Cummins (CMI) Q4 2025 earnings summary

Executive summary

• Achieved strong financial performance in 2025, with record adjusted EBITDA and EPS (excluding one-time items), driven by robust Distribution and Power Systems segments despite North America truck market weakness and tariff volatility.

• Advanced strategic priorities, including new product launches, capacity expansions, and disciplined execution, while completing a strategic review of the Accelera Electrolyzer business due to weaker hydrogen adoption.

• Achieved 2030 financial commitments ahead of schedule, reflecting strong strategy and execution.

• Continued disciplined cost management, portfolio diversification, and execution amid market uncertainty.

• 2025 results include $458M in Accelera charges, primarily related to electric powertrain and fuel cell development.

Financial highlights

• Full-year 2025 revenues: $33.7B, down 1% year-over-year; adjusted EBITDA: $5.84B (17.4% margin); adjusted net income: $3.3B; adjusted diluted EPS: $23.78.

• Q4 2025 revenues: $8.54B, up 1% year-over-year; adjusted EBITDA: $1.37B (16.0% margin); adjusted net income: $808M; adjusted EPS: $5.81.

• GAAP net income for 2025: $2.8B (8.4% of sales); diluted EPS: $20.50.

• Operating cash flow for Q4 2025: $1.53B; full-year: $3.62B.

• Dividend per share increased to $7.64 in 2025; $1.1B returned to shareholders via dividends.

Outlook and guidance

• 2026 consolidated revenue is expected to grow 3%-8% year-over-year; EBITDA margin guidance is 17%-18%.

• North America heavy-duty truck production projected flat to up 10% (220,000-240,000 units); medium-duty flat to up 10%.

• Power Systems segment revenue forecasted to grow 12%-17% in 2026, driven by data center demand.

• Capital expenditures for 2026 projected at $1.35B-$1.45B.

• Effective tax rate for 2026 expected at ~24%.