Summary
Cummins Inc. (CMI) reported a decrease in net sales and net income for the third quarter and first nine months of fiscal year 2025 compared to the prior year. For the three months ended September 30, 2025, net sales were $8.317 billion, down 2% from $8.456 billion in the prior year period, and net income attributable to Cummins Inc. was $536 million ($3.86 per diluted share), a significant decrease from $809 million ($5.86 per diluted share) in the prior year. This decline was attributed to lower demand in on-highway commercial truck markets, a goodwill impairment charge and inventory write-down in the Accelera segment, and unfavorable tax impacts from new legislation, partially offset by strong growth in power generation and light-duty automotive markets. The nine-month period also saw a decline in net sales and net income. Net sales were $25.134 billion, down 2% from $25.655 billion in the prior year, and net income attributable to Cummins Inc. was $2.250 billion ($16.23 per diluted share), down from $3.528 billion ($25.31 per diluted share) in the prior year. The year-to-date figures were significantly impacted by the absence of a large gain from the Atmus divestiture in the prior year, alongside the same factors affecting the third quarter performance. Despite these headwinds, the company highlighted strong cash flow generation from operations and maintained a solid liquidity position with significant cash and marketable securities and access to credit facilities.
Financial Highlights
54 data points| Revenue | $8.32B |
| Cost of Revenue | $6.19B |
| Gross Profit | $2.13B |
| R&D Expenses | $345.00M |
| SG&A Expenses | $789.00M |
| Operating Income | $852.00M |
| Interest Expense | $83.00M |
| Net Income | $536.00M |
| EPS (Basic) | $3.88 |
| EPS (Diluted) | $3.86 |
| Shares Outstanding (Basic) | 138.00M |
| Shares Outstanding (Diluted) | 138.80M |
Key Highlights
- 1Net sales for Q3 2025 were $8.317 billion, a 2% decrease year-over-year, reflecting softer demand in on-highway truck markets.
- 2Net income attributable to Cummins Inc. for Q3 2025 was $536 million ($3.86 diluted EPS), a significant decrease from $809 million ($5.86 diluted EPS) in Q3 2024, impacted by goodwill impairment and tax changes.
- 3The Accelera segment recorded a $210 million goodwill impairment charge and a $30 million inventory write-down in the third quarter, impacting profitability.
- 4Despite overall sales decline, the Power Systems segment saw an 18% increase in sales for the nine-month period, driven by strong demand in power generation.
- 5The company generated $2.087 billion in cash from operating activities for the first nine months of 2025, a substantial increase from $65 million in the prior year, largely due to lower working capital requirements and absence of large prior-year settlement payments.
- 6Cummins Inc. declared a quarterly dividend of $2.00 per share, an approximate 10% increase, demonstrating continued commitment to returning capital to shareholders.
- 7The company's debt-to-capital ratio improved to 36.8% at September 30, 2025, from 38.4% at December 31, 2024, indicating a stronger balance sheet.