Cummins recently reported fourth quarter and full-year 2024 results. Chair and CEO Jennifer Rumsey called it a record year for the company.
"Cummins delivered strong operational results in the fourth quarter and achieved record full-year revenues, net income, EBITDA and EPS, despite a decline in heavy duty truck demand in North America," Rumsey says. "In the fourth quarter, we recorded charges related to the reorganization of our Accelera by Cummins segment. The charges were the result of a strategic review to streamline operations and focus investments, as the adoption of certain zero-emissions solutions has slowed in regions around the world."
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Fourth-quarter revenues were $8.4 billion, down 1% from the same quarter in 2023. North American sales were flat and international revenues were down 3%. Fourth-quarter net income was $418 million, compared to a net loss of $1.4 billion in 2023. The fourth quarter of 2023 included the recording of a charge related to the settlement agreements of $2 billion in costs related to the voluntary retirement and separation programs of $42 million and costs related to the separation of Atmus of $33 million.
"I am tremendously proud of our employees for delivering innovative technologies for our customers, strengthening our position in key markets and achieving our financial performance targets," Rumsey says. "2024 marked a transformative year for Cummins as we made significant progress in advancing our Destination Zero strategy and delivered record results."
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The Destination Zero strategy reflects the company's commitment to sustainability and helping its customers navigate the energy transition with Cummins' products, including advanced diesel, natural gas, electric and hybrid powertrains, and powertrain-related components.
Earnings before interest, taxes, depreciation and amortization (EBITDA) in the fourth quarter were $1 billion, compared to a loss of $878 million a year ago, which include the Atmus and other costs. Full year revenues for 2024 were $34.1 billion; flat compared to 2023. Net income for 2024 was $3.9 billion, compared to $735 million in 2023. The 2024 results included a gain related to the Atmus separation, charges related to the Accelera reorganization, and restructuring expenses.
EBITDA for 2024 was $6.3 billion, compared to $3 billion a year ago.
Cummins projects full-year 2025 revenue to be in the range of down 2% to up 3%. EBITDA should be in the range of 16.2% to 17.2% of sales.
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"In 2025, we anticipate that demand will be slightly weaker in the North America on-highway truck markets, particularly in the first half of the year, but offset by strength in other key markets," Rumsey says. "Despite a relatively flat revenue forecast and relative weakness in the key North America truck markets, we expect to improve profitability and cash flow. Cummins remains well-positioned to deliver strong financial performance, invest in future growth and return cash to shareholders."
Highlights for 2024 for Cummins included:
- The final, complete separation of Atmus Filtration Technologies through a share exchange offer, reducing Cummins's shares outstanding by about 5.6 million shares.
- The introduction of the HELM engine platforms applied across the B, X10 and X15-series engine portfolios. HELM platforms provide customers with the option to choose the fuel type — advanced diesel, natural gas or hydrogen — that best suits business needs.
- Full production of the X15N natural gas engine at the Jamestown Engine Plant in New York, which celebrated its 50th anniversary in 2024.
- Cummins and Isuzu announced the launch of a new 6.7-liter engine for Isuzu's new medium-duty truck lineup. Cummins also announced plans to launch a battery electric powertrain for Isuzu's F-series in North America, expected in 2026. That powertrain will include Accelera's next-generation lithium iron phosphate battery technology.
- The joint venture between Accelera, Daimler Trucks & Buses Paccar, and EVE Energy was completed. Amplify Cell Technologies will localize battery cell production and the battery supply chain in the U.S. Amplify began construction of a 21-gigawatt hour factory in Mississippi that is expected to create more than 2,000 manufacturing jobs. Production is set to start in 2027.
