Lamar Advertising Company

Lamar Advertising Company reported second-quarter results that beat expectations and raised its full-year guidance, citing strong demand for billboard advertising. Net revenues rose 6.5% to $616.7 million, net income grew 6.2% to $164.6 million, and adjusted EBITDA advanced 9.0% to $303.4 million. The company now expects diluted AFFO per share of $8.75 to $8.90 for the full year, up from its previous outlook. However, first-half net income fell 9.4% to $266.5 million, partly due to a one-time gain in the prior year that did not repeat. Lamar also reported $720.2 million in total liquidity as of June 30, with $90.0 million drawn on its credit facility and $250.0 million outstanding under its receivables securitization program.

Lamar Advertising Company has acquired the assets of AdSource Outdoor Advertising through the billboard industry's second-ever UPREIT transaction, closing on Aug. 12. The deal adds more than 230 billboard faces across Louisiana to Lamar's portfolio, including 30 digital displays. AdSource contributed its assets to Lamar Advertising Limited Partnership in exchange for common units that track Lamar's Class A common stock and pay distributions equal to the per-share dividend. The UPREIT structure allows Lamar to issue partnership units on a tax-deferred basis, providing a tool for similar future acquisitions. Lamar shares have gained 7.7% over the past three months, outpacing the industry's 2.9% growth.

Shares of billboard real estate investment trusts Lamar Advertising and Outfront Media have surged more than 24% and 37% respectively so far in 2026, while both still offer dividend yields above 3.5%. Lamar pays a quarterly dividend of $1.60 per share, yielding around 4.03%, and Outfront Media's quarterly dividend of $0.30 per share yields about 3.6%. Both companies benefit from a resilient local customer base, with roughly 80% of Lamar's tenants and 60% of Outfront's clients being local businesses. In the first quarter, Lamar reported revenue of $528 million, up 4.5% year over year, and adjusted funds from operations per share of $1.72, up 7.5%, while Outfront posted revenue of $429.6 million, up 9.9%, and AFFO per share of $0.34, up 143%. The companies are also poised to gain from projected political ad spending exceeding $11 billion for the 2026 U.S. midterm elections.