5 key findings from Cummins’ Q2 results

Despite mixed market signals, Cummins Inc. said it saw solid results for Q2 2025, reporting an increase in both net income and earnings despite a slight revenue decline compared to Q4 2024.

Jennifer Rumsey, Cummins Chair & CEO. (Photo: Cummins)

“We delivered strong second quarter results, driven by record profitability in our Power Systems and Distribution segments,” said Jennifer Rumsey, Cummins Chair and CEO. “We see a contrast across our markets with robust demand for power generation equipment supported by clear secular drivers, and our more economically sensitive markets, such as truck, where end-user confidence has declined.”

Rumsey anticipated this contrast to become even more pronounced in the second half “as North America truck build rates decline sharply, starting in the third quarter.”

Key findings from the Q2 2025 earnings report included:

1. Profits were up despite revenue dip: Cummins reported revenues of $8.6 billion, a modest increase from Q1’25 ($8.2 billion) but a 2% decrease compared to the same period last year. Net income rose to $890 million (Q4’24: $726 million) and EBIDTA increased to $1.6 billion (Q4’24: $1.3 billion).
2. North American revenues weakened as international gained strength: Sales fell 6% in North America and rose 5% internationally. Although North American revenues grew 9% in the Distribution Segment and 23% in the Power Systems Segment, overall revenue for the quarter was drawn down by an 8% decline in the Engine Segment and a 15% shortfall in the Components Segment based on lower on-highway demand. International markets saw a decline in the Engine Segment (-7%) due to lower on-highway demand in Mexico but were buoyed by higher demand in the Distribution (+4%) and Power Systems Segments (+16%).
3. Demand for power generation bolstered earnings: Both the Distribution Segment and Power Systems Segment saw sales gains due to increased demand for power generation products – primarily the data center and mission-critical markets – in the United States and internationally. Cummins also noted the Q2 launch of its 17 L engine platform generator, which is capable of producing up to 1 MW of power and is targeted to mission-critical applications.
4. Biggest gains and losses for the period: The Power Systems segment saw the highest percentage gain for the quarter (+19%) to $1.9 billion, with EBIDTA of $430 million vs. $301 million for the same period in 2024. The Distribution Segment represented the highest overall sales at $3.0 billion (+7%) and EBIDTA of $445 million vs. $314 million in Q2’24. Though down on a percentage basis, the Engine Segment (-8%) had sales of $2.9 billion and EBIDTA of $400 million vs. $445 million in Q2’24, and the Components Segment came in with sales of $2.7 billion (-9%) and EBIDTA of $397 million vs. $406 million in the previous year’s quarter.
5. Accelera Segment continues to invest amid struggles: With sales of $105 million (-5%), the segment reported an EBIDTA loss of $100 million, a $17 million shortfall from Q2’24. The company attributed the revenue decrease to lower electrolyzer installations, and EBIDTA losses to continued investments in zero-emission solutions that offer the most promising paths to long-term success.

Cummins again chose not to reinstate a full-year outlook for revenue or profitability at this time. According to Rumsey, “Our diversified portfolio, disciplined cost management and strong execution have enabled us to navigate recent industry challenges. However, persistent economic and regulatory uncertainty continues to impact a number of our key markets and cloud our near-term outlook for both business and market performance.”

She added that the company looks forward to “providing additional clarity as this uncertainty subsides.”