Cummins Reports First Quarter 2025 Results

  • First quarter revenues of $8.2 billion; GAAP1 Net Income of $824 million, or 10.1% of sales
  • EBITDA in the first quarter was 17.9% of sales; Diluted EPS of $5.96

COLUMBUS, Ind.--(BUSINESS WIRE)-- Cummins Inc. (NYSE: CMI) today reported results for the first quarter of 2025.

“The company delivered strong financial results in the first quarter of 2025 led by record performance in our Power Systems Segment,” said Jennifer Rumsey, Chair and CEO. “I want to thank our global employees for their commitment to delivering for our customers in an increasingly challenging environment. Due to growing economic uncertainty driven by tariffs we have withdrawn our full year forecast.”

First quarter revenues of $8.2 billion decreased 3% from the same quarter in 2024. Sales in North America decreased 1%, and international revenues decreased 5% due to lower demand in Latin America and Asia Pacific, partially offset by higher sales in China.

Net income attributable to Cummins in the first quarter was $824 million, or $5.96 per diluted share, compared to $2.0 billion, or $14.03 per diluted share, in 2024. The first quarter of 2024 included the gain related to the separation of Atmus, net of transaction costs and other expenses, of $1.3 billion, or $9.08 per diluted share, and restructuring expenses of $29 million, or $0.15 per diluted share.

Earnings before interest, taxes, depreciation and amortization (EBITDA) in the first quarter were $1.5 billion, or 17.9% of sales, compared to $2.6 billion, or 30.6% of sales, a year ago. EBITDA for the first quarter of 2024 included the gain and costs noted above.

2025 Outlook:

Due to growing economic uncertainty, the company is not providing an outlook for revenue or profitability for the remainder of 2025.

“While the outlook for the remainder of the year remains unclear, we remain confident in our position and that our Destination Zero strategy is the right one,” said Rumsey. “Cummins is in a strong position to navigate through economic uncertainty, and we look forward to reinstating our forecast when conditions allow.”

First Quarter 2025 Highlights:

  • Cummins introduced the much-anticipated X10 as part of our Cummins HELM™ platforms. This engine replaces both the L9 and X12 engine platforms to deliver a new level of performance, durability and efficiency for heavy and medium-duty customers. Alongside the X15 and B Series, the X10 provides customers with a power solution to meet their unique operational requirements while maintaining the performance and reliability for which Cummins is known.
  • Cummins also unveiled the new Cummins B7.2 diesel engine that brings the latest technology and advancements to one of our most proven platforms. The new engine will feature a slightly higher displacement and is designed to be a global platform which creates flexibility for different applications and duty cycles. Both the B7.2 and X10 engines will be manufactured at Rocky Mount Engine Plant in North Carolina and will go into production in North America in 2027.
  • In February, Cummins announced the acquisition of assets of First Mode, a leader in retrofit hybrid solutions for mining and rail operations. The acquisition included hybrid mining and rail product lines, and the full technology portfolio which includes hydrogen and battery powertrain solutions. This technology represents the first commercially available retrofit hybrid system for mining equipment, significantly reducing total cost of ownership (TCO) while advancing decarbonization in operations.
  • Accelera™ by Cummins announced the supply of a 100-megawatt proton exchange membrane (PEM) electrolyzer system for bp’s Lingen green hydrogen project in Germany. The hydrogen-generation system will be the largest electrolyzer system assembled by Accelera to date and will be manufactured in Accelera’s new electrolyzer plant in Spain. Once fully commissioned in 2027, the 100 MW electrolyzer system will produce up to 11,000 tons of green hydrogen per year.

1 Generally Accepted Accounting Principles in the U.S.

First quarter 2025 detail (all comparisons to same period in 2024):

Engine Segment

  • Sales - $2.8 billion, down 5%
  • Segment EBITDA - $458 million, or 16.5% of sales, compared to $414 million, or 14.1% of sales
  • Revenues decreased 4% in North America and 11% in international markets due to lower on-highway demand in the United States and Latin America.

Components Segment

  • Sales - $2.7 billion, down 20%
  • Segment EBITDA - $382 million, or 14.3% of sales, compared to $473 million, or 14.2% of sales, which includes $21 million of costs related to the separation of Atmus
  • Revenues in North America decreased by 20% and international sales decreased by 20% primarily due to the separation of Atmus and lower on-highway demand in the United States and Europe.

Distribution Segment

  • Sales - $2.9 billion, up 15%
  • Segment EBITDA - $376 million, or 12.9% of sales, compared to $294 million, or 11.6% of sales
  • Revenues in North America increased 22% and international sales decreased by 1% primarily due to increased demand for power generation products in North America and favorable pricing.

Power Systems Segment

  • Sales - $1.6 billion, up 19%
  • Segment EBITDA - $389 million, or 23.6% of sales, compared to $237 million, or 17.1% of sales
  • Revenues in North America increased 15% and international sales increased 22% driven primarily by increased power generation demand, particularly for the data center market.

Accelera Segment

  • Sales - $103 million, up 11%
  • Segment EBITDA loss - $86 million
  • Revenues improved due to increased eMobility demand and electrolyzer installations. The company remains committed to pacing and focusing our zero emissions investments on the most promising paths in order to ensure we are set up for long-term success as part of our Destination Zero strategy. These continued investments contributed to the EBITDA losses.

About Cummins Inc.

Cummins Inc., a global power solutions leader, is comprised of five business segments – Engine, Components, Distribution, Power Systems and Accelera by Cummins – supported by our global manufacturing and extensive service and support network, skilled workforce and vast technological expertise. Cummins is committed to its Destination Zero strategy, which is grounded in the company’s commitment to sustainability and helping its customers successfully navigate the energy transition with its broad portfolio of products. The products range from advanced diesel, natural gas, electric and hybrid powertrains and powertrain-related components including, aftertreatment, turbochargers, fuel systems, valvetrain technologies, controls systems, air handling systems, automated transmissions, axles, drivelines, brakes, suspension systems, electric power generation systems, electrified power systems with innovative components and subsystems, including battery, fuel cell and electric power technologies and hydrogen production technologies. Headquartered in Columbus, Indiana (U.S.), since its founding in 1919, Cummins employs approximately 69,600 people committed to powering a more prosperous world through three global corporate responsibility priorities critical to healthy communities: education, environment, and equality of opportunity. Cummins serves its customers online, through a network of company-owned and independent distributor locations, and through thousands of dealer locations worldwide and earned about $3.9 billion on sales of $34.1 billion in 2024. See how Cummins is powering a world that's always on by accessing news releases and more information at https://www.cummins.com/.

Forward-looking disclosure statement

Information provided in this release that is not purely historical are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, including statements regarding our forecasts, guidance, preliminary results, expectations, hopes, beliefs and intentions on strategies regarding the future. These forward-looking statements include, without limitation, statements relating to our plans and expectations for our revenues and EBITDA. Our actual future results could differ materially from those projected in such forward-looking statements because of a number of factors, including, but not limited to: any adverse consequences resulting from entering into the Settlement Agreements, including required additional mitigation projects, adverse reputational impacts and potential resulting legal actions; increased scrutiny from regulatory agencies, as well as unpredictability in the adoption, implementation and enforcement of emission standards around the world; evolving environmental and climate change legislation and regulatory initiatives; changes in international, national and regional trade laws, regulations and policies; changes in taxation; global legal and ethical compliance costs and risks; future bans or limitations on the use of diesel-powered products; raw material, transportation and labor price fluctuations and supply shortages; aligning our capacity and production with our demand; the actions of, and income from, joint ventures and other investees that we do not directly control; large truck manufacturers' and original equipment manufacturers' customers discontinuing outsourcing their engine supply needs or experiencing financial distress, or change in control; product recalls; variability in material and commodity costs; the development of new technologies that reduce demand for our current products and services; lower than expected acceptance of new or existing products or services; product liability claims; our sales mix of products; climate change, global warming, more stringent climate change regulations, accords, mitigation efforts, greenhouse gas regulations or other legislation designed to address climate change; our plan to reposition our portfolio of product offerings through exploration of strategic acquisitions, divestitures or exiting the production of certain product lines or product categories and related uncertainties of such decisions; increasing interest rates; challenging markets for talent and ability to attract, develop and retain key personnel; exposure to potential security breaches or other disruptions to our information technology (IT) environment and data security; the use of artificial intelligence in our business and in our products and challenges with properly managing its use; political, economic and other risks from operations in numerous countries including political, economic and social uncertainty and the evolving globalization of our business; competitor activity; increasing competition, including increased global competition among our customers in emerging markets; failure to meet sustainability expectations or standards, or achieve our sustainability goals; labor relations or work stoppages; foreign currency exchange rate changes; the performance of our pension plan assets and volatility of discount rates; the price and availability of energy; continued availability of financing, financial instruments and financial resources in the amounts, at the times and on the terms required to support our future business; and other risks detailed from time to time in our SEC filings, including particularly in the Risk Factors section of our 2024 Annual Report on Form 10-K and Quarterly Reports on Form 10-Q. Shareholders, potential investors and other readers are urged to consider these factors carefully in evaluating the forward-looking statements and are cautioned not to place undue reliance on such forward-looking statements. The forward-looking statements made herein are made only as of the date of this release and we undertake no obligation to publicly update any forward-looking statements, whether as a result of new information, future events or otherwise. More detailed information about factors that may affect our performance may be found in our filings with the SEC, which are available at https://www.sec.gov or at https://www.cummins.com in the Investor Relations section of our website.

Presentation of Non-GAAP Financial Information

EBITDA is a non-GAAP measure used in this release and is defined and reconciled to what management believes to be the most comparable GAAP measure in a schedule attached to this release, except for forward-looking measures of EBITDA where a reconciliation to the corresponding GAAP measures is not available due to the variability, complexity and limited visibility of the non-cash items that are excluded from the non-GAAP outlook measure. Cummins presents this information as it believes it is useful to understanding the Company's operating performance, and because EBITDA is a measure used internally to assess the performance of the operating units.

Webcast information

Cummins management will host a teleconference to discuss these results today at 10 a.m. EDT. This teleconference will be webcast and available on the Investor Relations section of the Cummins website at www.cummins.com. Participants wishing to view the visuals available with the audio are encouraged to sign-in a few minutes prior to the start of the teleconference.

 

CUMMINS INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF NET INCOME

(Unaudited) (a)

 

 

 

 

 

Three months ended

 

 

March 31,

In millions, except per share amounts

 

2025

 

2024

NET SALES

 

$

8,174

 

$

8,403

Cost of sales

 

 

6,019

 

 

6,362

GROSS MARGIN

 

 

2,155

 

 

2,041

OPERATING EXPENSES AND INCOME

 

 

 

 

Selling, general and administrative expenses

 

 

771

 

 

839

Research, development and engineering expenses

 

 

344

 

 

369

Equity, royalty and interest income from investees

 

 

131

 

 

123

Other operating expense, net

 

 

37

 

 

33

OPERATING INCOME

 

 

1,134

 

 

923

Interest expense

 

 

77

 

 

89

Other income, net

 

 

60

 

 

1,387

INCOME BEFORE INCOME TAXES

 

 

1,117

 

 

2,221

Income tax expense

 

 

267

 

 

193

CONSOLIDATED NET INCOME

 

 

850

 

 

2,028

Less: Net income attributable to noncontrolling interests

 

 

26

 

 

35

NET INCOME ATTRIBUTABLE TO CUMMINS INC.

 

$

824

 

$

1,993

 

 

 

 

 

EARNINGS PER COMMON SHARE ATTRIBUTABLE TO CUMMINS INC.

 

 

 

 

Basic

 

$

5.99

 

$

14.10

Diluted

 

$

5.96

 

$

14.03

 

 

 

 

 

WEIGHTED-AVERAGE COMMON SHARES OUTSTANDING

 

 

 

 

Basic

 

 

137.6

 

 

141.3

Diluted

 

 

138.3

 

 

142.1

 

 

 

 

 

(a) Prepared on an unaudited basis in accordance with accounting principles generally accepted in the United States of America.

CUMMINS INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED BALANCE SHEETS

(Unaudited) (a)

 

In millions, except par value

 

March 31,
2025

 

December 31,
2024

ASSETS

 

 

 

 

Current assets

 

 

 

 

Cash and cash equivalents

 

$

1,532

 

 

$

1,671

 

Marketable securities

 

 

626

 

 

 

593

 

Total cash, cash equivalents and marketable securities

 

 

2,158

 

 

 

2,264

 

Accounts and notes receivable, net

 

 

5,680

 

 

 

5,181

 

Inventories

 

 

6,123

 

 

 

5,742

 

Prepaid expenses and other current assets

 

 

1,579

 

 

 

1,565

 

Total current assets

 

 

15,540

 

 

 

14,752

 

Long-term assets

 

 

 

 

Property, plant and equipment, net

 

 

6,407

 

 

 

6,356

 

Investments and advances related to equity method investees

 

 

1,990

 

 

 

1,889

 

Goodwill

 

 

2,397

 

 

 

2,370

 

Other intangible assets, net

 

 

2,401

 

 

 

2,351

 

Pension assets

 

 

1,150

 

 

 

1,189

 

Other assets

 

 

2,646

 

 

 

2,633

 

Total assets

 

$

32,531

 

 

$

31,540

 

 

 

 

 

 

LIABILITIES

 

 

 

 

Current liabilities

 

 

 

 

Accounts payable (principally trade)

 

$

4,311

 

 

$

3,951

 

Loans payable

 

 

291

 

 

 

356

 

Commercial paper

 

 

1,740

 

 

 

1,259

 

Current maturities of long-term debt

 

 

661

 

 

 

660

 

Accrued compensation, benefits and retirement costs

 

 

523

 

 

 

1,084

 

Current portion of accrued product warranty

 

 

685

 

 

 

679

 

Current portion of deferred revenue

 

 

1,506

 

 

 

1,347

 

Other accrued expenses

 

 

1,858

 

 

 

1,898

 

Total current liabilities

 

 

11,575

 

 

 

11,234

 

Long-term liabilities

 

 

 

 

Long-term debt

 

 

4,796

 

 

 

4,784

 

Deferred revenue

 

 

1,053

 

 

 

1,065

 

Other liabilities

 

 

3,136

 

 

 

3,149

 

Total liabilities

 

$

20,560

 

 

$

20,232

 

 

 

 

 

 

EQUITY

 

 

 

 

Cummins Inc. shareholders’ equity

 

 

 

 

Common stock, $2.50 par value, 500 shares authorized, 222.5 and 222.5 shares issued

 

$

2,600

 

 

$

2,636

 

Retained earnings

 

 

21,401

 

 

 

20,828

 

Treasury stock, at cost, 84.8 and 85.1 shares

 

 

(10,711

)

 

 

(10,748

)

Accumulated other comprehensive loss

 

 

(2,366

)

 

 

(2,445

)

Total Cummins Inc. shareholders’ equity

 

 

10,924

 

 

 

10,271

 

Noncontrolling interests

 

 

1,047

 

 

 

1,037

 

Total equity

 

$

11,971

 

 

$

11,308

 

Total liabilities and equity

 

$

32,531

 

 

$

31,540

 

 

 

 

 

 

(a) Prepared on an unaudited basis in accordance with accounting principles generally accepted in the United States of America.

CUMMINS INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(Unaudited) (a)

 

 

 

Three months ended

 

 

March 31,

In millions

 

 

2025

 

 

 

2024

 

CASH FLOWS FROM OPERATING ACTIVITIES

 

 

 

 

Consolidated net income

 

$

850

 

 

$

2,028

 

Adjustments to reconcile consolidated net income to net cash (used in) provided by operating activities

 

 

 

 

Gain related to divestiture of Atmus

 

 

 

 

 

(1,333

)

Depreciation and amortization

 

 

269

 

 

 

265

 

Deferred income taxes

 

 

(25

)

 

 

(38

)

Equity in income of investees, net of dividends

 

 

(70

)

 

 

(78

)

Pension and OPEB expense

 

 

19

 

 

 

9

 

Pension contributions and OPEB payments

 

 

(13

)

 

 

(48

)

Changes in current assets and liabilities, net of acquisitions and divestiture

 

 

 

 

Accounts and notes receivable

 

 

(457

)

 

 

(11

)

Inventories

 

 

(331

)

 

 

(354

)

Other current assets

 

 

(36

)

 

 

(175

)

Accounts payable

 

 

330

 

 

 

327

 

Accrued expenses

 

 

(487

)

 

 

(393

)

Other, net

 

 

(52

)

 

 

77

 

Net cash (used in) provided by operating activities

 

 

(3

)

 

 

276

 

 

 

 

 

 

CASH FLOWS FROM INVESTING ACTIVITIES

 

 

 

 

Capital expenditures

 

 

(162

)

 

 

(169

)

Investments in and net advances to equity investees

 

 

(60

)

 

 

(3

)

Acquisition of businesses, net of cash acquired

 

 

(12

)

 

 

(59

)

Investments in marketable securities—acquisitions

 

 

(457

)

 

 

(379

)

Investments in marketable securities—liquidations

 

 

432

 

 

 

431

 

Cash associated with Atmus divestiture

 

 

 

 

 

(174

)

Other, net

 

 

13

 

 

 

(53

)

Net cash used in investing activities

 

 

(246

)

 

 

(406

)

 

 

 

 

 

CASH FLOWS FROM FINANCING ACTIVITIES

 

 

 

 

Proceeds from borrowings

 

 

52

 

 

 

2,398

 

Net borrowings (payments) of commercial paper

 

 

481

 

 

 

(887

)

Payments on borrowings and finance lease obligations

 

 

(144

)

 

 

(748

)

Dividend payments on common stock

 

 

(251

)

 

 

(239

)

Other, net

 

 

(46

)

 

 

(25

)

Net cash provided by financing activities

 

 

92

 

 

 

499

 

EFFECT OF EXCHANGE RATE CHANGES ON CASH AND CASH EQUIVALENTS

 

 

18

 

 

 

(7

)

Net (decrease) increase in cash and cash equivalents

 

 

(139

)

 

 

362

 

Cash and cash equivalents at beginning of year

 

 

1,671

 

 

 

2,179

 

CASH AND CASH EQUIVALENTS AT END OF PERIOD

 

$

1,532

 

 

$

2,541

 

 

 

 

 

 

(a) Prepared on an unaudited basis in accordance with accounting principles generally accepted in the United States of America.

CUMMINS INC. AND SUBSIDIARIES

SEGMENT INFORMATION

(Unaudited)

   

In millions

 

Engine

 

Components

 

Distribution

 

Power Systems

 

Accelera

 

Total Segments

 

Intersegment
Eliminations (1)

 

Total

Three months ended March 31, 2025

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

External sales

 

$

2,040

 

 

$

2,270

 

 

$

2,902

 

 

$

872

 

 

$

90

 

 

$

8,174

 

 

$

 

 

$

8,174

 

Intersegment sales

 

 

731

 

 

 

400

 

 

 

5

 

 

 

777

 

 

 

13

 

 

 

1,926

 

 

 

(1,926

)

 

 

 

Total sales

 

 

2,771

 

 

 

2,670

 

 

 

2,907

 

 

 

1,649

 

 

 

103

 

 

 

10,100

 

 

 

(1,926

)

 

 

8,174

 

Research, development and engineering expenses

 

 

155

 

 

 

75

 

 

 

14

 

 

 

57

 

 

 

43

 

 

 

344

 

 

 

 

 

 

344

 

Equity, royalty and interest income (loss) from investees

 

 

73

 

 

 

7

 

 

 

28

 

 

 

29

 

 

 

(6

)

 

 

131

 

 

 

 

 

 

131

 

Interest income

 

 

10

 

 

 

7

 

 

 

5

 

 

 

4

 

 

 

 

 

 

26

 

 

 

 

 

 

26

 

EBITDA (2)

 

 

458

 

 

 

382

 

 

 

376

 

 

 

389

 

 

 

(86

)

 

 

1,519

 

 

 

(59

)

 

 

1,460

 

Depreciation and amortization (3)

 

 

67

 

 

 

122

 

 

 

32

 

 

 

33

 

 

 

12

 

 

 

266

 

 

 

 

 

 

266

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

EBITDA as a percentage of total sales

 

 

16.5

%

 

 

14.3

%

 

 

12.9

%

 

 

23.6

%

 

 

NM

 

 

 

15.0

%

 

 

 

 

17.9

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three months ended March 31, 2024

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

External sales

 

$

2,240

 

 

$

2,842

 

 

$

2,529

 

 

$

708

 

 

$

84

 

 

$

8,403

 

 

$

 

 

$

8,403

 

Intersegment sales

 

 

688

 

 

 

490

 

 

 

6

 

 

 

681

 

 

 

9

 

 

 

1,874

 

 

 

(1,874

)

 

 

 

Total sales

 

 

2,928

 

 

 

3,332

 

 

 

2,535

 

 

 

1,389

 

 

 

93

 

 

 

10,277

 

 

 

(1,874

)

 

 

8,403

 

Research, development and engineering expenses

 

 

154

 

 

 

84

 

 

 

14

 

 

 

60

 

 

 

55

 

 

 

367

 

 

 

2

 

 

 

369

 

Equity, royalty and interest income (loss) from investees

 

 

57

 

 

 

26

 

 

 

24

 

 

 

19

 

 

 

(3

)

 

 

123

 

 

 

 

 

 

123

 

Interest income

 

 

7

 

 

 

8

 

 

 

11

 

 

 

3

 

 

 

 

 

 

29

 

 

 

 

 

 

29

 

EBITDA (2)

 

 

414

 

 

 

473

 

(4

)

 

294

 

 

 

237

 

 

 

(101

)

 

 

1,317

 

 

 

1,255

 

 

 

2,572

 

Depreciation and amortization (3)

 

 

58

 

 

 

125

 

 

 

31

 

 

 

34

 

 

 

14

 

 

 

262

 

 

 

 

 

 

262

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

EBITDA as a percentage of total sales

 

 

14.1

%

 

 

14.2

%

 

 

11.6

%

 

 

17.1

%

 

 

NM

 

 

 

12.8

%

 

 

 

 

30.6

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(1) Included intersegment sales, intersegment profit in inventory and unallocated corporate expenses. There were no significant unallocated corporate expenses for the three months ended March 31, 2025. The three months ended March 31, 2024, included a $1.3 billion gain related to the divestiture of Atmus and $14 million of costs associated with the divestiture of Atmus.

(2) EBITDA is defined as earnings or losses before interest expense, income taxes, depreciation and amortization and noncontrolling interests. We believe EBITDA is a useful measure of our operating performance as it assists investors and debt holders in comparing our performance on a consistent basis without regard to financing methods, capital structure, income taxes or depreciation and amortization methods, which can vary significantly depending upon many factors.

(3) Depreciation and amortization, as shown on a segment basis, excluded the amortization of debt discount and deferred costs included in the Condensed Consolidated Statements of Net Income as interest expense. The amortization of debt discount and deferred costs was $3 million and $3 million for the three months ended March 31, 2025 and 2024, respectively. A portion of depreciation expense is included in research, development and engineering expenses.

(4) Included $21 million of costs associated with the divestiture of Atmus for the three months ended March 31, 2024.

CUMMINS INC. AND SUBSIDIARIES
SELECT FOOTNOTE DATA
(Unaudited)

EQUITY, ROYALTY AND INTEREST INCOME FROM INVESTEES

Equity, royalty and interest income from investees included in our Condensed Consolidated Statements of Net Income for the reporting periods was as follows:

 

 

 

Three months ended

 

 

March 31,

In millions

 

2025

 

2024

Manufacturing entities

 

 

 

 

Chongqing Cummins Engine Company, Ltd.

 

$

23

 

$

15

Dongfeng Cummins Engine Company, Ltd.

 

 

20

 

 

22

Beijing Foton Cummins Engine Co., Ltd.

 

 

15

 

 

13

Tata Cummins, Ltd.

 

 

10

 

 

9

All other manufacturers

 

 

7

 

 

23

Distribution entities

 

 

 

 

Komatsu Cummins Chile, Ltda.

 

 

14

 

 

13

All other distributors

 

 

8

 

 

5

Cummins share of net income

 

 

97

 

 

100

Royalty and interest income

 

 

34

 

 

23

Equity, royalty and interest income from investees

 

$

131

 

$

123

 

INCOME TAXES

Our effective tax rate for 2025, excluding discrete items, is expected to approximate 24.5 percent.

Our effective tax rates for the three months ended March 31, 2025 and 2024, were 23.9 percent and 8.7 percent, respectively.

The three months ended March 31, 2025, contained net favorable discrete tax items of $7 million, or $0.05 per diluted share, primarily due to $8 million of favorable share-based compensation tax benefits, partially offset by $1 million of other unfavorable tax items.

The three months ended March 31, 2024, contained favorable discrete tax items primarily due to the $1.3 billion non-taxable gain on the Atmus split-off. Other discrete tax items were $21 million favorable primarily due to adjustments related to audit settlements.

CUMMINS INC. AND SUBSIDIARIES
FINANCIAL MEASURES THAT SUPPLEMENT GAAP
(Unaudited)

Reconciliation of Non GAAP measures - Earnings before interest, income taxes, depreciation and amortization and noncontrolling interests (EBITDA)

We believe EBITDA is a useful measure of our operating performance as it assists investors and debt holders in comparing our performance on a consistent basis without regard to financing methods, capital structure, income taxes or depreciation and amortization methods, which can vary significantly depending upon many factors. We believe EBITDA excluding special items is a useful measure of our operating performance without regard to the impact of the gain recognized and the related costs for the divestiture of Atmus and restructuring actions. This statement excludes forward looking measures of EBITDA where a reconciliation to the corresponding accounting principles generally accepted in the United States (GAAP) measures is not available due to the variability, complexity and limited visibility of non-cash items that are excluded from the non-GAAP outlook measure.

EBITDA is not in accordance with, or an alternative for, GAAP and may not be consistent with measures used by other companies. It should be considered supplemental data; however, the amounts included in the EBITDA calculation are derived from amounts included in the Condensed Consolidated Statements of Net Income. Below is a reconciliation of net income attributable to Cummins Inc. to EBITDA for each of the applicable periods:

 

 

 

Three months ended

 

 

March 31,

In millions

 

2025

 

2024

Net income attributable to Cummins Inc.

 

$

824

 

 

$

1,993

 

 

 

 

 

 

Net income attributable to Cummins Inc., as a percentage of net sales

 

 

10.1

%

 

 

23.7

%

 

 

 

 

 

Add:

 

 

 

 

Net income attributable to noncontrolling interests

 

 

26

 

 

 

35

 

Consolidated net income

 

 

850

 

 

 

2,028

 

 

 

 

 

 

Add:

 

 

 

 

Interest expense

 

 

77

 

 

 

89

 

Income tax expense

 

 

267

 

 

 

193

 

Depreciation and amortization

 

 

266

 

 

 

262

 

EBITDA

 

$

1,460

 

 

$

2,572

 

 

 

 

 

 

EBITDA, as a percentage of net sales

 

 

17.9

%

 

 

30.6

%

 

 

 

 

 

Less:

 

 

 

 

Gain related to the divestiture of Atmus

 

 

 

 

 

1,333

 

Add:

 

 

 

 

Atmus divestiture costs

 

 

 

 

 

35

 

Restructuring actions

 

 

 

 

 

29

 

EBITDA, excluding the impact of the gain recognized and the related costs for the divestiture of Atmus and restructuring actions

 

$

1,460

 

 

$

1,303

 

 

 

 

 

 

EBITDA, excluding the impact of the gain recognized and the related costs for the divestiture of Atmus and restructuring actions, as a percentage of net sales

 

 

17.9

%

 

 

15.5

%

CUMMINS INC. AND SUBSIDIARIES
SEGMENT SALES DATA
(Unaudited)

Engine Segment Sales by Market and Unit Shipments by Engine Classification

Sales for our Engine segment by market were as follows:

2025

 

 

 

 

 

 

 

 

 

 

In millions

 

Q1

 

Q2

 

Q3

 

Q4

 

YTD

Heavy-duty truck

 

$

921

 

$

 

$

 

$

 

$

921

Medium-duty truck and bus

 

 

986

 

 

 

 

 

 

 

 

986

Light-duty automotive

 

 

421

 

 

 

 

 

 

 

 

421

Off-highway

 

 

443

 

 

 

 

 

 

 

 

443

Total sales

 

$

2,771

 

$

 

$

 

$

 

$

2,771

 

 

 

 

 

 

 

 

 

 

 

2024

 

 

 

 

 

 

 

 

 

 

In millions

 

Q1

 

Q2

 

Q3

 

Q4

 

YTD

Heavy-duty truck

 

$

1,059

 

$

1,184

 

$

1,021

 

$

980

 

$

4,244

Medium-duty truck and bus

 

 

995

 

 

1,074

 

 

1,073

 

 

1,024

 

 

4,166

Light-duty automotive

 

 

438

 

 

461

 

 

395

 

 

301

 

 

1,595

Off-highway

 

 

436

 

 

432

 

 

424

 

 

415

 

 

1,707

Total sales

 

$

2,928

 

$

3,151

 

$

2,913

 

$

2,720

 

$

11,712

 

Unit shipments by engine classification (including unit shipments to Power Systems and off-highway engine units included in their respective classification) were as follows:

2025

 

 

 

 

 

 

 

 

 

 

Units

 

Q1

 

Q2

 

Q3

 

Q4

 

YTD

Heavy-duty

 

26,700

 

 

 

 

26,700

Medium-duty

 

75,200

 

 

 

 

75,200

Light-duty

 

39,100

 

 

 

 

39,100

Total units

 

141,000

 

 

 

 

141,000

 

 

 

 

 

 

 

 

 

 

 

2024

 

 

 

 

 

 

 

 

 

 

Units

 

Q1

 

Q2

 

Q3

 

Q4

 

YTD

Heavy-duty

 

33,600

 

37,500

 

32,400

 

29,400

 

132,900

Medium-duty

 

75,800

 

79,600

 

79,200

 

75,700

 

310,300

Light-duty

 

54,800

 

57,200

 

41,400

 

36,000

 

189,400

Total units

 

164,200

 

174,300

 

153,000

 

141,100

 

632,600

 

Components Segment Sales by Business

Sales for our Components segment by business were as follows:

2025

 

 

 

 

 

 

 

 

 

 

In millions

 

Q1

 

Q2

 

Q3

 

Q4

 

YTD

Drivetrain and braking systems

 

$

1,056

 

$

 

$

 

$

 

$

1,056

Emission solutions

 

 

902

 

 

 

 

 

 

 

 

902

Components and software

 

 

595

 

 

 

 

 

 

 

 

595

Automated transmissions

 

 

117

 

 

 

 

 

 

 

 

117

Total sales

 

$

2,670

 

$

 

$

 

$

 

$

2,670

 

 

 

 

 

 

 

 

 

 

 

2024

 

 

 

 

 

 

 

 

 

 

In millions

 

Q1

 

Q2

 

Q3

 

Q4

 

YTD

Drivetrain and braking systems

 

$

1,232

 

$

1,256

 

$

1,131

 

$

1,114

 

$

4,733

Emission solutions

 

 

971

 

 

941

 

 

864

 

 

825

 

 

3,601

Components and software

 

 

611

 

 

623

 

 

581

 

 

589

 

 

2,404

Automated transmissions

 

 

165

 

 

162

 

 

148

 

 

113

 

 

588

Atmus (1)

 

 

353

 

 

 

 

 

 

 

 

353

Total sales

 

$

3,332

 

$

2,982

 

$

2,724

 

$

2,641

 

$

11,679

 

 

 

 

 

 

 

 

 

 

 

(1) Included sales through the March 18, 2024, divestiture.

Distribution Segment Sales by Product Line

Sales for our Distribution segment by product line were as follows:

2025

 

 

 

 

 

 

 

 

 

 

In millions

 

Q1

 

Q2

 

Q3

 

Q4

 

YTD

Power generation

 

$

1,090

 

$

 

$

 

$

 

$

1,090

Parts

 

 

1,031

 

 

 

 

 

 

 

 

1,031

Service

 

 

416

 

 

 

 

 

 

 

 

416

Engines

 

 

370

 

 

 

 

 

 

 

 

370

Total sales

 

$

2,907

 

$

 

$

 

$

 

$

2,907

 

 

 

 

 

 

 

 

 

 

 

2024

 

 

 

 

 

 

 

 

 

 

In millions

 

Q1

 

Q2

 

Q3

 

Q4

 

YTD

Power generation

 

$

707

 

$

954

 

$

1,091

 

$

1,220

 

$

3,972

Parts

 

 

1,001

 

 

990

 

 

1,004

 

 

985

 

 

3,980

Service

 

 

406

 

 

448

 

 

455

 

 

444

 

 

1,753

Engines

 

 

421

 

 

437

 

 

402

 

 

419

 

 

1,679

Total sales

 

$

2,535

 

$

2,829

 

$

2,952

 

$

3,068

 

$

11,384

 

Power Systems Segment Sales by Product Line and Unit Shipments by Engine Classification

Sales for our Power Systems segment by product line were as follows:

2025

 

 

 

 

 

 

 

 

 

 

In millions

 

Q1

 

Q2

 

Q3

 

Q4

 

YTD

Power generation

 

$

1,001

 

$

 

$

 

$

 

$

1,001

Industrial

 

 

498

 

 

 

 

 

 

 

 

498

Generator technologies

 

 

150

 

 

 

 

 

 

 

 

150

Total sales

 

$

1,649

 

$

 

$

 

$

 

$

1,649

 

 

 

 

 

 

 

 

 

 

 

2024

 

 

 

 

 

 

 

 

 

 

In millions

 

Q1

 

Q2

 

Q3

 

Q4

 

YTD

Power generation

 

$

853

 

$

987

 

$

1,055

 

$

1,090

 

$

3,985

Industrial

 

 

420

 

 

478

 

 

508

 

 

526

 

 

1,932

Generator technologies

 

 

116

 

 

124

 

 

124

 

 

127

 

 

491

Total sales

 

$

1,389

 

$

1,589

 

$

1,687

 

$

1,743

 

$

6,408

High-horsepower unit shipments by engine classification were as follows:

2025

 

 

 

 

 

 

 

 

 

 

Units

 

Q1

 

Q2

 

Q3

 

Q4

 

YTD

Power generation

 

2,600

 

 

 

 

2,600

Industrial

 

1,300

 

 

 

 

1,300

Total units

 

3,900

 

 

 

 

3,900

 

 

 

 

 

 

 

 

 

 

 

2024

 

 

 

 

 

 

 

 

 

 

Units

 

Q1

 

Q2

 

Q3

 

Q4

 

YTD

Power generation

 

3,000

 

3,700

 

2,900

 

3,200

 

12,800

Industrial

 

1,300

 

1,500

 

1,700

 

1,700

 

6,200

Total units

 

4,300

 

5,200

 

4,600

 

4,900

 

19,000

 

Melinda Koski
External Communications
812-377-0500
melinda.koski@cummins.com

Source: Cummins Inc.