Cummins Inc. reported results for the fourth quarter and full-year 2025 results.
“Cummins delivered strong operational results in the fourth quarter and full year despite continued weakness in North America truck markets. Our Distribution and Power Systems segments achieved record full-year sales and profitability as a result of disciplined execution and robust demand for data center backup power,” said Jennifer Rumsey, chair and CEO of Cummins. “In the fourth quarter, we recorded charges related to our electrolyzer business within the Accelera segment, reflecting actions taken as part of a strategic review initiated in response to shifts in hydrogen adoption expectations. These decisions were aimed at streamlining operations and reducing ongoing costs in light of the weaker outlook for demand.”
“2025 marked a historic year for Cummins as we made significant progress in advancing key strategic priorities while continuing to raise performance cycle over cycle. I am tremendously proud of our employees for their resiliency and commitment to delivering for our customers amid persistent market uncertainty and change. Our disciplined cost management, diversified portfolio and effective execution allowed us to deliver strong results despite this challenging environment,” concluded Rumsey.
Fourth quarter 2025 revenues of $8.5 billion increased 1% from the same quarter in 2024. Sales in North America decreased 2% while international revenues increased 5%.
Net income attributable to Cummins in the fourth quarter was $593 million, or $4.27 per diluted share, compared to $418 million, or $3.02 per diluted share, in 2024. The current quarter results include charges related to the electrolyzer business within Accelera of $218 million, or $1.54 per diluted share. The fourth quarter of 2024 included Accelera reorganization actions of $312 million, or $2.14 per diluted share, which were primarily non-cash charges.
EBITDA in the fourth quarter was $1.2 billion, or 13.5% of sales, compared to $1.0 billion, or 12.1% of sales, a year ago. EBITDA for the fourth quarter of 2025 and the fourth quarter of 2024 included the charges noted above.
Full-year 2025 revenues of $33.7 billion decreased 1% from 2024. Sales in North America decreased 3% and international revenues increased 2% compared to 2024.
Net income for the full year 2025 was $2.8 billion, or $20.50 per diluted share, compared to $3.9 billion, or $28.37 per diluted share, in 2024. 2025 results included charges related to the electrolyzer business within Accelera of $458 million, or $3.28 per diluted share. 2024 results included the gain related to the separation of Atmus, net of transaction costs and other expenses, of $1.3 billion, or $9.28 per diluted share; charges related to Accelera reorganization actions of $312 million, or $2.12 per diluted share; and first quarter restructuring expenses of $29 million, or $0.16 per diluted share.
EBITDA in 2025 was $5.4 billion, or 16.0% of sales, compared to $6.3 billion, or 18.6% of sales, a year ago. EBITDA for 2025 and 2024 included the gains and charges noted above.
2026 Outlook:
Based on its current forecast, Cummins said it projects full-year 2026 revenue to be in the range of up 3% to 8%, and EBITDA to be in the range of 17.0% and 18.0% of sales.
Cummins plans to continue generating strong operating cash flow and returns for shareholders and is committed to its long-term strategic goal of returning 50% of operating cash flow back to shareholders, the company said.
“In 2026, we anticipate that demand will be slightly better in the North America on-highway truck markets, particularly in the second half of the year, paired with continued strength in data center power generation markets. Cummins remains well-positioned to invest in future growth, deliver strong financial results and return cash to shareholders in 2026,” said Rumsey.
2025 Highlights:
- Cummins increased its common stock cash dividend for the 16th straight year and returned a total of $1,055 million to shareholders through dividends.
- Cummins introduced the much-anticipated B7.2 and X10 engines as part of its Cummins HELM platforms. Alongside the X15, the X10 and B7.2 provide customers with a power solution to meet their unique operational requirements while maintaining the performance and reliability for which Cummins is known. The B7.2 will feature a slightly higher displacement and is designed to be a global platform that creates flexibility for different applications and duty cycles. The X10 will replace both the L9 and X12 engine platforms to deliver a new level of performance, durability and efficiency for heavy and medium-duty customers. Both engines will be manufactured at Rocky Mount Engine Plant in North Carolina.
- In February, Cummins announced the acquisition of assets of First Mode, a leader in retrofit hybrid solutions for mining and rail operations. The acquisition included hybrid mining and rail product lines, and the full IP portfolio of hybrid powertrain solutions. This technology represents the first commercially available retrofit hybrid system for mining equipment, significantly reducing total cost of ownership (TCO) while advancing decarbonization in operations.
- Jennifer Rumsey was named one of Barron’s Top CEOs of 2025. Rumsey 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.
- Cummins received several prestigious honors in 2025 recognizing the company’s commitment to its people, culture and innovation. Of note, Forbes named Cummins one of America’s Best Employers for Company Culture and one of America’s best Employers for Engineers. Military Friendly recognized the company as a Top Military-Friendly Employer, and Cummins was named a Best Place to Work for Disability Inclusion for the fifth consecutive year with a score of 100 on the Disability Equality Index. Additionally, Cummins earned the Gold Bell Seal for Workplace Mental Health, received a Platinum Hermes Creative Award for its “It’s OK” campaign, and was recognized for product and technical excellence with a Gold Product of the Year Award for the Centum Series generators and Powertrain Magazine’s Alternative Engine of the Year Award for the next-generation X15 Off-Highway engine.
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