Lumen (LUMN) is entering its next phase with strong momentum and a disciplined financial plan aimed at turning its strategic transformation into steady earnings growth and reliable free cash flow, targeting adjusted EBITDA margins to rise from 27.1% in 2025 to the mid-30% range by 2030, the company said on Wednesday.
Shares in the telecommunications company rose more than 7% in early trading after it outlined a multi-year growth plan and said it looks to increase free cash flow through planned improved margins and enterprise revenue growth in 2028.
“This is a defining moment for Lumen, as we close the chapter on our financial past and pivot to an executable path to growth,” said Lumen (LUMN) CFO Chris Stansbury ahead of its investor day. “Our objective is clear: accelerate investment in AI and our digital future and where it drives the highest returns to deliver shareholder value.”
The company said that it was selected to expand Anthropic’s (ANTHRO) fiber network across North America, part of Lumen’s nearly $13 billion in total private connectivity fabric contracts.
Additionally, the company also introduced a new revenue reporting framework designed to better reflect its enterprise-focused strategy and enhance clarity for investors. Beginning in Q1 2026, Lumen will report revenue in products and services to better align with how the company invests in and operates the business.