Lamar Advertising Company LAMR posted first-quarter 2026 AFFO per share of $1.72, up 7.5% year over year and ahead of the Zacks Consensus Estimate of $1.57 by 9.6%. Quarterly net revenues of $528.0 million rose 4.5% from the prior-year period and topped the consensus mark of $525.9 million by 0.4%.
Reflecting upbeat sentiments, LAMR shares were up more than 7% during yesterday’s trading and also rose during the pre-market hours.
Results benefited from broad-based advertising demand, with management pointing to particular strength from national customers. Digital continued to play a meaningful role, accounting for almost 31% of billboard billing in the quarter.
LAMR's National Demand Fuels Top-Line Beat
Net revenues increased 4.5% from the year-ago quarter, reflecting steady demand across Lamar’s formats and geographies. On an acquisition-adjusted basis, consolidated revenues advanced 3.9%, with growth across the company’s billboards, airports, transit and logos businesses.
Management highlighted a rebound on the national side. National revenues increased 5.8% versus the first quarter of 2025, with programmatic sales up nearly 25% to approximately $11 million. Excluding programmatic, national revenues still rose 4.1%. Local revenues grew 3%, extending a multiyear trend of expanding local and regional sales.
Lamar Expands Margins as EBITDA Climbs
Adjusted EBITDA increased 7.7% year over year to $226.3 million. The adjusted EBITDA margin expanded 130 basis points to 42.9%, supported by higher revenues and cost discipline. Acquisition-adjusted consolidated expenses increased 3% in the quarter, which management said came in better than expected.
Management also pointed to portfolio factors that aided margin performance, including the absence of a low-margin business exited last year and contributions from acquisitions that typically carry attractive incremental margins. Management indicated it expects to deliver full-year margin expansion versus 2025.
LAMR's Business Shows Cash Generation
The quarter also produced stronger cash generation, with cash flow provided by operating activities rising to $147.4 million from $127.7 million a year ago. Free cash flow improved to $152.4 million, up 25.8% year over year. Total capital expenditures were $33.1 million, including $9.3 million of maintenance CapEx. For the full year, management expects total capex of approximately $186 million, with maintenance capex comprising $64 million.
Lamar Keeps Leverage Low With Ample Liquidity
Lamar exited the quarter with approximately $3.5 billion of total consolidated debt and a weighted average interest rate of 4.5%. The company’s weighted average debt maturity was 4.3 years, and management emphasized a well-laddered maturity schedule with no maturities until its accounts receivable securitization in October 2027 and no senior notes maturity until February 2028.
Total leverage ended the quarter at 3.0X net debt to EBITDA, with secured leverage at 0.7X. Liquidity totaled $701.5 million, consisting of $39.3 million of cash on hand and $662.2 million available under the revolver. Subsequent to quarter-end, the company repaid $40 million on the revolver and reported that the accounts receivable securitization was fully drawn at $250 million.
LAMR's Outlook Reaffirmed, Dividend Steady With Upside
In its release, Lamar reaffirmed full-year diluted AFFO per share guidance of $8.50 to $8.70. Management noted that the first-quarter performance and forward bookings have the company pacing toward the top end, and potentially above, the previously provided range if trends continue. The Zacks Consensus Estimate presently stands at $8.62.
The dividend remained a key shareholder return lever. Lamar paid a cash dividend of $1.60 per share in the first quarter, and management said that it plans to recommend another $1.60 per share dividend for the second quarter, subject to board approval.
For the full year, the company continues to expect a regular dividend of at least $6.40 per share, with management signaling that improving performance could support an increase in the back half of 2026, depending on taxable income and board action.
LAMR’s Zacks Rank
Lamar currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Lamar Advertising Company Price, Consensus and EPS Surprise
Lamar Advertising Company price-consensus-eps-surprise-chart | Lamar Advertising Company Quote
Performance of Other REITs
OUTFRONT Media Inc. OUT posted first-quarter 2026 adjusted funds from operations (AFFO) of 34 cents per share, beating the Zacks Consensus Estimate of 28 cents by 21.43%. Revenues rose 10% year over year to $429.6 million and topped expectations by 2.32%.
OUTFRONT Media’s results reflected stronger pricing and demand across the portfolio, with transit revenues rising strongly and billboard yield improving in double digits. Digital revenues also remained a meaningful contributor, with automated channels supporting revenue quality and mix of OUTFRONT Media.
Cousins Properties Incorporated CUZ posted first-quarter 2026 FFO per share of $0.73, topping the Zacks Consensus Estimate of $0.71 by 2.8%. The metric slipped 1.4% year over year. Cousins Properties noted that the prior-year period benefited from a gain tied to the sale of a bankruptcy claim with SVB Financial Group.
Rental property revenues came in at $261.1 million, up 7.4% from the year-ago quarter and ahead of the consensus estimate of $253.7 million by 2.9%. Cash-basis same-property NOI of Cousins Properties increased 5.5%, reflecting healthier in-place performance.
Note: Anything related to earnings presented in this write-up represents funds from operations (FFO), a widely used metric to gauge the performance of REITs.
Radical New Technology Could Hand Investors Huge Gains
Quantum Computing is the next technological revolution, and it could be even more advanced than AI.
While some believed the technology was years away, it is already present and moving fast. Large hyperscalers, such as Microsoft, Google, Amazon, Oracle, and even Meta and Tesla, are scrambling to integrate quantum computing into their infrastructure.
Senior Stock Strategist Kevin Cook reveals 7 carefully selected stocks poised to dominate the quantum computing landscape in his report, Beyond AI: The Quantum Leap in Computing Power .
Kevin was among the early experts who recognized NVIDIA's enormous potential back in 2016. Now, he has keyed in on what could be "the next big thing" in quantum computing supremacy. Today, you have a rare chance to position your portfolio at the forefront of this opportunity.
See Top Quantum Stocks Now >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Lamar Advertising Company (LAMR): Free Stock Analysis Report
Cousins Properties Incorporated (CUZ): Free Stock Analysis Report
OUTFRONT Media Inc. (OUT): Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).