Lamar Advertising Company (LAMR) Stock: Slides 3% Despite Strong Q4 Earnings and 2026 AFFO Outlook

TLDR

• Lamar drops 3.17% to $128.62, even as Q4 metrics climb.
• FY2025 revenue hits $2.27B as EBITDA tops $1.06B, guidance lifts.
• AFFO per share rose to $8.26, with 2026 seen at $8.50–$8.70.
• Liquidity stays strong at $807M, with revolver fully undrawn.
• Cash flow softened, but demand trends stayed firm into 2026.

Lamar Advertising Company (LAMR) shares ended lower as the stock closed at $128.62 after a sharp 3.17% drop. The decline followed the release of strong fourth-quarter and annual results that showed steady gains across core metrics. Yet the pullback contrasted with the Company’s positive 2026 forecast, which highlighted rising operational strength.

Lamar Advertising Company, LAMR

Q4 Performance Shows Steady Growth

Lamar posted higher net revenues for the quarter and the Company reported a 2.8% increase to $595.9 million. Operating income also rose sharply because the 2024 accounting adjustment significantly inflated the prior comparison. Net income moved to $154.7 million and this shift marked a clear turnaround from the 2024 loss.

Adjusted EBITDA advanced 3.7%, and the figure reached $288.9 million as core operations continued to expand. Lamar also lifted AFFO for the quarter, and the figure increased 1.8% to $230.6 million. Diluted AFFO per share reached $2.24, and this gain underscored stable demand across key markets.

Cash flow from operations dipped and reached $271.2 million for the quarter. Free cash flow also decreased slightly because spending patterns shifted through the period. FFO remained flat, and AFFO growth helped balance the quarter’s modest cash flow pressures.

Full-Year Results Strengthen Outlook

Net revenues for 2025 increased 2.7% to $2.27 billion, and this performance supported broader operational momentum. Operating income rose to $774.1 million, and this improvement aligned with better margins through the year. Net income reached $593.1 million, and this change reflected both the Vistar sale gain and the 2024 accounting impact.

Adjusted EBITDA for the year increased 2.4% and reached $1.06 billion. AFFO climbed 3.4%, and full-year diluted AFFO per share increased to $8.26. These results extended Lamar’s multi-year trend of stable financial expansion. Operational cash flow reached $864.0 million, and free cash flow moved to $696.6 million because investment levels shifted. FFO increased 3.6%, and the gains reinforced the Company’s growing earnings base. The performance supported Lamar’s 2026 diluted AFFO guidance of $8.50 to $8.70.

Liquidity Position Supports 2026 Plans

Lamar ended the year with $807.0 million in total liquidity, and this balance included $64.8 million in cash. The revolving credit facility remained fully available because the Company reported no borrowings. The Accounts Receivable Program held $250.0 million, and this amount reflected Lamar’s steady funding mix.

The strong liquidity position supported forward plans, and it provided flexibility across market cycles. The Company highlighted ongoing revenue momentum, and the statement aligned with rising local and national demand. These factors positioned Lamar for continued growth through 2026.

The stock still dropped sharply during the session, and the decline contrasted with the solid financial update. Market sentiment shifted quickly, and trading pressure overshadowed the underlying earnings strength. Nevertheless, the Company’s guidance signaled confidence, and operational trends remained positive.

The post Lamar Advertising Company (LAMR) Stock: Slides 3% Despite Strong Q4 Earnings and 2026 AFFO Outlook appeared first on CoinCentral.