Lamar Advertising Company — Third Quarter 2026 Earnings Summary

Financial Performance

• Net revenues for the three months ended September 30, 2026, were $624.5 million, a 6.6% increase from $585.5 million in the prior year period.
• Net income for the three months ended September 30, 2026, was $165.0 million, a 14.5% increase from $144.1 million in the prior year period.
• Diluted net income per share for the third quarter was $1.59, up from $1.40 in the prior year.
• Adjusted EBITDA for the three months ended September 30, 2026, was $306.9 million, a 9.3% increase from $280.8 million in the prior year.
• Cash flow provided by operating activities for the three months ended September 30, 2026, was $284.1 million, an increase of $48.4 million from $235.7 million in the prior year.
• Free cash flow for the three months ended September 30, 2026, was $220.1 million, an increase of $30.9 million from $189.2 million in the prior year.
• Adjusted funds from operations (AFFO) for the three months ended September 30, 2026, was $249.3 million, a 10.1% increase from $226.5 million in the prior year.
• Diluted AFFO per share for the third quarter was $2.41, a 9.5% increase from $2.20 in the prior year.
• Net revenues for the nine months ended September 30, 2026, were $1.77 billion, a 5.9% increase from $1.67 billion in the prior year.
• Net income for the nine months ended September 30, 2026, was $431.5 million, a decrease of $6.8 million from $438.3 million in the prior year.
• Diluted net income per share for the nine months was $4.17, down from $4.27 in the prior year.
• Adjusted EBITDA for the nine months ended September 30, 2026, was $836.5 million, an 8.7% increase from $769.4 million in the prior year.
• Cash flow provided by operating activities for the nine months ended September 30, 2026, was $683.9 million, an increase of $91.0 million from $592.9 million in the prior year.
• Free cash flow for the nine months ended September 30, 2026, was $591.2 million, an increase of $81.8 million from $509.4 million in the prior year.
• AFFO for the nine months ended September 30, 2026, was $674.8 million, a 9.5% increase from $616.1 million in the prior year.
• Diluted AFFO per share for the nine months was $6.54, an 8.8% increase from $6.01 in the prior year.
• Total debt, net of deferred financing costs, was $3.50 billion as of September 30, 2026, compared to $3.42 billion as of December 31, 2025.
• Total liquidity as of September 30, 2026, was $721.1 million, consisting of $667.0 million available under the revolving senior credit facility and $54.1 million in cash and cash equivalents.
• Borrowings outstanding under the revolving credit facility were $75.0 million, and $250.0 million was outstanding under the Accounts Receivable Securitization Program as of September 30, 2026.

Guidance and Future Outlook

• The Company raised its full-year 2026 diluted AFFO per share guidance to a range of $8.87 to $8.97.
• The Company raised its full-year 2026 diluted earnings per share guidance to a range of $6.01 to $6.04.
• Management cited accelerated sales growth in the third quarter driven by demand from national customers, the digital platform, and political spend.
• Management noted a strong start to the fourth quarter.

Business Segments and Product Lines

• Acquisition-adjusted net revenue for the third quarter increased 6.2% compared to the prior year period.
• Acquisition-adjusted EBITDA for the third quarter increased 8.2% compared to the prior year period.
• Acquisition-adjusted net revenue for the nine months increased 5.5% compared to the prior year period.
• Acquisition-adjusted EBITDA for the nine months increased 7.0% compared to the prior year period.
• The Company operates over 360,000 displays across the United States and Canada.
• The Company offers the largest network of digital billboards in the United States with over 5,900 displays.

Market and Competitive Landscape

• The Company is a leading owner and operator of outdoor advertising and logo sign displays in North America.
• Sales growth was buoyed by demand from national customers and political spend.

Risks and Challenges

• Risks include significant indebtedness and the ability to obtain additional funding for operations, debt refinancing, or acquisitions.
• Economic conditions, including tariffs, trade restrictions, and geopolitical tensions, may affect demand for advertising.
• The Company faces risks related to maintaining its status as a Real Estate Investment Trust (REIT), including changes in tax laws and accounting principles.
• Risks include the ability to renew expiring contracts at favorable rates and successfully implement its digital deployment strategy.
• Integration of acquired companies and the ability to recognize cost savings or operating efficiencies from acquisitions are potential challenges.
• The market for the Company's Class A common stock presents a risk.

Management Commentary and Tone

• CEO Sean Reilly stated, "Our sales growth accelerated in the third quarter, buoyed by demand from national customers, our digital platform and political spend."
• Management expressed confidence by raising full-year guidance based on third-quarter results and a strong start to the fourth quarter.

Other Key Points

• On October 1, 2026, the Company entered into the Eighth Amendment to the Receivables Financing Agreement, extending the maturity date of the Accounts Receivable Securitization Program to October 1, 2029.
• The amendment provides additional flexibility for the eligibility of certain receivables under the Accounts Receivable Securitization Program.
• The Company reported a gain on disposition of assets and investments of $16.9 million for the three months ended September 30, 2026, compared to $2.2 million in the prior year.
• Capital expenditures for the three months ended September 30, 2026, totaled $45.0 million, with $22.9 million allocated to digital billboards and $11.0 million to traditional billboards.
• Capital expenditures for the nine months ended September 30, 2026, totaled $120.8 million, with $57.6 million allocated to digital billboards and $26.0 million to traditional billboards.
• A conference call to discuss operating results was held on November 5, 2026, at 8:00 a.m. central time.