Lamar Advertising (6LA) Q2 2026 Earnings Report

The call conveyed broad, multi-channel momentum: revenue, adjusted EBITDA, digital growth, programmatic expansion, airport acceleration, and raised AFFO guidance and dividend, supported by a strong balance sheet and active M&A. Offsetting items include higher-than-expected expense growth (driven by variable costs), some category softness (real estate/amusements), and timing uncertainty for additional cost-savings from software initiatives. Overall the positives—record margins, double-digit digital growth, raised guidance, and healthy liquidity—materially outweigh the manageable headwinds.

Management raised full‑year diluted AFFO guidance to $8.75–$8.90 per share (a $0.22 midpoint increase, implying roughly 7% AFFO/share growth vs. 2025), with cash interest assumed at $155M (no short‑term rate change), maintenance CapEx budgeted at $65M and total CapEx ≈$186M, and cash taxes ≈$12M; they recommended a $0.05 quarterly dividend increase to $1.65 (Board approval pending) and expect at least $6.50 of regular dividends for the year (4.1% yield at yesterday’s close) with a likely year‑end special dividend to distribute 100% of taxable income. On the balance sheet they expect total leverage to hover around 3.0x net debt/EBITDA (secured <1x), reflecting ~ $3.5B consolidated debt, a weighted‑average interest rate of 4.5% and 4‑year weighted maturity, with $720M liquidity (cash $68M, revolver $652M) and $250M AR securitization outstanding; management retains >$1B deployment capacity and expects to exceed $200M of cash M&A spend for 2026.