CUMMINS INC Annual Report, Year Ended Dec 31, 2024

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%.