Cummins Reports Strong Third Quarter Operating Results, Records Non-Cash Charges Related to its Electrolyzer Business

Cummins Reports Strong Third Quarter Operating Results, Records Non-Cash Charges Related to its Electrolyzer Business

• Third quarter revenues of $8.3 billion; GAAP¹ Net Income of $536 million, or 6.4% of sales
• EBITDA in the third quarter was 14.3% of sales; Diluted EPS of $3.86
• Third quarter results include $240 million, or $1.73 per diluted share, of Accelera non-cash charges

COLUMBUS, Ind.–(BUSINESS WIRE)–Cummins Inc. (NYSE: CMI) today reported results for the third quarter of 2025.

Jennifer Rumsey, Chair and CEO, said:

Cummins delivered strong operating results in the third quarter, driven by profitable growth in our Power Systems and Distribution segments, due in part to continued rising demand for backup power for data centers.

”Effective cost management across the company helped navigate through the anticipated sharp decline in the North American truck market.During the quarter, we recorded non-cash charges related to our electrolyzer business within the Accelera segment, reflecting policy-driven shifts in hydrogen adoption expectations. Due to the significantly weaker prospects for demand, we are undertaking a strategic review of the electrolyzer business.”

Third quarter revenues of $8.3 billion decreased 2% from the same quarter in 2024. Sales in North America declined 4%, and international revenues increased 2% due to higher demand in China and Europe.

Net income attributable to Cummins in the third quarter was $536 million, or $3.86 per diluted share, compared to $809 million, or $5.86 per diluted share, in 2024. The current quarter results include Accelera non-cash charges of $240 million, or $1.73 per diluted share. The tax rate in the third quarter was 32.7% due primarily to non-deductible costs related to Accelera non-cash charges and $36 million or $0.26 per diluted share of tax costs related to the implementation of the One Big Beautiful Bill Act.

Earnings before interest, taxes, depreciation and amortization (EBITDA) in the third quarter were $1.2 billion, or 14.3% of sales, compared to $1.4 billion, or 16.4% of sales, a year ago. EBITDA for the third quarter of 2025 included the costs noted above.

2025 Outlook:

Cummins will not be providing an outlook for revenue or profitability for the remainder of 2025.

Rumsey, said:

While uncertainty in a number of our end markets persists, our strong third quarter results are a testament to our diversified portfolio, effective cost discipline and commitment to delivering for our customers,

“Cummins continues to operate from a position of strength as we navigate this dynamic environment, and we look forward to reinstating our financial guidance in February when we provide our outlook for 2026.”

Third Quarter 2025 Highlights:

• Cummins increased its 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.
• Cummins and Komatsu signed a memorandum of understanding (MOU) to collaborate on the development of hybrid powertrains for surface haulage heavy mining equipment. Building on a strong legacy of diesel engine supply across a wide variety of mining and construction equipment, Cummins and Komatsu will add hybrids to their product roadmaps of power technology solutions for progressive decarbonization in large mining haul truck applications.
• Cummins was recognized by Forbes as one of America’s best employers for company culture; rated as a top military-friendly employer by Military Friendly^®; and named “Best Place to Work for Disability Inclusion” for the fifth consecutive year by achieving a high score of 100 on the Disability Index^®.

¹ Generally Accepted Accounting Principles in the U.S.

Third quarter 2025 detail (all comparisons to same period in 2024):

Engine Segment

• Sales – $2.6 billion, down 11%
• Segment EBITDA – $261 million, or 10.0% of sales, compared to $427 million, or 14.7% of sales
• Revenues decreased 12% in North America and 5% in international markets due to lower medium-duty and heavy-duty truck demand in the United States and Mexico.

Components Segment

• Sales – $2.3 billion, down 15%
• Segment EBITDA – $292 million, or 12.5% of sales, compared to $351 million, or 12.9% of sales
• Revenues in North America decreased by 24% and international sales were flat primarily due to lower medium-duty and heavy-duty truck demand in the United States.

Distribution Segment

• Sales – $3.2 billion, up 7%
• Segment EBITDA – $492 million, or 15.5% of sales, compared to $370 million, or 12.5% of sales
• Revenues in North America increased 13% due to increased demand for power generation, while international sales declined by 3%.

Power Systems Segment

• Sales – $2.0 billion, up 18%
• Segment EBITDA – $457 million, or 22.9% of sales, compared to $328 million, or 19.4% of sales
• Revenues in North America increased 20% and international sales increased 17% driven primarily by increased power generation demand, particularly for data center markets in North America, India, and China.

Accelera Segment

• Sales – $121 million, up 10%
• Segment EBITDA loss – $336 million, which includes $240 million of non-cash charges related to goodwill impairment and inventory write-downs.
• Revenues increased due to higher eMobility demand. 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.

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Cummins Reports Strong Third Quarter Operating Results, Records Non-Cash Charges Related to its Electrolyzer Business, source