Cummins shares rise 6.19% after hours after strong Q4 results and strategic shift to halt electrolyzer activity.

Cummins surged 6.19% in after-hours trading following the release of its Q4 and FY2025 earnings report, which highlighted record underlying EBITDA of $5.8 billion (17.4% of sales) despite a strategic shift away from electrolyzer activities. The company cited strong performance in Power Systems and Distribution segments, with Power Systems revenue rising 16% to $7.5 billion and Distribution revenue up 9% to $12.4 billion, both driven by robust demand for data center backup power and hybrid solutions. Management also announced a $218 million charge related to electrolyzer business restructuring but emphasized disciplined cost management and a 2026 outlook of 3–8% revenue growth and 17–18% EBITDA margins. The decision to exit new electrolyzer activity, coupled with cost reductions and improved margins in core segments, reinforced investor confidence in Cummins’ operational resilience and strategic focus on profitable markets.