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Business Wire
05-08-2025
- Business
- Business Wire
Cummins Reports Second Quarter 2025 Results
COLUMBUS, Ind.--(BUSINESS WIRE)--Cummins Inc. (NYSE: CMI) today reported results for the second quarter of 2025. 'We delivered strong second quarter results, driven by record profitability in our Power Systems and Distribution segments,' said Jennifer Rumsey, Chair and CEO. 'Our employees' resilience and commitment continue to power our success in a dynamic environment. We see a contrast across our markets with robust demand for power generation equipment supported by clear secular drivers, and our more economically sensitive markets, such as truck, where end-user confidence has declined. This contrast will become even more pronounced in the second half of the year as North America truck build rates decline sharply, starting in the third quarter. Aftermarket demand for parts and service remains stable.' Second quarter revenues of $8.6 billion decreased 2% from the same quarter in 2024. Sales in North America declined 6%, and international revenues increased 5% due to higher demand in Europe and China. Net income attributable to Cummins in the second quarter was $890 million, or $6.43 per diluted share, compared to $726 million, or $5.26 per diluted share, in 2024. Earnings before interest, taxes, depreciation and amortization (EBITDA) in the second quarter were $1.6 billion, or 18.4% of sales, compared to $1.3 billion, or 15.3% of sales, a year ago. 2025 Outlook: Due to continued economic uncertainty, the company will not be reinstating a full-year outlook for revenue or profitability at this time. 'Our diversified portfolio, disciplined cost management and strong execution have enabled us to navigate recent industry challenges,' said Rumsey. 'However, persistent economic and regulatory uncertainty continues to impact a number of our key markets and cloud our near-term outlook for both business and market performance. We remain focused on delivering for our customers and look forward to providing additional clarity as this uncertainty subsides.' Second Quarter 2025 Highlights: Cummins announced an increase in the quarterly common stock cash dividend from $1.82 to $2.00 per share. The company has increased the quarterly dividend to shareholders for 16 consecutive years. Cummins launched the new 17-liter engine platform generator, expanding on the success of the acclaimed Centum™ Series generator sets. Producing up to 1 megawatt of power, the S17 Centum genset was developed to produce a large power output within a compact footprint to meet the growing demands of power in urban environments. The new genset is designed to support a wide range of critical market segments such as commercial properties, healthcare facilities and water treatment plants. Jennifer Rumsey was named one of Barron's Top CEOs of 2025. Jennifer was recognized for her visionary leadership and commitment to innovation and sustainability. The annual list features 26 leaders whose deft guidance has put their companies in a stronger competitive position. 1 Generally Accepted Accounting Principles in the U.S. Second quarter 2025 detail (all comparisons to same period in 2024): Engine Segment Sales - $2.9 billion, down 8% Segment EBITDA - $400 million, or 13.8% of sales, compared to $445 million, or 14.1% of sales Revenues decreased 8% in North America and 7% in international markets due to lower on-highway demand in the United States and Mexico. Components Segment Sales - $2.7 billion, down 9% Segment EBITDA - $397 million, or 14.7% of sales, compared to $406 million, or 13.6% of sales Revenues in North America decreased by 15% and international sales were flat primarily due to lower on-highway demand in the United States. Distribution Segment Sales - $3.0 billion, up 7% Segment EBITDA - $445 million, or 14.6% of sales, compared to $314 million, or 11.1% of sales Revenues in North America increased 9% and international sales increased by 4% primarily due to increased demand for power generation products in the United States. Power Systems Segment Sales - $1.9 billion, up 19% Segment EBITDA - $430 million, or 22.8% of sales, compared to $301 million, or 18.9% of sales Revenues in North America increased 23% and international sales increased 16% driven primarily by increased power generation demand, particularly for the data center and mission critical markets. Accelera Segment Sales - $105 million, down 5% Segment EBITDA loss - $100 million, compared to $117 million Revenues decreased due to lower 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 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 from changes in tariffs and other trade disruptions; any adverse consequences resulting from entering into agreements with the U.S. Environmental Protection Agency, California Air Resources Board, the Environmental and Natural Resources Division of the U.S. Department of Justice and the California Attorney General's Office to resolve certain regulatory civil claims regarding our emissions certification and compliance process for certain engines primarily used in pick-up truck applications in the U.S., which became final and effective in April 2024, 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 or at 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 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 BALANCE SHEETS (Unaudited) (a) In millions, except par value June 30, 2025 December 31, 2024 ASSETS Current assets Cash and cash equivalents $ 2,319 $ 1,671 Marketable securities 755 593 Total cash, cash equivalents and marketable securities 3,074 2,264 Accounts and notes receivable, net 5,874 5,181 Inventories 6,287 5,742 Prepaid expenses and other current assets 1,698 1,565 Total current assets 16,933 14,752 Long-term assets Property, plant and equipment, net 6,540 6,356 Investments and advances related to equity method investees 2,018 1,889 Goodwill 2,433 2,370 Other intangible assets, net 2,395 2,351 Pension assets 1,158 1,189 Other assets 2,782 2,633 Total assets $ 34,259 $ 31,540 LIABILITIES Current liabilities Accounts payable (principally trade) $ 4,151 $ 3,951 Loans payable 336 356 Commercial paper 353 1,259 Current maturities of long-term debt 615 660 Accrued compensation, benefits and retirement costs 657 1,084 Current portion of accrued product warranty 657 679 Current portion of deferred revenue 1,620 1,347 Other accrued expenses 1,926 1,898 Total current liabilities 10,315 11,234 Long-term liabilities Long-term debt 6,807 4,784 Deferred revenue 1,059 1,065 Other liabilities 3,205 3,149 Total liabilities $ 21,386 $ 20,232 EQUITY Cummins Inc. shareholders' equity Common stock, $2.50 par value, 500 shares authorized, 222.5 and 222.5 shares issued $ 2,624 $ 2,636 Retained earnings 22,040 20,828 Treasury stock, at cost, 84.7 and 85.1 shares (10,708 ) (10,748 ) Accumulated other comprehensive loss (2,167 ) (2,445 ) Total Cummins Inc. shareholders' equity 11,789 10,271 Noncontrolling interests 1,084 1,037 Total equity $ 12,873 $ 11,308 Total liabilities and equity $ 34,259 $ 31,540 (a) Prepared on an unaudited basis in accordance with accounting principles generally accepted in the United States of America. Expand CUMMINS INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) (a) Three months ended June 30, In millions 2025 2024 CASH FLOWS FROM OPERATING ACTIVITIES Consolidated net income $ 928 $ 752 Adjustments to reconcile consolidated net income to net cash provided by (used in) operating activities Depreciation and amortization 279 263 Deferred income taxes (113 ) (61 ) Equity in income of investees, net of dividends (18 ) (8 ) Pension and OPEB expense 20 10 Pension contributions and OPEB payments (13 ) (11 ) Changes in current assets and liabilities, net of acquisitions Accounts and notes receivable (186 ) (150 ) Inventories (105 ) (115 ) Other current assets (136 ) 24 Accounts payable (182 ) (64 ) Accrued expenses 243 (1,540 ) Other, net 68 49 Net cash provided by (used in) operating activities 785 (851 ) CASH FLOWS FROM INVESTING ACTIVITIES Capital expenditures (231 ) (240 ) Investments in and net advances to equity investees 6 (52 ) Investments in marketable securities—acquisitions (326 ) (334 ) Investments in marketable securities—liquidations 204 254 Other, net (22 ) (28 ) Net cash used in investing activities (369 ) (400 ) CASH FLOWS FROM FINANCING ACTIVITIES Proceeds from borrowings 2,094 84 Net (payments) borrowings of commercial paper (1,387 ) 972 Payments on borrowings and finance lease obligations (66 ) (475 ) Dividend payments on common stock (251 ) (230 ) Payments for purchase of redeemable noncontrolling interests (55 ) — Other, net (3 ) (43 ) Net cash provided by financing activities 332 308 39 (8 ) Net increase (decrease) in cash and cash equivalents 787 (951 ) Cash and cash equivalents at beginning of period 1,532 2,541 CASH AND CASH EQUIVALENTS AT END OF PERIOD $ 2,319 $ 1,590 (a) Prepared on an unaudited basis in accordance with accounting principles generally accepted in the United States of America. Expand Six months ended June 30, In millions 2025 2024 CASH FLOWS FROM OPERATING ACTIVITIES Consolidated net income $ 1,778 $ 2,780 Adjustments to reconcile consolidated net income to net cash provided by (used in) operating activities Gain related to divestiture of Atmus — (1,333 ) Depreciation and amortization 548 528 Deferred income taxes (138 ) (99 ) Equity in income of investees, net of dividends (88 ) (86 ) Pension and OPEB expense 39 19 Pension contributions and OPEB payments (26 ) (59 ) Changes in current assets and liabilities, net of acquisitions and divestiture Accounts and notes receivable (643 ) (161 ) Inventories (436 ) (469 ) Other current assets (172 ) (151 ) Accounts payable 148 263 Accrued expenses (244 ) (1,933 ) Other, net 16 126 Net cash provided by (used in) operating activities 782 (575 ) CASH FLOWS FROM INVESTING ACTIVITIES Capital expenditures (393 ) (409 ) Investments in and net advances to equity investees (54 ) (55 ) Acquisition of businesses, net of cash acquired (12 ) (58 ) Investments in marketable securities—acquisitions (783 ) (713 ) Investments in marketable securities—liquidations 636 685 Cash associated with Atmus divestiture — (174 ) Other, net (9 ) (82 ) Net cash used in investing activities (615 ) (806 ) CASH FLOWS FROM FINANCING ACTIVITIES Proceeds from borrowings 2,146 2,482 Net (payments) borrowings of commercial paper (906 ) 85 Payments on borrowings and finance lease obligations (210 ) (1,223 ) Dividend payments on common stock (502 ) (469 ) Payments for purchase of redeemable noncontrolling interests (55 ) — Other, net (49 ) (68 ) Net cash provided by financing activities 424 807 57 (15 ) Net increase (decrease) in cash and cash equivalents 648 (589 ) Cash and cash equivalents at beginning of year 1,671 2,179 CASH AND CASH EQUIVALENTS AT END OF PERIOD $ 2,319 $ 1,590 (a) Prepared on an unaudited basis in accordance with accounting principles generally accepted in the United States of America. Expand CUMMINS INC. AND SUBSIDIARIES SEGMENT INFORMATION (Unaudited) In millions Engine Components Distribution Power Systems Accelera Total Segments Intersegment Eliminations (1) Total Three months ended June 30, 2025 External sales $ 2,162 $ 2,295 $ 3,034 $ 1,054 $ 98 $ 8,643 $ — $ 8,643 Intersegment sales 737 410 7 835 7 1,996 (1,996 ) — Total sales 2,899 2,705 3,041 1,889 105 10,639 (1,996 ) 8,643 Research, development and engineering expenses 151 77 14 69 46 357 — 357 Equity, royalty and interest income (loss) from investees 60 10 26 27 (5 ) 118 — 118 Interest income 8 10 7 4 1 30 — 30 EBITDA (2) 400 397 445 430 (100 ) 1,572 15 1,587 Depreciation and amortization (3) 68 127 32 35 13 275 — 275 EBITDA as a percentage of segment sales 13.8 % 14.7 % 14.6 % 22.8 % NM 14.8 % 18.4 % Three months ended June 30, 2024 External sales $ 2,468 $ 2,518 $ 2,821 $ 888 $ 101 $ 8,796 $ — $ 8,796 Intersegment sales 683 464 8 701 10 1,866 (1,866 ) — Total sales 3,151 2,982 2,829 1,589 111 10,662 (1,866 ) 8,796 Research, development and engineering expenses 167 81 14 63 54 379 — 379 Equity, royalty and interest income (loss) from investees 48 13 24 26 (8 ) 103 — 103 Interest income 7 9 11 3 — 30 — 30 EBITDA (2) 445 406 314 301 (117 ) 1,349 (4 ) 1,345 Depreciation and amortization (3) 61 121 30 32 15 259 — 259 EBITDA as a percentage of segment sales 14.1 % 13.6 % 11.1 % 18.9 % NM 12.7 % 15.3 % "NM" - not meaningful information (1) Included intersegment sales, intersegment profit in inventory and unallocated corporate expenses. There were no significant unallocated corporate expenses for the three months ended June 30, 2025 and 2024. (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, excludes the amortization of debt discount and deferred costs included in our Condensed Consolidated Statements of Net Income as interest expense. A portion of depreciation expense is included in research, development and engineering expenses. Expand In millions Engine Components Distribution Power Systems Accelera Total Segments Intersegment Eliminations (1) Total Six months ended June 30, 2025 External sales $ 4,202 $ 4,565 $ 5,936 $ 1,926 $ 188 $ 16,817 $ — $ 16,817 Intersegment sales 1,468 810 12 1,612 20 3,922 (3,922 ) — Total sales 5,670 5,375 5,948 3,538 208 20,739 (3,922 ) 16,817 Research, development and engineering expenses 306 152 28 126 89 701 — 701 Equity, royalty and interest income (loss) from investees 133 17 54 56 (11 ) 249 — 249 Interest income 18 17 12 8 1 56 — 56 EBITDA (2) 858 779 821 819 (186 ) 3,091 (44 ) 3,047 Depreciation and amortization (3) 135 249 64 68 25 541 — 541 EBITDA as a percentage of total sales 15.1 % 14.5 % 13.8 % 23.1 % NM 14.9 % 18.1 % Six months ended June 30, 2024 External sales $ 4,708 $ 5,360 $ 5,350 $ 1,596 $ 185 $ 17,199 $ — $ 17,199 Intersegment sales 1,371 954 14 1,382 19 3,740 (3,740 ) — Total sales 6,079 6,314 5,364 2,978 204 20,939 (3,740 ) 17,199 Research, development and engineering expenses 321 165 28 123 109 746 2 748 Equity, royalty and interest income (loss) from investees 105 39 48 45 (11 ) 226 — 226 Interest income 14 17 22 6 — 59 — 59 EBITDA (2) 859 879 (4 ) 608 538 (218 ) 2,666 1,251 Depreciation and amortization (3) 119 246 61 66 29 521 — 521 EBITDA as a percentage of total sales 14.1 % 13.9 % 11.3 % 18.1 % NM 12.7 % 22.8 % (1) Included intersegment sales, intersegment profit in inventory and unallocated corporate expenses. There were no significant unallocated corporate expenses for the six months ended June 30, 2025. The six months ended June 30, 2024, included a $1.3 billion gain related to the divestiture of Atmus Filtration Technologies Inc. (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 $7 million and $7 million for the six months ended June 30, 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 six months ended June 30, 2024. Expand 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: INCOME TAXES Our effective tax rate for 2025 is expected to approximate 24.5 percent, excluding any discrete items that may arise and potential adjustments for the "One Big Beautiful Bill Act" signed into law on July 4, 2025. Our effective tax rates for the three and six months ended June 30, 2025, were 24.2 percent and 24.1 percent, respectively. Our effective tax rates for the three and six months ended June 30, 2024, were 23.0 percent and 13.1 percent, respectively. The three months ended June 30, 2025, contained net favorable discrete tax items of $3 million, or $0.02 per diluted share, primarily due to $4 million of favorable adjustments for uncertain tax positions, partially offset by $1 million of other unfavorable tax items. The six months ended June 30, 2025, contained net favorable discrete tax items of $10 million, or $0.07 per diluted share, primarily due to $8 million of favorable adjustments for share-based compensation tax benefits and $5 million of favorable adjustments for uncertain tax positions, partially offset by $3 million of other unfavorable tax items. The three months ended June 30, 2024, contained favorable discrete tax items of $9 million, or $0.07 per share, primarily due to share-based compensation tax benefits. The six months ended June 30, 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 $30 million, or $0.21 per share, primarily due to adjustments related to audit settlements and share-based compensation tax benefits. On July 4, 2025, the 'One Big Beautiful Bill Act' was signed into law, enacting significant changes to U.S. federal income tax rules affecting corporations, such as the ability to immediately deduct domestic research and development costs, restoration of elective 100 percent bonus depreciation for qualified property and changes related to the international tax provisions. We are currently assessing the impact to our consolidated financial statements. CUMMINS INC. AND SUBSIDIARIES (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: 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 $ 976 $ — $ — $ 1,897 Medium-duty truck and bus 986 950 — — 1,936 Light-duty automotive 421 486 — — 907 Off-highway 443 487 — — 930 Total sales $ 2,771 $ 2,899 $ — $ — $ 5,670 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 Expand 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 (1) Q1 Q2 Q3 Q4 YTD Heavy-duty 26,700 29,600 — — 56,300 Medium-duty 75,200 73,400 — — 148,600 Light-duty 39,100 44,000 — — 83,100 Total units 141,000 147,000 — — 288,000 2024 Units (1) 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 (1) Unit shipments exclude aftermarket parts. Expand 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 $ 1,095 $ — $ — $ 2,151 Emission solutions 902 900 — — 1,802 Components and software 595 587 — — 1,182 Automated transmissions 117 123 — — 240 Total sales $ 2,670 $ 2,705 $ — $ — $ 5,375 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. Expand 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 $ 1,200 $ — $ — $ 2,290 Parts 1,031 1,015 — — 2,046 Service 416 439 — — 855 Engines 370 387 — — 757 Total sales $ 2,907 $ 3,041 $ — $ — $ 5,948 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 Expand Power Systems Segment Sales by Product Line Sales for our Power Systems segment by product line were as follows: 2025 In millions Q1 Q2 Q3 Q4 YTD Power generation $ 1,001 $ 1,205 $ — $ — $ 2,206 Industrial 498 506 — — 1,004 Generator technologies 150 178 — — 328 Total sales $ 1,649 $ 1,889 $ — $ — $ 3,538 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 Expand
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20-05-2025
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CMI Q1 Earnings Call: Power Systems Outperformance and Uncertainty from Tariffs Shape Outlook
Engine manufacturer Cummins (NYSE:CMI) reported Q1 CY2025 results beating Wall Street's revenue expectations , but sales fell by 2.7% year on year to $8.17 billion. Its non-GAAP profit of $5.96 per share was 21% above analysts' consensus estimates. Is now the time to buy CMI? Find out in our full research report (it's free). Revenue: $8.17 billion vs analyst estimates of $8.13 billion (2.7% year-on-year decline, 0.6% beat) Adjusted EPS: $5.96 vs analyst estimates of $4.92 (21% beat) Adjusted EBITDA: $1.46 billion vs analyst estimates of $1.31 billion (17.9% margin, 11.2% beat) Operating Margin: 13.9%, up from 11% in the same quarter last year Free Cash Flow was -$165 million, down from $107 million in the same quarter last year Market Capitalization: $46.08 billion Cummins' first quarter results were shaped by robust performance in its Power Systems segment and strong aftermarket demand, even as core North American truck markets softened. CEO Jennifer Rumsey emphasized the launch of new engine platforms and the acquisition of hybrid retrofit technology as key factors in operational improvement. She noted, 'We achieved impressive results in the first quarter with record financial performance in our Power Systems business,' while cautioning about increasing uncertainty from trade tariffs and regulatory changes. Looking ahead, management withheld full-year guidance due to the evolving impact of tariffs and unclear regulatory timelines, particularly for emissions standards in North America. Rumsey described the environment as highly uncertain, stating, 'The breadth and changing nature of the tariffs have introduced a great degree of uncertainty and mean that at this time, we are unable to predict with confidence our expected performance for the year.' The company is closely monitoring demand trends across segments, with particular focus on aftermarket strength and the timing of new product introductions. Management attributed the quarter's profitability to a combination of operational improvements, segment-specific momentum, and proactive pricing, while also flagging near-term risks from trade policy and regulatory uncertainty. Power Systems Margin Expansion: Operational enhancements and broad-based demand—especially in data centers, mining, and rebuilds—drove record profitability, with aftermarket sales exceeding expectations. Aftermarket and Pricing Gains: Aftermarket volumes increased across several segments, supported by successful price increases and cost control, notably within the engine and distribution businesses. Data Center Demand: Accelerating demand for data center backup power in both the U.S. and China contributed to growth, but management clarified that aftermarket strength was broad-based and not solely tied to this market. Product Launches and Acquisitions: The introduction of the X10 and B7.2 engine platforms and the acquisition of First Mode's retrofit hybrid technology for mining/rail reinforced Cummins' focus on decarbonization and product renewal. Tariff and Regulatory Complexities: Management highlighted that tariffs had minimal impact in Q1 but expect growing effects in future quarters, particularly as inventory and supply chain mitigation options diminish. They also noted ongoing uncertainty around 2027 emissions regulations and the potential for additional tariffs under Section 232 investigations. Management's outlook is shaped by the potential duration and scope of tariffs, regulatory changes, and mixed demand signals across end markets, all of which introduce significant unpredictability for the remainder of the year. Tariff Uncertainty: The evolving landscape of U.S. and international tariffs is expected to impact both costs and demand, with management planning to pass on costs where possible but acknowledging some lag and risk to overall economic activity. Regulatory Timeline: Pending emissions regulations in North America create uncertainty for new product adoption and customer purchasing decisions, with the 2027 NOx rule and potential changes to greenhouse gas standards being closely monitored. Aftermarket and Power Systems Resilience: Management views the Power Systems and aftermarket segments as having more predictable multi-year demand, with the ability to reallocate orders if needed, while on-highway engine and components businesses remain exposed to cyclical swings. Jamie Cook (Truist Securities): Asked about the quantifiable impact of tariffs and visibility by segment; management declined to provide specifics, citing ongoing uncertainty and noted actions to mitigate and pass on costs. Jerry Revich (Goldman Sachs): Inquired if Power Systems margins are sustainable and about regulatory impacts on engine platforms; management said margins reflect underlying improvements but may fluctuate with demand and regulatory clarity. Angel Castillo (Morgan Stanley): Sought detail on near-term tariff effects and aftermarket drivers; management stated tariff impacts were immaterial in Q1 but will grow, and aftermarket strength is broad-based, not just data center-driven. Tim Thein (Raymond James): Probed on expectations for parts demand and joint venture income; management expects parts demand to remain resilient but noted joint venture income could be lumpy and may moderate. David Raso (Evercore ISI): Questioned whether demand concerns stem from actual price pushback or general macro uncertainty; management attributed order caution to broader economic and regulatory uncertainties rather than direct price resistance. In the coming quarters, the StockStory team will be tracking (1) the impact of newly enacted and potential tariffs on both costs and order volumes as mitigation strategies phase out, (2) the pace and outcome of regulatory developments around 2027 emissions standards and Section 232 investigations, and (3) sustained strength in Power Systems and aftermarket demand, including the adoption of new engine platforms and decarbonization technologies. Execution on these fronts will be critical for assessing Cummins' resilience in a volatile environment. Cummins currently trades at a forward EV-to-EBITDA ratio of 11.5×. At this valuation, is it a buy or sell post earnings? See for yourself in our free research report. Market indices reached historic highs following Donald Trump's presidential victory in November 2024, but the outlook for 2025 is clouded by new trade policies that could impact business confidence and growth. While this has caused many investors to adopt a "fearful" wait-and-see approach, we're leaning into our best ideas that can grow regardless of the political or macroeconomic climate. Take advantage of Mr. Market by checking out our Top 6 Stocks for this week. This is a curated list of our High Quality stocks that have generated a market-beating return of 176% over the last five years. Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,545% between March 2020 and March 2025) as well as under-the-radar businesses like the once-micro-cap company Tecnoglass (+1,754% five-year return). Find your next big winner with StockStory today.
Business Wire
05-05-2025
- Business
- Business Wire
Cummins Reports First Quarter 2025 Results
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 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 or at 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 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 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. Expand 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 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. Expand 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. Expand CUMMINS INC. AND SUBSIDIARIES SELECT FOOTNOTE DATA (Unaudited) Equity, royalty and interest income from investees included in our Condensed Consolidated Statements of Net Income for the reporting periods was as follows: 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: 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 Expand Unit shipments by engine classification (including unit shipments to Power Systems and off-highway engine units included in their respective classification) were as follows: 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 (1) Included sales through the March 18, 2024, divestiture. Expand 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 Expand 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 Expand High-horsepower unit shipments by engine classification were as follows:
Yahoo
25-04-2025
- Yahoo
Two men charged in Newport, N.C. overdose death case
CARTERET COUNTY, N.C. (WNCT) — On Wednesday, Apr. 23, 2025, two men were charged for the overdose death of an individual in Newport. Francis Edward Vandevord, 51, and Jamie Allan Rumsey, 50, both of Newport, were charged for the overdose death of Benny Ray Weeks, 62, of Newport. This death investigation started on November 7, 2024, when detectives were called to the home of Weeks after he was found deceased. Investigation revealed that Vandevoord and Rumsey had acted together to sell Fentanyl to Weeks prior to his death. This led to Vadevoord and Rumsey being charged with the sale and delivery of Fentanyl in December of 2024. On Tuesday, Apr. 22, 2025, the NC Office of the Chief Medical Examiner released Weeks' official cause of death as Fentanyl and Methamphetamine Toxicity. This led to Rumsey and Vandevoord also being charged with Death by Distribution-Sale on Apr. 23, 2025. Rumsey is being held in the Onslow County Jail on unrelated charges and will be transferred to Carteret County for a first appearance. Vandevoord had a first appearance in Carteret County's District Court on the morning of Friday, Apr. 25, 2025, for the Death of Distribution charge and is being held at the Carteret County Detention Center under a $250,000 secured bond. Copyright 2025 Nexstar Media, Inc. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.
NZ Herald
21-04-2025
- NZ Herald
North Island Saddleback thrive in Bay of Islands, marking 10 years since reintroduction
'Thanks to the continued pest-free status of the islands, tīeke populations have become well-established on both Urupukapuka and Moturua, and visitors walking in the bush on either island are now very likely to be greeted by these charismatic birds and their distinctive calls.' Tīeke are a notable success story of New Zealand conservation. Highly vulnerable to predation by rats and stoats, by the early 1900s, tīeke had been reduced to a single population of a few hundred birds on Taranga / Hen Island off the coast of Bream Bay. Thanks to a series of translocations from the 1960s onwards, there are now 18 island populations, with six more within predator-fenced mainland sanctuaries, and an estimated total population size of more than 7000. The tīeke is one of seven animal species reintroduced to Ipipiri by Project Island Song since 2012, with 13 more identified for future releases. The project is currently running an online raffle to raise funds to keep the islands pest-free and support the return of more taonga species. Prizes are a two-night luxury stay at Eagles Nest in Kororāreka / Russell, a private sunset yacht cruise with Cool Change Charters, and a light pendant designed by David Trubridge. 'Putting these into a raffle provides a great opportunity for people to support our local wildlife, and give themselves the chance to win some fantastic prizes,' Rumsey said.
