Lamar Stock Falls Despite Q2 AFFO Beat, Revenues Increase Y/Y

Lamar Advertising Company LAMR reported second-quarter 2025 adjusted funds from operations (AFFO) per share of $2.22, which outpaced the Zacks Consensus Estimate of $2.15. The figure also compared favorably with the prior-year quarter's tally of $2.08.

Results reflect year-over-year growth in the top line. However, higher direct advertising and general and administrative expenses during the quarter acted as a dampener. Probably because of negative sentiments, shares of the company lost 4% during the initial hours of today’s trading session on the NYSE.

Quarterly net revenues of $579.3 million increased 2.5% on a year-over-year basis. However, it missed the consensus mark of $581.9 million.

LAMR’s Second Quarter in Detail

Operating income of $197.7 million jumped 7.3% from the year-ago period’s $184.2 million, while adjusted EBITDA increased 2.5% to $278.4 million.

Acquisition-adjusted net revenues for the second quarter climbed 1.9% year over year to $579.3 million from the year-ago period’s $568.4 million. Acquisition-adjusted EBITDA grew 2% to $278.4 million from the year-ago period’s $272.9 million.

Direct advertising expenses increased 2% year over year to $187.2 million during the reported quarter. General and administrative expenses jumped 2.8% year over year to $86.7 million in the reported quarter.

The company’s free cash flow of $199.1 million decreased 2.2% year over year in the quarter.

LAMR’s Balance Sheet Position

The cash flow provided by operating activities in the three months ended June 30, 2025, was $229.5 million compared with $127.7 million recorded in the previous quarter.

As of June 30, 2025, Lamar Advertising had a total liquidity of $363 million. This comprised $307.3 million available for borrowing under its revolving senior credit facility and $55.7 million in cash and cash equivalents. As of the same date, the outstanding balance under the company’s revolving credit facility totaled $434 million and $250 million under the Accounts Receivable Securitization Program.

LAMR’s 2025 Outlook

LAMR has revised its 2025 AFFO per share guidance between $8.10 and $8.20 compared to the prior guided range of $8.13 and $8.28. The Zacks Consensus Estimate presently stands at $8.19, within the projected range.

LAMR’s Zacks Rank

Lamar currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Lamar Advertising Company Price, Consensus and EPS Surprise

Lamar Advertising Company price-consensus-eps-surprise-chart | Lamar Advertising Company Quote

Performance of Other REITs

Crown Castle Inc. CCI reported second-quarter 2025 AFFO per share of $1.02, which beat the Zacks Consensus Estimate of $1.00. However, the figure declined nearly 1% year over year.

Results reflected a rise in services and other revenues year over year. However, a decline in site rental revenues affected the results to some extent. CCI increased its outlook for 2025.

Prologis, Inc. PLD reported second-quarter 2025 core funds from operations (FFO) per share of $1.46, outpacing the Zacks Consensus Estimate of $1.41. This compares favorably with the year-ago quarter’s figure of $1.34.

The quarterly results reflected a rise in rental revenues and healthy leasing activity. However, high interest expenses are an undermining factor for PLD.

Note: Anything related to earnings presented in this write-up represents funds from operations (FFO), a widely used metric to gauge the performance of REITs.

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

This article originally published on Zacks Investment Research (zacks.com).

Zacks Investment Research