The earnings call presented a mix of positive and negative developments. Lumen Technologies highlighted significant achievements such as the successful sale of its consumer business, debt refinancing, increased free cash flow guidance, and strong growth in key metrics. However, the company also faced challenges, including a withdrawal from the RDOF program, declines in certain revenue segments, and negative free cash flow. Overall, the positives, particularly the financial improvements and strategic moves, outweigh the negatives.

Company Guidance

During the Lumen Technologies Second Quarter 2025 Earnings Call, significant guidance and updates were provided. Lumen announced the sale of its consumer fiber-to-the-home business to AT&T for $5.75 billion, which will reduce annual interest expenses by approximately $300 million and decrease CapEx by about $1 billion. The company reported nearly $500 million in new PCF contracts, adding to the existing $8.5 billion, and raised its 2025 free cash flow guidance by $500 million. Lumen also achieved a successful $2 billion bond offering, reducing coupon rates by over 3.5% and saving an additional $50 million annually in interest expenses. The company expects its adjusted EBITDA to hit the high end of the $3.2 billion to $3.4 billion range, despite a $46 million RDOF giveback, and anticipates a $400 million tax refund due to recent tax legislation. Additionally, Lumen is on track to achieve $350 million in run rate cost-out targets for 2025, up from $250 million, and is focused on strategic investments and innovations, including AI infrastructure and Network as a Service (NaaS) offerings.

Sale of Consumer Fiber-to-Home Business

Lumen Technologies announced the sale of its consumer fiber-to-the-home business to AT&T for $5.75 billion, which is expected to strengthen the balance sheet and reduce annual interest expense by approximately $300 million.

Successful Debt Refinancing

Lumen Technologies refinanced $2 billion in debt, extending maturities to 2033 and reducing the coupon rate by over 3.5%, saving approximately $50 million in annual interest expense.

Increased Free Cash Flow and EBITDA Guidance

Lumen raised its 2025 free cash flow guidance by $500 million and increased its 2025 run rate cost-out target from $250 million to $350 million.

Strong Growth in Key Performance Indicators

Network as a Service (NaaS) saw quarter-over-quarter growth with customers up 35%, total active NaaS ports up 31%, and total active services up 22%.

New PCF Contracts

Lumen signed nearly $500 million of new PCF contracts, bringing the total to just under $9 billion.

Positive Financial Results Despite RDOF Impact

Reported solid financials with revenue and adjusted EBITDA exceeding expectations despite a $46 million onetime RDOF giveback.

Tax Benefits from Legislation

The reconciliation bill is expected to reduce Lumen's 2025 tax liability by approximately $400 million.

Lumen Technologies (LUMN) Earnings, Revenues Date & History

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LUMN Earnings History

Report Date	Fiscal Quarter	Forecast / EPS	Last Year's EPS	EPS YoY Change	Slides	Play Transcript
Oct 29, 2025	2025 (Q3)	-0.26 / -	-0.13	―	―	―
Jul 31, 2025	2025 (Q2)	-0.26 / -0.03	-0.13	76.92% (+0.10)
May 01, 2025	2025 (Q1)	-0.26 / -0.13	-0.04	-225.00% (-0.09)
Feb 04, 2025	2024 (Q4)	-0.05 / 0.09	0.08	12.50% (<+0.01)
Nov 05, 2024	2024 (Q3)	-0.09 / -0.13	-0.09	-44.44% (-0.04)
Aug 06, 2024	2024 (Q2)	-0.05 / -0.13	0.1	-230.00% (-0.23)
Apr 30, 2024	2024 (Q1)	0.02 / -0.04	0.1	-140.00% (-0.14)
Feb 06, 2024	2023 (Q4)	-0.01 / 0.08	0.43	-81.40% (-0.35)
Oct 31, 2023	2023 (Q3)	0.05 / -0.09	0.14	-164.29% (-0.23)
Aug 01, 2023	2023 (Q2)	0.08 / 0.10	0.35	-71.43% (-0.25)

The table shows recent earnings report dates and whether the forecast was beat or missed. See the change in forecast and EPS from the previous year.

Beat

Missed

LUMN Earnings-Related Price Changes

Report Date	Price 1 Day Before	Price 1 Day After	Percentage Change
Jul 31, 2025	$4.45	$3.71	-16.63%
May 01, 2025	$3.52	$3.78	+7.39%
Feb 04, 2025	$5.04	$4.97	-1.39%
Nov 05, 2024	$7.61	$9.02	+18.53%

Earnings announcements can affect a stock’s price. This table shows the stock's price the day before and the day after recent earnings reports, including the percentage change.