Lumen announced the sale of its consumer fiber-to-the-home business to AT&T for $5.75 billion, providing strategic clarity and a path to financial freedom (CEO).
Signed nearly $500 million of new PCF contracts since the last deal update, bringing total PCF business to just under $9 billion (CEO).
Completed a successful $2 billion bond offering, extending maturities to 2033 and reducing the coupon rate by over 3.5%, saving approximately $50 million in annual interest expense (CEO, CFO).
Total business Grow revenue was up 6% year-over-year; total business revenue declined only 3.4% year-over-year (CFO).
Total IP sales were up nearly 38% and IP revenue was up in the mid-single digits (CFO).
Adjusted EBITDA was $877 million with a 28.4% margin; the RDOF giveback negatively impacted year-over-year adjusted EBITDA margins by approximately 150 basis points (CFO).
Free cash flow was negative $209 million; full-year free cash flow guidance raised from $700–$900 million to $1.2–$1.4 billion (CFO).
Capital expenditures were $891 million; CapEx guidance maintained at $4.1–$4.3 billion, now expected at the low end (CFO).
For NaaS: customers purchasing one or more ports up 35% QoQ; total active ports up 31%; total active services up 22% (CEO).
Constructing 119 ILA sites; deployed 1,200 miles of fiber on 16 routes; completed IRU conduit deployments across 55 additional routes (CEO).
Run rate cost-out target for 2025 raised from $250 million to $350 million; more than halfway toward goal through June 30 (CEO, CFO).
Official Guidance
Metric
2025 Guidance
Units
Adjusted EBITDA
Near high end of $3.2–$3.4 billion
$
CapEx
Low end of $4.1–$4.3 billion
$ billion
Cash Interest
Low end of $1.2–$1.3 billion
$ billion
Cash Taxes
Benefit of $300–$400 million (revised from $100–$200 million expense)
$ million
Free Cash Flow
$1.2–$1.4 billion (raised from $700–$900 million)
$ billion
Mgmt Quotes
"We signed nearly $500 million of new PCF contracts since our last deal update." (CEO)