Summary
Cummins Inc. reported stable net sales of $34.1 billion for the year ended December 31, 2024, with net income attributable to Cummins Inc. reaching $3.9 billion. This significant increase in net income compared to the prior year was primarily driven by the absence of a $2.0 billion charge related to emissions settlement agreements and a $1.3 billion gain recognized from the divestiture of its remaining stake in Atmus Filtration Technologies. The company experienced strong performance in its Distribution and Power Systems segments, with sales increasing by 11% and 13% respectively, largely due to robust demand in power generation markets. However, the Components segment saw a 13% decline in sales, primarily due to the divestiture of Atmus. The Engine segment's sales remained flat, impacted by mixed demand across different truck markets and weaker off-highway sales. The Accelera segment reported a strategic reorganization, leading to $312 million in charges, while sales saw a modest increase. Looking ahead to 2025, Cummins anticipates continued strength in Power Systems and the Indian truck market, alongside an expected improvement in North American pick-up truck demand. However, challenges remain with expected weakness in North American medium-duty and heavy-duty truck markets in the first half of the year, along with ongoing cost pressures. The company maintained a strong financial position with a debt-to-capital ratio of 38.4% and generated $1.5 billion in operating cash flows. Cummins also increased its quarterly dividend by approximately 8%.
Financial Highlights
57 data points| Revenue | $34.10B |
| Cost of Revenue | $25.66B |
| Gross Profit | $8.44B |
| R&D Expenses | $1.46B |
| SG&A Expenses | $3.27B |
| Operating Income | $3.75B |
| Interest Expense | $370.00M |
| Net Income | $3.95B |
| EPS (Basic) | $28.55 |
| EPS (Diluted) | $28.37 |
| Shares Outstanding (Basic) | 138.20M |
| Shares Outstanding (Diluted) | 139.10M |
Key Highlights
- 1Net sales remained stable at $34.1 billion for fiscal year 2024.
- 2Net income attributable to Cummins Inc. significantly increased to $3.9 billion, largely due to the absence of the 2023 settlement agreement charge and a gain from the Atmus divestiture.
- 3Distribution and Power Systems segments showed strong sales growth (11% and 13% respectively), driven by power generation demand.
- 4Components segment sales declined 13% primarily due to the divestiture of Atmus.
- 5Accelera segment incurred $312 million in strategic reorganization charges but saw a modest sales increase.
- 6Operating cash flow was $1.5 billion, and the company maintained a solid financial position with a debt-to-capital ratio of 38.4%.
- 7Quarterly dividend increased by approximately 8%.