Q4 2025 Lumen Technologies Inc Earnings Call Transcript
Key Points
- Lumen Technologies Inc (LUMN) successfully closed a significant transaction with AT&T, resulting in $4.8 billion in net proceeds, which helped reduce total debt to less than $13 billion.
- The company reduced its interest expense by approximately $500 million, or nearly 45%, from 2025 levels.
- Lumen Technologies Inc (LUMN) reported strong financial results for 2025, with revenue, EBITDA, and free cash flow meeting or exceeding expectations.
- The company achieved over $400 million in run rate cost savings in 2025 and is targeting an additional $300 million in cost reductions by the end of 2026.
- Lumen Technologies Inc (LUMN) has signed nearly $13 billion in PCF deals, surpassing its initial goal and indicating strong demand for its services.
- Total reported revenue declined by 8.7% to $3.041 billion, with business segment revenue declining by 8.8%.
- Mass markets segment revenue decreased by 7.9% to $616 million.
- Adjusted EBITDA for the fourth quarter of 2025 was $767 million, down from approximately $1.052 billion in the year-ago quarter.
- Free cash flow was negative $765 million for the fourth quarter, impacted by a delay in a $400 million tax refund.
- The company continues to face challenges in transitioning from legacy revenue streams, with a significant portion of its revenue still coming from declining legacy products.
Greetings, everyone, and welcome to Lumen Technologies fourth-quarter and full year 2025 earnings call. (Operator Instructions) As a reminder, this conference is being recorded Tuesday, February 3, 2026. Your speakers for today are Kate Johnson, CEO; and Chris Stansbury, CFO.
I would now like to turn the conference over to Jim Breen, Senior Vice President, Investor Relations. Please go ahead.
Good afternoon, everyone, and thank you for joining Lumen Technologies on today's call. On the call today are Kate Johnson, President and Chief Executive Officer; and Chris Stansbury, Executive Vice President and Chief Financial Officer. Before we begin, this conference may include forward-looking statements subject to certain risks and uncertainties.
All forward-looking statements should be considered in conjunction with the cautionary statements and the risk factors in our SEC filings. We will be referring to certain non-GAAP financial measures reconciled to the most
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