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Jun 30, 2025
Lumen Q2 2025 Earnings Report
Lumen Technologies reported its second quarter 2025 results, highlighting strong revenue and Adjusted EBITDA despite one-time revenue givebacks, a strategic agreement to sell its consumer fiber business to AT&T, strengthened financial position through a bond offering, and increased cost-reduction targets.
Key Takeaways
Lumen Technologies reported a net loss of $(915) million for Q2 2025, including a significant non-cash goodwill impairment charge. Despite this, the company demonstrated strong Adjusted EBITDA of $877 million (excluding special items) and increased net cash provided by operating activities. Strategic moves include the sale of its Mass Markets fiber-to-the-home business to AT&T for $5.75 billion and a successful $2 billion bond offering, aimed at sharpening its enterprise focus and improving financial flexibility.
Lumen reported a net loss of $(915) million for Q2 2025, primarily due to a $628 million non-cash goodwill impairment charge.
The company announced a definitive agreement to sell its Mass Markets fiber-to-the-home business to AT&T for $5.75 billion, aiming to enhance its enterprise focus.
Adjusted EBITDA, excluding special items, was $877 million, demonstrating strong operational performance despite one-time revenue givebacks.
Lumen successfully completed a $2 billion bond offering, extending maturities to 2033 and reducing annual interest expense by approximately $50 million, strengthening its financial position.
Revenue by Segment
Forward Guidance
Lumen Technologies updated its full-year 2025 financial outlook, expecting Adjusted EBITDA to be near the high end of the range and Free Cash Flow to significantly improve, driven by a tax refund and lower capital expenditures. Net Cash Interest is expected to be near the low end of the range due to recent debt refinancings, and Capital Expenditures are projected to be at the low end of their range.
Positive Outlook
- Adjusted EBITDA is expected to be near the high end of the $3.2 billion to $3.4 billion range, driven by better progress on modernization and simplification initiatives and improved performance from legacy services.
- Free Cash Flow outlook significantly increased to $1.2 billion to $1.4 billion, primarily due to an anticipated $400 million tax refund.
- Lower capital expenditures are expected to contribute to improved Free Cash Flow.
- Better Adjusted EBITDA performance is a positive factor for the Free Cash Flow outlook.
- Lower interest expense, resulting from recent debt refinancings, will also positively impact Free Cash Flow.
Challenges Ahead
- Capital expenditures are expected to be at the low end of the $4.1 billion to $4.3 billion range, primarily due to project timing, which could indicate slower investment in certain areas.
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Avg. Return Before/After Earnings
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