Lamar Advertising Reports Strong Q3 2026 Results & Lifts Full-Year AFFO Guidance

Executive Summary

On November 5, 2026, Lamar Advertising Company filed a Form 8-K under Item 2.02 detailing its operating results for the third quarter and nine months ended September 30, 2026. The company demonstrated solid top-line and bottom-line expansion driven by national brand demand, digital billboard deployment, and political advertising spend, prompting management to increase full-year 2026 AFFO guidance.

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Key Financial Highlights (Q3 2026)

• Net Revenues: Reached $624.5 million, up 6.6% compared to $585.5 million in Q3 2025 (acquisition-adjusted revenue increased 6.2%).
• Operating Income: Increased 10.8% to $209.4 million from $189.1 million in Q3 2025.
• Net Income & EPS: Net income totaled $165.0 million ($1.59 per diluted share), an increase of 14.5% compared to $144.1 million ($1.40 per diluted share) in Q3 2025.
• Adjusted EBITDA: Advanced 9.3% to $306.9 million versus $280.8 million in the prior-year period.
• Funds From Operations (FFO) & AFFO:
  • FFO was $224.2 million, up 2.2% YoY.
  • Adjusted Funds from Operations (AFFO) rose 10.1% to $249.3 million.
  • Diluted AFFO per share rose 9.5% to $2.41 compared to $2.20 in Q3 2025.
• Cash Flow: Operating cash flow rose to $284.1 million (+$48.4 million YoY), while free cash flow grew to $220.1 million (+$30.9 million YoY).

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Nine-Month Year-to-Date Performance

• Net Revenues: $1.77 billion, up 5.9% YoY from $1.67 billion.
• Operating Income: $563.5 million versus $578.0 million in the prior-year period.
• Net Income: $431.5 million ($4.17 diluted EPS) compared to $438.3 million ($4.27 diluted EPS) in 2025.
• Adjusted EBITDA: $836.5 million, an 8.7% increase from $769.4 million.
• Diluted AFFO per Share: $6.54, up 8.8% from $6.01 in the first nine months of 2025.

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Liquidity and Balance Sheet

• Total Liquidity: $721.1 million as of September 30, 2026, comprising $54.1 million in cash and cash equivalents and $667.0 million in available borrowing capacity under its senior revolving credit facility.
• Debt Outstanding: $75.0 million outstanding under the revolving credit facility and $250.0 million under the Accounts Receivable Securitization Program.
• Subsequent Event: On October 1, 2026, Lamar extended the maturity date of its Accounts Receivable Securitization Program to October 1, 2029 via the Eighth Amendment to the Receivables Financing Agreement.

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Updated Full-Year 2026 Guidance

Lamar raised its full-year guidance range:

• Diluted EPS: Expected between $6.01 and $6.04.
• Diluted AFFO per Share: Raised to $8.87 to $8.97.