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Outfront Media Inc. (NYSE:OUT), a $2.7 billion market cap outdoor advertising company, announced Monday a restructuring and workforce reduction plan that will eliminate approximately 120 positions, representing about 6% of the company’s total employees. According to InvestingPro data, the company currently offers an attractive 7.56% dividend yield and trades at a modest P/E ratio of 10.35. The company expects to complete the reduction by the end of the second quarter of 2025.
According to a statement released in an SEC filing, the restructuring is intended to support Outfront Media’s goals of increasing sales demand, enhancing customer experience, optimizing internal cost efficiencies, and realigning its organization.
The company estimates it will incur about $18.6 million in total restructuring charges related to the plan. This includes approximately $16.4 million in future cash expenditures, primarily for severance payments, employee benefits, and professional fees, with most of these costs expected to be paid over the next twelve months. An additional $2.2 million is anticipated as non-cash charges for stock-based compensation. Outfront Media stated it intends to exclude these charges from its non-GAAP financial measures.
The company projects annualized cost savings of approximately $18 million to $20 million as a result of the plan. Estimated cost savings for the 2025 fiscal year were included in the company’s previously issued financial guidance on May 8, 2025.
Outfront Media noted that the actual charges and cash expenditures may differ from current estimates due to various assumptions and potential unanticipated events during the implementation of the plan.
All information is based on a press release statement included in the company’s recent SEC filing.
In other recent news, Outfront Media reported its Q1 2025 earnings, revealing a miss on both earnings per share (EPS) and revenue expectations. The company posted an EPS of -$0.14, which was below the forecasted -$0.09, while revenue reached $390.7 million, falling short of the anticipated $396.14 million. Despite these setbacks, digital revenue showed resilience, increasing by nearly 7% and now making up 33% of the company’s total revenue. Meanwhile, TD Cowen’s Lance Vitanza adjusted the price target for Outfront Media to $18.00 from $20.00, maintaining a Hold rating due to factors like contract losses and economic uncertainty. Vitanza noted robust growth in digital and programmatic segments, which are increasingly important to advertisers seeking targeted and measurable advertising tools. Outfront Media’s digital and programmatic channels experienced significant growth, with programmatic sales up nearly 20% year-over-year. The company maintained its dividend at $0.30 per share, reflecting confidence in its cash flow. Looking ahead, Outfront Media expects Q2 revenue from billboards to remain flat or slightly decrease, while transit revenue is projected to increase modestly.
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