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Key Takeaways

• Q2 2025 revenue moved up 2.5% to $579.3 million, while EBITDA rose by 2%
• AFFO moved up 5.5% to $225.3 million, while the dividend of $1.55 per share was maintained
• The UPREIT acquisition added 1,500+ billboard faces in 10 states
• Full-year AFFO guidance was cut to $8.10–$8.20 per share due to contract loss
• A strong balance sheet was recorded, with $363 million in liquidity and a 2.95x leverage ratio

As of Friday, Aug. 8, 2025, Lamar Advertising Company (LAMR) closed at $115.50, down 7.41%, before rising 1.30% after hours to $117.00.
 

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The company reported Q2 2025 net revenues of $579.3 million, marking a 2.5% year-over-year increase. Adjusted EBITDA rose 2.5% to $278.4 million, with margins at 48.1%. Net income climbed 12.7% to $155.0 million, or $1.52 per diluted share, from $137.6 million last year. AFFO grew 5.5% to $225.3 million, translating to $2.22 per diluted share.

Local and regional billboard sales made up 79% of revenue, while the airport and logos division outperformed with gains of 11.7% and 6.1%, respectively. Lamar also ended the quarter with 5,255 digital units, up by 152 from Q1.

$LAMR earnings:

Lamar (LAMR): Solid Quarter, but a Cautious Outlook and Trimmed Guidance Take Center Stage

Lamar delivered a respectable second quarter, with revenue growth accelerating and net income showing a strong double-digit increase. However, the positive results were… pic.twitter.com/QNzQ7MTdjf

— Finsee (@Finsee_main) August 8, 2025

Milestone Acquisition and Balance Sheet Strength

On July 2, 2025, Lamar completed the billboard industry’s first UPREIT transaction, acquiring Verde Outdoor’s assets, including over 1,500 billboard faces in ten states. The deal involved issuing 1,187,500 Common Units of Lamar LP, redeemable after one year.

Lamar’s balance sheet remains healthy, with $3.4 billion in consolidated debt at a 4.7% weighted average interest rate. Leverage is at 2.95x net debt-to-EBITDA, one of the company’s lowest levels. Interest coverage improved to 6.8x. Liquidity stood at $363 million, including $56 million in cash.

Six-Month Overview

For the first half of 2025, net revenues reached $1.08 billion, up 2% from last year. Net income surged 36.2% to $294.2 million, largely due to a $67.8 million gain from selling Lamar’s equity interest in Vistar Media. Adjusted EBITDA was $488.6 million, a 1.1% rise, while AFFO totaled $389.6 million, up 4.8%.

Free cash flow for the six months was $320.2 million, down from $342.2 million last year, reflecting lower operating cash flow.

Guidance Revision and Market Outlook

Despite positive momentum, Lamar lowered its full-year diluted AFFO per share forecast from $8.13-$8.28 to $8.10-$8.20. The adjustment stems from softer operations and the exit from the Vancouver transit contract, which is expected to impact AFFO by $0.06 per share.

Advertising categories like beverages, education, and telecom saw declines of 16%, 3.8%, and 17%, respectively. The company also signaled caution for October due to tough comparisons in political ad spending from the prior year.

Lamar remains confident in its long-term growth, supported by its expanding digital presence, acquisition strategy, and resilient local advertising base. The company paid a $1.55 per share dividend in both Q1 and Q2, expecting a total payout of at least $6.20 per share in 2025.

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