CUMMINS INCCMI
CUMMINS INC Financial Overview 2021–2025
Despite a cyclical downturn in on-highway commercial trucks, Cummins Inc. drove a 16% revenue surge in its Power Systems segment during FY2025, fueled by explosive data center and power generation demand. Beneath surface-level earnings volatility from compliance penalties and portfolio spin-offs, the central thesis is clear: Cummins is successfully using its legacy industrial profits to fund an expensive, multi-year transition toward zero-emission technologies.
The company’s top line expanded significantly over the last half-decade, with revenue growing from $24.02 billion in FY2021 to $33.7 billion in FY2025. This expansion was heavily propelled by the $2.9 billion acquisition of Meritor in FY2022, which fortified its components business. Cummins also demonstrated strict operational discipline amidst macroeconomic pressures, expanding to a 26.4% gross margin by the first half of FY2025. Meanwhile, the company structurally improved its balance sheet, reducing its debt-to-capital ratio to 36.0% at the end of FY2025 and generating $3.6 billion in operating cash flow. These cash engines are critical, as the zero-emission Accelera segment remains deeply unprofitable and absorbed $458 million in strategic charges last year.
Bottom-line performance has been notably choppy due to one-time events. Cummins reported a collapsed $735 million net income in FY2023 following a massive $2.036 billion emissions settlement, saw a temporary spike in FY2024 from a divestiture gain, and settled at $2.8 billion in FY2025. At the close of FY2025, the market looked past this historical noise, valuing the stock at $510.45 and a multiple of 24.9x earnings.
Recent Developments (Q3 and Q4 2025)
Cummins navigated a sluggish second half, with Q3 2025 net sales slipping 2% year-over-year to $8.317 billion. Profitability contracted notably during the quarter, as net income dropped to $536 million, or $3.86 per diluted share, down sharply from $5.86 in Q3 2024. Despite this top-line pressure, management maintained shareholder returns by hiking the quarterly dividend 10% to $2.00 per share.
Bulls highlight that non-trucking operations are successfully cushioning the cyclical blow, evidenced by a 9% annual sales increase in the Distribution unit. Conversely, bears warn that lingering commercial truck weakness and unfavorable tax impacts are suppressing core earnings power. The stock appears richly valued relative to this profit contraction, trading at 28.7x earnings as of the February 9, 2026 reporting date, not today.
What to watch: recovery timelines for on-highway commercial truck demand; sustained growth within the Distribution segment
Rev
$33.67B
FY2025
NI
$2.84B
FY2025
EPS
$20.62
FY2025
OCF
$3.62B
FY2025
Year-over-year comparison from 10-K annual reports
Data from SEC Company Facts
Recent SEC Filings
CUMMINS INC 8-K Report, Financial Results (Feb 5, 2026)
Cummins Inc. (CMI) has filed its 8-K report for the period ending February 4, 2026, detailing its fourth-quarter 2025 financial results. Investors should note that this filing primarily furnishes a press release containing these results, rather than providing new detailed financial statements within the 8-K itself. The information presented, while important for understanding the company's recent performance, is designated as "furnished" and not "filed," meaning it is not subject to the full liabilities of Section 18 of the Exchange Act. The key takeaway for investors will be the content of the press release (Exhibit 99), which will outline CMI's revenue, profitability, and any significant operational updates for the fourth quarter of 2025. While the 8-K doesn't contain the specifics, it signals that these results have been officially communicated and are available for review through the attached exhibit. Investors are encouraged to consult Exhibit 99 directly for the quantitative and qualitative details of the company's performance.
CUMMINS INC 8-K Report, Financial Results (Nov 6, 2025)
Cummins Inc. (CMI) has filed an 8-K report on November 6, 2025, to announce its financial results for the third quarter of 2025. While the full financial details are provided in the attached press release (Exhibit 99), this filing serves as the official notification of these results to the market. Investors should refer to the press release for specific performance metrics, including revenue, profitability, and any forward-looking guidance that may have been issued. The company is furnishing this information as required by SEC regulations, but it's important to note that the content is not considered "filed" for purposes of Section 18 of the Exchange Act. This means it won't automatically be incorporated into future SEC filings unless specifically referenced. Investors should treat this information as a primary source for the company's latest quarterly performance update.
CUMMINS INC 8-K Report, Financial Results (Aug 5, 2025)
Cummins Inc. (CMI) has filed an 8-K report on August 5, 2025, to announce its financial results for the second quarter of 2025. The report primarily consists of a press release detailing these results, which is furnished as an exhibit. Investors should note that while this filing provides critical performance information, it is furnished under Item 2.02 and is not considered "filed" for purposes of Section 18 of the Exchange Act, nor is it incorporated by reference into other SEC filings unless explicitly stated. The full details of the Q2 2025 financial performance are available in the attached press release (Exhibit 99) which covers revenue, profitability, and other key financial metrics. Investors are encouraged to review this press release for a comprehensive understanding of the company's operational and financial standing.
CUMMINS INC 8-K Report, Executive Changes (Jul 14, 2025)
Cummins Inc. (CMI) announced a significant addition to its Board of Directors with the election of Matthew Tsien, a former executive at General Motors, effective July 14, 2025. Mr. Tsien's appointment is expected to bring valuable industry experience to the board. He has been deemed independent by the New York Stock Exchange and relevant regulatory bodies, ensuring adherence to corporate governance standards. Mr. Tsien's immediate roles on the board will include serving on the Audit Committee, the Safety, Environment and Technology Committee, and the Governance and Nominating Committee. This strategic placement indicates a focus on strengthening oversight in critical areas for Cummins. His compensation will align with the company's standard non-employee director policies, as detailed in their 2025 Proxy Statement.
CUMMINS INC 8-K Report, Material Agreement (Jun 2, 2025)
Cummins Inc. (CMI) has entered into two new credit agreements on June 2, 2025, replacing previous arrangements. The first is a "5-Year Credit Agreement" maturing on June 2, 2030, with a total aggregate outstanding amount of up to $2.0 billion. This agreement amends and restates a prior agreement from June 3, 2024. Concurrently, the company also established a "3-Year Credit Agreement" maturing on June 2, 2028, also with a total aggregate outstanding amount of up to $2.0 billion. This replaces a 364-day credit agreement that expired on June 2, 2025. Both credit facilities are unsecured and include Cummins' guarantee for subsidiary borrowings. They offer flexibility in borrowing types, including revolving loans, swingline loans, and letters of credit. The company also retains the option to request incremental term loans or increase availability by up to $1.0 billion under each agreement, subject to certain conditions. The interest rates are variable, based on benchmark rates and Cummins' credit rating, with the current applicable rate for certain borrowing types being 0.75% given its A2/A ratings from Moody's and S&P, respectively. A key financial covenant requires the debt-to-capital ratio not to exceed 0.65:1.
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