Lamar Raises 2026 AFFO Outlook After Sales Growth Accelerates

The Tip Desk · November 5, 2026 · 3 min read

Third-quarter net revenues were $624.5 million, up 6.6%, as Lamar lifted full-year diluted AFFO guidance to $8.87 to $8.97 a share.

Lamar Advertising Company (LAMR) raised its 2026 adjusted funds from operations outlook after year-over-year sales growth picked up in the third quarter, a pace the outdoor advertising operator said was supported by national customers, its digital platform and political spend.

The Baton Rouge-based company, which operates more than 360,000 displays across the United States and Canada, reported net revenues of $624.5 million for the three months ended September 30, 2026, up 6.6% from $585.5 million a year earlier. That growth rate compared with 6.5% in the second quarter and 4.5% in the first quarter. Sequential net revenue was $624.5 million versus $616.7 million in the second quarter.

Chief executive Sean Reilly said sales growth accelerated in the third quarter, buoyed by demand from national customers, the digital platform and political spend. With those results and a strong start to the fourth quarter, the company is raising full-year AFFO per diluted share to a range of $8.87 to $8.97, from the August range of $8.75 to $8.90. Lamar now expects diluted earnings per share for fiscal 2026 of $6.01 to $6.04.

Net income was $165.0 million, or $1.59 a share, versus $144.1 million, or $1.40 a share, a year earlier. Adjusted EBITDA was $306.9 million, up 9.3% from $280.8 million. Operating income was $209.4 million. Acquisition-adjusted net revenue increased 6.2% and acquisition-adjusted EBITDA increased 8.2% versus the same 2025 quarter.

Outdoor operating income was $333.4 million. The income statement included a $16.9 million gain on disposition of assets and investments, versus $2.2 million a year earlier. Stock-based compensation was $13.1 million and depreciation and amortization was $100.6 million.

Cash from operations was $284.1 million. Free cash flow was $220.1 million. AFFO was $249.3 million, up 10.1% from $226.5 million; diluted AFFO per share was $2.41. FFO was $224.2 million. Total capital expenditures were $45.0 million.

For the nine months ended September 30, 2026, net revenues were $1.77 billion. Adjusted EBITDA was $836.5 million. Net income was $431.5 million, or $4.17 a share. Cash from operations was $683.9 million and free cash flow was $591.2 million. AFFO was $674.8 million, or $6.54 a share.

As of September 30, 2026, Lamar had $721.1 million in total liquidity, including $667.0 million available under its revolving senior credit facility and $54.1 million in cash. Borrowings outstanding were $75.0 million on the revolver and $250.0 million under the accounts receivable securitization program.

On October 1, 2026, Lamar extended the maturity of that securitization program to October 1, 2029 and added flexibility for eligibility of certain receivables.