Lumen Technologies Q4 FY12/25 Earnings Review

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Now More Focused

Lumen Technologies ( $LUMN ) completed the sale of its consumer division to AT&T ( $T ) on February 2 this year. The impact on the financials will start to wash through from the Q1 2026 report but in essence it means that LUMN becomes a pureplay provider of fiber services to high-capacity customers, be they datacenter operators or other enterprises. The company received some $5.75bn in cash from the sale which after transaction fees and other uses of funds means that its net debt will fall from around $12bn to around $7-8bn. This means bringing net leverage down to around 4x TTM EBITDA, which is socially acceptable in telc0-land.

The company ought to benefit from continued datacenter buildout and from continued traffic growth in high capacity services. The more AI stuff, the better for LUMN, in short.

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