Cummins Reports First Quarter 2025 Results

“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 Due to growing economic uncertainty driven by tariffs, we have withdrawn our full year forecast.”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 IP 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. 

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.