In This Article:
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Revenue: $8.2 billion, a decrease of 3% compared to Q1 2024.
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EBITDA: $1.5 billion or 17.9% of sales, compared to $2.6 billion or 30.6% a year ago.
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North America Revenue: Decreased by 1% compared to 2024.
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International Revenue: Decreased by 5% compared to Q1 2024.
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China Revenue: $1.8 billion, an increase of 9%.
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India Revenue: $725 million, a decrease of 14% from Q1 2024.
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Gross Margin: $2.2 billion or 26.4% of sales, up from 24.5% last year.
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Net Earnings: $824 million or $5.96 per diluted share.
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Operating Cash Flow: Outflow of $3 million compared to an inflow of $276 million a year ago.
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Engine Segment Revenue: $2.8 billion, a decrease of 5% from a year ago.
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Power Systems Segment Revenue: $1.6 billion, an increase of 19%.
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Distribution Segment Revenue: Increased 15% to $2.9 billion.
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Component Segment Revenue: $2.7 billion, a decrease of 20%.
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Accelerator Revenue: Increased 11% to $103 million.
Release Date: May 05, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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Cummins Inc (NYSE:CMI) delivered strong results in the first quarter, led by record performance in the power systems segment.
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The company introduced the X10 engine, replacing the L9 and X12 platforms, offering improved performance, durability, and efficiency.
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Cummins Inc (NYSE:CMI) announced the acquisition of First Mode's assets, enhancing its retrofit hybrid solutions for mining and rail operations.
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The company reported a 68% increase in sales of power generation equipment in China, driven by accelerating data center demand.
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Cummins Inc (NYSE:CMI) achieved a gross margin improvement, driven by favorable pricing, higher aftermarket, and operational improvements.
Negative Points
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Revenues for the first quarter were $8.2 billion, a decrease of 3% compared to the first quarter of 2024.
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EBITDA was $1.5 billion or 17.9%, down from $2.6 billion or 30.6% a year ago, partly due to the absence of a one-time gain from the previous year.
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The company faces heightened uncertainty due to trade tariffs, impacting its ability to provide reliable forecasts for the year.
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North America truck market showed softening, with heavy-duty unit sales down 21% from 2024.
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International revenues decreased by 5% in the first quarter of 2025 compared to a year ago, with a notable decline in India.
Q & A Highlights
Q: Can you quantify the gross or net tariff cost and which segments are most impacted? Also, how are you handling pricing with the current backlog? A: Mark Smith, CFO: It's difficult to quantify due to the evolving nature of tariffs. The broader concern is the economic impact. We are taking steps to mitigate the impact and will pass on costs where necessary. Jennifer Rumsey, CEO: We have different markets with varying impacts. Power generation has a multi-year order board, and aftermarket business may benefit from delayed purchases. The engine and components markets are more sensitive, as seen with recent heavy-duty truck orders.