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 three months ended September 30, 2026, was $1.59, compared to $1.40 in the prior year period.
• 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 period.
• 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 period.
• 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 period.
• 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 period.
• Diluted AFFO per share for the three months ended September 30, 2026, was $2.41, a 9.5% increase from $2.20 in the prior year period.
• 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 period.
• Net income for the nine months ended September 30, 2026, was $431.5 million, a 1.6% decrease from $438.3 million in the prior year period.
• Diluted net income per share for the nine months ended September 30, 2026, was $4.17, compared to $4.27 in the prior year period.
• 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 period.
• 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 period.
• 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 period.
• 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 period.
• Diluted AFFO per share for the nine months ended September 30, 2026, was $6.54, an 8.8% increase from $6.01 in the prior year period.
• As of September 30, 2026, total liquidity 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.
• Outstanding debt as of September 30, 2026, included $75.0 million under the revolving credit facility and $250.0 million under the Accounts Receivable Securitization Program.

Guidance and Future Outlook:

• Lamar raised its full-year 2026 diluted earnings per share guidance to a range of $6.01 to $6.04.
• Lamar raised its full-year 2026 diluted AFFO per share guidance to a range of $8.87 to $8.97.
• Management cited sales growth acceleration in the third quarter, buoyed by demand from national customers, the digital platform, and political spend, as reasons for the guidance increase.

Business Segments and Product Lines:

• Acquisition-adjusted net revenue for the third quarter of 2026 increased 6.2% over the prior year period.
• Acquisition-adjusted EBITDA for the third quarter of 2026 increased 8.2% over the prior year period.
• Capital expenditures for the three months ended September 30, 2026, totaled $44.983 million, broken down as follows: $22.913 million for digital billboards, $11.018 million for traditional billboards, $5.025 million for logo, $2.756 million for land and buildings, $2.523 million for operating equipment, and $748,000 for transit.
• Capital expenditures for the nine months ended September 30, 2026, totaled $120.842 million, broken down as follows: $57.581 million for digital billboards, $25.961 million for traditional billboards, $14.726 million for operating equipment, $14.419 million for logo, $6.175 million for land and buildings, and $1.980 million for transit.
• The company operates over 360,000 displays across the United States and Canada, including a network of over 5,900 digital billboards.

Market and Competitive Landscape:

• No specific market share data or direct competitor comparisons were provided in the press release.
• The press release notes the continued popularity of outdoor advertising as an advertising medium as a factor in forward-looking statements.

Risks and Challenges:

• Risks include significant indebtedness, the state of the economy and financial markets, and the effect of the broader economy on advertising demand.
• Potential risks include economic changes resulting from new or increased tariffs, trade restrictions, or geopolitical tensions, including war and armed conflicts.
• Risks also include the ability to obtain additional funding for operations, debt refinancing, or acquisitions, and the ability to continue qualifying as a Real Estate Investment Trust (REIT).
• Other risks involve government regulation of the outdoor advertising industry, integration of acquired companies, changes in accounting principles or tax laws, the ability to renew expiring contracts at favorable rates, and the success of the digital deployment strategy.

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 in the results, noting a strong start to the fourth quarter as the basis for raising full-year guidance.

Other Key Points:

• On October 1, 2026, Lamar 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.
• A conference call to discuss operating results was held on November 5, 2026, at 8:00 a.m. central time.
• The company is a leading owner and operator of outdoor advertising and logo sign displays, offering billboard, interstate logo, transit, and airport advertising formats.