- Revenue Growth: Q4 revenue grew over 4% on acquisition-adjusted basis, driven by analog/digital billboards, airports, and logos.
- AFFO Performance: Exceeded full-year AFFO guidance with $8.26/share (3.4% YoY growth) and 2026 guidance of $8.50–$8.70/share (4.1% midpoint growth).
- Digital Expansion: Deployed 111 digital units in Q4, ending 2025 with 5,553 operating units, targeting similar growth in 2026.
- Acquisition Activity: Closed $191M in acquisitions in 2025 and $40M in Q1 2026, with 7 deals completed in early 2026.
- Balance Sheet Strength: Adjusted EBITDA of $288.9M (3.7% YoY) with 48.5% margin, 2.92x leverage ratio, and $1B+ investment capacity.
Operational Highlights
The company deployed 111 digital units in Q4, ending the year with 5,553 operating units, and targets similar internal digital deployments in 2026. LAMR also closed 13 acquisitions in Q4 for $57 million and 50 acquisitions for $191 million in 2025, demonstrating its continued focus on growth through strategic acquisitions.
Outlook and Guidance
For 2026, LAMR expects AFFO to be between $8.50 and $8.70 per share, representing year-over-year growth of 4.1% at the midpoint. The company anticipates acquisition-adjusted top-line growth of about 3.6%, with acquisition-adjusted operating expenses anticipated to grow modestly slower than revenue. Analysts estimate next year's revenue growth at 3.7%, in line with the company's guidance.
Valuation and Dividend
With a P/E Ratio of 23.11 and an EV/EBITDA of 14.46, LAMR's valuation appears reasonable. The company's dividend yield of 4.81% is attractive, with a proposed dividend of $1.60 per share for Q1 2026, totaling $6.40 per share for the year. The net debt to EBITDA ratio of 2.92x is manageable, and the company's investment capacity is over $1 billion.
Growth Drivers and Challenges
The pharma vertical is a growing area for LAMR, driven by changes in FDA rules and the ability to prove campaign efficacy using data. However, the company faces challenges from rising healthcare costs, which have grown at a high single-digit rate over the last three years. LAMR expects a benefit from political advertising of around $12-14 million this year, compared to $20 million in 2024.