Lumen Technologies reports fourth quarter and full year 2024 results

Core Insights - Lumen Technologies made significant progress in strengthening its financial position and transforming corporate functions, aiming to support the AI economy in 2025 [2][7] - The company reported a net income of $85 million for Q4 2024, a substantial recovery from a net loss of$ 1.995 billion in Q4 2023, which included a non-cash goodwill impairment charge [7][23] - Lumen's total revenue for Q4 2024 was $3.329 billion, down 5% from$ 3.517 billion in Q4 2023, with a full-year revenue decline of 10% from $14.557 billion in 2023 to$ 13.108 billion in 2024 [23][37] Financial Performance - Adjusted EBITDA for Q4 2024 was $1.052 billion, a decrease of 4% from$ 1.099 billion in Q4 2023, while full-year Adjusted EBITDA fell 15% from $4.628 billion in 2023 to$ 3.939 billion in 2024 [7][37] - The company reported a negative free cash flow of $(174) million for Q4 2024, compared to a positive free cash flow of$ 50 million in Q4 2023 [25][37] - Lumen's capital expenditures for Q4 2024 were $915 million, an increase of 11% from$ 821 million in Q4 2023, with full-year capital expenditures rising from $3.100 billion in 2023 to$ 3.231 billion in 2024 [37][41] Business Segments - Revenue from the Large Enterprise segment was $845 million in Q4 2024, down 5% from$ 894 million in Q4 2023, while full-year revenue decreased 7% from $3.618 billion in 2023 to$ 3.379 billion in 2024 [6][19] - The Mid-Market Enterprise segment saw a 10% decline in Q4 2024 revenue to $452 million, and a full-year decrease of 8% to$ 1.887 billion [6][19] - Public Sector revenue increased by 11% in Q4 2024 to $554 million, with a 3% increase for the full year to$ 1.849 billion [6][19] Liquidity and Outlook - As of December 31, 2024, Lumen had cash and cash equivalents of $1.889 billion and plans to redeem approximately$ 202 million of unsecured senior notes by February 15, 2025 [26][38] - The company updated its financial outlook for 2025, projecting Adjusted EBITDA between $3.2 billion and$ 3.4 billion, and Free Cash Flow between $700 million and$ 900 million [27][28]