What factors drove the changes in Cummins's revenue and profit?

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What is Cummins's latest dividend and current dividend yield?

What were the key takeaways from Cummins’s earnings call?

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- **Hybrid Power Collaboration**: Komatsu partnership to develop low-carbon solutions for mining.
- **Engine Efficiency**: X15N natural gas engine outperformed in fuel economy, driving 10% EBITDA margin.
- **Tariff Mitigation**: 80% of tariff costs recovered, with Q4 nearing price/cost neutrality.
- **China Growth**: 35% truck sales increase, driven by NS4 incentives and rural infrastructure.
- **Power Systems Strength**: 22.9% margin in Power Systems, supported by data center demand.
- **Electrolyzer Review**: Strategic assessment due to reduced U.S. incentives and slower international adoption.

**【CEO Summary Section】**
- Announced collaboration with Komatsu to develop hybrid powertrains for mining equipment, aiming to reduce operational costs and emissions.
- X15N natural gas engine showcased superior fuel efficiency during the Run on Less event, highlighting customer value.
- Global power generation demand drove 27% revenue growth in North America and 26% in China, supported by data center expansion.
- North America truck demand declined 40%, offset by 44% growth in light-duty truck engines for Ram pickups.
- China truck sales increased 35% due to NS4 scrapping incentives and rural infrastructure projects.
- Tariffs negatively impacted profitability, but 80% of costs were recovered through pricing.

**【CFO Financial Commentary】**
- Q3 EBITDA was $1.4 billion (17.2% of sales), excluding $240M noncash charges, driven by Power Systems and Distribution growth.
- Engine segment EBITDA margin improved to 10%, despite 38% decline in North America truck volumes.
- Power Systems segment EBITDA reached $457M (22.9% margin), supported by data center demand.
- Distribution segment set records with 15.5% margin, up from 12.5% YoY.
- Operating cash flow was $1.3B, up 108% YoY, reflecting cost containment and tariff recovery.

**【Q&A Highlights】**
- Engine margins expected to stabilize at 10% in Q4, with 15% sequential decline in on-highway shipments.
- Power Systems to invest in natural gas engines for prime power applications, targeting data center growth.
- Tariffs remain headwind, but 80% of costs recovered through pricing.
- China e-mobility sales grew, while electrolyzer business faces strategic review due to weak demand.
- 2027 EPA rule uncertainty delays product launches, but 2026 R&D spend expected to flatten post-regulatory clarity.


Cummins Inc. (CMI) Q3 2025 Earnings Call Transcript

- **Record Q2 performance**: EBITDA up 310bps YoY to 18.4%, despite 30% decline in North America truck volumes.
- **Power Systems standout**: Segment EBITDA jumps to 22.8% of sales, driven by data center and critical power demand.
- **Tariff mitigation progress**: $22M Q2 cost, 90%+ recovery expected by Q4 through customer agreements.
- **Dividend growth**: 16th consecutive year increase to $2/share, maintaining 50%+ cash return policy.
- **Key risk**: Engine segment EBITDA expected to decline 35%+ in Q3 due to 30% volume decline.

**【CEO Summary Section】**
- Q2 revenue: $8.6 billion (-2% YoY), driven by 19% growth in Power Systems and 7% in Distribution segments.
- EBITDA: $1.6 billion (18.4% of sales vs. 15.3% YoY), boosted by Power Gen demand and operational efficiencies.
- North America truck volumes down 30% YoY, offset by 25% growth in China Power Gen and 32% in India.
- New 17L genset launched for urban critical infrastructure; 2-year backlog in Power Systems.
- Tariffs cost $22M in Q2, expected to be neutralized by Q4 through customer negotiations.
- 10% dividend increase to $2/share, $251M returned to shareholders.

**【CFO Financial Commentary】**
- GAAP net income: $890M ($6.43 EPS vs. $726M/$5.26 YoY), driven by higher Power Systems margins.
- Gross margin: 26.4% (vs. 24.9% YoY), aided by pricing and operational improvements.
- Operating cash flow: $785M (vs. outflow of $851M YoY due to regulatory settlements).
- Engine segment EBITDA: 13.8% (vs. 14.1% YoY), Components: 14.7% (vs. 13.6% YoY).
- Power Systems EBITDA: $433M (22.8% of sales vs. 18.9% YoY).
- Q3 outlook: North America truck volumes down 25-30% YoY, but Power Gen demand stable.

**【Q&A Key Highlights】**
- **Power Systems margins**: Sustained at 22.8% due to strong demand and capacity expansion; no one-time items.
- **Data center growth**: $2B+ Power Gen sales target for 2026, 2-year backlog for large gensets.
- **Tariff mitigation**: $22M Q2 cost, 90%+ recovery in Q4 through customer agreements.
- **Engine segment risks**: 35%+ EBITDA decremental margins in Q3 due to 30% volume decline.
- **Capital allocation**: 50%+ cash return policy; $125-250M tax benefit from new legislation.
- **EPA 2027 compliance**: $1B+ invested in U.S. engine plants for new platforms launching in H2 2026.

Cummins Inc. (CMI) Q2 2025 Earnings Conference Call Transcript

- **Power Systems Dominance**: Q1 EBITDA up 58% YoY to $1.6B, driven by data center and mining demand.
- **Tariff Headwinds**: 2H25 financial impact from US-China tariffs expected; no guidance until 2027 regulatory clarity.
- **New Product Momentum**: X10 engine and 100MW electrolyzer deal position for 2027+ growth.
- **Financial Strength**: 17.9% EBITDA margin vs. 15.5% prior year; $824M net income excluding one-time items.
- **China Resilience**: +9% revenue despite truck market decline; power generation +68%YoY.


**【CEO Summary Section】**
- **Record Performance in Power Systems**: Q1 revenue of $8.2 billion (-3% YoY), driven by Power Systems segment with record EBITDA and margin. North America truck market softened (-21% heavy-duty units), but power generation (+12%) and China (+9%) offset declines.
- **New Product Launches**: X10 engine (replacing L9/X12), B7.2 diesel engine, and acquisition of First Mode for hybrid mining tech. 100MW PEM electrolyzer deal with bp for green hydrogen production.
- **Tariff Uncertainty**: Heightened trade tariffs (e.g., China-US) impacting global demand for capital goods. Cummins expects lagged impact on 2H25 results; no guidance until clarity emerges.
- **Strategic Positioning**: 80%+ engines manufactured in US for domestic markets. $1B+ US manufacturing investments over next 3 years.

**【CFO Financial Commentary】**
- **Q1 Financials**: GAAP net income $824M ($5.96 EPS), excluding $1.3B Atmus gain. EBITDA $1.5B (17.9% margin), up 15% YoY vs. adjusted 2024. Power Systems EBITDA +58% YoY to $1.6B.
- **Segment Highlights**: 
  - **Engine**: -5% revenue, +260bps margin (16.5% vs. 14.1%) from pricing, efficiency.
  - **Distribution**: +15% revenue, +130bps margin (12.9% vs. 11.6%) from aftermarket and pricing.
  - **Accelera**: -14% loss ($86M vs. $101M) as electrolyzer orders ramp.
- **Cash Flow**: Operating cash outflow $3M (vs. +$276M) due to working capital build.

**【Q&A Key Themes】**
- **Tariff Mitigation**: Dual-sourcing, inventory buffers, passing costs to customers with lag. 2H25 will see full tariff impact visibility.
- **Power Systems Resilience**: 2027 NOx regulation compliance on track; aftermarket demand (+20% Q1) cushions truck market weakness.
- **China Growth**: Power generation (+68%) and excavator sales (+19%) driven by rural infrastructure. 2027 electrolyzer plant in Spain to support Europe green hydrogen demand.
- **2027 Engine Launch**: X10 and B7.2 on track for 2027 launch; X15 diesel variant planned for 2026 alongside natural gas version.


Cummins (CMI)-5 May 25-2025 Q1 Earnings call transcript

- **Record 2024 Performance**: $34.1B revenue, $6.3B EBITDA (18.6% margin), powered by Power Systems and operational excellence. 
- **Strategic Investments**: $200M to double power gen capacity, HELM platform expansion, and $1.4B+ capex for growth. 
- **2025 Outlook**: Flat to +3% revenue, 16.2-17.2% EBITDA margin, with power gen offsetting truck market weakness. 
- **Accelera Restructuring**: $312M Q4 charges, 2025 losses reduced to $385-415M. 
- **China Recovery Potential**: 2025 demand -5% to +10%, with stimulus and NS4 policy impact.

**【CEO Summary Section】**
- Cummins delivered record 2024 revenues of $34.1 billion, with EBITDA of $6.3 billion (18.6% of sales), driven by Power Systems growth and operational efficiency. 
- Introduced the HELM engine platform across B, X10, and X15 Series engines, enabling fuel flexibility (diesel, natural gas, hydrogen) for customers. 
- Completed separation of Atmus Filtration, reducing shares outstanding by 5.6 million, and formed Amplify Cell Technologies joint venture for battery production. 
- 2025 outlook: Revenues flat to +3%, EBITDA margin 16.2-17.2%, with strength in power generation offsetting North America truck market weakness.

**【CFO Financial Commentary】**
- Q4 2024 revenue: $8.4 billion (down 1% YoY), EBITDA: $1.3 billion (15.8% of sales ex-restructuring). 
- Full year 2024 EBITDA: $5.4 billion (15.7% of sales ex-non-recurring items). 
- 2025 capital spending: $1.4-1.5 billion for HELM platform scale-up and Power Systems capacity expansion. 
- Free cash flow target: 50%+ of operating cash flow, with $969M returned to shareholders in 2024 via dividends and debt reduction.

**【Q&A Key Themes】**
- **Power Systems Growth**: $200M investment to double power generation capacity, targeting 5-15% 2025 revenue growth driven by data centers. 
- **Accelera Restructuring**: $312M Q4 charges to streamline operations, with 2025 losses reduced to $385-415M. 
- **China Truck Market**: 2025 demand expected -5% to +10%, with potential stimulus-driven recovery. 
- **EPA27 Prebuy**: Anticipate second-half 2025 North America heavy-duty truck market strength, though timing uncertain. 
- **Distribution Resilience**: 2025 revenue +2-7%, driven by power generation and aftermarket demand.

Cummins (CMI)-4 Feb 25-2024 Q4 Earnings call transcript

Cummins (CMI)-5 Nov 24-2024 Q3 Earnings call transcript

Cummins (CMI)-1 Aug 24-2024 Q2 Earnings call transcript

Cummins (CMI)-2 May 24-2024 Q1 Earnings call transcript

Cummins (CMI)-6 Feb 24-2023 Q4 Earnings call transcript

- **Revenue Beat**: Q3 2023 revenue up 15% YoY to $8.4 billion, driven by Meritor and strong demand across markets.
- **Margin Expansion**: EBITDA margin improved to 14.6%, with underlying EBITDA margin (excluding one-time costs) at 14.9%.
- **Strategic JV**: $2-3 billion battery cell joint venture with Daimler and PACCAR to localize production in the U.S.
- **X15N Launch**: Natural gas engine launched in China, with North American version set for 2024.
- **Cost Actions**: Voluntary separation programs initiated to reduce expenses amid softening aftermarket demand.
- **Record Cash Flow**: Q3 operating cash flow of $1.5 billion, up 167% YoY, supporting dividend returns of $238 million.

**【CEO Summary Section】**
- **Revenue Growth**: Q3 2023 revenue of $8.4 billion, up 15% YoY, driven by Meritor addition and strong demand across markets. North America sales grew 16%, while international revenues increased 13%.
- **EBITDA Expansion**: EBITDA reached $1.2 billion (14.6% of sales), up from $884 million (12.1%) in Q3 2022. Excluding one-time costs, underlying EBITDA margin improved to 14.9% from 13.3%.
- **Strategic Initiatives**: Announced $2-3 billion joint venture with Daimler and PACCAR for U.S. battery cell production, and completed acquisition of Meritor plants. Launched X15N natural gas engine in China, with plans for North American launch in 2024.
- **2023 Outlook**: Raised full-year revenue guidance to +18-21% YoY and narrowed EBITDA range to 15.2-15.4%. Projected 2023 China truck market growth of 15-25%, and North America medium-duty truck market up 5-15%.
- **Cost Management**: Initiated voluntary separation programs to reduce selling/admin expenses amid softening aftermarket demand.

**【CFO Financial Commentary】**
- **Gross Margin Improvement**: 24.6% of sales (vs. 22.9% in Q3 2022), driven by pricing, logistics cost reductions, and one-time bonus in prior year.
- **Segment Performance**: 
  - **Components**: Revenues $3.2 billion (+20% YoY), EBITDA 14.2%, with Meritor contributing $1.2 billion in sales.
  - **Engine**: Revenues $2.9 billion (+5% YoY), EBITDA 13.5%, impacted by 18% YoY decline in parts sales.
  - **Distribution**: Revenues $2.5 billion (+13% YoY), EBITDA 12.1% (vs. 10% in Q3 2022).
  - **Power Systems**: Revenues $1.4 billion (+7% YoY), EBITDA 16.2%, benefiting from data center and industrial demand.
- **Cash Flow**: Record Q3 operating cash flow of $1.5 billion, up $1.1 billion YoY, driven by earnings and working capital management.
- **Dividends**: Returned $238 million to shareholders in Q3, with long-term goal to return ~50% of operating cash flow.

**【Q&A Key Highlights】**
- **Battery Cell JV**: Focus on U.S. market with LFP chemistry, targeting commercial vehicles and industrial applications. Cummins will supply cells to PACCAR and Daimler for battery packs, with potential for broader customer access.
- **Engine Segment Margin Concerns**: Q4 EBITDA margin expected to decline due to 40bps impact from license fee timing and 18% YoY parts revenue decline. Softening aftermarket demand and supply chain constraints are key challenges.
- **China Market Recovery**: Q3 2023 China revenues up 24% YoY, driven by natural gas engine adoption. Projected 2023 China truck market growth of 15-25%, but construction equipment demand remains weak.
- **R&D Investment**: Cummins is investing in new engine platforms and Accelera business, with R&D spend expected to remain elevated through 2026 to support future growth.
- **Construction Outlook**: North America construction engine sales down 8% YoY due to high channel inventory, with no immediate recovery expected.


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