Cummins Inc. Reports Mixed Financial Results for Q2 and First Half of 2025

Cummins Inc. reported its financial results for the second quarter and first half of 2025, revealing a mixed performance amid fluctuating market conditions. For the three months ended June 30, 2025, the company generated net sales of $8.6 billion, a decrease of 2% from $8.8 billion in the same period last year. Net income attributable to Cummins Inc. was $890 million, or $6.43 per diluted share, compared to $726 million, or $5.26 per diluted share, in the prior year. The increase in net income was attributed to strong growth in power generation markets and favorable pricing from updated engine products, despite lower demand in on-highway truck markets.

For the first half of 2025, Cummins reported net sales of $16.8 billion, down from $17.2 billion in the same period of 2024. Net income attributable to Cummins Inc. was $1.7 billion, or $12.38 per diluted share, compared to $2.7 billion, or $19.42 per diluted share, in the previous year. The decline in net income was primarily due to the absence of a $1.3 billion gain from the divestiture of Atmus in early 2024 and continued weakness in on-highway truck markets.

Operationally, Cummins experienced a 9% decrease in sales within its Components segment, largely due to lower demand in North America and the impact of the Atmus divestiture. Conversely, the Distribution segment saw an 11% increase in sales, driven by higher demand in power generation markets, particularly in North America. The Power Systems segment also reported a 19% increase in sales, reflecting strong demand in both North America and China. The Engine segment, however, faced a 12% decline in sales, primarily due to reduced demand in heavy-duty truck markets.

In terms of strategic developments, Cummins completed the divestiture of its remaining 80.5% ownership of Atmus Filtration Technologies in March 2024, which contributed to a significant gain in the previous fiscal year. The company has also been focusing on expanding its electrified power systems through its Accelera segment, which is in the early stages of commercialization. As of June 30, 2025, Cummins had $3.1 billion in cash and marketable securities, alongside access to $4.0 billion in credit facilities, providing a solid liquidity position to support ongoing operations and investments.

Looking ahead, Cummins anticipates continued strong demand in its Power Systems business, while also preparing for potential declines in medium-duty and heavy-duty truck demand in North America. The company is actively managing its supply chain to mitigate the impacts of tariffs and inflationary pressures, which could affect earnings. Overall, Cummins remains focused on leveraging its diverse product offerings and geographic reach to navigate the evolving market landscape.