Lamar Advertising Company reported fourth‑quarter 2025 results that included net revenue of $595.9 million, up 2.8% from $579.6 million a year earlier. The company’s net income rose to $154.7 million, a turnaround from a $1.0 million loss in the same quarter a year ago. Earnings per share were $1.50, which missed consensus estimates of $1.57 and $1.79 but beat the lower estimate of $1.66 reported by some analysts. The revenue beat was driven by strong demand in the digital and programmatic advertising segments, which offset a modest decline in legacy billboard sales and the impact of a tougher political advertising environment.
Operating income for the quarter reached $196.1 million, up $159.4 million from $36.7 million in Q4 2024. The improvement reflects a higher mix of higher‑margin digital placements and disciplined cost control, which helped expand operating margin despite a slight increase in asset‑retirement‑obligation expense that had been recognized in the prior year. Adjusted EBITDA rose to $288.9 million, and adjusted funds from operations (AFFO) increased to $230.6 million, a 1.8% gain that underscores the company’s ability to generate cash flow even as it invests in new digital displays.
Full‑year 2025 results showed net revenue of $2.27 billion, up 2.7% from $2.21 billion in 2024. Net income for the year was $593.1 million, a 63.4% increase largely driven by a $68.6 million gain from the sale of its equity interest in Vistar Media. The company’s adjusted EBITDA for the year was $1.06 billion, up 2.4% from $1.03 billion in 2024, reflecting continued operational efficiency and the impact of the digital expansion strategy.
Lamar reiterated its 2026 guidance, projecting diluted earnings per share between $5.72 and $5.83 and diluted AFFO per share between $8.50 and $8.70. The guidance signals management’s confidence in sustained sales momentum and the benefits of its digital deployment strategy, while maintaining a 4.7% dividend yield. The midpoint of the guidance implies consolidated operating margins of over 47%, the best in the company’s history, indicating a focus on margin expansion.
Investors reacted positively to the results, with the market emphasizing the revenue beat and the strong AFFO performance. The EPS miss was viewed as less material because it was largely attributable to a one‑time asset‑retirement‑obligation adjustment and the prior year’s loss, which made the year‑over‑year comparison more favorable. The market’s response reflects confidence in the company’s digital growth trajectory and its ability to generate cash flow.
Management highlighted the company’s performance: "We ended 2025 with encouraging sales momentum, with growth in both local and national in the fourth quarter, even with a tough political comp," said CEO and President Sean Reilly. He added, "That strength continued into 2026, and pacings for the balance of the year remain promising." CFO Jay Johnson noted, "We had a solid fourth quarter and are pleased with our results, which exceeded internal expectations across revenue, adjusted EBITDA and AFFO."
Segment performance data show that digital advertising accounted for 33.7% of total revenue, and Lamar plans to deploy at least 350 new digital displays in 2025. The company completed 13 acquisitions in Q4, bringing its total acquisitions to 50 and a cumulative spend of $191 million, positioning it for continued expansion in high‑growth digital markets.
Headwinds included a tougher political advertising environment and higher asset‑retirement‑obligation expense, but the company’s focus on digital and programmatic advertising, along with strategic acquisitions, helped offset these challenges and support continued revenue growth.
Overall, Lamar’s Q4 2025 results demonstrate a solid rebound from the prior year’s loss, a revenue beat that underscores the strength of its digital strategy, and a forward‑looking guidance that signals confidence in sustained growth and margin expansion.
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