Lamar Advertising Company — Second Quarter 2026 Earnings Summary

Financial Performance

• Net revenues for the three months ended June 30, 2026, were $616.7 million, a 6.5% increase year-over-year from $579.3 million; for the six months ended June 30, 2026, revenues were $1.14 billion, a 5.5% increase from $1.08 billion.
• Net income for the second quarter was $164.6 million, up 6.2% from $155.0 million in 2025; for the six months, net income was $266.5 million, a 9.4% decrease from $294.2 million in 2025, primarily due to a $67.8 million gain on the sale of Vistar Media equity in 2025 offset by an $8.0 million gain in 2026.
• Diluted earnings per share were $1.58 for the quarter (up from $1.52) and $2.58 for the six months (down from $2.87).
• Adjusted EBITDA for the quarter was $303.4 million, up 9.0% from $278.4 million; for the six months, it was $529.7 million, up 8.4% from $488.6 million.
• Acquisition-adjusted net revenue increased 6.1% for the quarter and 5.1% for the six months compared to the prior year periods.
• Acquisition-adjusted EBITDA increased 7.3% for the quarter and 6.3% for the six months.
• Cash flow provided by operating activities was $252.4 million for the quarter (up $22.9 million) and $399.8 million for the six months (up $42.6 million).
• Free cash flow was $218.7 million for the quarter (up $19.6 million) and $371.1 million for the six months (up $50.9 million).
• Funds from operations (FFO) were $236.8 million for the quarter (up 5.1%) and $404.6 million for the six months (up 6.0%).
• Adjusted funds from operations (AFFO) were $247.9 million for the quarter (up 10.1%) and $425.5 million for the six months (up 9.2%).
• Diluted AFFO per share was $2.40 for the quarter (up 8.1%) and $4.12 for the six months (up 8.1%).
• Total debt, net of deferred financing costs, was $3.51 billion as of June 30, 2026, compared to $3.42 billion as of December 31, 2025.
• Total liquidity was $720.2 million, consisting of $652.2 million available under the revolving senior credit facility and $68.0 million in cash and cash equivalents.
• Borrowings outstanding were $90.0 million under the revolving credit facility and $250.0 million under the Accounts Receivable Securitization Program.

Guidance and Future Outlook

• Management raised full-year 2026 diluted AFFO per share guidance to a range of $8.75 to $8.90, citing strong pacings for the balance of the year.
• Revised full-year 2026 diluted earnings per share guidance is set between $5.95 and $5.99.
• Management noted that customers appreciate the company's ability to connect them with audiences and deliver resonant messages.

Business Segments and Product Lines

• The company operates over 360,000 displays across the United States and Canada, including the largest network of digital billboards in the U.S. with over 5,700 displays.
• Capital expenditures for the quarter totaled $42.7 million, broken down as: $21.5 million for digital billboards, $9.0 million for traditional billboards, $4.9 million for logo, $4.2 million for operating equipment, $2.3 million for land and buildings, and $0.7 million for transit.
• Capital expenditures for the six months totaled $75.9 million, including $34.7 million for digital billboards, $14.9 million for traditional billboards, $12.2 million for operating equipment, $9.4 million for logo, $3.4 million for land and buildings, and $1.2 million for transit.

Market and Competitive Landscape

• The company is identified as a leading owner and operator of outdoor advertising and logo sign displays in North America.
• The press release does not provide specific market share data or detailed competitor analysis.

Risks and Challenges

• Key risks include significant indebtedness, the state of the economy and financial markets affecting advertising demand, and potential impacts from tariffs, trade restrictions, or geopolitical tensions.
• Risks also include the ability to obtain additional funding, maintain REIT status, comply with government regulations, and successfully integrate acquired companies.
• Other risks involve the ability to renew expiring contracts at favorable rates, the continued popularity of outdoor advertising, changes in accounting or tax laws, and the market for Class A common stock.

Management Commentary and Tone

• CEO Sean Reilly stated the business is in a "great place," highlighting results that exceeded expectations and strong pacings for the remainder of 2026.
• Management emphasized customer appreciation for the company's ability to deliver messages that resonate with audiences.

Other Key Points

• The company recorded a $67.8 million gain on the sale of its equity interest in Vistar Media, Inc. in 2025 and an additional $8.0 million gain in 2026 for the same transaction.
• Stock-based compensation expense was $14.1 million for the quarter and $25.3 million for the six months.
• Depreciation and amortization expense was $84.4 million for the quarter and $166.4 million for the six months.
• A conference call to discuss results was held on August 6, 2026, at 8:00 a.m. central time, with a live webcast available at ir.lamar.com.