Lamar Advertising Company LAMR reported first-quarter 2025 adjusted funds from operations (AFFO) per share of $1.60, which outpaced the Zacks Consensus Estimate of $1.54. The figure also compared favorably with the prior-year quarter's tally of $1.54.

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. LAMR has also reaffirmed its full-year 2025 outlook.

Quarterly net revenues of $505.4 million increased 1.5% on a year-over-year basis. However, it missed the consensus mark of $508.9 million.

LAMR’s First Quarter in Detail

Operating income of $191.2 million jumped 53.5% from the year-ago period’s $124.6 million, while adjusted EBITDA decreased 0.8% to $210.2 million.

Acquisition-adjusted net revenues for the first quarter climbed 1.1% year over year to $505.4 million from the year-ago period’s $500 million. Meanwhile, acquisition-adjusted EBITDA fell 1% to $210.2 million from the year-ago period’s $212.2 million.

Direct advertising expenses increased 2.2% year over year to $179.6 million during the reported quarter. General and administrative expenses jumped 7.3% year over year to $89.2 million in the reported quarter.

The company’s free cash flow of $121.4 million decreased 12.7% year over year in the quarter.

LAMR’s Balance Sheet Position

The cash flow provided by operating activities in the three months ended March 31, 2025 was $127.7 million compared with $279.3 million recorded in the previous quarter.

As of March 31, 2025, Lamar Advertising had a total liquidity of $491.3 million. This comprised $455.2 million available for borrowing under its revolving senior credit facility and $36.1 million in cash and cash equivalents. As of the same date, the outstanding balance under the company’s revolving credit facility totaled $286 million and $223.5 million under the Accounts Receivable Securitization Program.

LAMR’s 2025 Outlook

LAMR has maintained its 2025 AFFO per share guidance between $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 #4 (Sell).

You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Lamar Advertising Company Price, Consensus and EPS SurpriseLamar Advertising Company Price, Consensus and EPS Surprise

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

Performance of Other REITs

BXP Inc.’s BXP first-quarter 2025 FFO per share of $1.64 missed the Zacks Consensus Estimate of $1.65. BXP’s quarterly results reflected better-than-anticipated revenues on healthy leasing activity. However, lower occupancy during the quarter marred its year-over-year FFO per share growth. (See the Zacks Earnings Calendar to stay ahead of market-making news.)

Story Continues

SL Green Realty Corp. SLG reported a first-quarter 2025 FFO per share of $1.40, which surpassed the Zacks Consensus Estimate of $1.27. Results reflected improved average rental rates on the signed Manhattan office leases in the period and higher same-store cash NOI. However, elevated interest expenses undermined the results to some extent.

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.

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