Lamar Advertising Company (LAMR) Q4 2025 earnings summary

Executive summary

• Q4 2025 saw strong sales momentum, with both local and national segments growing despite a challenging political comp in October; net revenues for Q4 were $595.9 million, up 2.8% year-over-year, and full-year net revenues reached $2.27 billion, a 2.7% increase from 2024.

• Q4 2025 net income was $154.7 million, reversing a net loss in Q4 2024; full-year net income rose 63.4% to $593.1 million, aided by a $68.6 million gain from the sale of an equity interest.

• Excluding political, revenues grew over 4% on an acquisition-adjusted basis in Q4, with both analog and digital billboards, airports, and logos contributing.

• Full-year AFFO per share exceeded the top end of revised guidance, driven by strong December performance and disciplined expense management.

• Sales strength continued into Q1 2026, with promising pacings for the remainder of the year.

Financial highlights

• Q4 diluted AFFO per share increased 1.4% to $2.24 year-over-year; full-year diluted AFFO per share rose 3.4% to $8.26.

• Q4 adjusted EBITDA was $288.9 million, up 3.7% year-over-year; full-year adjusted EBITDA was $1.06 billion, up 2.4%.

• Q4 adjusted EBITDA margin expanded 40 bps to 48.5%; full-year adjusted EBITDA margin was approximately 46.7%.

• Q4 2025 free cash flow was $187.1 million, down 4.3% year-over-year; full-year free cash flow was $696.6 million, down 5.3%.

• Q4 2025 FFO was $226.5 million, nearly flat year-over-year; full-year FFO was $827.3 million, up 3.6%.

Outlook and guidance

• 2026 full-year AFFO guidance is $8.50–$8.70 per share, implying 4.1% year-over-year growth at midpoint; net income per diluted share projected between $5.72 and $5.83.

• Revenue expected to grow ~3.5% on an acquisition-adjusted basis; expenses to rise ~3%, with expense growth tapering in H2 2026.

• Consolidated operating margins projected to exceed 47%, a company record.

• Maintenance CapEx budgeted at $64 million for 2026; cash taxes projected at $10 million.

• Regular cash dividend of $6.40 per share expected for 2026, with Q1 dividend at $1.60 per share (4.8% yield).