Lamar Advertising Company (LAMR) Morgan Stanley Technology, Media & Telecom Conference 2026 summary

Financial outlook and guidance

• 2026 guidance includes 3.5% acquisition-adjusted growth and 4% AFFO per share growth, with actual pacing currently stronger than guidance suggests.

• National advertising is now a tailwind, reversing previous headwinds, and political ad spend is expected to be stronger than projected.

• ERP implementation will be completed by August, with expense growth tailing off and margin enhancement of about 0.5% expected by 2027-2028, targeting over 48% consolidated margin by 2028.

• AFFO growth is supported by operational improvements and margin expansion.

Operational initiatives and technology

• ERP upgrade addresses legacy system technical debt and enables future AI integration, improving sales process efficiency from 14 to 6 people hours per proposal.

• Enhanced sales efficiency is expected to drive more and better pitches, potentially boosting top-line growth.

• AI is anticipated to improve digital yield management and attribution, supporting smarter buying and higher confidence among advertisers.

• Newly appointed outdoor division president brings expertise to drive ERP and AI initiatives.

Industry trends and verticals

• National advertising is cyclical but currently strong, with insurance and pharma verticals showing significant growth.

• FDA disclaimer rule change has made pharma advertising more viable, with a dedicated team pursuing direct deals.

• Top six verticals are performing well; telecom is recovering, while beer, wine, and alcohol remain weak, representing about 3% of the business.

• Local ad sentiment is positive, with Main Street feeling optimistic.