Cummins reported "strong" results for the first quarter of the year, including record performance in the power systems segment, the company announced Monday.
"The company delivered strong financial results in the first quarter of 2025 led by record performance in our Power Systems Segment," says Jennifer Rumsey, chair and CEO. "I want to thank our global employees for their commitment to delivering for our customers in an increasingly challenging environment. Due to growing economic uncertainty driven by tariffs, we have withdrawn our full year forecast."
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The company reported first quarter revenues of $8.2 billion, which is down 3% year-over-year. Sales in North America were down 1% and international revenues were down 5% on lower demand in Latin America and Asia, partially offset by higher sales in China.
Net income in the first quarter was $824 million compared to $2 billion in 2024. The first quarter of last year included gain related to the separation of Atmus, net transaction costs and other expenses of $1.3 billion and restructuring expenses of $29 million.
Earnings before interest, taxes, depreciation and amortization (EBITDA) in the first quarter were $1.5 billion, or 17.9% of sales. In the first quarter of 2024, EBITDA was $2.6 billion, or 30.6% of sales.
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"While the outlook for the remainder of the year remains unclear, we remain confident in our position that our Destination Zero strategy is the right one," Rumsey says. "Cummins is in a strong position to navigate through economic uncertainty, and we look forward to reinstating our forecast when conditions allow."
Highlights from the first quarter of 2025 include:
- The introduction of the X10 and B7.2 engine as part of the HELM platforms. The X10 replaces the L9 and X12 platforms. The B7.2 diesel engine features a higher displacement and is designed for global use. Both engines will be manufactured at the Rocky Mount Engine Plant in North Carolina. They willl. go into production in 2027.
- In February, Cummins announced it acquired the assets of First Mode. It makes retrofit hybrid solutions for mining and rail operations. The deal included hybrid mining and rail product lines and the full technology portfolio, including hydrogen and battery powertrain solutions.
- Accelera by Cummins announced the supply of a 100-megawatt proton exchange membrane (PEM) electrolyzer system for a green hydrogen project in Germany.
In the engine segment, sales were $2.8 billion, which is down 5%. EBITDA was $458 million, which is 16.5% of sales. Revenues were down 4% in North America and 11% in international markets due to lower on-highway demand in the U.S. and Latin America.
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Components sales were down $2.7 billion, which is down 20%. EBITDA was $382 million or 14.3% of sales. Revenues in North America were down 20% and international sales were also off 20% primarily due to the separation of Atmus and lower on-highway demand in the U.S. and Europe.
Distribution sales were $2.9 billion, which is up 15%, with a segment EBITDA of $376 million, or 12.9% of sales. Revenues in North America were up 22% due to increased demand for power generation products and favorable pricing. International sales were off 1%.
Power systems generated sales of $1.6 billion, an increase of 19%. Segment EBITDA was $389 million, or 23.6% of sales. North American revenues were up 15% and international sales were up 22%, driven primarily by increased power generation demand, Cummins says, particularly for the data center market.
Accelera sales were $103 million, which is an 11% increase, with a segment EBITDA loss of $86 million. Revenues improved, Cummins says, due to increased demand and electrolyzer installations.
Cummins says it 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 the Destination Zero strategy. However, continued investments in that vein contributed to the company's EBITDA losses.
