Company Overview

Lamar Advertising Company, founded in 1902, is one of the world's largest outdoor advertising companies, operating primarily across the United States and Canada. Headquartered in Baton Rouge, Louisiana, Lamar stands as a dominant force in the outdoor advertising sector, boasting approximately 363,000 displays nationwide. The company's operations are segmented into three key areas: Billboard, Logo, and Transit Advertising. Lamar provides a diverse range of advertising formats, including traditional bulletins, posters, digital billboards, interstate logo signs, and transit advertising integrated into public transportation vehicles, airport terminals, and street furniture. This extensive network allows both local businesses and national brands to effectively reach broad audiences.

A significant competitive advantage for Lamar lies in its substantial digital billboard network, the largest in the United States, comprising over 5,200 digital displays. As of Q2 2025, this number reached 5,255 units, demonstrating ongoing expansion.

Financial Performance and Market Position

Lamar Advertising Company has demonstrated consistent financial growth, particularly in its revenue. The company operates as a Real Estate Investment Trust (REIT), focusing on outdoor advertising infrastructure. This resilient sector is largely insulated from the cord-cutting trends impacting traditional media. Lamar's extensive network, coupled with its digital capabilities and strategic acquisitions, positions it to capitalize on the evolving advertising landscape while maintaining stable cash flows from its diversified asset portfolio.

Recent Financial Performance

#### Q2 2025 Results

Lamar reported net revenues of $579.3 million for Q2 2025, reflecting a 2.5% increase year-over-year. Net income for the quarter reached $155.0 million, up 12.7% from $137.6 million in the prior year. Adjusted EBITDA also saw a 2.5% increase, totaling $278.4 million. This quarter marked the company's 17th consecutive quarter of acquisition-adjusted revenue growth, with accelerated growth observed across local and national levels, and in billboards, airports, and logos.

#### First Half 2025 Performance

For the first half of 2025, net revenues amounted to $1.08 billion, a 2.0% increase from $1.06 billion in the same period of 2024. Net income for the six months was $294.2 million, a substantial 36.2% increase from $216.1 million in the prior year. This significant uplift was primarily driven by a $67.8 million gain from the sale of Lamar's equity interest in Vistar Media, Inc.

Key Financial Metrics

Lamar Advertising Company's market capitalization stands at $12.75 Billion. The company maintains strong financial health, with key metrics including:

• Total Consolidated Debt: Approximately $3.4 billion, with a weighted average interest rate of 4.7%.

• Total Leverage: 2.95x net debt-to-EBITDA, representing one of the company's lowest leverage levels historically.

• Interest Coverage: Improved to 6.8x adjusted EBITDA to cash interest.

• Liquidity: $363 million in total liquidity, which includes $56 million of cash on hand.

Business Operations and Production Capacity

Lamar's core business involves renting advertising space on various formats, including bulletins, posters, digital billboards, and logo signs. Their prime locations, often near highway exits, and integration onto public transportation, airport terminals, and transit shelters, ensure high visibility for advertisers. The company's extensive digital billboard network is a critical operational asset, with over 5,200 digital displays actively enhancing advertising capabilities.

Product Portfolio and Market Strategy

The company's advertising portfolio is structured around three main segments:

- Billboard: Traditional and digital billboards in high-traffic areas.

- Logo: Signs located near highway exits, often featuring company logos.

- Transit Advertising: Advertisements displayed on public transportation vehicles (buses, trains), airport terminals, and transit shelters.

This diverse offering allows Lamar to cater to a broad spectrum of advertiser needs, from local businesses seeking regional visibility to national brands aiming for wide-reaching campaigns.

Future Growth Plans and Strategic Initiatives

Lamar Advertising Company actively pursues strategic initiatives to drive growth and enhance shareholder value.

UPREIT Transaction

In early July 2025, Lamar completed a significant UPREIT transaction, the first of its kind in the billboard industry. This acquisition included over 1,500 billboard faces across ten states through the Verde Outdoor deal. The successful adoption of the UPREIT structure is expected to bolster acquisition capabilities, support ongoing market consolidation, and yield operational leverage and long-term cost efficiencies.

Share Repurchase Program

Following the completion of $150 million in stock repurchases, Lamar's board has approved an additional $150 million increase to its stock repurchase authorization. This brings the total amount available for future repurchases to $250 million.

Digital Transformation and Growth Drivers

The company is heavily invested in digital transformation and innovation. Digital billboard revenue grew 4% year-over-year, now constituting 30% of total billboard revenue. Programmatic advertising has also seen robust growth, with a 30% year-over-year jump, contributing $2 million to the top line. Key drivers for sustained growth include:

- Expansion of digital and programmatic offerings.

- Strong performance in local ad sales.

- Outperforming airport and logo units.

- Solid local and regional demand across its network.

Revenue Mix and Market Position

The revenue mix in Q2 2025 highlighted the stability provided by local markets, with local and regional sales accounting for approximately 79% of billboard revenue. The airport and logos division demonstrated exceptional performance, significantly outpacing the broader portfolio with revenue growth of 11.7% and 6.1%, respectively. This diversified revenue stream strengthens Lamar's market position.

Guidance and Outlook

The company has adjusted its guidance for full-year diluted adjusted funds from operations (AFFO) per share to a range of $8.10 to $8.20. Lamar anticipates a regular dividend of at least $6.20 per share for the full year. Management's projections indicate a likelihood of further year-over-year revenue improvement in the second half of 2025, though potentially at a slightly moderated pace compared to earlier expectations.

Investment Considerations

Lamar Advertising Company operates as a unique REIT focused on the outdoor advertising sector. This industry offers defensive characteristics due to long-term contracts and the essential nature of advertising real estate in high-traffic locations. Unlike many traditional media outlets, outdoor advertising is not directly impacted by shifts away from linear television or print. Lamar's extensive network, advanced digital capabilities, and strategic acquisition approach position it favorably to capitalize on market trends, deliver consistent cash flows, and maintain its leadership in the outdoor advertising space.