Lamar Advertising (LAMR -7.41%), a leading operator of outdoor advertising displays in the United States, reported its second-quarter 2025 earnings on August 8, 2025. The company posted GAAP net earnings per diluted share of $1.52, beating analyst expectations by $0.08. GAAP revenue was $579.3 million, falling short of the $580.8 million GAAP consensus estimate. Management highlighted solid profit growth, but also noted a slight reduction in full-year financial guidance, lowering its FY2025 diluted AFFO per share outlook from $8.13–$8.28 to $8.10–$8.20. Overall, the company delivered modest year-on-year growth in GAAP net revenues while managing expense pressures and significant investments in digital assets and acquisitions.
| Metric | Q2 2025 | Q2 2025 Estimate | Q2 2024 | Y/Y Change |
|---|---|---|---|---|
| EPS (GAAP) | $1.52 | $1.44 | $1.34 | 13.4% |
| Revenue (GAAP) | $579.3 million | $580.8 million | $565.3 million | 2.5% |
| Adjusted EBITDA | $278.4 million | $271.6 million | 2.5 % | |
| Free Cash Flow | $199.1 million | $203.5 million | -2.2 % | |
| Diluted AFFO per Share | $2.22 | $2.08 | 6.7 % |
Source: Analyst estimates for the quarter provided by FactSet.
Business Overview and Strategic Priorities
Lamar Advertising operates one of the largest networks of outdoor advertising displays in North America, with approximately 159,000 traditional and digital billboards as of December 31, 2024, 138,200 logo sign displays as of December 31, 2024, and 47,500 transit advertising displays. The company’s business model centers around selling advertising space to national and local clients, generating recurring revenue streams across diverse industries.
Recently, the company increased its focus on expanding digital billboards, growing its programmatic advertising channel, and pursuing acquisitions to widen its network. These priorities are supported by steady investment in digital technology and a decentralized sales strategy that emphasizes strong local market presence. Key success factors for the business include effective inventory management, continued technological upgrades, compliance with regulatory requirements, and disciplined capital allocation as a real estate investment trust (REIT).
Second Quarter Highlights: Results, Investments, and Operations
GAAP earnings per share reached $1.52, up 13.4% compared to Q2 2024 and above the analyst forecast for GAAP EPS. Net revenue rose 2.5% year over year. Operating income increased 7.3%, outpacing revenue growth. Adjusted EBITDA increased 2.5%, matching the revenue growth rate.
Capital expenditures surged 69% to $38.2 million compared to Q2 2024, with $22.2 million devoted to digital billboard deployments. The company completed a notable acquisition in July 2025: Verde Outdoor, which added more than 1,500 billboard faces in 10 states, marking the first “UPREIT” (Umbrella Partnership Real Estate Investment Trust) transaction in the out-of-home advertising industry. Management anticipates total acquisition spending for FY2025 to surpass $200 million, up from the previous $150 million projection provided in February 2025.
Digital billboards remained a central part of the business, contributing approximately 32% of billboard advertising net revenue in FY2024. The company continues to expand its digital inventory, targeting over 350 digital deployments for 2025.
Local advertising accounted for 79% of outdoor net revenue for the year ended December 31, 2024, emphasizing Lamar’s strength in local markets. The national segment delivered mixed results, with some volatility due to changing purchasing patterns and client-specific factors.
From a financial operations perspective, free cash flow declined 2.2% to $199.1 million as capital expenditures rose. Acquisition-adjusted direct advertising and general and administrative (G&A) expenses increased by 1.6%, below the company’s full-year expense-growth target of 3%. Corporate expenses rose 4.6% on a GAAP basis. Total net debt increased quarter over quarter, reaching $3.36 billion as of June 30, 2025, while liquidity stood at $363.0 million as of June 30, 2025.
The six months ended June 30, 2025, included a $67.8 million one-time gain from the sale of the company’s equity interest in Vistar Media, which boosted net income but will not recur in future quarters. The company’s commitment to its REIT dividend payouts remains unchanged.
No major regulatory outcomes were noted for the quarter. However, management persisted in monitoring evolving outdoor advertising regulations, particularly those impacting digital billboards, to ensure compliance and support ongoing expansion. No material adverse decisions or fines were disclosed in the period.
Outlook and Management Guidance
For FY2025, management revised its diluted AFFO per share guidance to a range of $8.10 to $8.20, compared to the previous range of $8.13 to $8.28 per share. Net income per diluted share (GAAP) guidance for FY2025 sits between $6.09 and $6.11. The leadership team stated it expects further improvement in revenues in the second half of 2025, but not to the extent initially anticipated.
The company continues to prioritize digital expansion, programmatic innovation, and disciplined acquisitions.
Revenue and net income presented using U.S. generally accepted accounting principles (GAAP) unless otherwise noted.
