4 key takeaways from Cummins’ 2025 results

Cummins Inc. has released its fourth quarter and full year 2025 results. Here are four key takeaways based on the company’s latest report.

1. Results were solid in Q4 despite the impact of the electrolyzer business strategic review.

Fourth quarter 2025 revenues were up 1% from the same quarter in 2024, reach $8.5 billion. The 2% sales decline in North America was buoyed by an international revenue increase of 5%.

Net income attributable to Cummins was $593 million compared to $418 million in 2024. The quarterly results include charges related to the electrolyzer business within Accelera of $218 million, as well as Accelera reorganization actions of $312 million, which the company said were primarily non-cash charges.

Jennifer Rumsey, Cummins chair and CEO, explained the charges related to the electrolyzer business within the Accelera segment reflect “actions taken as part of a strategic review initiated in response to shifts in hydrogen adoption expectations. These decisions were aimed at streamlining operations and reducing ongoing costs in light of the weaker outlook for demand.”

EBITDA for the quarter was $1.2 billion, or 13.5% of sales, compared to $1.0 billion, or 12.1% of sales, a year ago.

2. Q4 growth was led by the Distribution and Power Systems segments.

The Distribution segment saw sales increase 7% to $3.3 billion, with EBITDA of $495 million, or 15.1% of sales, compared to $400 million, or 13.0% of sales. North American revenues were up 10% and international sales rose 2%, driven by increased demand for power generation products, particularly in data center applications.

Power Systems saw sales climb 11% to $1.9 billion, with EBITDA of $418 million, or 21.7% of sales, compared to $314 million, or 18.0% of sales. Revenue growth of 15% in North America and 8% in international markets were again drive primarily by increased power generation demand, particularly in North America, China and Asia Pacific.

Both the Engine and Components segments saw sales decrease in Q4 2025. The Engine segment experienced a 4% decline to $2.6 billion with EBITDA of $263 million, or 10.1% of sales, compared to $367 million, or 13.5% of sales. The Components segment reported a 7% sales decrease to $2.4 billion, with EBITDA of $327 million, or 13.4% of sales, compared to $361 million, or 13.7% of sales.

For both segments, the decline was attributed to a decrease in medium-duty and heavy-duty truck demand. The Engine segment saw revenues dip 5% in North America and 4% in international markets due to reduced truck demand in the United States and Mexico. The Components segment reported a 15% decline in North America and 4% in international markets despite stronger demand in Europe and China.

The Accelera business segment saw sales jump 31% to $131 million in Q4 2025, attributed to electrolyzer installation timing. However, the segment experienced an EBITDA loss of $374 million, which the company said includes the charges related to the electrolyzer business, as well as continued investments as part of its Destination Zero strategy.

3. International sales offset the North American sales dip for full year 2025.

Full-year 2025 revenues of $33.7 billion dipped 1% from 2024, with sales in North America down 3% and international revenues up 2% compared to 2024.

Net income for the full year 2025 was $2.8 billion compared to $3.9 billion in 2024. Results included charges related to the electrolyzer business within Accelera of $458 million; the gain related to the separation of Atmus, net of transaction costs and other expenses, of $1.3 billion; charges related to Accelera reorganization actions as noted above; and first quarter restructuring expenses of $29 million.

EBITDA in 2025 was $5.4 billion (16.0% of sales) compared to $6.3 billion (18.6% of sales) a year ago.

“Cummins delivered strong operational results in the fourth quarter and full year despite continued weakness in North America truck markets,” Rumsey stated. “Our Distribution and Power Systems segments achieved record full-year sales and profitability as a result of disciplined execution and robust demand for data center backup power.”

4. Cummins expects an even stronger 2026.

Based on its current forecast, Cummins projects full-year 2026 revenue to increase between 3% to 8%, with EBITDA in the range of 17.0% and 18.0% of sales.

“In 2026, we anticipate that demand will be slightly better in the North America on-highway truck markets, particularly in the second half of the year, paired with continued strength in data center power generation markets,” said Rumsey. “Cummins remains well-positioned to invest in future growth, deliver strong financial results and return cash to shareholders in 2026.”