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Sep 30, 2025
Cummins Q3 2025 Earnings Report
Cummins reported solid Q3 results with strength in Power Systems and Distribution, despite charges in the Accelera segment.
Key Takeaways
Revenue slightly declined to $8.3B, with net income of $536M impacted by $240M in non-cash Accelera charges. Strong performance in Power Systems and Distribution offset weakness in Components and Engine segments.
Revenue by Segment
Forward Guidance
Cummins suspended its 2025 outlook but plans to issue 2026 guidance in February, citing market uncertainty.
Positive Outlook
- Strong EBITDA margin of 22.9% in Power Systems
- Distribution sales up 7% YoY driven by power generation demand
- International revenue grew 2%, supported by strength in China and Europe
- Dividend increased to $2.00 per share
- Strategic partnership signed with Komatsu for hybrid mining equipment
Challenges Ahead
- Accelera segment reported a $336M EBITDA loss
- $240M non-cash charge for Accelera goodwill impairment and inventory write-down
- North America revenue declined 4% YoY
- Components and Engine segment sales fell 11-15%
- Higher effective tax rate due to non-deductible charges and tax law changes
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
Analyze how earnings announcements historically affect stock price performance
Avg. Return Before/After Earnings
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