Courtesy-Cummins Facebook page
COLUMBUS, Ind. – Cummins Inc. released its results for the third quarter of 2025 on Thursday.
CEO/Chair Jennifer Rumsey stated, “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.
Below are the Cummins 3rd Quarter comparisons, 2025 vs. 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.
