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Lumen Technologies (NYSE:LUMN) 2025 Earnings Call Presentation
LumenLumen(US:LUMN)2025-09-23 15:00

Lumen's Transformation and Strategy - Lumen aims to simplify technical complexity by removing friction, collapsing layers, unlocking speed, embedding security, and reducing costs[9] - Lumen's long-term vision is to be a digital network services company delivering ubiquitous connectivity to enterprises[24] - Lumen's growth strategy involves building the backbone for the AI economy, cloudifying the telecom industry with Lumen Connectivity Fabric, and building the Lumen Connected Ecosystem[26] - Lumen is on track to return to Business Segment Revenue growth in 2028 and aEBITDA stabilizing with inflection in 2026[66] Market Opportunity and AI Focus - The total addressable market (TAM) is projected to increase approximately 2x by 2030, reaching $1.12 trillion[11] - Cloudify Telecom TAM has an approximate 5% compound annual growth rate (CAGR), forming part of a larger $80 billion enterprise connectivity opportunity[13] - Approximately 85% of customers expect AI to drive bandwidth and cloud demand[13] - Global network traffic from AI-enriched data is expected to increase from 65 Exabytes in 2023 to 1,226 Exabytes by 2030+, representing a 19x increase[85] Network Infrastructure and Deployment - Lumen plans to expand its intercity fiber miles to 34 million+ [30] - Lumen has secured approximately $9 billion in Private Connectivity Fabric (PCF) deals with hyperscalers[17, 18] - By the end of 2027, Lumen aims to complete 27,000 fiber miles across 73 routes for its PCF deployment[119] Debt Management - Pro forma for Lumen SP debt paydown, the company projects a total debt of $13.2 billion by the end of 2025, with a gross leverage of 3.7x and interest expense of $0.7 billion[63] Cloud 2.0 and Digital Platform - Data center footprint is expected to grow 10x from 2025 to 2030[144, 146] - Lumen is building programmable fabrics with Lumen Connectivity Fabric and Lumen Connect, enabling on-demand, API-driven provisioning across data centers, clouds, and enterprises[173] - Lumen is enabling access to over 11 million offnet locations through Project Berkeley[198] Customer Insights - Approximately 69% of US leaders do not believe their legacy network infrastructure can handle the demands of AI[252, 263]