Lamar Advertising Company (Nasdaq: LAMR), an owner and operator of outdoor advertising and logo sign displays, for the fourth quarter and year ended December 31, 2025, reported year-over-year increases in net revenues and adjusted earnings metrics. Shares of the stock were trading at $130.18, representing a decrease of $2.65, or 1.97%, during morning market hours on the day of the financial release.
Quarterly Results
Net revenues for the final three months of 2025 reached $595.9 million, representing a 2.8% increase compared to $579.6 million during the same period in 2024. The business recognized net income of $154.7 million, or $1.50 per diluted share, a recovery from a net loss of $1.0 million, or $0.01 per diluted share, in the prior year. Operating income rose to $196.1 million from $36.7 million. Adjusted EBITDA for the quarter advanced 3.7% to $288.9 million, while adjusted funds from operations increased 1.8% to $230.6 million.
Annual Performance Context
For the full 12 months of 2025, total revenue was $2.27 billion, climbing 2.7% from $2.21 billion in 2024. Annual net income jumped 63.4% to $593.1 million, equating to $5.77 per diluted share, up from $362.9 million, or $3.52 per diluted share, in the previous year. Adjusted EBITDA for the 12-month period expanded 2.4% to $1.06 billion. Cash flow provided by operating activities was $864.0 million, a slight decrease from $873.6 million, while free cash flow contracted by 5.3% to $696.6 million.
Business and Operations Update
Total liquidity stood at $807.0 million at the end of the year, consisting of $64.8 million in cash and cash equivalents and $742.2 million available under a revolving senior credit facility. Capital expenditures for the year totaled $180.8 million, up from $125.3 million previously. Net profit was positively impacted by a $68.6 million gain from the sale of an equity interest in Vistar Media, Inc., as well as an additional $159.7 million depreciation expense recorded in 2024. Chief executive Sean Reilly stated, “We ended 2025 with encouraging sales momentum, with growth in both local and national in the fourth quarter, even with a tough political comp”.
Forward Outlook
Management provided guidance for the upcoming fiscal year regarding earnings metrics. “We expect net income per diluted share for fiscal year 2026 to be between $5.72 and $5.83, with diluted AFFO per share between $8.50 and $8.70”.
Performance Summary
The recent earnings report indicates a period of top-line revenue expansion alongside a return to positive quarterly net earnings. The absence of significant prior-year depreciation expenses, combined with gains from equity interest sales, improved the overall annual profitability metrics. Available borrowing capacity and cash reserves provide ongoing liquidity following the conclusion of the fiscal year.