In This Article:
Cummins Inc. CMI reported first-quarter 2025 earnings of $5.96 per share, which surpassed the Zacks Consensus Estimate of $4.82 and increased from $5.10 recorded in the corresponding quarter of 2024. The outperformance was driven by higher-than-expected revenues from the Power Systems, Distribution and Accelera segments. Cummins’ revenues totaled $8.20 billion, which beat the Zacks Consensus Estimate of $8.07 billion but declined from $8.40 billion recorded in the year-ago quarter.
Cummins Inc. Price, Consensus and EPS Surprise
Cummins Inc. price-consensus-eps-surprise-chart | Cummins Inc. Quote
Key Takeaways
In the reported quarter, sales in the Engine segment were down 5% year over year to $2.8 billion. The metric also missed our estimate of $2.87 billion. Sales in North America and International markets decreased 4% and 11% year over year, respectively, due to weaker on-highway demand in the United States and Latin America. The segment’s EBITDA rose to $458 million (accounting for 16.5% of sales) from $414 million (14.1% of sales) in the year-ago period and beat our estimate of $419.7 million.
Sales in the Distribution segment totaled $3.1 billion, which rose 13% year over year and topped our projection of $2.71 billion. Sales in North America rose 10% due to increased demand for power generation products, while international sales fell 1%. The segment’s EBITDA came in at $376 million (12.9% of sales), which increased from the year-ago quarter’s $294 million (11.6% of sales) and surpassed our estimate of $340.3 million.
Sales in the Components segment totaled $2.7 billion, down 20% from the prior-year quarter. Sales also missed our estimate of $2.89 billion. Revenues in North America decreased 20% and international sales contracted 20% on the separation of the Atmus business and lower on-highway demand in the United States and Europe. The segment’s EBITDA was $382 million (14.3% of sales), lower than the year-ago figure of $473 million (14.2% of sales). The metric also lagged our estimate of $403.7 million.
Sales in the Power Systems segment rose 19% from the year-ago quarter to $1.6 billion and beat our estimate of $1.47 billion. While North America sales grew 15%, international sales rose 22% due to increased demand for power generation. The segment’s EBITDA rose to $389 million (23.6% of sales) from $237 million (17.1% of sales) and beat our estimate of $284.8 million.
Sales in the Accelera segment came in at $103 million, which rose 11% from the year-ago level and topped our estimate of $101.5 million. The segment incurred a pretax loss of $86 million, narrower than our estimate of a loss of $104 million. Investment in zero-emission contributed to the EBITDA losses.