Lamar Advertising Company

LAMR
Financial Analysis · Updated May 13, 2026 · Coverage 2026-Q2
Latest Q Revenue
$565M
Q1 FY2026 · +4.5% YoY
TTM ROIC
35%
FY2025 · Digital conversion cash-on-cash ROIC (AFFO / capex per conversion); REIT-adjusted framework — traditional ROIC distorted by mandatory distributions and accumulated depreciation · WACC ~6.95%

Financial Snapshot

ticker: LAMR step: 04 generated: 2026-05-13 source: quick-research

Lamar Advertising Company (LAMR) — Financial Snapshot

Income Statement Summary

Metric FY2022 FY2023 FY2024 YoY
Revenue ~$2.03B $2.11B $2.21B +4.6%
Gross Margin ~68% ~69% ~70%
Operating Margin ~30% ~31% ~32%
Net Income ~$350M ~$370M ~$400M
AFFO/Share $7.38 $7.47 $7.99 +7.0%

AFFO is the primary performance metric. FY2023 AFFO growth was modest (+1.7%) as cost pressures offset moderate revenue growth. FY2024 accelerated to +7.4% AFFO growth and +7.0% per share as digital conversion investments began generating incremental revenue. Adjusted EBITDA reached $1.03B in FY2024.

Cash Flow & Balance Sheet (FY2024)

Metric Value
Adjusted EBITDA $1.03B
AFFO $819M
Capital Expenditures $125M (incl. $61M digital)
Cash & Equivalents ~$100M
Total Debt ~$3.42B
Net Debt / EBITDA ~3.0x

Key Ratios (approximate)

  • P/AFFO: ~17x | EV/EBITDA: ~20x | Dividend Yield: ~4.4%
  • Revenue Growth (FY2024): +4.6% | AFFO/Share Growth: +7.0%
  • FY2024 Dividends Paid: $578.8M ($5.65/share)
  • 5-Year Annualized Dividend Growth: 24.2% (9 raises in 5 years)

Growth Profile

Lamar has delivered consistent mid-single-digit revenue growth since its REIT conversion, with AFFO/share growth of 7–10% in recent years driven by digital conversions and operating leverage. Digital billboards — only 3% of the unit count — generate 32% of billboard revenue, creating a powerful reinvestment flywheel: each $200K static-to-digital conversion effectively creates 7-new-ad-faces per structure and unlocks programmatic advertising. Programmatic digital billboard revenue grew 30% YoY in 2025. The Verde Outdoor acquisition (July 2025, 1,500 billboard faces, 80 digital) added scale via the first-ever UPREIT structure in the billboard industry.

Forward Estimates

  • FY2025 AFFO/share guidance: $8.50–$8.70 (management expects to trend toward high end)
  • Q1 2025 actuals: Revenue +4%, AFFO/share $1.72 (+7.5% YoY)
  • FY2025 capex budget: $195M (increased from $125M in 2024 — accelerating digital conversion)
  • M&A capacity: ~$1.3B; targeting $150M/year in tuck-in acquisitions
  • TD Cowen 12-month target: $150 (raised from $140)

Deeper Financial Analysis

The fundamental tier adds 9 additional research dimensions for $LAMR.

Revenue Breakdown
Segment revenue, geographic mix, product-line contribution margins, and cohort dynamics.
Financial Trends
Quarter-over-quarter momentum, leading indicators, and inflection point analysis.
Balance Sheet
Debt structure, liquidity runway, dilution risk, and working capital dynamics.
Capital Allocation
Buyback cadence, M&A appetite, dividend policy, and reinvestment priorities.
Returns on Capital (ROIC)
Multi-year ROIC vs. WACC, marginal returns on reinvestment, sales-to-invested-capital efficiency, and moat spread.
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Markdown: /stocks/lamr/financials/md · → thesis · → memo