Cummins Announces No Reinstatement of Guidance Due to Economic Uncertainty

Cummins Inc. has chosen not to reinstates its full-year revenue and profitability guidance due to ongoing economic uncertainty. CEO Tom Peluso said the company's diversified portfolio, disciplined cost management, and strong execution have helped it navigate recent industry challenges. However, persistent economic and regulatory uncertainty continues to impact its key markets, and the company is focused on delivering for its customers.

Cummins Inc. (NYSE: CMI) has chosen not to reinstate its full-year revenue and profitability guidance for 2025 due to ongoing economic uncertainty. The company reported strong second-quarter results, with revenues of $8.6 billion, a 2% decrease from the same period in 2024. Net income attributable to Cummins was $890 million, or $6.43 per diluted share, compared to $726 million, or $5.26 per diluted share, in 2024 [1].

CEO Tom Peluso highlighted the company's ability to navigate recent industry challenges through a diversified portfolio, disciplined cost management, and strong execution. However, persistent economic and regulatory uncertainty continues to impact key markets, particularly in the truck segment where end-user confidence has declined. The company expects a sharp decline in North America truck build rates starting in the third quarter of 2025 [1].

Cummins reported an increase in the quarterly common stock cash dividend from $1.82 to $2.00 per share, marking the 16th consecutive year of dividend increases. The company also launched the new 17-liter engine platform generator, the S17 Centum genset, designed to produce up to 1 megawatt of power within a compact footprint. This new product is aimed at supporting critical market segments such as commercial properties, healthcare facilities, and water treatment plants [1].

The company's Power Systems segment experienced robust growth, with revenues up 19% and EBITDA of $430 million, or 22.8% of sales. The Distribution segment also performed well, with revenues up 7% and EBITDA of $445 million, or 14.6% of sales. However, the Engine and Components segments faced challenges, with revenues down 8% and 9% respectively, primarily due to lower on-highway demand in the United States and Mexico [1].

Cummins remains committed to its Destination Zero strategy, which focuses on sustainability and helping customers navigate the energy transition. The company's Accelera segment experienced a 5% decrease in revenues due to lower electrolyzer installations, contributing to an EBITDA loss of $100 million [1].

Despite the economic uncertainty, Cummins is focused on delivering for its customers and looks forward to providing additional clarity as the uncertainty subsides. The company's strong execution and diversified portfolio have enabled it to navigate recent industry challenges, and it continues to invest in promising paths for zero emissions technologies.

References:
[1] https://investor.cummins.com/news/detail/684/cummins-reports-second-quarter-2025-results