Outfront Media Earnings Call Highlights Growth in Transit and Digital

Outfront Media Inc ((OUT)) has held its Q3 earnings call. Read on for the main highlights of the call.

The recent earnings call for Outfront Media Inc. painted a positive picture, highlighting strong growth in transit and digital revenues, which helped counterbalance some challenges in billboard revenues and weaker performances in certain categories. The company showcased significant growth in OIBDA and AFFO, and expressed optimism for the remainder of the year.

Strong Transit Segment Growth

The transit segment was a standout performer in Q3 2025, with revenue surging by 24%. This growth was primarily driven by the New York MTA, which saw an impressive 37% increase. The success was fueled by large campaigns across various sectors including tech, finance, consumer packaged goods (CPG), pharma, and health.

Significant Increase in Digital Revenue

Digital transit revenues experienced a remarkable growth of over 50%, reaching $56 million. Overall, digital revenue performance increased by over 12% for the quarter, now representing 35.4% of total revenues, underscoring the company’s successful digital transformation strategy.

Impressive OIBDA and AFFO Growth

Outfront Media reported a consolidated OIBDA increase of 17% to $137 million, alongside a 24% rise in AFFO to $100 million. These figures highlight the company’s robust operational performance and financial health.

Billboard Adjusted OIBDA Margin Improvement

Despite challenges in billboard revenues, the adjusted OIBDA margin for billboards improved by 170 basis points year-over-year, reaching 39.5%. This indicates enhanced operational efficiency within this segment.

Increased AFFO Guidance

The company raised its AFFO guidance for the full year 2025 to high single-digit growth, up from the previous mid-single-digit expectation, reflecting confidence in continued financial performance improvements.

Decline in Billboard Revenues

Billboard revenues saw a decline of 2.2%, attributed to the exit of two large, marginally profitable contracts in New York and L.A. However, excluding these exits, billboard revenues would have shown a modest increase.

Weaker Performance in Certain Categories

Certain revenue categories, including retail, alcohol, and government political sectors, underperformed during the quarter, presenting areas for potential improvement in future quarters.

Forward-Looking Guidance

Looking ahead, Outfront Media anticipates continued growth, with fourth-quarter revenues expected to rise in the low to mid-single digits. This outlook is supported by mid-teens growth in transit revenues, despite the strategic exit from certain billboard contracts. The company has also successfully refinanced its senior secured credit facilities, enhancing liquidity and financial stability.

In summary, Outfront Media Inc.’s earnings call conveyed a positive sentiment, with strong growth in transit and digital revenues driving overall performance. Despite some challenges in billboard revenues and specific categories, the company’s strategic initiatives and financial health position it well for future growth.