“Solid, but not spectacular,” was how Lamar Advertising CEO Sean Reilly described the company’s 2Q 2025 financials. Here are the results of the 2Q 2025 earnings release and conference call, sponsored and analyzed by SignValue.
- Net revenue increased 2.5% to $579 million. Organic growth was 1.9% for billboards, 11.7% for airports and 6.1% for logos. Lamar CEO Sean Reilly said the company is adjusting downwards revenue expectations for the last half of the year due the loss of the Vancouver bus contract and some revenue weakness. Local accounted for 79% of billboard revenue in Q2 and national accounted for 21% of revenue.
- Cashflow (EBIDTA) increased 2.5% to $278 million due to increased revenues.
- Lamar had $3.4 billion in debt at June 30, 2025 with a weighted average interest rate of 4.7% a weighted average debt maturity of 3.4 years and total leverage of 2.95 times EBITDA.
Sean Reilly says Lamar M&A is back
It’s been an active year on the M&A front. Through Q2 we had spent $87 million in cash on 20 acquisitions including the deal that we expect to close this morning bringing the year to date total to approximately $110 million in cash acquisitions.
Reilly on the Verde purchase and why it matters
in early July meanwhile we completed a milestone deal with the first ever UPREIT transaction in the billboard space…Verde outdoor contributed their billboards in the southeast northeast and Midwest to us. In return we issued nearly 1.2 million units in our operating partnership subsidiary to Verde’s owners. These units entitle them to the same cash distributions as common shareholders. Meanwhile the tax on their gains will be deferred until the units are converted to cash or Lamar shares…The UPREIT is a really compelling option for sellers who like the outdoor business but want to diversify their asset base in a tax efficient manner all the while enjoying income from our distribution. For that reason we expect that it will be a tool that we will use again and again..after we announced the Verde transaction with a very sophisticated family office seller in the Garcia family there were a lot of inbound calls and our the broker community is telling us that that people are very interested and that they want to better understand it.
Lamar CFO Jay Johnson says Lamar has a $1 billion checkbook
We have resumed more normal acquisition activity with an investment capacity over $1 billion…We have the ability to deploy this capital while remaining at or below the high end of our target leverage range of 3.5 to four times net debt to EBITDA.
SignValue’s Take: The Lamar UPREIT is a game changer if you are planning to sell your out of home company. It allows you to convert your company into dividend paying units in Lamar while deferring the capital gain until you sell the units. The the market was worried by lowered revenue expectations. Lamar declined 7.4% on a day when Clear Channel Outdoor declined 3.6%, Outfront declined 5.5% and the S&P 500 was up 0.8%.
If you have questions, contact one of SignValue’s experienced analysts for a free and confidential consultation at info@signvalue.com or call 480-657-8400.
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