Boston Omaha Corporation (BOC): PESTLE Analysis [Nov-2025 Updated]

You're looking for a clear, no-nonsense breakdown of the external forces shaping Boston Omaha Corporation (BOC) right now. As a diversified holding company with interests in billboards, broadband, and insurance, BOC faces a complex mix of localized regulatory risk and macro-level economic headwinds in late 2025. The core takeaway is this: while their billboard and broadband segments benefit from local market monopolies and infrastructure demand, the investment and insurance arms are being actively squeezed by persistent, elevated interest rates and underwriting challenges.

Political Factors: Local Moats and Federal Tailwinds

For a company like Boston Omaha Corporation, political risk is highly decentralized. The most critical factor is local zoning laws, which create high barriers to entry for new billboard faces. This is a huge competitive moat for their Link Media Outdoor subsidiary. The political action you need to watch is at the city council level, focusing on approval for digital billboard conversions.

On the flip side, federal and state funding/subsidies are a clear tailwind, actively driving growth for the fiber broadband segment. Also, the new US administration is directing agencies to roll back certain environmental regulations, which could slightly ease operational compliance. BOC's $30 million share repurchase program is governed by SEC Rule 10b5-1 (a rule that allows company insiders to set up a pre-arranged trading plan), so compliance here is non-negotiable.

Local politics is the biggest moat for their billboard business.

Economic Factors: The Rate Squeeze

The persistent, elevated interest rate environment is the single biggest near-term headwind. Long-term US interest rates remain high, with the 10-year Treasury at approximately 4.47% as of May 2025. Here's the quick math: high borrowing costs reduce profit margins and create refinancing risk, especially for BOC's real estate funds.

The company is still in a growth phase, reporting a Q3 2025 net loss of $2.59 million, continuing a trend of negative earnings as they invest heavily. Plus, the insurance segment is pressured by a higher loss ratio and increased reserve additions, a direct hit to underwriting profitability. Still, cash inflow from operations for the nine months ended September 30, 2025, was a positive $12.1 million, which buys them time to execute their strategy.

High rates are squeezing margins across the board.

Sociological Factors: Digital Demand vs. Public Scrutiny

Consumer demand is a clear opportunity for the broadband segment, as the growing need for high-speed fiber internet drives expansion in new residential developments. People want fast internet, period. However, the shift to efficient digital services is defintely raising customer expectations for fast surety bond issuance, putting pressure on the insurance arm to modernize.

Conversely, there is increased public and regulatory scrutiny of light pollution from digital billboards, which could slow down the pace of digital conversions and increase local friction. Also, BOC's billboard revenue is tied to the strength of local and regional advertising budgets, which can be volatile if the economic outlook softens.

Fast internet demand is a tailwind, but light pollution is a headwind.

Technological Factors: Slow Conversion, High Investment

The technology story is one of capital expenditure and future upside. The broadband segment is aggressively building out fiber-to-the-home (FTTH) infrastructure, which is a future-proof technology but requires massive upfront capital. This is a long-term play.

For Link Media Outdoor, only 107 of their 7,570 advertising faces are digital displays. This low-cost, slow-conversion strategy limits immediate revenue upside, but the digital billboards they do have enable dynamic pricing and real-time ad changes, increasing revenue per face significantly. The surety insurance arm is also facing digital transformation pressure to adopt Artificial Intelligence (AI) for underwriting and claims processing to stay competitive on speed.

The opportunity is in digital conversion, but the cost is in fiber buildout.

Legal Factors: Regulation as a Competitive Advantage

The legal landscape reinforces BOC's competitive position. Billboard operations are highly restricted by local zoning and permitting requirements, such as distance from residential zones. This complexity is a core part of their competitive advantage-it raises the bar for new entrants.

The US Supreme Court affirmed local governments' right to regulate off-premises billboards more strictly than on-premises signs, which reinforces the power of local authorities over BOC's core asset class. Separately, state-level insurance regulation dictates capital requirements and operational rules for the surety business (General Indemnity Group). The good news is that federal climate disclosure rules from the SEC are currently stayed due to litigation, reducing an immediate reporting burden.

Regulation is a barrier to entry, which is a good thing for existing assets.

Environmental Factors: Energy Cost and Light Pollution

The primary environmental risk is operational cost. Digital billboards are energy-intensive; one unit can consume the electricity of up to 15 homes in 24 hours, creating a significant carbon footprint risk and a direct operational expense. This also feeds into the increased focus on light pollution and its impact on local ecosystems and residential areas, which can lead to restrictive zoning.

The opportunity exists to adopt solar-powered billboards and energy-efficient LED technology to mitigate this energy consumption. What this estimate hides is the cost of retrofitting existing inventory. The new US administration is signaling a less aggressive federal stance on new Environmental, Social, and Governance (ESG) mandates, which temporarily eases reporting and compliance pressure.

Energy consumption is a cost problem hidden in an environmental problem.

Finance: Model the Return on Investment (ROI) of accelerating digital billboard conversions by 15% over the next 18 months by Friday.

Boston Omaha Corporation (BOC) - PESTLE Analysis: Political factors

Local zoning laws create high barriers to entry for new billboard faces.

The core political dynamic for Boston Omaha Corporation's (BOC) Link Media Outdoor segment is hyper-local, focusing on city and county zoning boards. This decentralized political risk is actually a massive competitive advantage, creating a high barrier to entry for competitors. Getting a permit for a new billboard face, which is classified as an outdoor advertising sign in most jurisdictions, is notoriously difficult. You have to navigate stringent local ordinances that regulate everything from spacing to size and height.

For example, a typical ordinance might require a new sign to be no less than 500 feet from any other outdoor advertising sign at street intersections and at least 300 feet from a residential zoning district boundary. These rules effectively cap the supply of new inventory, which is why Link Media Outdoor's existing network of 7,570 advertising faces, including 107 digital displays as of Q2 2025, is so valuable. It's a classic case of grandfathered assets-the political fight is already won.

Political risk is decentralized, focusing on city council approval for digital billboard conversions.

The primary growth lever in outdoor advertising is converting static billboards to higher-revenue digital displays. This is where BOC's political risk is concentrated. The conversion process often requires a Conditional Use Permit (CUP) or a zoning variance from the local city council or planning commission. This is a political fight, not a technical one.

The local nature of the approval process means the company must manage relationships across hundreds of municipalities, not just one federal agency. The political risk is not a single, catastrophic federal law change, but a slow, grinding battle for each digital conversion. That's a defintely manageable risk profile for a seasoned operator.

Federal and state funding/subsidies drive growth for the fiber broadband segment.

The political environment for BOC's Boston Omaha Broadband segment is a massive tailwind, driven by unprecedented federal and state funding aimed at closing the digital divide. The Infrastructure Investment and Jobs Act (IIJA) is the main catalyst, allocating $65 billion for broadband, with the Broadband Equity, Access, and Deployment (BEAD) Program receiving the lion's share-specifically $42.45 billion-to expand high-speed internet to unserved and underserved areas.

This funding is a direct subsidy for BOC's expansion strategy, which focuses on developing fiber infrastructure in these non-competitive, high-subsidy areas. In Q2 2025 alone, the broadband segment invested $6.6 million in capital expenditures and added approximately 2,100 new fiber passings and 700 new fiber subscribers, demonstrating the immediate impact of this politically-driven capital flow. The Affordable Connectivity Program (ACP), which provides a monthly $30 discount on internet service for low-income households, is another key political factor that helps drive consumer adoption.

New US administration is directing agencies to roll back certain environmental regulations.

The shift in the US administration in 2025 has initiated a regulatory rollback campaign, which could simplify and expedite permitting for construction across both the billboard and fiber segments. The administration is directing agencies to review and potentially rescind or lessen the burden of various environmental regulations, including a focus on streamlining permitting processes.

This deregulation is primarily aimed at boosting energy production, but the resulting expedited permitting and changes to environmental review requirements-like those under the Endangered Species Act and NEPA (National Environmental Policy Act)-will likely reduce the time and cost associated with new construction for linear infrastructure, like fiber routes, and billboard structures. While the full impact is still unfolding, this political shift creates a clear operational opportunity to accelerate network build-outs.

BOC's $30 million share repurchase program is governed by SEC Rule 10b5-1.

The company's capital allocation strategy is directly governed by federal securities law. On November 17, 2025, Boston Omaha Corporation announced a Class A common stock repurchase program of up to $30 million, effective around November 18, 2025, and running through December 31, 2026.

The authorization to establish a Rule 10b5-1 trading plan for this repurchase is a crucial political and regulatory detail. This rule allows the company to buy back shares even during self-imposed trading blackout periods, so long as the plan is pre-arranged in good faith. It removes the political optics of insider timing and ensures the program can be executed systematically, providing a predictable floor for the stock price. This is a clear demonstration of how SEC rules directly influence corporate finance decisions.

• Announced a repurchase program of up to $30 million for Class A common stock.
• Program is active through December 31, 2026.
• Governed by SEC Rule 10b5-1, which allows for systematic, non-discretionary purchases.

Boston Omaha Corporation (BOC) - PESTLE Analysis: Economic factors

Long-term US interest rates remain elevated, with the 10-year Treasury at approximately 4.47% as of May 2025.

The persistent elevation of the US 10-year Treasury yield, sitting around 4.47% in May 2025, is a major headwind for Boston Omaha Corporation (BOC). This rate is the benchmark for long-term borrowing, and its height signals a higher cost of capital across the board. For a holding company like BOC, which relies on a mix of long-duration assets like billboards, broadband infrastructure, and real estate, a higher risk-free rate (the 10-year yield) directly increases the discount rate used in valuation models, pushing down the theoretical value of future cash flows.

This high-rate environment defintely makes new acquisitions more expensive and puts pressure on existing debt. You have to be more selective about which projects you fund, because the hurdle rate for an acceptable return is now much higher. The days of cheap money are over, so every capital allocation decision is under intense scrutiny.

High borrowing costs reduce profit margins and create refinancing risk for BOC's real estate funds.

BOC's real estate investments, particularly within the 24th Street commercial real estate funds and the Build for Rent Fund, are highly sensitive to interest rate movements. High borrowing costs erode the net operating income (NOI) of properties and make it tougher to sell assets at a profit, especially as commercial real estate valuations adjust to the new rate reality.

This pressure showed up in the Q3 2025 results. The company's net loss included approximately $2.0 million in losses within BOAM, which were primarily related to changes in the fair value of underlying assets within the 24th Street Funds. That's a clear example of high rates hitting asset values and triggering losses. The refinancing risk is also real; as debt matures, replacing it at a 4.47% benchmark rate, or higher, will drastically increase debt service payments, squeezing cash flow.

BOC reported a Q3 2025 net loss of $2.59 million, continuing a trend of negative earnings.

BOC's overall profitability remains a challenge, a critical economic factor for any growth-oriented holding company. For the third quarter of 2025, the company reported a net loss of $2.59 million, which was a widening loss compared to the prior year. This negative earnings trend is a drag on investor confidence and limits the company's ability to fund growth organically without issuing new equity or taking on more debt.

Here's the quick math on the quarterly performance:

While revenue grew, the net loss widened, showing that rising expenses and investment setbacks-like the $1.5 million unrealized loss on Sky Harbour warrants-are outpacing operational gains.

The insurance segment is pressured by a higher loss ratio and increased reserve additions.

The surety insurance segment, a core part of BOC's strategy, is facing economic headwinds specific to the underwriting cycle. Analysts have noted that the insurance business is being weighed down by a higher loss ratio (the percentage of premiums paid out in claims) and increased reserve additions. This means the cost of covering claims is rising faster than expected, forcing the company to set aside more capital (reserves) to cover future liabilities, which locks up cash that could otherwise be invested.

This pressure reduces the capital available for the 'float' investment strategy, which is central to the Berkshire Hathaway-style model BOC aims to emulate. The key challenges here are:

• Higher claims frequency or severity is increasing the loss ratio.
• Increased reserve additions reduce investable 'float'.
• Lower investment income from the insurance portfolio due to market volatility.

Cash inflow from operations for the nine months ended September 30, 2025, was $12.1 million.

Despite the net losses, the core operating businesses are generating cash, which is a crucial distinction for a holding company. For the nine months ended September 30, 2025, the cash inflow from operations was a stable $12.1 million. This operating cash flow, which was the same as the prior year, shows that the billboard and broadband segments are providing a solid, predictable base of liquidity.

This operational cash is what allows BOC to continue funding its growth capital expenditures (CapEx) without immediately needing to tap the capital markets, even with the investment losses. It's a sign of operational resilience, but the cash generation needs to accelerate to cover the total investment losses and CapEx spending over the long term.

Boston Omaha Corporation (BOC) - PESTLE Analysis: Social factors

You're looking at Boston Omaha Corporation (BOC) and trying to map the social currents that are either fueling or frustrating its diverse business lines. Honestly, the social landscape is a mixed bag: high-speed connectivity is a must-have, but the public is getting tired of bright lights and slow paperwork. Your investment thesis needs to account for these shifts in consumer behavior and community sentiment.

Growing consumer demand for high-speed fiber internet drives expansion in new residential developments.

The social expectation for instant, reliable connectivity is a massive tailwind for Boston Omaha Broadband. People moving into new residential developments, especially in the US Sun Belt, view fiber-to-the-home as a non-negotiable utility, much like water or electricity. This demand is what drives BOC's 'Fiber Fast Homes' division, which focuses on providing fiber infrastructure in these new communities.

This strategic focus is paying off in concrete numbers. In the second quarter of 2025 (Q2 2025), the company added approximately 2,100 new fiber passings and 700 new fiber subscribers. The division's revenue, while still small, grew by an impressive 82.1% year-over-year to $0.6 million in Q2 2025. Plus, the future growth is already lined up: the division holds a substantial backlog of approximately 9,400 homes in Homeowners Association (HOA) and Joint Venture agreements. This is a very clear growth path.

• Total Fiber Subscribers (Q2 2025): 13,500
• Fiber Passings (Q2 2025): 35,000
• Q2 2025 Capex for Fiber Expansion: $6.6 million

Increased public and regulatory scrutiny of light pollution from digital billboards.

While BOC's Link Media Outdoor segment benefits from the flexibility and higher revenue generated by digital displays, this is where social sentiment turns against the business. Digital billboards are increasingly cited as a major contributor to artificial light at night (ALAN) or 'light pollution.' This isn't just an aesthetic issue anymore; it's a public health and environmental concern, linked to disrupting wildlife and human sleep cycles.

As of Q2 2025, Link Media Outdoor operated approximately 7,570 advertising faces across its portfolio, and 107 of those were digital displays. The risk here is that growing social pressure translates into local ordinances that restrict the brightness, operating hours, or even the placement of new digital signs. This would directly cap the growth potential of BOC's most profitable asset type. We've defintely seen this trend accelerate in 2025.

The shift to efficient digital services is raising customer expectations for fast surety bond issuance.

In the surety bond business, which BOC operates through its General Indemnity Group (GIG), the social factor is all about speed and simplicity. Customers-mostly contractors and small businesses-no longer tolerate the slow, paper-based processes of the past. They expect a digital experience that delivers a bond in minutes, not days.

BOC is responding to this by modernizing its systems, effectively transforming paper workflows into automated, digital routines. This focus on efficiency is a key driver for the segment's strong performance. For the third quarter of 2025 (Q3 2025), the General Indemnity Group reported $5.64 million in Premiums Earned, a core component of its revenue. This move to digital is a direct response to a social demand, and it's helping GIG capture market share from slower, legacy competitors.

BOC's billboard revenue is tied to the strength of local and regional advertising budgets.

The revenue generated by BOC's billboard business, Link Media Outdoor, is a direct reflection of the economic health and advertising confidence of local and regional businesses. When local advertising budgets tighten, BOC feels the pinch immediately. This makes the segment highly susceptible to localized economic downturns and shifts in small-to-medium enterprise (SME) spending behavior.

Here's the quick math: Link Media Outdoor's billboard rental revenue for Q3 2025 was $11.79 million. While this was a strong contributor to BOC's overall revenue, the segment's performance has shown sensitivity. For example, in Q2 2025, the segment reported flat year-over-year revenue growth, which management attributed in part to 'reduced advertising spending in specific categories.' This revenue stream is fundamentally tied to the social willingness of local businesses to spend on out-of-home advertising.

Next step: Operations team needs to quantify the cost of compliance for a 20% reduction in digital billboard brightness by the end of the year.

Boston Omaha Corporation (BOC) - PESTLE Analysis: Technological factors

BOC's Link Media Outdoor operates 109 digital displays out of 7,570 advertising faces, indicating a low-cost, slow-conversion strategy.

You need to see the billboard segment, Link Media Outdoor, as a classic value play-they are deliberately slow-walking the digital conversion. As of the third quarter of 2025, Link Media Outdoor managed a total of 7,570 advertising faces, but only 109 of those were digital displays. That means just about 1.4% of their inventory is digitized. This low-cost, high-inventory strategy is a short-term hedge against the high capital expenditure (CapEx) required for a full digital build-out, but it creates a long-term technology risk.

The company is still generating solid cash flow from its static assets, reporting an Adjusted EBITDA of $4.8 million in Q3 2025, with a record 41% margin. But honestly, that margin is under pressure as competitors continue to aggressively digitize. The slow pace of conversion is a clear strategic choice, but it defintely leaves a lot of revenue on the table compared to fully digital-focused peers.

Digital billboards enable dynamic pricing and real-time ad changes, increasing revenue per face.

The small but growing digital footprint is where the real technological opportunity lies. Digital billboards allow for dynamic pricing and real-time content changes, which is a massive advantage over static vinyl. Instead of selling one month of space to one advertiser, you can sell six or eight rotating slots, instantly boosting revenue per face.

This technological upgrade directly impacts performance. While the overall revenue growth for Link Media Outdoor was modest, increasing 2.5% to $11.8 million in Q3 2025, the digital faces are the engine of that margin growth. The ability to swap out ads based on time of day, weather, or even local events means higher utilization and a better return on capital for the few digital assets they have.

The surety insurance arm is facing digital transformation pressure to adopt AI for underwriting and claims processing.

The surety insurance arm, General Indemnity Group, operates in an industry facing massive technological disruption. The pressure is on to adopt Artificial Intelligence (AI) for core functions like underwriting and claims processing. Using AI to analyze risk data faster and more accurately is no longer a luxury; it's becoming a necessity for competitive pricing and loss control.

Here's the quick math: industry experts estimate that AI-driven underwriting alone could add up to $160 billion in value to the global insurance industry by 2030. Companies that successfully scale AI are seeing up to a 20% increase in total shareholder return. BOC's insurance segment needs to make a clear, measurable investment in this technology to avoid becoming a high-cost outlier.

The technological imperative for the insurance segment is clear:

• Improve underwriting accuracy to lower the loss ratio.
• Accelerate claims processing to enhance customer experience.
• Detect fraud more efficiently using advanced analytics.

The broadband segment is aggressively building out fiber-to-the-home (FTTH) infrastructure.

In contrast to the billboard segment's slow pace, the broadband segment is all-in on a high-CapEx, high-growth technology strategy: Fiber-to-the-Home (FTTH). This is a pure infrastructure play, building a long-lived asset that meets the modern demand for high-speed internet. As of Q2 2025, the segment had achieved approximately 35,000 fiber passings.

The investment is substantial, but it's paying off in market penetration. During Q2 2025 alone, the broadband segment invested $6.6 million in CapEx, adding roughly 2,100 new fiber passings and 700 new fiber subscribers. The Fiber Fast Homes division, which targets new residential developments, is a key growth driver with a substantial backlog of 9,400 homes under HOA and Joint Venture agreements. This aggressive build-out is a clear technological opportunity that positions the company for long-term, utility-like cash flows.

Boston Omaha Corporation (BOC) - PESTLE Analysis: Legal factors

Billboard operations are highly restricted by local zoning and permitting requirements (e.g., distance from residential zones).

The core legal challenge for Boston Omaha Corporation's (BOC) Link Media Outdoor subsidiary is the hyper-local nature of outdoor advertising regulation. Every new billboard, and often the conversion of a static sign to a digital one, requires navigating complex municipal zoning codes and securing permits. These local rules often dictate the maximum size, height, and, crucially, the minimum distance from residential zones, schools, and parks.

This fragmented regulatory environment means growth is slow and capital-intensive; you're essentially fighting a separate legal battle in every jurisdiction. For example, Link Media Outdoor's capital expenditures totaled $652,281 in the second quarter of 2025, much of which is dedicated to maintaining or upgrading a plant of approximately 7,600 billboard faces across 12 states, all while adhering to thousands of unique local codes.

• Secure permits before capital deployment.
• Anticipate 18+ month approval cycles in dense markets.
• Factor in higher legal costs per new sign.

The US Supreme Court affirmed local governments' right to regulate off-premises billboards more strictly than on-premises signs.

A significant legal precedent for the outdoor advertising industry is the 2022 US Supreme Court decision in City of Austin v. Reagan National Advertising of Austin, LLC. This ruling confirmed that local governments can regulate off-premises billboards (like those operated by Link Media Outdoor) more strictly than on-premises signs (which advertise a business on the same property) without violating the First Amendment's free speech clause.

The Court held that this distinction is content-neutral, meaning the regulation is subject to a less demanding standard called intermediate scrutiny, not strict scrutiny. For BOC, this means municipalities have a clearer path to denying permits for new off-premises digital conversions or signs based on aesthetic or traffic safety concerns. This legal reality caps the potential for rapid digital expansion, even though digital signs are a key growth driver, contributing to Link Media Outdoor's Q2 2025 revenue of $11.4 million.

State-level insurance regulation dictates capital requirements and operational rules for the surety business (General Indemnity Group).

The surety insurance business, primarily conducted by General Indemnity Group's subsidiary, United Casualty and Surety Insurance Company, is regulated at the state level by departments of insurance. These regulators set stringent financial and operational rules to ensure solvency and protect policyholders.

The most direct financial constraint is the minimum capital and surplus requirement. While the exact figure varies by state and line of business, a stock company writing only surety insurance must generally maintain a policyholders' surplus of at least $700,000 in a state like Alabama, or significantly more depending on the state and the volume of business. More broadly, the industry is moving toward the National Association of Insurance Commissioners (NAIC) standards, which include:

• Annual Group Capital Calculation (GCC) reports.
• Mandatory Liquidity Stress Test filings.
• Risk-Based Capital (RBC) ratios, with regulators often seeking a ratio above 300% of the Authorized Control Level.

This regulatory oversight is defintely a cost center, but it also creates a barrier to entry that protects established players like General Indemnity Group.

Federal climate disclosure rules from the SEC are currently stayed due to litigation, reducing immediate reporting burden.

As of November 2025, the US Securities and Exchange Commission's (SEC) final rule on climate-related disclosures, which would require public companies like Boston Omaha Corporation to report on climate risks and greenhouse gas emissions, is not in effect. The rule's enforcement was voluntarily stayed by the SEC in April 2025 and the legal challenges were subsequently held in abeyance by the Eighth Circuit Court of Appeals in September 2025.

The immediate reporting burden is significantly reduced, saving BOC substantial compliance costs in the 2025 fiscal year. Here's the quick math: a full Scope 3 (value chain) emissions report for a diversified holding company is a complex, multi-million-dollar undertaking. What this estimate hides, still, is that the litigation is ongoing, and a coalition of states is defending the rule. The ultimate legal outcome remains uncertain, so you can't completely stop planning for future environmental, social, and governance (ESG) disclosures.

Boston Omaha Corporation (BOC) - PESTLE Analysis: Environmental factors

The environmental factors for Boston Omaha Corporation (BOC) center almost entirely on the energy consumption and visual impact of its outdoor advertising segment, which operates over 7,500+ billboard faces. While the federal regulatory climate has become less aggressive in 2025, the pressure from local governments and consumers on sustainability remains a tangible financial risk and a clear opportunity for operational efficiency.

Digital billboards are energy-intensive; one unit can consume the electricity of up to 15 homes in 24 hours, creating a carbon footprint risk.

The core environmental risk for BOC's outdoor advertising business is the high power demand of digital billboards. Though modern LED technology is more efficient than older lighting, the sheer size and 24/7 operation of these displays make them energy-intensive, creating a significant carbon footprint. For perspective, a large-format digital billboard can consume electricity equivalent to anywhere from two to 36 average American homes annually, depending on its size and maximum brightness settings. This high consumption rate means that every digital conversion BOC makes adds a material, measurable cost to their utilities expense and increases their exposure to carbon taxes or utility rate hikes in the future.

Here's the quick math on the energy debate:

This wide range shows the defintely inconsistent energy load, but the risk is clear: a single, large digital billboard is a substantial energy user, and BOC's portfolio of 7,500+ faces represents a large, centralized energy demand.

Increased focus on light pollution and its impact on local ecosystems and residential areas.

Beyond energy use, light pollution is becoming a critical regulatory and public relations issue, especially in residential and ecologically sensitive areas. The constant, bright light from digital out-of-home (DOOH) displays disrupts local ecosystems and contributes to global light pollution, which is increasing at a rate of approximately 6% per year across the US and Europe. This is not just an aesthetic concern; it impacts wildlife and human sleep cycles.

Local jurisdictions are responding with new restrictions:

• Mandating automatic dimming technology to reduce brightness at night.
• Imposing curfews, such as the proposed ban on illuminated advertising between 1 am and 6 am in certain European cities.
• Increasingly denying permits for new digital billboards in areas already saturated with light.

BOC must proactively manage light output and brightness to avoid costly legal challenges and operational downtime from mandated curfews. A dark screen is a zero-revenue screen.

Opportunity exists to adopt solar-powered billboards and energy-efficient LED technology to mitigate energy consumption.

The environmental challenge presents a clear, profitable opportunity for BOC. The market for sustainable advertising solutions is growing rapidly, driven by corporate sustainability initiatives and consumer preference-78% of consumers prefer eco-friendly promotions. The global solar-powered LED billboard market is forecasted to grow at a Compound Annual Growth Rate (CAGR) of 11.8% from 2025 to 2033, reaching a value of $3.11 billion. North America is a key driver, accounting for about 38% of global revenue in 2024.

Key actions BOC can take immediately:

• Solar Integration: Start fitting solar panels to new and existing digital displays to power the LED boards, reducing reliance on grid electricity and lowering the carbon footprint.
• Smart Energy Management: Use smart systems to dynamically adjust brightness based on ambient light, traffic, and time of day, minimizing power waste.
• LED Upgrades: Ensure all digital faces use the latest, most energy-efficient LED technology, which consumes less energy than conventional lighting.

Investing in solar power now provides an operational hedge against future energy price volatility, plus it can be a powerful selling point to environmentally conscious advertisers.

The new US administration is signaling a less aggressive federal stance on new environmental, social, and governance (ESG) mandates.

As of 2025, the US federal landscape for Environmental, Social, and Governance (ESG) mandates is shifting dramatically. The new administration has signaled a less aggressive federal stance, prioritizing economic growth and deregulation. This includes a rollback of Biden-era ESG regulations and the withdrawal of the federal defense of the SEC's climate risk disclosure rule. This creates a near-term reporting relief for companies like BOC, as the federal vacuum means there is no immediate, overarching mandate for detailed, standardized carbon reporting.

However, this federal retreat does not eliminate the risk; it simply shifts the focus:

• State-Level Action: Certain US states, often referred to as 'blue states,' are forging ahead with their own ESG laws and regulations, which can still affect BOC's operations depending on where its billboards are located.
• Investor Pressure: Despite the federal shift, many large investors and asset managers continue to view ESG through the lens of risk management, meaning shareholder proposals on environmental issues will persist, even if they garner low support.
• International Standards: Companies that do business internationally or have global customers may still be captured by non-US regulatory frameworks, particularly those in the European Union, which are adopting more comprehensive ESG laws.

The lack of federal mandates provides a temporary reprieve, but BOC must still manage its environmental impact to satisfy state-level regulations and the ongoing demands of the capital markets. Finance: draft a 13-week cash view of potential solar conversion costs by Friday.