Nasdaq:LAMR
LAMAR ADVERTISING CO/NEW
A dominant player in the North American outdoor advertising sector providing high-impact visual marketing solutions through extensive transit and property networks.
Key Metrics
Investment Thesis
Bull Case
Lamar offers exposure to the resilient digital-out-of-home advertising market with a proven track record of profitability and strong cash flow generation relative to its asset base. Investors benefit from the company's dominant market position which provides pricing power and stable recurring revenue streams essential for long-term growth.
Bear Case
The company carries a high debt load with $3.17B in long-term debt, creating vulnerability to rising interest rates and potential credit tightening that could constrain flexibility. Significant cash outflows from financing activities indicate aggressive debt management or refinancing needs that may pressure free cash flow in the near term.
About LAMAR ADVERTISING CO/NEW
Lamar Advertising Co. is a leading full-service outdoor advertising agency operating primarily in North America, delivering integrated media solutions across transit, digital, and traditional billboards.
Analysis
Management Discussion
Lamar generated $2.27B in revenue in 2025 with a net profit of $593.1M, demonstrating strong operational leverage despite a notable dip in 2024 profits to $362.9M. The company successfully converted significant cash from operations ($864.0M) while managing substantial capital expenditures ($180.8M) and debt refinancing activities totaling over $1B.
Industry Overview
The outdoor advertising industry is transitioning rapidly towards digital-out-of-home (DOOH) solutions, offering advertisers real-time targeting capabilities while traditional static billboards remain a staple for brand awareness. Market consolidation continues as larger players leverage data and technology to outperform smaller, less diversified competitors.
Financial Statements
Income Statement
Balance Sheet
Cash Flow
| Metric | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|
| Revenue | $2.03B | $2.11B | $2.21B | $2.27B |
| Cost of Revenue | $667.3M | $696.8M | $727.9M | $746.9M |
| Gross Profit | $1.36B | $1.41B | $1.48B | $1.52B |
| Operating Expenses | $786.9M | $738.8M | $947.2M | $745.3M |
| Operating Income | $578.0M | $675.4M | $532.0M | $774.1M |
| G&A | $350.6M | $344.8M | $361.1M | $368.7M |
| Stock-Based Comp | $23.1M | $22.6M | $44.5M | $34.0M |
| Amortization | $134.3M | $140.0M | $141.9M | $144.4M |
| Other OpEx | $436.2M | $394.0M | $586.1M | $376.6M |
| Non-Operating Income | $-121.9M | $-168.8M | $-164.6M | $-159.7M |
| Interest Expense | $127.5M | $174.5M | — | — |
| Interest Income | $1.3M | $2.1M | $2.3M | $2.6M |
| Pre-Tax Income | $456.1M | $506.6M | $367.5M | $614.4M |
| Income Tax | $17.5M | $9.8M | $4.5M | $21.3M |
| Continuing Ops | $438.6M | $496.8M | $362.9M | $593.1M |
| Discontinued Ops | $0 | $0 | $0 | $0 |
| Net Income | $438.6M | $496.8M | $362.9M | $593.1M |
| Minority Interest | $0 | $1.1M | $1.1M | $5.9M |
| Net to Common | $438.6M | $495.8M | $361.9M | $587.2M |
| Metric | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|
| Current Assets | $364.6M | $373.2M | $425.3M | $459.7M |
| Cash & Equivalents | $52.6M | $44.6M | $49.5M | $64.8M |
| Accounts Receivable | $285.0M | $301.2M | $334.8M | $341.2M |
| Other Current Assets | $26.9M | $27.4M | $41.0M | $53.7M |
| Long-Term Assets | $6.11B | $6.19B | $6.16B | $6.47B |
| PP&E (Net) | $1.50B | $1.57B | $1.60B | $1.68B |
| Goodwill | $2.04B | $2.04B | $2.04B | $2.11B |
| Operating Leases | $1.27B | $1.32B | $1.36B | $1.50B |
| Other LT Assets | $1.30B | $1.27B | $1.17B | $1.18B |
| Total Assets | $6.48B | $6.56B | $6.59B | $6.93B |
| Current Liabilities | $726.0M | $713.9M | $778.5M | $794.0M |
| Accounts Payable | $19.6M | $18.2M | $21.6M | $16.5M |
| Current Debt | $249.8M | $250.0M | $249.8M | $250.0M |
| Current Leases | $205.8M | $210.6M | $218.1M | $232.5M |
| Deferred Revenue | $131.8M | $126.5M | $153.7M | $155.1M |
| Other Current Liab | $1.3M | $1.3M | $1.3M | $1.3M |
| Long-Term Liabilities | $4.55B | $4.63B | $4.76B | $5.11B |
| Long-Term Debt | $3.06B | $3.09B | $2.96B | $3.17B |
| LT Operating Leases | $1.04B | $1.08B | $1.11B | $1.25B |
| Other LT Liab | $455.1M | $466.5M | $684.6M | $690.2M |
| Total Liabilities | $5.28B | $5.35B | $5.54B | $5.91B |
| Shareholders' Equity | $1.20B | $1.22B | $1.05B | $1.02B |
| Retained Earnings | $-804.4M | $-819.2M | $-1.04B | $-1.11B |
| AOCI | $-659.0K | $-428.0K | $-3.0M | $-2.8M |
| Total L&E | $6.48B | $6.56B | $6.59B | $6.93B |
| Metric | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|
| Net Income (CFO) | $438.6M | $496.8M | $362.9M | $593.1M |
| Non-Cash Adjustments | $233.7M | $267.9M | $197.8M | $242.2M |
| Working Capital Changes | $109.3M | $18.8M | $312.9M | $28.8M |
| Cash from Operations | $781.6M | $783.6M | $873.6M | $864.0M |
| Capital Expenditures | $167.1M | $178.3M | $125.3M | $180.8M |
| Cash from Investing | $-619.1M | $-310.1M | $-164.9M | $-244.6M |
| Debt Issuances | $0 | — | — | — |
| Debt Repayments | $365.0K | $381.0K | $400.0K | — |
| Share Buybacks | $10.5M | $6.0M | $5.3M | $157.9M |
| Cash from Financing | $-209.3M | $-481.6M | $-703.4M | $-604.3M |
| FX Effect | $-391.0K | $127.0K | $-423.0K | $252.0K |
| Net Change in Cash | $-47.2M | $-8.0M | $4.9M | $15.4M |
| Beginning Cash | $99.8M | $52.6M | $44.6M | $49.5M |
| Ending Cash | $52.6M | $44.6M | $49.5M | $64.8M |
Frequently Asked Questions
How does LAMAR ADVERTISING CO/NEW make money?
The company operates through three primary segments: Transit Advertising (billboards on buses, trains, taxis, and shuttles), Property Media (digital and static billboards at key intersections), and Digital Media (mobile apps and connected advertising platforms).
What are the main risks for LAMR?
Economic downturns reducing discretionary ad spend, regulatory changes affecting digital out-of-home (DOOH) operations, high debt levels requiring significant interest payments, and potential shifts in consumer mobility patterns impacting transit ad demand.
What is LAMR's competitive advantage?
Unmatched network scale with over 160,000 media assets across North America, strong data analytics capabilities for targeted campaigns, and a diversified revenue mix reducing reliance on any single channel.
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Not financial advice. All content is for informational purposes only. Data may contain errors. Consult a qualified financial advisor before making investment decisions.