Lamar Advertising Company Q3 FY2025 earnings call

• Consolidated revenue growth improved to 2.9% acquisition-adjusted, led by national/programmatic with 5.5% growth. Local had low single-digit year-over-year growth. • Categories of strength: services, health care, financial; weaker: beverages, real estate, government/nonprofit. • Pharmaceutical buy launched in Q3, digital platform popular with 5% growth in billing. • M&A: Verde integration going well, Q3 closed 18 purchases for ~$47M, year-to-date cash spend ~$134M, full year acquisition spend ~$300M including Verde. • Capital markets: raised $1.1B, refinanced Term Loan B to $700M, accessed high-yield bond market, total liquidity $834M. • Adjusted EBITDA $280.8M, AFFO per share $2.20, full year AFFO guidance $8.10-$8.20.

Consolidated revenue growth improved to 2.9% on an acquisition-adjusted basis. National/programmatic led growth at 5.5%, with local at 1.6%. Categories of strength included services, health care, and financial; beverages, real estate, and government/nonprofit were weaker. Digital billing grew 5%, representing 31% of billboard billing. Local and regional sales accounted for approximately 78% of billboard revenue in Q3, growing for the 18th consecutive quarter.

• Pacing to reach full year AFFO per share guidance. • Q4 national likely flattish ex-political but up nicely ex-political. • Full year AFFO per share expected between $8.10 and $8.20. • Total CapEx expected $180M with maintenance CapEx $60M. • Leverage expected to remain at 3x net debt to EBITDA.

• Macroeconomic uncertainty. • Political uncertainty impacting government/nonprofit category. • National can be lumpy. • Dependence on key customers and verticals.

Q: How are you thinking about the growth opportunity and M&A in 2026?

A: Acquisition activity is good, 2026 setup is real good with momentum from 2025 spend, political tailwind, and stronger pacings.

Q: Is AI influencing national growth?

A: Enterprise conversion for AI benefits in 2027, AI helps with words and pictures relevant to out-of-home.

Q: How does Verde acquisition compare to Vancouver exit?

A: Verde has better EBITDA flow-through than Vancouver's low contribution.

Q: Political in midterm vs presidential?

A: 2022 political YTD ~$21M vs 2021 ~$7.9M, off-presidential different.

Q: Impact of World Cup 2026?

A: Positive, combined with political gives optimism.

Q: Vistar sale distribution?

A: All cash special distribution around $0.25 in Q4.

Q: Sustainability of national customer growth?

A: Good momentum from large accounts and 2026 plans.

Q: Airport RFP bids?

A: Will pursue middle market airport RFPs, specialize in smaller ones.