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Mar 31

Cummins Q1 2025 Earnings Report

Cummins reported a net income of $824 million on $8.2 billion in revenue for Q1 2025.

Key Takeaways

Cummins delivered strong Q1 results with record performance in the Power Systems segment, but withdrew full-year guidance amid economic uncertainty and tariff pressures.

Revenue for Q1 2025 was $8.2 billion, down 3% from the prior year.

Net income was $824 million, driven by solid performance across segments, especially Power Systems.

EPS came in at $5.96, with no adjustments reported.

The company withdrew its full-year forecast due to growing global economic uncertainty.

Total Revenue
$8.17B
Previous year: $8.4B
-2.7%
EPS
$5.96
Previous year: $5.1
+16.9%
EBITDA Margin
17.9%
Previous year: 30.6%
-41.5%
Effective Tax Rate
23.9%
Previous year: 8.7%
+174.7%
Gross Profit
$2.16B
Previous year: $2.01B
+7.3%
Cash and Equivalents
$1.53B
Previous year: $2.54B
-39.7%
Free Cash Flow
-$165M
Previous year: $107M
-254.2%
Total Assets
$32.5B
Previous year: $31.8B
+2.2%

Cummins

Cummins

Cummins Revenue by Segment

Cummins Revenue by Geographic Location

Forward Guidance

Cummins withdrew its full-year 2025 forecast due to increasing economic uncertainty and tariff-related risks.

Positive Outlook

  • Record performance in Power Systems segment
  • Strong EBITDA margin of 17.9%
  • New product launches including the X10 and B7.2 engines
  • Successful acquisition of First Mode's hybrid technology assets
  • Accelera secured a major 100MW electrolyzer contract for bp's Lingen project

Challenges Ahead

  • Full-year guidance withdrawn due to economic uncertainty
  • Revenue declined 3% year-over-year
  • Decline in Engine and Components segment revenues
  • Cash flow from operations turned slightly negative
  • Pressure from tariffs and weakening demand in Latin America and Asia Pacific

Revenue & Expenses

Visualization of income flow from segment revenue to net income