01—Abstract
Summary
Summary of the 10-K filed February 10, 2026. Cited figures are marked; the original filing is the authoritative source.
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 billiona, 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%b 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 billionc, 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.
02—Key points
Key Highlights
- Net sales for 2025 were $33.7 billion, a 1% decrease from 2024, primarily impacted by weaker on-highway truck markets and the Atmus divestiture.
- Net 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.
- The Accelera segment recorded significant charges of $458 million in 2025 due to market deterioration and strategic reviews, impacting overall profitability.
- The Power Systems segment showed strong growth, with sales up 16% driven by robust demand in power generation markets.
- The Distribution segment also reported a 9% sales increase, supported by power generation demand.
- Operating cash flow significantly improved, increasing by $2.1 billion to $3.6 billion, largely due to the absence of prior year settlement payments.
- The company's debt-to-capital ratio improved to 36.0% from 38.4% at the end of 2024.
- Cummins announced a quarterly dividend increase of approximately 10% to $2.00 per share in July 2025.
03—One dollar
Follow one dollar
Of each $1.00 of revenue in FY2025, Cummins Inc kept $0.08.
- Revenue$33.67B100.0%
- Cost of revenue−$25.15B74.7%
- Gross profit$8.52B25.3%
- Operating costs−$4.49B13.3%
- Operating income$4.03B12.0%
- Interest, other & tax−$1.18B3.5%
- Net income$2.84B8.4%
Where FY2025 revenue went
$33.67B- Cost of revenue: $25.15B, 75% of revenue
- Net income: $2.84B, 8.4% of revenue
- R&D: $1.40B, 4.1% of revenue
- SG&A: $3.13B, 9.3% of revenue
- Interest, other & tax: $1.18B, 3.5% of revenue
Kept 8.4% as net incomeNet income $2.84B · 8.4%
Full revenue history →04—Financials
Financial Highlights
Figures from 10-KFY2025filed February 10, 2026Financial Statements
FY2025 against FY2024
| Line item | FY2025FY2024 | Change |
|---|---|---|
| Revenue | $33.67B$34.10B | −1.3% |
| Cost of Revenue | $25.15B$25.66B | −2.0% |
| Gross Profit | $8.52B$8.44B | +0.9% |
| R&D Expenses | $1.40B$1.46B | −4.6% |
| SG&A Expenses | $3.13B$3.27B | −4.6% |
| Operating Income | $4.03B$3.75B | +7.3% |
| Interest Expense | $329.00M$370.00M | −11.1% |
| Net Income | $2.84B$3.95B | −28.0% |
| EPS (Basic) | $20.62$28.55 | −27.8% |
| EPS (Diluted) | $20.50$28.37 | −27.7% |
| Shares Outstanding (Basic) | 137.90M138.20M | −0.2% |
| Shares Outstanding (Diluted) | 138.70M139.10M | −0.3% |
05—Questions
Frequently Asked Questions
What were the primary drivers of the net sales decrease in 2025?
The primary drivers for the 1% decrease in net sales to $33.7 billion were lower demand in North American heavy-duty and medium-duty truck markets, and the impact of the Atmus divestiture completed in March 2024. Partially offsetting these decreases were strong growth in power generation markets and favorable pricing in light-duty automotive engines.
What significant charges impacted the company's profitability in 2025?
The company incurred $458 million in charges related to Accelera actions in 2025. These included goodwill impairment, inventory write-downs, intangible and fixed asset impairments, severance, and contract termination costs, primarily due to deteriorating conditions in electrolyzer and hydrogen markets.
How did the company's segments perform in 2025?
The Engine and Components segments saw sales decreases, largely due to softer truck markets and the Atmus divestiture for Components. The Power Systems segment experienced robust 16% sales growth driven by power generation demand, and the Distribution segment grew by 9%, also supported by power generation. The Accelera segment reported a sales increase but remained in a significant operating loss due to ongoing investments and market challenges.
What is the company's outlook for 2026, and what are the key challenges?
Cummins expects strong demand in Power Systems and stable aftermarket business. However, challenges include continued weakness in North American medium and heavy-duty truck markets in the first half of 2026, inflationary pressures, potential trade disruptions, and ongoing operating losses in Accelera despite restructuring. Regulatory changes regarding emissions credits are also a potential factor.
06—Continue