Photo provided Cummins Chair and CEO Jennifer Rumsey said the company “delivered strong operational results in the fourth quarter” even though the company saw “a decline in heavy duty truck demand in North America.”
Photo provided Cummins Chair and CEO Jennifer Rumsey said the company “delivered strong operational results in the fourth quarter” even though the company saw “a decline in heavy duty truck demand in North America.”
Cummins Inc. posted a decline in quarterly revenue during the final three months of last year and is projecting 2025 revenue to be down 2% to up 3% compared to 2024.

The Columbus-based company reported $8.4 billion in revenue during the October-December quarter, down 1% from the same quarter in 2023, the company said. Sales in North America were flat, while international revenues decreased 3%.

Net income in the fourth quarter was $418 million, or $3.02 per share, compared to a net loss of $1.4 billion, or a loss of $10.01 per share, during the same quarter in 2023. The net loss in the fourth quarter of 2023 was primarily driven by a $2 billion settlement with environmental regulators over alleged emissions violations.

Cummins’ fourth quarter results topped Wall Street expectations of around $8.12 billion in revenue but missed expectations of around $4.67 in earning per share due to $312 million in reorganization actions taken within the company’s Accelera business. Without the reorganization actions, earnings per share would have been around $5.16, analysts said.

Full-year revenue in 2024 was $34.1 billion, which was flat compared to 2023, the company said. Sales in North America increased 1% and international revenues decreased 1% compared to 2023.

Cummins Chair and CEO Jennifer Rumsey said Cummins “delivered strong operational results in the fourth quarter” even though the company saw “a decline in heavy duty truck demand in North America.”

“2024 revenues were a record $34.1 billion, essentially flat with 2023 despite the decline in North American heavy-duty truck demand in the second half of the year and reduction of sales from the Atmus separation,” Rumsey told financial analysts on Tuesday.

Atmus Filtration Technology Inc. is a standalone company that used to be Cummins’ filtration business.

Segment performances:

Engine: Sales of $2.7 billion in the fourth quarter represented a 2% decrease compared to the same period in 2023. Revenues decreased 2% in North America and 3% in international markets due to softened demand in global heavy-duty truck markets and lower North America pickup units.

Components: Sales of $2.6 billion were down 17% compared to the fourth quarter 2023. Revenues in North America dropped 12% and international sales fell 24% primarily due to the separation of Atmus and lower demand in heavy-duty truck markets.

Distribution: Sales of $3.1 billion represented a 13% increase compared to the October-December period in 2023. Revenues in North America increased 10% and international sales increased 19% driven by increased demand for power generation products, particularly for data center applications, and pricing actions.

Power Systems: Sales of $1.7 billion were up 22% compared to the fourth quarter 2023. Revenues in North America rose 42% and international sales increased 12% driven primarily by increased power generation demand, particularly for the data center market.

Accelera: Sales of $100 million were up 23% compared to the same period in 2023. Revenues increased due to higher eMobility demand.

2025 outlook

Cummins officials said they expect 2025 full-year revenue to be down 2% to up 3% compared to last year.

Rumsey said the company is projecting “slightly weaker” demand in the North America on-highway truck markets, especially in the first half of the year, that is expected to be offset by strength in other 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,” Rumsey said. “Cummins remains well-positioned to deliver strong financial performance, invest in future growth and return cash to shareholders.”

Analysts react

Local analysts characterized Cummins’ fourth quarter and full-year 2024 results as “very strong” and that the company performed “very well.”

“Overall, (Cummins had) pretty good results for the full-year 2024,” said Mike Petry, senior equity analyst at Columbus-based Kirr, Marbach and Co. “…They’ve performed very well, especially in light of the weakness in China that they’ve seen all year and the weakening in the back half of the year, particularly in the North American heavy-duty truck market.”

Craig Kessler, president and chief investment officer at Columbus-based Kessler Investment Group, said the company’s results were “very positive all the way around.”

“I think overall it was a very strong report, and the stock certainly reflects that,” Kessler said. “…The marketplace seems to like what (Cummins officials) had to say both on what they accomplished in the last quarter, but I think also on what the expectation is going forward. …(Cummins leadership is) fairly low key. This is what I think makes them a good management team. They don’t promise the world and deliver something short of that. They’re very pragmatic and good allocators of capital.”
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