Lamar Advertising reports 5.1% Q2 AFFO growth, raises FY26 guidance

Lamar Advertising Company reported a 5.1% increase in funds from operations (FFO) for the second quarter of 2026, reaching $236.8 million. This marks an improvement from $225.3 million in the same quarter of 2025. The company also noted a significant rise in adjusted funds from operations (AFFO), which climbed 10.1% to $247.9 million, compared to $225.3 million last year. AFFO per share increased 8.1%, reaching $2.40, up from $2.22.

This growth comes amid a strong advertising market as businesses continue to invest in outdoor advertising despite economic uncertainties. The increase in net revenue, which rose to $616.7 million from $579.3 million, is indicative of Lamar's ability to attract clients looking to reach consumers in dynamic environments. The company’s adjusted EBITDA also saw a notable rise of 9.0%, reaching $303.4 million, reflecting improved operational efficiencies and demand for advertising space.

Lamar Advertising has raised its fiscal 2026 guidance, anticipating earnings per share between $5.95 and $5.99. Previously, projections were lower, estimating earnings per share at $5.72 to $5.83. The revised AFFO per share target now sits between $8.75 and $8.90, up from an earlier estimate of $8.50 to $8.70. This optimistic outlook suggests confidence in the ongoing recovery and growth within the advertising sector.

In pre-market trading, Lamar's shares rose by 0.52% to $159.00, reflecting investor optimism following the earnings report. The company’s strong performance and revised guidance may encourage further investments, positioning Lamar favorably for continued growth in a competitive market.