The institution plans to support its assertive integer rollout, targeting interior deployments accordant with 2025 levels to seizure advertiser request for flexibility.

• The 2025 Verde woody marked the archetypal UPREIT transaction successful the out-of-home industry, providing a caller template for tax-efficient acquisitions.

• Asset Retirement Obligation (ARO) adjustments caused a non-cash $151.3 cardinal fluctuation successful depreciation, which absorption clarified has nary interaction connected AFFO oregon EBITDA.

• Healthcare security costs for employees are rising astatine precocious single-digit rates, creating a persistent 0.5% headwind to full operating expenses.

• The institution maintains important liquidity of implicit $800 million, allowing for opportunistic M&A portion staying beneath the 4x nett indebtedness to EBITDA leverage target.

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