July 31 (Reuters) - Lumen Technologies ( LUMN ) on

Thursday reported a smaller-than-expected second-quarter loss

and raised its full-year free cash flow forecast by more than

60%, helped by cost savings from President Trump's tax cut

legislation.

The telecom and networking firm posted an adjusted loss of 3

cents per share, compared with analysts' expectations of a

26-cent loss, according to data compiled by LSEG.

Lumen now expects 2025 free cash flow between $1.2 billion

and $1.4 billion, up from a prior range of $700 million to $900

million.

"We're taking it up considerably because of strong

performance, but also because of the new tax bill, that

definitely benefited us and that allows us to invest," CFO Chris

Stansbury told Reuters in an interview.

The new tax law enables companies such as Lumen to

deduct more interest expenses and speed up how quickly they

write off big investments, boosting near-term cash flow.

Revenue for the quarter ended June 30 was $3.09 billion,

slightly below analysts' average estimate of $3.11 billion.

The shortfall included a $46 million giveback tied to the

FCC's Rural Digital Opportunity Fund (RDOF), following the sale

of Lumen's consumer fiber business to AT&T ( T ).

Lumen agreed in May to sell its consumer fiber business to

AT&T ( T ) for $5.75 billion in cash, a move aimed at sharpening its

enterprise focus and reducing capital expenditures.

The company also recorded a one-time non-cash goodwill

impairment charge of $628 million tied to the divestiture,

contributing to a net loss of $915 million for the quarter.

Stansbury said the divestiture would reduce annual capital

expenditures by about $1 billion while trimming adjusted core

earnings by $150 million.

Lumen reaffirmed its full-year adjusted EBITDA guidance of

$3.2 billion to $3.4 billion and said it expects to reach the

high end of that range.