Cummins (CMI) Q4 2024 earnings summary

Executive summary

• Achieved record full year 2024 revenues of $34.1 billion and net income of $3.9 billion, with strong operational results despite a decline in North American heavy-duty truck demand.

• EBITDA for 2024 was $6.3 billion (18.6% of sales); adjusted EBITDA was $5.4 billion (15.7% of sales), excluding benefits/costs from Atmus separation, Accelera reorganization, and restructuring.

• Completed the Amplify Cell Technologies joint venture to localize battery cell production in the U.S., and fully separated Atmus Filtration Technologies, reducing shares outstanding by 5.6 million.

• Streamlined the Accelera business segment, incurring $312 million in reorganization charges, mostly non-cash, as part of a strategic review to position for long-term success.

• Returned $969 million to shareholders via dividends in 2024, marking the 15th consecutive annual dividend increase.

Financial highlights

• Full-year 2024 revenues were $34.1 billion, flat year-over-year; EBITDA was $6.3 billion (18.6% margin), including a $1.3 billion gain from Atmus divestiture.

• Net earnings for 2024 were $3.9 billion, or $28.37 per diluted share; adjusted net income was $3.0 billion and EPS $21.37, excluding one-time items.

• Q4 2024 revenues were $8.4 billion, down 1% year-over-year; GAAP net income was $418 million, diluted EPS $3.02; adjusted net income was $714 million and EPS $5.16.

• Gross margin improved to 25.1% for the year and 25.4% in Q4; Q4 gross margin was $2.1 billion.

• Dividend per share increased to $7.00 in 2024 from $6.50 in 2023.

Outlook and guidance

• 2025 consolidated revenue expected to range from down 2% to up 3% versus 2024; EBITDA margin guidance is 16.2% to 17.2%.

• Segment revenue guidance: Engine down 2% to up 3%, Components down 5% to flat, Distribution up 2% to 7%, Power Systems up 2% to 7%, Accelera $400–$450 million.

• North America heavy-duty truck market forecasted flat to down 10% year-over-year; medium-duty market down 5%-15%.

• Power generation revenues expected to rise 5%-15% in 2025, driven by data center demand.

• Capital investments planned at $1.4–$1.5 billion for 2025.