Cummins' Q4 Results Reflect International Weakness, Forecasts Modest Growth In 2025

Cummins Inc CMI shares are trading higher premarket on Tuesday after the company reported fourth-quarter 2024 results.

Sales declined 1% year over year (Y/Y) to $8.45 billion, beating the consensus of $8.07 billion.

The Indiana-based company stated that sales in North America remained flat Y/Y and international revenues declined 3% Y/Y in the quarter.

Sales by segments:

• Components $2.6 billion (-17% Y/Y)
• Engine $2.7 billion (-2% Y/Y)
• Distribution $3.1 billion (+13% Y/Y)
• Power Systems $1.7 billion (+22% Y/Y)
• Accelera $100 million (+23% Y/Y).

EPS for the quarter stood at $3.02 compared to $4.59 a year ago, missing the consensus loss of $(10.01).

CMI reported an operating income of $732 million (vs. $1.2 billion a year ago quarter).

Cummins’ operating cash for the quarter totaled $1.4 billion, compared to $1.46 billion a year ago.

At the end of December 2024, CMI held cash and equivalents of $1.67 billion.

EBITDA came in at $1.0 billion (12.1% of sales) vs. a loss of $878 million (-10.3%) last year.

“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 some regions around the world,” said Jennifer Rumsey, chair and CEO of Cummins.

“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. Despite a relatively flat revenue forecast and relative weakness in the key North America truck markets, we expect to improve profitability and cash flow.”

2025 Outlook: Cummins continues to expect revenue of down 2% to up 3% and EBITDA of 16.2% and 17.2%.

Investors can gain exposure to the stock via Honeytree U.S. Equity ETF BEEZ and EA Series Trust TBG Dividend Focus ETF TBG.

Price Action: CMI shares are up 2.24% at $356.00 premarket at the last check Tuesday.

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