Lamar raises 2026 AFFO forecast to $8.87 to $8.97 on Q3 sales growth

Lamar Advertising (LAMR) raised its 2026 forecast for AFFO per diluted share to $8.87 to $8.97, from $8.75 to $8.90 on Aug. 6. Third-quarter net revenues were $624.5 million, up 6.6% but below the $634.3 million consensus.

Shares rose 1.3% at 10:07 a.m. ET, from a $158.58 close.

Net income rose 14.5% to $165.0 million, and adjusted EBITDA rose 9.3% to $306.9 million.

Here's how the company did:

• Net revenues: $624.5 million vs. $585.5 million a year earlier, below the $634.3 million consensus
• Net income: $165.0 million vs. $144.1 million a year earlier
• Diluted earnings per share: $1.59 vs. $1.40 a year earlier
• Adjusted EBITDA: $306.9 million vs. $280.8 million a year earlier
• Diluted AFFO per share: $2.41 vs. $2.20 a year earlier

2026 guidance

The company now expects diluted earnings per share of $6.01 to $6.04 for 2026, and diluted AFFO per share of $8.87 to $8.97.

Chief executive Sean Reilly said the company's sales growth accelerated in the third quarter, buoyed by demand from national customers, its digital platform and political spend. He also pointed to a strong start to the fourth quarter.

Cash flow and liquidity

Operating cash flow was $284.1 million for the quarter, up $48.4 million. Free cash flow was $220.1 million, a $30.9 million increase.

As of Sept. 30, total liquidity was $721.1 million, including $54.1 million in cash and cash equivalents.

On Oct. 1, the company's subsidiaries extended the maturity of its accounts receivable securitization program to Oct. 1, 2029.

Nine-month results

Net revenues for the first nine months of 2026 were $1.77 billion, up 5.9% from $1.67 billion. Net income was $431.5 million, compared with $438.3 million.

Adjusted EBITDA for the nine months was $836.5 million, up 8.7% from $769.4 million.