Abstract

Lamar Advertising Company will report fourth-quarter results on February 20, 2026, Pre-Market, and this preview summarizes current-quarter forecasts, the prior-quarter scorecard, and the key drivers that could shape reported revenue, margins, and adjusted EPS.

Market Forecast

Consensus-style projections embedded in company-facing estimates point to fourth-quarter revenue of $592.45 million, adjusted EPS of $1.63, and EBIT of $204.71 million, implying year-over-year growth of 1.59% for revenue, 11.30% for adjusted EPS, and 4.21% for EBIT. Profitability expectations implicitly assume stable to modestly improving operating efficiency versus last year; explicit gross margin and net margin guidance has not been disclosed for the quarter.

Management’s core operating mix remains anchored by Billboards (last quarter: $524.77 million) with steady contributions from Transit ($38.58 million) and Logo programs ($22.20 million). The most promising growth vector is Billboards given its scale and operating leverage, with last quarter revenue of $524.77 million; year-over-year detail by segment was not available.

Last Quarter Review

In the previous quarter, Lamar Advertising reported revenue of $585.54 million, a gross profit margin of 67.94%, GAAP net income attributable to the company of $142.00 million, a net profit margin of 24.21%, and adjusted EPS of $1.40, with year-over-year growth of 3.79% for revenue and a 2.78% decline for adjusted EPS; net income decreased 8.16% quarter over quarter.

A notable financial highlight was solid top-line performance modestly ahead of expectations despite a slight miss on adjusted EPS, indicating healthy core demand alongside cost or mix headwinds. From a business-mix perspective, Billboards remained the dominant revenue stream at $524.77 million, followed by Transit at $38.58 million and Logo programs at $22.20 million; year-over-year growth by segment was not disclosed.

Current Quarter Outlook (with major analytical insights)

Core Billboards: Scale, Pricing Resilience, and Operating Leverage

Billboards remain the economic engine of Lamar Advertising, contributing the overwhelming share of consolidated revenue and margins. With the current quarter’s revenue estimate of $592.45 million and adjusted EPS estimate of $1.63, the implied setup suggests modest top-line expansion and earnings leverage consistent with measured pricing and occupancy stability across the core portfolio. Given the prior quarter’s 67.94% gross margin and 24.21% net margin, incremental performance in Billboards will likely be a decisive factor for consolidated margin progression. The billboard format typically offers pricing flexibility and contracted visibility that cushion short-term swings; however, any softening in regional ad budgets would most clearly show up in panel occupancy and rate realization. In the context of a 1.59% projected revenue increase and an 11.30% EPS increase, even small improvements in yield or fill rates across large-market boards can produce outsized bottom-line effects in the quarter. Investors will watch for commentary on pricing strength and demand from national versus local accounts as a bellwether for how the rest of the year could evolve.

Transit and Logos: Niche Growth and Contract Visibility

Transit and Logos together accounted for roughly $60.78 million last quarter, reflecting a smaller but strategically important footprint that diversifies end-market exposure and contract profiles. Transit programs often benefit from multi-year municipal or agency partnerships, which can provide visibility but may also face timing gaps tied to contract renewals and capital cycles. Logos—often tied to on-premise or highway signage programs—can generate stable, recurring revenue and attractive returns given a distinct customer base and location advantages. In the current quarter, these segments are unlikely to be primary drivers of revenue upside given their relative scale, but they can influence margin mix and cash conversion depending on renewal cadence and project timing. The strategic importance of these units lies in smoothing the revenue profile, supporting bundled customer solutions, and providing an avenue for incremental growth without materially increasing risk concentration in any one format.

Key Stock Price Swing Factors: Volume-Mix vs. Cost Discipline

The quarter’s most important swing variables are likely to be revenue mix and operating cost discipline. A revenue increase of 1.59% alongside an 11.30% rise in adjusted EPS implies positive operating leverage, which in turn depends on maintaining occupancy and rates in the higher-margin portions of the portfolio, particularly Billboards. If revenue mix tilts towards lower-yield inventory, the EPS sensitivity could work in the opposite direction. Additionally, underlying cost components—energy, maintenance, and SG&A—will determine how much of the incremental revenue converts to profit. Seasonal effects and any one-off items could also impact adjusted EPS, given that last quarter’s adjusted EPS was $1.40 with a 2.78% year-over-year decline, indicating sensitivity to expense timing and margin mix. Market reaction will likely focus on commentary around demand pacing into March, visibility on bookings, and whether any acquisition activity (such as recent regional asset additions) is expected to contribute measurably to run-rate revenue and margin in the near term.

Analyst Opinions

Published previews and rating updates specific to the upcoming quarter were not available in the covered period from January 1, 2026 to February 13, 2026, leaving no discernible majority between bullish and bearish stances. In the absence of clear institutional positioning, investor focus is likely to remain on the company’s own quantitative setup—revenue growth of 1.59%, adjusted EPS growth of 11.30%, and EBIT growth of 4.21%—and how management frames demand and pricing resilience across its billboard footprint when results are released. Absent explicit calls from major brokers, the direction of revisions post-release will probably hinge on whether management’s qualitative commentary supports sustained margin carry-through into the first half of 2026.