Cummins Q1 2025 Earnings: Strong Power Systems Performance, Full-Year Guidance Withdrawn

Cummins Inc. reported first quarter 2025 revenue of $8.2 billion, down 3% year-over-year. Net income was $824 million, or $5.96 per diluted share, compared to $1.99 billion ($14.03 per share) in Q1 2024, which included a $1.3 billion gain from the Atmus separation. EBITDA for the quarter was $1.46 billion, or 17.9% of sales. Revenue declined 1% in North America and 5% internationally, with weaker demand in Latin America and Asia Pacific partially offset by growth in China.

Power Systems led segment performance with a 19% sales increase to $1.6 billion and EBITDA margin of 23.6%. The Distribution segment also saw double-digit growth (+15%), while Engine (-5%) and Components (-20%) segments declined, the latter reflecting the Atmus divestiture and weaker on-highway demand.

The company withdrew full-year 2025 guidance due to economic uncertainty, including tariff-related risks. CEO Jennifer Rumsey reaffirmed commitment to Cummins' "Destination Zero" decarbonization strategy.

Key product news included the launch of the new X10 and B7.2 diesel engines and expansion of hydrogen technologies via Accelera™, including a 100MW electrolyzer supply agreement with bp.