Cummins(US:CMI)2026-02-05 12:54Financial 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]