Lamar Advertising (NASDAQ:LAMR) raised its full-year funds from operations outlook after third-quarter growth in national advertising, political spending and digital billboards carried into a record October.
The outdoor advertising company expects full-year diluted adjusted funds from operations (AFFO) of $8.87 to $8.97 per share, up $0.10 at the midpoint from its previous forecast. The midpoint represents an 8% increase from 2025, CEO and President Sean Reilly said on the company’s third-quarter earnings call.
Third-quarter revenue rose 6.2% on an acquisition-adjusted basis, while adjusted EBITDA increased 9.3% to $306.9 million. The adjusted EBITDA margin expanded to 49.1% from 48% a year earlier. AFFO rose 10.1% to $249.3 million, and diluted AFFO per share increased to $2.41 from $2.20.
October revenue exceeded $232 million, up 14.1% on an acquisition-adjusted basis and marking the company’s best month on record, CFO Jay Johnson said. Excluding political advertising, October growth was just under 7%, according to Reilly.
Political and national advertising drive growth
Reilly said Lamar expects political advertising revenue to top $40 million in 2026, more than double its 2022 total and about 40% above 2024. Nearly half of this year’s political spending is expected to appear in the fourth quarter, and digital advertising accounts for approximately half of the total.
National revenue increased nearly 20% in the third quarter, while local and regional revenue rose 4.2%. Johnson said local and regional sales grew for the 22nd consecutive quarter and represented approximately 75% of billboard revenue.
Among advertising categories, Reilly cited growth of 16% in services, 11% in retail, 7% in auto, 7.3% in financial and 30.5% in telecommunications. Healthcare and amusements were approximately flat to down 1%.
Asked about competition, Reilly said Lamar was seeing advertising shift away from local network affiliates and radio broadcasters, rather than from other billboard operators. He also described customer demand as strong and said the company was pleased with renewals heading into 2027.
Digital revenue and acquisitions expand
Digital accounted for 33.8% of Lamar’s total advertising book in the third quarter, up from more than 32% a year earlier, Reilly said. Digital revenue grew 12.2% overall and 6.5% on a same-store basis. Programmatic revenue increased 42.4% in the quarter.
Lamar ended the quarter with 5,883 digital faces, an increase of 153 from the second quarter and 330 from the end of 2025.
The company closed 54 billboard acquisitions through the year to date for a cash purchase price of more than $147 million. It also spent more than $55 million purchasing easements beneath billboards to strengthen its real estate portfolio, and completed its second UPREIT transaction in August.
Reilly said the acquisition pipeline remained active, including deals under letters of intent that Lamar expects to close in the coming months. He said acquisition pricing was in an “uptick cycle” and that the company would remain disciplined.
Dividend and balance sheet
Management plans to recommend a fourth-quarter regular dividend of $1.65 per share, matching the third-quarter payment, subject to board approval. Johnson said management also expects to request approval for a year-end special dividend of $0.30 to $0.35 per share, which would bring the anticipated full-year cash dividend to $6.80 to $6.85 per share.
Lamar ended the quarter with $721 million in liquidity and approximately $3.5 billion in total consolidated debt, Johnson said. Following an October extension of its accounts receivable securitization facility, its next debt maturity is $600 million of senior notes due in February 2028.
For 2026, the company expects total capital expenditures of approximately $186 million, including $65 million in maintenance spending. It projects acquisition-adjusted operating expense growth of 4.25% to 4.75% for the year.
About Lamar Advertising (NASDAQ:LAMR)
Lamar Advertising Company is an outdoor advertising company that provides businesses with advertising displays across the United States. Its offerings include traditional and digital billboards, bulletin and poster displays, transit advertising, and other out-of-home media formats.
The company also provides logo sign and tourist-oriented directional signage services through displays located along highways and other major transportation routes. Its digital advertising network allows advertisers to deliver messages that can be updated more frequently than traditional static signage.
Lamar traces its roots to 1902 and is headquartered in Baton Rouge, Louisiana.
