Lumen Marks New Phase of Transformation at 2026 Investor Day

Core Insights - Lumen Technologies has declared the completion of its turnaround phase and outlined a multi-year growth plan focused on becoming a trusted network for AI, with significant network expansion and customer growth initiatives [1] Group 1: Transformation and Growth Strategy - The company aims to expand its network to 58 million fiber miles by 2031, with plans to reach 47 million fiber miles by the end of 2028 [1] - Lumen has secured nearly $13 billion in Private Connectivity Fabric (PCF) contracts, validating demand for its AI-ready network [1] - The rollout of the Multi-Cloud Gateway and exceeding 2,000 Network-as-a-Service (NaaS) customers reflects the growing enterprise adoption of AI-ready platforms [1] Group 2: Financial Performance and Market Confidence - Lumen has reduced its debt to under $13 billion and achieved approximately $500 million in annual interest savings [1] - The company's stock price has improved significantly, recovering from lows of around $1.00 per share in July 2024 to the high-single digits, indicating restored investor confidence [1] - All three major global ratings agencies have upgraded Lumen's debt ratings, citing lower leverage and improved liquidity [1] Group 3: Future Financial Roadmap - Lumen expects to enhance free cash flow through improved margins and lower capital intensity, targeting adjusted EBITDA margins to expand from 27.1% in 2025 to the mid-30% range by 2030 [2] - A new revenue reporting framework will be introduced in Q1 2026 to better align with the company's enterprise-focused strategy [2]