Lamar Advertising Co New — Financial Results
Revenue Grew Modestly, but Organic Growth Confirms Core Business Health
| Metric | 2025 | 2024 | Change |
|---|---|---|---|
| Reported net revenues | $2.27B | $2.21B | +2.7% |
| Acquisition-adjusted net revenues (2024) | — | $2.22B | — |
| Organic revenue growth (apples-to-apples) | — | — | +2.1% |
Total revenue rose $59.1 million, but some of that came from newly acquired assets. Stripping those out, the underlying business still grew 2.1% — meaning existing billboards and logo signs are generating more revenue on their own. Billboards drove virtually all of the growth; transit advertising slipped slightly.
Adjusted EBITDA Crossed $1 Billion, Margins Held Steady
| Metric | 2025 | 2024 | Change |
|---|---|---|---|
| Adjusted EBITDA | $1.058B | $1.033B | +2.4% |
| AFFO | $846.7M | $819.0M | +3.4% |
Adjusted EBITDA (a measure of operating cash earnings before non-cash items like depreciation) grew 2.4% to just over $1 billion. AFFO (Adjusted Funds From Operations — the REIT equivalent of cash available to pay dividends, after maintenance spending) grew a slightly faster 3.4% to $846.7 million. Costs grew more slowly than revenue, showing disciplined expense management.
Net Income Jumped 63%, Mostly Due to One-Time and Accounting Items
| Metric | 2025 | 2024 |
|---|---|---|
| Net income | $593.1M | $362.9M |
| Depreciation & amortization | $326.3M | $463.0M |
| Gain on asset dispositions | $75.9M | $6.1M |
The 63% surge in reported net income looks dramatic, but two non-recurring factors explain most of it. First, a $136.6 million drop in depreciation and amortization (how asset costs are expensed over time) stemmed from a 2024 accounting revision to estimated billboard removal costs. Second, Lamar sold its stake in Vistar Media in early 2025, booking a $75.9 million gain. Neither reflects a permanent step-change in operating performance — the steadier AFFO figure is the more reliable indicator.
Dividends Increased, With Commitment to Maintain in 2026
| Year | Distributions paid | Per share |
|---|---|---|
| 2025 | $655.9M | $6.45 |
| 2024 | $578.8M | $5.65 |
| 2026 (guidance) | — | At least $6.40 |
Lamar raised its dividend 14% in 2025. As a REIT (a Real Estate Investment Trust — a structure requiring at least 90% of taxable income to be distributed to shareholders), dividends are central to the investment case. The 2026 guidance of at least $6.40 per share represents a slight step-down from 2025's $6.45, which management has flagged explicitly.
Acquisitions Accelerated: $339 Million Deployed Including Verde Outdoor Deal
Lamar completed over 50 acquisitions in 2025 for $191.1 million in cash, plus a non-cash deal to acquire Verde Outdoor — adding more than 1,500 billboard faces across ten states — valued at $147.6 million, paid via newly issued partnership units rather than cash. Capital expenditures also jumped from $125 million in 2024 to $180.8 million in 2025, with digital billboard spending rising from $60.7 million to $90.9 million. The company is clearly investing heavily in expanding its digital inventory.
Debt Refinanced with No Near-Term Maturities; Liquidity Solid
In September 2025, Lamar issued $400 million in new senior notes at 5.375% due 2033 and refinanced its existing term loans into a new $700 million Term B loan maturing in 2032. The result: essentially no meaningful debt comes due until well after 2026, with only $0.4 million maturing in 2026. Total liquidity stood at $807 million at year-end ($64.8 million cash plus $742.2 million undrawn on its revolving credit line), and interest expense actually fell $11.3 million year-over-year thanks to lower rates.