Cummins Inc. (CMI) Q3 2025 Financial Results Summary
Cummins Inc. (NYSE: CMI) released its financial results for the third quarter of 2025 on November 6, 2025. Below is a summary of the key metrics and developments from the report.
Financial Highlights
- Total Revenues: $8.3 billion
- Decrease of 2% from Q3 2024 ($8.5 billion)
- North American Sales: Decreased 4%
-
International Revenues: Increased 2%, driven by higher demand in China and Europe.
-
Net Income: $536 million
- Decreased 33.8% from Q3 2024 ($809 million)
-
Diluted Earnings Per Share (EPS): $3.86
- Lowered from $5.86 in Q3 2024.
-
EBITDA: $1.2 billion
-
Constituted 14.3% of sales, down from 16.4% in Q3 2024 due to non-cash charges.
-
Non-cash Charges: $240 million
-
Impacted diluted EPS by $1.73.
-
Effective Tax Rate: 32.7%
- Increased from 19.2% in Q3 2024, primarily due to non-deductible costs from non-cash charges and legislation changes.
Segment Performance
Engine Segment
- Sales: $2.6 billion
-
Down 11% from Q3 2024.
-
Segment EBITDA: $261 million (10.0% of sales)
- Down from $427 million (14.7% of sales) in Q3 2024.
Components Segment
- Sales: $2.3 billion
-
Down 15% from Q3 2024.
-
Segment EBITDA: $292 million (12.5% of sales)
- Decreased from $351 million (12.9% of sales) in Q3 2024.
Distribution Segment
- Sales: $3.2 billion
-
Increased 7% from Q3 2024.
-
Segment EBITDA: $492 million (15.5% of sales)
- Up from $370 million (12.5% of sales) in Q3 2024.
Power Systems Segment
- Sales: $2.0 billion
-
Increased 18% from Q3 2024.
-
Segment EBITDA: $457 million (22.9% of sales)
- Up from $328 million (19.4% of sales) in Q3 2024.
Accelera Segment
- Sales: $121 million
-
Increased 10% year-over-year.
-
Segment EBITDA Loss: $336 million
- Included $240 million in non-cash charges.
Stockholder Returns
- Quarterly Cash Dividend Increase:
- Raised from $1.82 to $2.00 per share.
- Marked the 16th consecutive year of dividend increases.
Strategic Initiatives
- Cummins and Komatsu signed a memorandum of understanding (MOU) to develop hybrid powertrains for heavy mining equipment, consolidating their positions in environmental and sustainability initiatives.
Recognition
- Cummins was recognized by Forbes as one of America’s best employers for company culture and rated a top military-friendly employer. The company also achieved a high score of 100 on the Disability Index, earning the title of “Best Place to Work for Disability Inclusion” for the fifth consecutive year.
Additional Notes
- 2025 Outlook: Cummins has not provided an outlook for revenue or profitability for the remainder of 2025. The next financial guidance is expected to be reinstated in February, during the outlook for 2026.
Overall, Cummins has demonstrated resilience amid challenges, including an uneven demand landscape across various segments. However, the company is laying the groundwork for future growth by enhancing product offerings and focusing on eco-friendly technologies through strategic partnerships.
| 2025 | 2024 | |
|---|---|---|
| NET SALES | $ 8,317 | $ 8,456 |
| Cost of sales | 6,188 | 6,285 |
| GROSS MARGIN | 2,129 | 2,171 |
| Selling, general and administrative expenses | 789 | 807 |
| Research, development and engineering expenses | 345 | 359 |
| Equity, royalty and interest income from investees | 104 | 99 |
| Other operating expense, net | 247 | 54 |
| OPERATING INCOME | 852 | 1,050 |
| Interest expense | 83 | 83 |
| Other income, net | 61 | 76 |
| INCOME BEFORE INCOME TAXES | 830 | 1,043 |
| Income tax expense | 271 | 200 |
| CONSOLIDATED NET INCOME | 559 | 843 |
| Less: Net income attributable to noncontrolling interests | 23 | 34 |
| NET INCOME ATTRIBUTABLE TO CUMMINS INC. | $ 536 | $ 809 |
| Basic | $ 3.88 | $ 5.90 |
| Diluted | $ 3.86 | $ 5.86 |
| Basic | 138.0 | 137.2 |
| Diluted | 138.8 | 138.1 |
—
| September 30, 2025 | December 31, 2024 | |
|---|---|---|
| ASSETS | ||
| Current assets | ||
| Cash and cash equivalents | $ 2,566 | $ 1,671 |
| Marketable securities | 593 | 593 |
| Total cash, cash equivalents and marketable securities | 3,159 | 2,264 |
| Accounts and notes receivable, net | 5,640 | 5,181 |
| Inventories | 6,256 | 5,742 |
| Prepaid expenses and other current assets | 1,665 | 1,565 |
| Total current assets | 16,720 | 14,752 |
| Long-term assets | ||
| Property, plant and equipment, net | 6,658 | 6,356 |
| Investments and advances related to equity method investees | 1,972 | 1,889 |
| Goodwill | 2,222 | 2,370 |
| Other intangible assets, net | 2,345 | 2,351 |
| Pension assets | 1,157 | 1,189 |
| Other assets | 2,564 | 2,633 |
| Total assets | $ 33,638 | $ 31,540 |
| LIABILITIES | ||
| Current liabilities | ||
| Accounts payable (principally trade) | $ 3,819 | $ 3,951 |
| Loans payable | 315 | 356 |
| Commercial paper | 353 | 1,259 |
| Current maturities of long-term debt | 122 | 660 |
| Accrued compensation, benefits and retirement costs | 770 | 1,084 |
| Current portion of accrued product warranty | 660 | 679 |
| Current portion of deferred revenue | 1,600 | 1,347 |
| Other accrued expenses | 1,815 | 1,898 |
| Total current liabilities | 9,454 | 11,234 |
| Long-term liabilities | ||
| Long-term debt | 6,824 | 4,784 |
| Deferred revenue | 1,119 | 1,065 |
| Other liabilities | 3,143 | 3,149 |
| Total liabilities | $ 20,540 | $ 20,232 |
| EQUITY | ||
| Cummins Inc. shareholders’ equity | ||
| Common stock, $2.50 par value, 500 shares authorized, 222.5 and 222.5 shares issued | $ 2,651 | $ 2,636 |
| Retained earnings | 22,300 | 20,828 |
| Treasury stock, at cost, 84.5 and 85.1 shares | -10,676 | -10,748 |
| Accumulated other comprehensive loss | -2,211 | -2,445 |
| Total Cummins Inc. shareholders’ equity | 12,064 | 10,271 |
| Noncontrolling interests | 1,034 | 1,037 |
| Total equity | $ 13,098 | $ 11,308 |
| Total liabilities and equity | $ 33,638 | $ 31,540 |
