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LAMR Beats Q3 AFFO Estimates, Reaffirms 2025 Outlook for Steady Growth

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Key Takeaways

  • LAMR's Q3 AFFO of $2.20 topped estimates and rose from $2.15 in the prior-year quarter.
  • Quarterly revenues grew 3.8% year over year to $585.5 million, surpassing consensus expectations.
  • LAMR reaffirmed 2025 AFFO guidance of $8.10-$8.20 per share, signaling steady full-year growth.

Lamar Advertising Company (LAMR - Free Report) reported third-quarter 2025 adjusted funds from operations (AFFO) per share of $2.20, which outpaced the Zacks Consensus Estimate of $2.14. The figure also compared favorably with the prior-year quarter's tally of $2.15.

Results reflect year-over-year growth in the top line and an uptick in national sales. LAMR also affirmed its full-year 2025 guidance. Reflecting positive sentiments, shares of the company gained 1.25% during yesterday’s trading session.

Quarterly net revenues of $585.5 million increased 3.8% on a year-over-year basis. The figure also surpassed the consensus mark of $583.8 million.

LAMR’s Q3 in Detail

Operating income of $189.1 million rose 1.3% from the year-ago period’s $186.6 million, while adjusted EBITDA increased 3.5% to $280.8 million. Acquisition-adjusted net revenues for the third quarter climbed 2.9% year over year. Acquisition-adjusted EBITDA grew 2% to $280.7 million.

The company’s free cash flow of $189.2 million decreased 4.5% year over year in the quarter.

LAMR’s Balance Sheet Position

The cash flow provided by operating activities for the three months ended Sept. 30, 2025 was $235.7 million, up from $227.4 million recorded in the previous year quarter.

As of Sept. 30, 2025, Lamar Advertising had total liquidity of $834.2 million. This comprised $742.2 million available for borrowing under its revolving senior credit facility, $70 million available for borrowing under the Accounts Receivable Securitization Program, and $22 million in cash and cash equivalents.

LAMR’s 2025 Outlook

LAMR affirmed its full-year 2025 guidance and expects AFFO to finish the year between $8.10 and $8.20 per diluted share. The Zacks Consensus Estimate presently stands at $8.14, within the projected range.

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 and EPS Surprise

Lamar Advertising Company price-consensus-eps-surprise-chart | Lamar Advertising Company Quote

Performance of Other REITs

OUTFRONT Media Inc. (OUT - Free Report) reported third-quarter 2025 AFFO per share of 57 cents, surpassing the Zacks Consensus Estimate of 50 cents. This compared favorably with the FFO of 49 cents a year ago. OUT’s results reflected a rise in transit revenues, led by an increase in average revenue per display (yield) and a higher adjusted OIBDA margin. However, a decline in billboard revenues affected OUT’s growth tempo to some extent.

Prologis, Inc. (PLD - Free Report) reported third-quarter 2025 core FFO per share of $1.49, beating the Zacks Consensus Estimate of $1.44. This compared favorably with the year-ago quarter’s figure of $1.43. Prologis’ quarterly results reflect a rise in rental revenues and healthy leasing activity. However, high interest expenses are an undermining factor for PLD.

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.


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