Cummins (NYSE:CMI) Q4 2025 Earnings call February 05, 2026 10:00 AM ET Company ParticipantsAngel Castillo - Executive DirectorDavid Raso - Senior Managing DirectorJamie Cook - Managing DirectorJennifer Rumsey - Chair and CEOJerry Revich - Managing DirectorKyle Menges - VP, Equity ResearchMark Smith - CFONick Arens - Executive Director, Investor RelationsSteven Fisher - Managing DirectorTim Thein - Managing DirectorConference Call ParticipantsChad Dillard - Senior AnalystNoah Kaye - Senior Research AnalystRo ...

Financial Data and Key Metrics Changes - Revenues for Q4 2025 totaled $8.5 billion, a 1% increase compared to Q4 2024, driven by high demand in global power generation markets and improved pricing [10][19] - EBITDA for Q4 2025 was $1.2 billion, or 13.5% of sales, compared to $1 billion, or 12.1% a year ago; excluding charges, EBITDA was $1.4 billion, or 16% [10][11] - For the full year 2025, revenues were $33.7 billion, down 1% from 2024, with EBITDA at $5.4 billion, or 16% of sales, compared to $6.3 billion, or 18.6% in 2024 [11][12] Business Line Data and Key Metrics Changes - Engine segment revenues in 2025 were $10.9 billion, down 7% from the previous year, with EBITDA at 12.7% of sales [26] - Component segment revenues were $10.1 billion, down 10%, but EBITDA improved to 13.8% [27] - Distribution segment revenues increased 9% to a record $12.4 billion, with EBITDA also reaching a record of 14.6% [28] - Power systems segment revenues were a record $7.5 billion, up 16%, with EBITDA at 22.7% [29] Market Data and Key Metrics Changes - North America heavy and medium-duty truck volumes declined by 30% in Q4 2025, impacting overall performance [20] - In China, total revenue is projected to decrease by 1% in 2026, with heavy and medium-duty truck demand expected to decline by 10% to flat [16] - In India, total revenues are projected to decrease by 5% in 2026, with industry demand for trucks expected to be down 10% to flat [16] Company Strategy and Development Direction - The company continues to evolve its portfolio, investing in innovative solutions to meet customer needs, including the introduction of new engine platforms like the X10 and B7.2 [5][6] - A strategic review of the electrolyzer business is ongoing to streamline operations and focus investments amid policy-driven shifts in hydrogen demand [9] - The company remains committed to a multi-solution strategy while pacing investments as the zero-emissions landscape evolves [9] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to deliver strong financial performance despite challenges in the North American truck markets and ongoing trade tariff volatility [4] - For 2026, the company forecasts total revenues to increase by 3%-8%, with EBITDA margins expected to be 17%-18% [15][31] - Management anticipates continued weakness in North America heavy and medium-duty truck markets in the first half of 2026, but expects strength in power generation and aftermarket businesses [15][18] Other Important Information - The company completed capacity expansion on the 95-liter engine ahead of schedule, positioning it to meet rising demand [8] - Capital expenditures in 2025 were $1.2 billion, with a focus on organic investment and returning $1.1 billion to shareholders via dividends [25][32] Q&A Session Summary Question: Update on capacity in power systems and natural gas products - Management noted strong demand in power generation and completed capacity expansion, with ongoing discussions about future investments [35][36] Question: Guidance outlook for 2026 and tariff impacts - Management explained that tariffs have a dilutive impact on margins, with a net drag of about 50 basis points expected in 2026 [40][41] Question: Sequential revenue growth in power systems - Management attributed the lack of growth to typical end-of-year downtime and tariff impacts, while demand for diesel backup power remains strong [44][46] Question: Capital allocation strategy moving into 2026 - Management confirmed financial flexibility and a commitment to returning at least 50% of operating cash flow to shareholders, with potential for increased buybacks [60] Question: Impact of EPA '27 regulations on pricing and margins - Management indicated that the new regulations will add content to engines and components, with expectations of increased costs but also improved efficiency and performance [85][88]

Fourth Quarter 2025 Earnings Teleconference February 5th, 2026 CONTENTS 2025 Summary Q4 2025 Summary 2026 Guidance Q4 2025 Supplemental Information Appendix 2 Disclosure Regarding Forward-Looking Statements Information provided in this presentation that is not purely historical are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, including statements regarding our forecasts, guidance, preliminary results, expectations, hopes, beliefs and intentions on st ...

Cummins (CMI) came out with quarterly earnings of $5.81 per share, beating the Zacks Consensus Estimate of $5.2 per share. This compares to earnings of $5.16 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of +11.73%. A quarter ago, it was expected that this engine maker would post earnings of $4.73 per share when it actually produced earnings of $5.59, delivering a surprise of +18.18%.Over the last four quarters, the company has ...

Core Viewpoint - The United States District Court for the Southern District of Indiana has approved a proposed class action settlement benefiting purchasers of Cummins Inc. publicly-traded common stock, with a settlement amount of $1,600,000.00 [4][5]. Group 1: Settlement Details - The proposed settlement is for individuals who purchased Cummins Inc. common stock between February 11, 2019, and December 21, 2023 [4][5]. - A Settlement Fairness Hearing is scheduled for May 21, 2026, to determine the approval of the settlement, distribution plan, and attorney fees [4][6]. Group 2: Claims and Exclusions - Class members must submit a Claim Form by April 23, 2026, to participate in the distribution of the settlement [5][6]. - Individuals wishing to be excluded from the settlement class must submit a request for exclusion by April 23, 2026 [7]. Group 3: Objections and Inquiries - Any objections to the settlement or related requests must be submitted by April 23, 2026, to specified parties [8]. - For inquiries regarding the settlement, individuals can contact Lead Counsel at The Rosen Law Firm [8].

Financial Performance - Fourth quarter revenues were $8.5 billion, with GAAP Net Income of $593 million, representing 6.9% of sales[5] - Full-year 2025 revenues totaled $33.7 billion, with GAAP Net Income of $2.8 billion, or 8.4% of sales[5] - Fourth quarter EBITDA was $1.2 billion, or 13.5% of sales, compared to $1.0 billion, or 12.1% of sales in the same quarter of 2024[8] - Full-year 2025 EBITDA was $5.4 billion, or 16.0% of sales, down from $6.3 billion, or 18.6% of sales in 2024[10] - Q4 2025 consolidated net income attributable to Cummins Inc. was $593 million, compared to $418 million in Q4 2024, reflecting a significant increase of 42%[27] - Full year 2025 consolidated net income attributable to Cummins Inc. was $2,843 million, down 28.1% from $3,946 million in 2024[28] - Q4 2025 operating income rose to $813 million, compared to $732 million in Q4 2024, marking an increase of 11.06%[27] - The EBITDA for the year ended December 31, 2025, was $5,385 million, compared to $6,326 million in 2024, indicating a decrease of 14.89%[39] Revenue Breakdown - Total sales for the year ended December 31, 2025, included $10,875 million from the Engine segment, $10,149 million from the Components segment, and $12,405 million from the Distribution segment[39] - Engine segment total sales for 2025 reached $10,875 million, with Q4 sales at $2,600 million, a decrease from $2,720 million in Q4 2024[57] - Components segment total sales for 2025 reached $10,149 million, a decrease from $11,679 million in 2024, representing a decline of approximately 13.1%[58] - Distribution segment total sales for 2025 were $12,405 million, compared to $11,384 million in 2024, indicating an increase of about 8.9%[59] - Power Systems segment total sales for 2025 amounted to $7,463 million, up from $6,408 million in 2024, reflecting a growth of approximately 16.4%[60] Market Performance - Sales in North America decreased by 2% in Q4 2025, while international revenues increased by 5%[6] - Unit shipments for heavy-duty engines in 2025 totaled 101,900, down from 132,900 in 2024, while medium-duty units were 280,500, slightly lower than 310,300 in 2024[57] Shareholder Returns - The company returned a total of $1,055 million to shareholders through dividends in 2025, marking the 16th consecutive year of dividend increases[13] Assets and Liabilities - Cash and cash equivalents at the end of Q4 2025 were $2,845 million, up from $1,671 million at the end of Q4 2024, indicating a strong liquidity position[33] - Total assets increased to $33,992 million in 2025, compared to $31,540 million in 2024, reflecting a growth of 7.77%[31] - Total liabilities rose to $20,584 million in 2025, compared to $20,232 million in 2024, an increase of 1.74%[31] Operating Activities - The company reported net cash provided by operating activities of $3,621 million for the full year 2025, significantly up from $1,487 million in 2024[35] - Capital expenditures for 2025 were $1,235 million, slightly higher than $1,208 million in 2024, indicating continued investment in growth[35] Special Charges and Impairments - The company recorded charges of $218 million related to the electrolyzer business in Q4 2025, impacting diluted EPS by $1.54[5] - The Accelera segment recorded a $210 million impairment charge for goodwill due to deteriorating conditions in the electrolyzer markets, with a $30 million write-down for excess and obsolete inventory[42] - The company incurred $458 million in charges related to Accelera actions during the year ended December 31, 2025[39] - Total charges related to strategic actions in Q4 2025 amounted to $218 million, equating to $1.54 per diluted share, including $13 million in severance and $34 million in contract termination costs[43] Tax Information - The effective tax rate for 2026 is expected to be approximately 24.0%, with the effective tax rates for Q4 2025 and the full year 2025 at 21.6% and 25.4%, respectively[48] Research and Development - Research, development, and engineering expenses for the year ended December 31, 2025, totaled $1,396 million, up from $1,463 million in 2024, indicating a decrease of 4.58%[39]

Core Viewpoint - Cummins Inc. reported strong operational results for the fourth quarter and full year 2025, despite ongoing weakness in the North American truck markets [1] Group 1: Financial Performance - The Distribution and Power Systems segments achieved record full-year sales and profitability [1] - The strong performance was attributed to disciplined execution and robust demand for data center backup power [1] Group 2: Market Conditions - Continued weakness in North America truck markets was noted, impacting overall performance [1]

In its upcoming report, Cummins (CMI) is predicted by Wall Street analysts to post quarterly earnings of $5.20 per share, reflecting an increase of 0.8% compared to the same period last year. Revenues are forecasted to be $8.15 billion, representing a year-over-year decrease of 3.5%.The consensus EPS estimate for the quarter has undergone a downward revision of 0.8% in the past 30 days, bringing it to its present level. This represents how the covering analysts, as a whole, have reassessed their initial est ...

康明斯近日宣布，康明斯动力系统事业部中国工业市场总经理柴睿敏正式出任重庆康明斯发动机有限公司总经理，全面领导公司未来的 发展方向。 作为康明斯在中国唯一的大马力发动机研发与制造基地，重庆康明斯长期在市场布局、业务表现及产品创新方面承担着重要角色，并持 续为康明斯在华业务的高质量、可持续增长提供核心支撑。 履新后，柴睿敏全面负责公司生产运营、业务发展、质量管理、市场销售、客户支持及财务表现等关键业务，并重点聚焦六大领域： 推进大马力本地先进制造能力建设，持续优化业务流程 在股东双方支持下，进一步强化产品矩阵，加速技术创新 柴睿敏于2008年加入康明斯，历任多个关键岗位，拥有丰富的行业经验和卓越的团队领导力。在担任康明斯中国动力系统事业部工业市 场总经理期间，他带领团队实现了市场份额、销量和利润的全面增长，并成功推动了多个产品平台的导入及组织能力建设。 值重庆康明斯成立三十周年之际，公司迎来新的发展机遇。康明斯表示，相信柴睿敏将带领公司迈向更高的增长阶段。 持续提升产品质量，满足客户交付周期要求，提升客户满意度 推进公司健康、安全、环境关键举措 加强合作伙伴关系管理和公司治理，确保股东双方战略协同 带领团队达成战 ...

Core Viewpoint - Halper Sadeh LLC is investigating potential breaches of fiduciary duties by certain officers and directors of Cummins Inc. which may affect shareholder rights [1] Group 1: Legal Actions and Shareholder Rights - Long-term shareholders of Cummins may seek corporate governance reforms, return of funds, court-approved financial incentives, or other benefits [2] - Shareholder involvement is crucial for improving company policies and practices, leading to enhanced shareholder value [3] Group 2: Firm's Background and Services - Halper Sadeh LLC represents global investors affected by securities fraud and corporate misconduct, having recovered millions for defrauded investors [4]