Lamar Advertising Sets 2026 Outlook With Record Margin Target After Solid Q4

Overview

• Excluding political ads, acquisition‑adjusted revenue rose more than 4% in Q4 2025 and 2.1% for the full year.
• 2026 AFFO guidance is $8.50–$8.70 per share, assuming roughly 3.5% acquisition‑adjusted revenue growth and implying consolidated operating margins above 47%.
• Management says growth is rate‑driven with occupancy at peak levels, local/regional sales (78% of billboard revenue) extended a 19‑quarter growth streak, and programmatic rose 19% as national revenue increased 3.3%.
• Digital expansion continued with 559 units added in 2025 and a similar internal deployment pace targeted for 2026, alongside the Verde UPREIT template and a plan for about $200 million in 2026 cash acquisitions at 10x–11x post‑synergy multiples.
• Liquidity exceeds $800 million with leverage targeted below 4x, an ARO accounting change drove a non‑cash $151.3 million depreciation swing with no impact on AFFO or EBITDA, ERP and tech costs are expected to ease in H2 2026, and political spending is projected to add $12–$14 million late in the year.