Cummins Inc. Reports Decline in Revenue and Net Income for Q3 and Nine Months of 2025

Cummins Inc. reported its financial results for the third quarter and the first nine months of 2025, revealing a decline in both revenue and net income compared to the same periods in 2024. For the three months ended September 30, 2025, the company generated net sales of $8.3 billion, a decrease of 2% from $8.5 billion in the prior year. Net income attributable to Cummins Inc. was $536 million, or $3.86 per diluted share, down from $809 million, or $5.86 per diluted share, in the same quarter of 2024. The nine-month figures showed a similar trend, with net sales of $25.1 billion compared to $25.7 billion in 2024, and net income dropping to $2.3 billion from $3.5 billion.

The decline in financial performance was attributed to several factors, including lower demand in the on-highway commercial truck markets, a goodwill impairment charge, and unfavorable tax expenses following the enactment of the One Big Beautiful Bill Act. These challenges were partially offset by strong growth in power generation markets, particularly in data center and commercial sectors, as well as increased demand in light-duty automotive markets. The company also noted a significant reduction in selling, general, and administrative expenses, which decreased by $135 million for the nine months ended September 30, 2025.

Strategically, Cummins has made notable changes, including the divestiture of its remaining 80.5% ownership in Atmus Filtration Technologies in March 2024, which resulted in a gain of approximately $1.3 billion. The company has also focused on expanding its product offerings in electrified power systems through its Accelera segment, although it faced challenges in this area, including a $240 million non-cash charge related to goodwill impairment and inventory write-downs due to declining demand for electrolyzers.

Operationally, Cummins reported a total employee headcount of 60,000 as of September 30, 2025, reflecting a slight increase from the previous year. The company continues to maintain a strong balance sheet, with total assets of $33.6 billion and cash and cash equivalents of $2.6 billion. The company’s debt-to-capital ratio improved to 36.8% from 38.4% at the end of 2024, indicating a stronger equity position. Looking ahead, Cummins anticipates ongoing challenges in the medium- and heavy-duty truck markets, while expecting continued strength in power generation and aftermarket businesses. The company remains focused on mitigating the impacts of tariffs and inflationary pressures on its operations.