•Second quarter revenues of $8.6 billion; GAAP1 Net Income of $890 million, or 10.3% of sales
•EBITDA in the second quarter was 18.4% of sales; Diluted EPS of $6.43
COLUMBUS, IND. - Cummins Inc. (NYSE: CMI) today reported results for the second quarter of 2025.
“We delivered strong second quarter results, driven by record profitability in our Power Systems and Distribution segments,” said Jennifer Rumsey, Chair and CEO. “Our employees’ resilience and commitment continue to power our success in a dynamic environment. We see a contrast across our markets with robust demand for power generation equipment supported by clear secular drivers, and our more economically sensitive markets, such as truck, where end-user confidence has declined. This contrast will become even more pronounced in the second half of the year as North America truck build rates decline sharply, starting in the third quarter. Aftermarket demand for parts and service remains stable.”
Second quarter revenues of $8.6 billion decreased 2% from the same quarter in 2024. Sales in North America declined 6%, and international revenues increased 5% due to higher demand in Europe and China.
Net income attributable to Cummins in the second quarter was $890 million, or $6.43 per diluted share, compared to $726 million, or $5.26 per diluted share, in 2024.
Earnings before interest, taxes, depreciation and amortization (EBITDA) in the second quarter were $1.6 billion, or 18.4% of sales, compared to $1.3 billion, or 15.3% of sales, a year ago.
2025 Outlook:
Due to continued economic uncertainty, the company will not be reinstating a full-year outlook for revenue or profitability at this time.
“Our diversified portfolio, disciplined cost management and strong execution have enabled us to navigate recent industry challenges,” said Rumsey. “However, persistent economic and regulatory uncertainty continues to impact a number of our key markets and cloud our near-term outlook for both business and market performance. We remain focused on delivering for our customers and look forward to providing additional clarity as this uncertainty subsides.”
Second Quarter 2025 Highlights:
•Cummins announced an increase in the quarterly common stock cash dividend from $1.82 to $2.00 per share. The company has increased the quarterly dividend to shareholders for 16 consecutive years.
1
•Cummins launched the new 17-liter engine platform generator, expanding on the success of the acclaimed Centum™ Series generator sets. Producing up to 1 megawatt of power, the S17 Centum genset was developed to produce a large power output within a compact footprint to meet the growing demands of power in urban environments. The new genset is designed to support a wide range of critical market segments such as commercial properties, healthcare facilities and water treatment plants.
•Jennifer Rumsey was named one of Barron’s Top CEOs of 2025. Jennifer was recognized for her visionary leadership and commitment to innovation and sustainability. The annual list features 26 leaders whose deft guidance has put their companies in a stronger competitive position.
Second quarter 2025 detail (all comparisons to same period in 2024):
Engine Segment
•Sales - $2.9 billion, down 8%
•Segment EBITDA - $400 million, or 13.8% of sales, compared to $445 million, or 14.1% of sales
•Revenues decreased 8% in North America and 7% in international markets due to lower on-highway demand in the United States and Mexico.
Components Segment
•Sales - $2.7 billion, down 9%
•Segment EBITDA - $397 million, or 14.7% of sales, compared to $406 million, or 13.6% of sales
•Revenues in North America decreased by 15% and international sales were flat primarily due to lower on-highway demand in the United States.
Distribution Segment
•Sales - $3.0 billion, up 7%
•Segment EBITDA - $445 million, or 14.6% of sales, compared to $314 million, or 11.1% of sales
•Revenues in North America increased 9% and international sales increased by 4% primarily due to increased demand for power generation products in the United States.
Power Systems Segment
•Sales - $1.9 billion, up 19%
•Segment EBITDA - $430 million, or 22.8% of sales, compared to $301 million, or 18.9% of sales
•Revenues in North America increased 23% and international sales increased 16% driven primarily by increased power generation demand, particularly for the data center and mission critical markets.
Accelera Segment
•Sales - $105 million, down 5%
•Segment EBITDA loss - $100 million, compared to $117 million
•Revenues decreased due to lower electrolyzer installations. The company remains committed to pacing and focusing our zero emissions investments on the most promising paths in order to ensure we are set up for long-term success as part of our Destination Zero strategy. These continued investments contributed to the EBITDA losses.
1 Generally Accepted Accounting Principles
2
About Cummins Inc.
Cummins Inc., a global power solutions leader, is comprised of five business segments – Engine, Components, Distribution, Power Systems and Accelera by Cummins – supported by our global manufacturing and extensive service and support network, skilled workforce and vast technological expertise. Cummins is committed to its Destination Zero strategy, which is grounded in the company’s commitment to sustainability and helping its customers successfully navigate the energy transition with its broad portfolio of products. The products range from advanced diesel, natural gas, electric and hybrid powertrains and powertrain-related components including aftertreatment, turbochargers, fuel systems, valvetrain technologies, controls systems, air handling systems, automated transmissions, axles, drivelines, brakes, suspension systems, electric power generation systems, electrified power systems with innovative components and subsystems, including battery, fuel cell and electric power technologies and hydrogen production technologies. Headquartered in Columbus, Indiana (U.S.), since its founding in 1919, Cummins employs approximately 69,600 people committed to powering a more prosperous world through three global corporate responsibility priorities critical to healthy communities: education, environment, and equality of opportunity. Cummins serves its customers online, through a network of company-owned and independent distributor locations, and through thousands of dealer locations worldwide and earned about $3.9 billion on sales of $34.1 billion in 2024. See how Cummins is powering a world that's always on by accessing news releases and more information at https://www.cummins.com.
Forward-looking disclosure statement
Information provided in this release 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 strategies regarding the future. These forward-looking statements include, without limitation, statements relating to our plans and expectations for our revenues and EBITDA. Our actual future results could differ materially from those projected in such forward-looking statements because of a number of factors, including, but not limited to: any adverse consequences from changes in tariffs and other trade disruptions; any adverse consequences resulting from entering into agreements with the U.S. Environmental Protection Agency, California Air Resources Board, the Environmental and Natural Resources Division of the U.S. Department of Justice and the California Attorney General's Office to resolve certain regulatory civil claims regarding our emissions certification and compliance process for certain engines primarily used in pick-up truck applications in the U.S., which became final and effective in April 2024, including required additional mitigation projects, adverse reputational impacts and potential resulting legal actions; increased scrutiny from regulatory agencies, as well as unpredictability in the adoption, implementation and enforcement of emission standards around the world; evolving environmental and climate change legislation and regulatory initiatives; changes in international, national and regional trade laws, regulations and policies; changes in taxation; global legal and ethical compliance costs and risks; future bans or limitations on the use of diesel-powered products; raw material, transportation and labor price fluctuations and supply shortages; aligning our capacity and production with our demand; the actions of, and income from, joint ventures and other investees that we do not directly control; large truck manufacturers' and original equipment manufacturers' customers discontinuing outsourcing their engine supply needs or experiencing financial distress, or change in control; product recalls; variability in material and commodity costs; the development of new technologies that reduce demand for our current products and services; lower than expected acceptance of new or existing products or services; product liability claims; our sales mix of products; climate change, global warming, more stringent climate change regulations, accords, mitigation efforts, greenhouse gas regulations or other legislation designed to address climate change; our plan to reposition our portfolio of product offerings through exploration of strategic acquisitions, divestitures or exiting the production of certain product lines or product categories and related uncertainties of such decisions; increasing interest rates; challenging markets for talent and ability to attract, develop and retain key personnel; exposure to potential security breaches or other disruptions to our information technology (IT) environment and data security; the use of artificial intelligence in our business and in our products and challenges with properly managing its use; political, economic and other risks from operations in numerous countries including political, economic and social uncertainty and the evolving globalization of our business; competitor activity; increasing competition, including increased global competition among our customers in emerging markets; failure to meet sustainability expectations or standards, or achieve our sustainability goals; labor relations or work stoppages; foreign currency exchange rate changes; the performance of our pension plan assets and volatility of discount rates; the price and availability of energy; continued availability of financing, financial instruments and financial resources in the amounts, at the times and on the terms required to support our future business; and other risks detailed from time to time in our SEC filings, including particularly in the Risk Factors section of our 2024 Annual Report on Form 10-K and Quarterly Reports on Form 10-Q. Shareholders, potential investors and other readers are urged to consider these factors carefully in evaluating the forward-looking statements and are cautioned not to place undue reliance on such forward-looking statements. The
3
forward-looking statements made herein are made only as of the date of this release and we undertake no obligation to publicly update any forward-looking statements, whether as a result of new information, future events or otherwise. More detailed information about factors that may affect our performance may be found in our filings with the SEC, which are available at https://www.sec.gov or at https://www.cummins.com in the Investor Relations section of our website.
Presentation of Non-GAAP Financial Information
EBITDA is a non-GAAP measure used in this release and is defined and reconciled to what management believes to be the most comparable GAAP measure in a schedule attached to this release, except for forward-looking measures of EBITDA where a reconciliation to the corresponding GAAP measures is not available due to the variability, complexity and limited visibility of the non-cash items that are excluded from the non-GAAP outlook measure. Cummins presents this information as it believes it is useful to understanding the Company's operating performance, and because EBITDA is a measure used internally to assess the performance of the operating units.
Webcast information
Cummins management will host a teleconference to discuss these results today at 10 a.m. EDT. This teleconference will be webcast and available on the Investor Relations section of the Cummins website at www.cummins.com. Participants wishing to view the visuals available with the audio are encouraged to sign-in a few minutes prior to the start of the teleconference.
4
CUMMINS INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF NET INCOME
(Unaudited) (a)
Three months ended
June 30,
In millions, except per share amounts
2025
2024
NET SALES
$
8,643
$
8,796
Cost of sales
6,362
6,603
GROSS MARGIN
2,281
2,193
OPERATING EXPENSES AND INCOME
Selling, general and administrative expenses
779
828
Research, development and engineering expenses
357
379
Equity, royalty and interest income from investees
118
103
Other operating expense, net
37
44
OPERATING INCOME
1,226
1,045
Interest expense
87
109
Other income, net
86
41
INCOME BEFORE INCOME TAXES
1,225
977
Income tax expense
297
225
CONSOLIDATED NET INCOME
928
752
Less: Net income attributable to noncontrolling interests
38
26
NET INCOME ATTRIBUTABLE TO CUMMINS INC.
$
890
$
726
EARNINGS PER COMMON SHARE ATTRIBUTABLE TO CUMMINS INC.
Basic
$
6.46
$
5.30
Diluted
$
6.43
$
5.26
WEIGHTED-AVERAGE COMMON SHARES OUTSTANDING
Basic
137.8
137.1
Diluted
138.5
137.9
(a) Prepared on an unaudited basis in accordance with accounting principles generally accepted in the United States of America.
5
CUMMINS INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF NET INCOME
(Unaudited) (a)
Six months ended
June 30,
In millions, except per share amounts
2025
2024
NET SALES
$
16,817
$
17,199
Cost of sales
12,381
12,965
GROSS MARGIN
4,436
4,234
OPERATING EXPENSES AND INCOME
Selling, general and administrative expenses
1,550
1,667
Research, development and engineering expenses
701
748
Equity, royalty and interest income from investees
249
226
Other operating expense, net
74
77
OPERATING INCOME
2,360
1,968
Interest expense
164
198
Other income, net
146
1,428
INCOME BEFORE INCOME TAXES
2,342
3,198
Income tax expense
564
418
CONSOLIDATED NET INCOME
1,778
2,780
Less: Net income attributable to noncontrolling interests
64
61
NET INCOME ATTRIBUTABLE TO CUMMINS INC.
$
1,714
$
2,719
EARNINGS PER COMMON SHARE ATTRIBUTABLE TO CUMMINS INC.
Basic
$
12.45
$
19.53
Diluted
$
12.38
$
19.42
WEIGHTED-AVERAGE COMMON SHARES OUTSTANDING
Basic
137.7
139.2
Diluted
138.4
140.0
(a) Prepared on an unaudited basis in accordance with accounting principles generally accepted in the United States of America.
6
CUMMINS INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(Unaudited) (a)
In millions, except par value
June 30, 2025
December 31, 2024
ASSETS
Current assets
Cash and cash equivalents
$
2,319
$
1,671
Marketable securities
755
593
Total cash, cash equivalents and marketable securities
3,074
2,264
Accounts and notes receivable, net
5,874
5,181
Inventories
6,287
5,742
Prepaid expenses and other current assets
1,698
1,565
Total current assets
16,933
14,752
Long-term assets
Property, plant and equipment, net
6,540
6,356
Investments and advances related to equity method investees
2,018
1,889
Goodwill
2,433
2,370
Other intangible assets, net
2,395
2,351
Pension assets
1,158
1,189
Other assets
2,782
2,633
Total assets
$
34,259
$
31,540
LIABILITIES
Current liabilities
Accounts payable (principally trade)
$
4,151
$
3,951
Loans payable
336
356
Commercial paper
353
1,259
Current maturities of long-term debt
615
660
Accrued compensation, benefits and retirement costs
657
1,084
Current portion of accrued product warranty
657
679
Current portion of deferred revenue
1,620
1,347
Other accrued expenses
1,926
1,898
Total current liabilities
10,315
11,234
Long-term liabilities
Long-term debt
6,807
4,784
Deferred revenue
1,059
1,065
Other liabilities
3,205
3,149
Total liabilities
$
21,386
$
20,232
EQUITY
Cummins Inc. shareholders’ equity
Common stock, $2.50 par value, 500 shares authorized, 222.5 and 222.5 shares issued
$
2,624
$
2,636
Retained earnings
22,040
20,828
Treasury stock, at cost, 84.7 and 85.1 shares
(10,708)
(10,748)
Accumulated other comprehensive loss
(2,167)
(2,445)
Total Cummins Inc. shareholders’ equity
11,789
10,271
Noncontrolling interests
1,084
1,037
Total equity
$
12,873
$
11,308
Total liabilities and equity
$
34,259
$
31,540
(a) Prepared on an unaudited basis in accordance with accounting principles generally accepted in the United States of America.
7
CUMMINS INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited) (a)
Three months ended
June 30,
In millions
2025
2024
CASH FLOWS FROM OPERATING ACTIVITIES
Consolidated net income
$
928
$
752
Adjustments to reconcile consolidated net income to net cash provided by (used in) operating activities
Depreciation and amortization
279
263
Deferred income taxes
(113)
(61)
Equity in income of investees, net of dividends
(18)
(8)
Pension and OPEB expense
20
10
Pension contributions and OPEB payments
(13)
(11)
Changes in current assets and liabilities, net of acquisitions
Accounts and notes receivable
(186)
(150)
Inventories
(105)
(115)
Other current assets
(136)
24
Accounts payable
(182)
(64)
Accrued expenses
243
(1,540)
Other, net
68
49
Net cash provided by (used in) operating activities
785
(851)
CASH FLOWS FROM INVESTING ACTIVITIES
Capital expenditures
(231)
(240)
Investments in and net advances to equity investees
6
(52)
Investments in marketable securities—acquisitions
(326)
(334)
Investments in marketable securities—liquidations
204
254
Other, net
(22)
(28)
Net cash used in investing activities
(369)
(400)
CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds from borrowings
2,094
84
Net (payments) borrowings of commercial paper
(1,387)
972
Payments on borrowings and finance lease obligations
(66)
(475)
Dividend payments on common stock
(251)
(230)
Payments for purchase of redeemable noncontrolling interests
(55)
—
Other, net
(3)
(43)
Net cash provided by financing activities
332
308
EFFECT OF EXCHANGE RATE CHANGES ON CASH AND CASH EQUIVALENTS
39
(8)
Net increase (decrease) in cash and cash equivalents
787
(951)
Cash and cash equivalents at beginning of period
1,532
2,541
CASH AND CASH EQUIVALENTS AT END OF PERIOD
$
2,319
$
1,590
(a) Prepared on an unaudited basis in accordance with accounting principles generally accepted in the United States of America.
8
CUMMINS INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited) (a)
Six months ended
June 30,
In millions
2025
2024
CASH FLOWS FROM OPERATING ACTIVITIES
Consolidated net income
$
1,778
$
2,780
Adjustments to reconcile consolidated net income to net cash provided by (used in) operating activities
Gain related to divestiture of Atmus
—
(1,333)
Depreciation and amortization
548
528
Deferred income taxes
(138)
(99)
Equity in income of investees, net of dividends
(88)
(86)
Pension and OPEB expense
39
19
Pension contributions and OPEB payments
(26)
(59)
Changes in current assets and liabilities, net of acquisitions and divestiture
Accounts and notes receivable
(643)
(161)
Inventories
(436)
(469)
Other current assets
(172)
(151)
Accounts payable
148
263
Accrued expenses
(244)
(1,933)
Other, net
16
126
Net cash provided by (used in) operating activities
782
(575)
CASH FLOWS FROM INVESTING ACTIVITIES
Capital expenditures
(393)
(409)
Investments in and net advances to equity investees
(54)
(55)
Acquisition of businesses, net of cash acquired
(12)
(58)
Investments in marketable securities—acquisitions
(783)
(713)
Investments in marketable securities—liquidations
636
685
Cash associated with Atmus divestiture
—
(174)
Other, net
(9)
(82)
Net cash used in investing activities
(615)
(806)
CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds from borrowings
2,146
2,482
Net (payments) borrowings of commercial paper
(906)
85
Payments on borrowings and finance lease obligations
(210)
(1,223)
Dividend payments on common stock
(502)
(469)
Payments for purchase of redeemable noncontrolling interests
(55)
—
Other, net
(49)
(68)
Net cash provided by financing activities
424
807
EFFECT OF EXCHANGE RATE CHANGES ON CASH AND CASH EQUIVALENTS
57
(15)
Net increase (decrease) in cash and cash equivalents
648
(589)
Cash and cash equivalents at beginning of year
1,671
2,179
CASH AND CASH EQUIVALENTS AT END OF PERIOD
$
2,319
$
1,590
(a) Prepared on an unaudited basis in accordance with accounting principles generally accepted in the United States of America.
9
CUMMINS INC. AND SUBSIDIARIES
SEGMENT INFORMATION
(Unaudited)
In millions
Engine
Components
Distribution
Power Systems
Accelera
Total Segments
Intersegment Eliminations (1)
Total
Three months ended June 30, 2025
External sales
$
2,162
$
2,295
$
3,034
$
1,054
$
98
$
8,643
$
—
$
8,643
Intersegment sales
737
410
7
835
7
1,996
(1,996)
—
Total sales
2,899
2,705
3,041
1,889
105
10,639
(1,996)
8,643
Research, development and engineering expenses
151
77
14
69
46
357
—
357
Equity, royalty and interest income (loss) from investees
60
10
26
27
(5)
118
—
118
Interest income
8
10
7
4
1
30
—
30
EBITDA (2)
400
397
445
430
(100)
1,572
15
1,587
Depreciation and amortization (3)
68
127
32
35
13
275
—
275
EBITDA as a percentage of segment sales
13.8
%
14.7
%
14.6
%
22.8
%
NM
14.8
%
18.4
%
Three months ended June 30, 2024
External sales
$
2,468
$
2,518
$
2,821
$
888
$
101
$
8,796
$
—
$
8,796
Intersegment sales
683
464
8
701
10
1,866
(1,866)
—
Total sales
3,151
2,982
2,829
1,589
111
10,662
(1,866)
8,796
Research, development and engineering expenses
167
81
14
63
54
379
—
379
Equity, royalty and interest income (loss) from investees
48
13
24
26
(8)
103
—
103
Interest income
7
9
11
3
—
30
—
30
EBITDA (2)
445
406
314
301
(117)
1,349
(4)
1,345
Depreciation and amortization (3)
61
121
30
32
15
259
—
259
EBITDA as a percentage of segment sales
14.1
%
13.6
%
11.1
%
18.9
%
NM
12.7
%
15.3
%
"NM" - not meaningful information
(1) Included intersegment sales, intersegment profit in inventory and unallocated corporate expenses. There were no significant unallocated corporate expenses for the three months ended June 30, 2025 and 2024.
(2) EBITDA is defined as earnings or losses before interest expense, income taxes, depreciation and amortization and noncontrolling interests. We believe EBITDA is a useful measure of our operating performance as it assists investors and debt holders in comparing our performance on a consistent basis without regard to financing methods, capital structure, income taxes or depreciation and amortization methods, which can vary significantly depending upon many factors.
(3) Depreciation and amortization, as shown on a segment basis, excludes the amortization of debt discount and deferred costs included in our Condensed Consolidated Statements of Net Income as interest expense. A portion of depreciation expense is included in research, development and engineering expenses.
10
CUMMINS INC. AND SUBSIDIARIES
SEGMENT INFORMATION
(Unaudited)
In millions
Engine
Components
Distribution
Power Systems
Accelera
Total Segments
Intersegment Eliminations (1)
Total
Six months ended June 30, 2025
External sales
$
4,202
$
4,565
$
5,936
$
1,926
$
188
$
16,817
$
—
$
16,817
Intersegment sales
1,468
810
12
1,612
20
3,922
(3,922)
—
Total sales
5,670
5,375
5,948
3,538
208
20,739
(3,922)
16,817
Research, development and engineering expenses
306
152
28
126
89
701
—
701
Equity, royalty and interest income (loss) from investees
133
17
54
56
(11)
249
—
249
Interest income
18
17
12
8
1
56
—
56
EBITDA (2)
858
779
821
819
(186)
3,091
(44)
3,047
Depreciation and amortization (3)
135
249
64
68
25
541
—
541
EBITDA as a percentage of total sales
15.1%
14.5%
13.8
%
23.1
%
NM
14.9
%
18.1
%
Six months ended June 30, 2024
External sales
$
4,708
$
5,360
$
5,350
$
1,596
$
185
$
17,199
$
—
$
17,199
Intersegment sales
1,371
954
14
1,382
19
3,740
(3,740)
—
Total sales
6,079
6,314
5,364
2,978
204
20,939
(3,740)
17,199
Research, development and engineering expenses
321
165
28
123
109
746
2
748
Equity, royalty and interest income (loss) from investees
105
39
48
45
(11)
226
—
226
Interest income
14
17
22
6
—
59
—
59
EBITDA (2)
859
879
(4)
608
538
(218)
2,666
1,251
3,917
Depreciation and amortization (3)
119
246
61
66
29
521
—
521
EBITDA as a percentage of total sales
14.1
%
13.9
%
11.3
%
18.1
%
NM
12.7
%
22.8
%
(1) Included intersegment sales, intersegment profit in inventory and unallocated corporate expenses. There were no significant unallocated corporate expenses for the six months ended June 30, 2025. The six months ended June 30, 2024, included a $1.3 billion gain related to the divestiture of Atmus Filtration Technologies Inc. (Atmus) and $14 million of costs associated with the divestiture of Atmus.
(2) EBITDA is defined as earnings or losses before interest expense, income taxes, depreciation and amortization and noncontrolling interests. We believe EBITDA is a useful measure of our operating performance as it assists investors and debt holders in comparing our performance on a consistent basis without regard to financing methods, capital structure, income taxes or depreciation and amortization methods, which can vary significantly depending upon many factors.
(3) Depreciation and amortization, as shown on a segment basis, excluded the amortization of debt discount and deferred costs included in the Condensed Consolidated Statements of Net Income as interest expense. The amortization of debt discount and deferred costs was $7 million and $7 million for the six months ended June 30, 2025 and 2024, respectively. A portion of depreciation expense is included in research, development and engineering expenses.
(4) Included $21 million of costs associated with the divestiture of Atmus for the six months ended June 30, 2024.
11
CUMMINS INC. AND SUBSIDIARIES
SELECT FOOTNOTE DATA
(Unaudited)
EQUITY, ROYALTY AND INTEREST INCOME FROM INVESTEES
Equity, royalty and interest income from investees included in our Condensed Consolidated Statements of Net Income for the reporting periods was as follows:
Three months ended
Six months ended
June 30,
June 30,
In millions
2025
2024
2025
2024
Manufacturing entities
Chongqing Cummins Engine Company, Ltd.
$
22
$
21
$
45
$
36
Dongfeng Cummins Engine Company, Ltd.
19
15
39
37
Beijing Foton Cummins Engine Co., Ltd.
15
10
30
23
Tata Cummins, Ltd.
7
7
17
16
All other manufacturers
14
11
21
34
Distribution entities
Komatsu Cummins Chile, Ltda.
15
14
29
27
All other distributors
4
2
12
7
Cummins share of net income
96
80
193
180
Royalty and interest income
22
23
56
46
Equity, royalty and interest income from investees
$
118
$
103
$
249
$
226
INCOME TAXES
Our effective tax rate for 2025 is expected to approximate 24.5 percent, excluding any discrete items that may arise and potential adjustments for the "One Big Beautiful Bill Act" signed into law on July 4, 2025.
Our effective tax rates for the three and six months ended June 30, 2025, were 24.2 percent and 24.1 percent, respectively. Our effective tax rates for the three and six months ended June 30, 2024, were 23.0 percent and 13.1 percent, respectively.
The three months ended June 30, 2025, contained net favorable discrete tax items of $3 million, or $0.02 per diluted share, primarily due to $4 million of favorable adjustments for uncertain tax positions, partially offset by $1 million of other unfavorable tax items.
The six months ended June 30, 2025, contained net favorable discrete tax items of $10 million, or $0.07 per diluted share, primarily due to $8 million of favorable adjustments for share-based compensation tax benefits and $5 million of favorable adjustments for uncertain tax positions, partially offset by $3 million of other unfavorable tax items.
The three months ended June 30, 2024, contained favorable discrete tax items of $9 million, or $0.07 per share, primarily due to share-based compensation tax benefits.
The six months ended June 30, 2024, contained favorable discrete tax items primarily due to the $1.3 billion non-taxable gain on the Atmus split-off. Other discrete tax items were $30 million, or $0.21 per share, primarily due to adjustments related to audit settlements and share-based compensation tax benefits.
On July 4, 2025, the “One Big Beautiful Bill Act” was signed into law, enacting significant changes to U.S. federal income tax rules affecting corporations, such as the ability to immediately deduct domestic research and development costs, restoration of elective 100 percent bonus depreciation for qualified property and changes related to the international tax provisions. We are currently assessing the impact to our consolidated financial statements.
12
CUMMINS INC. AND SUBSIDIARIES
FINANCIAL MEASURES THAT SUPPLEMENT GAAP
(Unaudited)
Reconciliation of Non GAAP measures - Earnings before interest, income taxes, depreciation and amortization and noncontrolling interests (EBITDA)
We believe EBITDA is a useful measure of our operating performance as it assists investors and debt holders in comparing our performance on a consistent basis without regard to financing methods, capital structure, income taxes or depreciation and amortization methods, which can vary significantly depending upon many factors. We believe EBITDA excluding special items is a useful measure of our operating performance without regard to the impact of the gain recognized and the related costs for the divestiture of Atmus and restructuring actions. This statement excludes forward looking measures of EBITDA where a reconciliation to the corresponding accounting principles generally accepted in the United States (GAAP) measures is not available due to the variability, complexity and limited visibility of non-cash items that are excluded from the non-GAAP outlook measure.
EBITDA is not in accordance with, or an alternative for, GAAP and may not be consistent with measures used by other companies. It should be considered supplemental data; however, the amounts included in the EBITDA calculation are derived from amounts included in the Condensed Consolidated Statements of Net Income. Below is a reconciliation of net income attributable to Cummins Inc. to EBITDA for each of the applicable periods:
Three months ended
Six months ended
June 30,
June 30,
In millions
2025
2024
2025
2024
Net income attributable to Cummins Inc.
$
890
$
726
$
1,714
$
2,719
Net income attributable to Cummins Inc., as a percentage of net sales
10.3
%
8.3
%
10.2
%
15.8
%
Add:
Net income attributable to noncontrolling interests
38
26
64
61
Consolidated net income
928
752
1,778
2,780
Add:
Interest expense
87
109
164
198
Income tax expense
297
225
564
418
Depreciation and amortization
275
259
541
521
EBITDA
$
1,587
$
1,345
$
3,047
$
3,917
EBITDA, as a percentage of net sales
18.4
%
15.3
%
18.1
%
22.8
%
Less:
Gain related to the divestiture of Atmus
—
—
—
1,333
Add:
Atmus divestiture costs
—
—
—
35
Restructuring actions
—
—
—
29
EBITDA, excluding the impact of the gain recognized and the related costs for the divestiture of Atmus and restructuring actions
$
1,587
$
1,345
$
3,047
$
2,648
EBITDA, excluding the impact of the gain recognized and the related costs for the divestiture of Atmus and restructuring actions, as a percentage of net sales
18.4
%
15.3
%
18.1
%
15.4
%
13
CUMMINS INC. AND SUBSIDIARIES
SEGMENT SALES DATA
(Unaudited)
Engine Segment Sales by Market and Unit Shipments by Engine Classification
Sales for our Engine segment by market were as follows:
2025
In millions
Q1
Q2
Q3
Q4
YTD
Heavy-duty truck
$
921
$
976
$
—
$
—
$
1,897
Medium-duty truck and bus
986
950
—
—
1,936
Light-duty automotive
421
486
—
—
907
Off-highway
443
487
—
—
930
Total sales
$
2,771
$
2,899
$
—
$
—
$
5,670
2024
In millions
Q1
Q2
Q3
Q4
YTD
Heavy-duty truck
$
1,059
$
1,184
$
1,021
$
980
$
4,244
Medium-duty truck and bus
995
1,074
1,073
1,024
4,166
Light-duty automotive
438
461
395
301
1,595
Off-highway
436
432
424
415
1,707
Total sales
$
2,928
$
3,151
$
2,913
$
2,720
$
11,712
Unit shipments by engine classification (including unit shipments to Power Systems and off-highway engine units included in their respective classification) were as follows:
2025
Units (1)
Q1
Q2
Q3
Q4
YTD
Heavy-duty
26,700
29,600
—
—
56,300
Medium-duty
75,200
73,400
—
—
148,600
Light-duty
39,100
44,000
—
—
83,100
Total units
141,000
147,000
—
—
288,000
2024
Units (1)
Q1
Q2
Q3
Q4
YTD
Heavy-duty
33,600
37,500
32,400
29,400
132,900
Medium-duty
75,800
79,600
79,200
75,700
310,300
Light-duty
54,800
57,200
41,400
36,000
189,400
Total units
164,200
174,300
153,000
141,100
632,600
(1) Unit shipments exclude aftermarket parts.
14
Components Segment Sales by Business
Sales for our Components segment by business were as follows:
2025
In millions
Q1
Q2
Q3
Q4
YTD
Drivetrain and braking systems
$
1,056
$
1,095
$
—
$
—
$
2,151
Emission solutions
902
900
—
—
1,802
Components and software
595
587
—
—
1,182
Automated transmissions
117
123
—
—
240
Total sales
$
2,670
$
2,705
$
—
$
—
$
5,375
2024
In millions
Q1
Q2
Q3
Q4
YTD
Drivetrain and braking systems
$
1,232
$
1,256
$
1,131
$
1,114
$
4,733
Emission solutions
971
941
864
825
3,601
Components and software
611
623
581
589
2,404
Automated transmissions
165
162
148
113
588
Atmus (1)
353
—
—
—
353
Total sales
$
3,332
$
2,982
$
2,724
$
2,641
$
11,679
(1) Included sales through the March 18, 2024, divestiture.
Distribution Segment Sales by Product Line
Sales for our Distribution segment by product line were as follows:
2025
In millions
Q1
Q2
Q3
Q4
YTD
Power generation
$
1,090
$
1,200
$
—
$
—
$
2,290
Parts
1,031
1,015
—
—
2,046
Service
416
439
—
—
855
Engines
370
387
—
—
757
Total sales
$
2,907
$
3,041
$
—
$
—
$
5,948
2024
In millions
Q1
Q2
Q3
Q4
YTD
Power generation
$
707
$
954
$
1,091
$
1,220
$
3,972
Parts
1,001
990
1,004
985
3,980
Service
406
448
455
444
1,753
Engines
421
437
402
419
1,679
Total sales
$
2,535
$
2,829
$
2,952
$
3,068
$
11,384
15
Power Systems Segment Sales by Product Line
Sales for our Power Systems segment by product line were as follows:
