Summary
Cummins Inc. (CMI) reported a decline in net sales and net income for the year ended December 31, 2025, compared to the prior year. Net sales decreased by 1% to $33.7 billion, primarily due to weaker demand in on-highway commercial truck markets and the divestiture of Atmus Filtration Technologies. Net income attributable to Cummins Inc. fell by 28% to $2.8 billion. This decline was mainly driven by the absence of a significant gain from the Atmus divestiture in the prior year and substantial charges related to the Accelera segment's strategic review and market deterioration in electrolyzer and hydrogen markets. Despite the overall dip, the company saw strength in its Power Systems segment, with a 16% increase in sales driven by power generation demand, particularly from data centers and commercial markets. The Distribution segment also experienced growth, with a 9% sales increase, also boosted by power generation. The company generated strong operating cash flow, an increase of $2.1 billion, largely due to the absence of significant settlement payments made in the prior year. Cummins remains focused on its "Destination Zero" strategy to navigate the energy transition, investing in new technologies while managing through market cyclicality and ongoing regulatory environments.
Financial Highlights
56 data points| Revenue | $33.67B |
| Cost of Revenue | $25.15B |
| Gross Profit | $8.52B |
| R&D Expenses | $1.40B |
| SG&A Expenses | $3.13B |
| Operating Income | $4.03B |
| Interest Expense | $329.00M |
| Net Income | $2.84B |
| EPS (Basic) | $20.62 |
| EPS (Diluted) | $20.50 |
| Shares Outstanding (Basic) | 137.90M |
| Shares Outstanding (Diluted) | 138.70M |
Key Highlights
- 1Net sales for 2025 were $33.7 billion, a 1% decrease from 2024, primarily impacted by weaker on-highway truck markets and the Atmus divestiture.
- 2Net income attributable to Cummins Inc. decreased 28% to $2.8 billion ($20.50 diluted EPS) compared to $3.9 billion ($28.37 diluted EPS) in 2024.
- 3The Accelera segment recorded significant charges of $458 million in 2025 due to market deterioration and strategic reviews, impacting overall profitability.
- 4The Power Systems segment showed strong growth, with sales up 16% driven by robust demand in power generation markets.
- 5The Distribution segment also reported a 9% sales increase, supported by power generation demand.
- 6Operating cash flow significantly improved, increasing by $2.1 billion to $3.6 billion, largely due to the absence of prior year settlement payments.
- 7The company's debt-to-capital ratio improved to 36.0% from 38.4% at the end of 2024.
- 8Cummins announced a quarterly dividend increase of approximately 10% to $2.00 per share in July 2025.