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Cummins Q4 Earnings Beat on Strong Performance From Power Systems Unit
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Key Takeaways
CMI posted Q4 2025 EPS of $5.81, beating estimates, as revenues climbed to $8.53B from a year ago.
CMI saw Power Systems sales up 11% and EBITDA margin expands to 21.7%, driving the earnings outperformance.
CMI's Distribution growth offset declines in Engine and Components, while Accelera posted a wider EBITDA loss.
Cummins Inc. (CMI - Free Report) reported fourth-quarter 2025 earnings of $5.81 per share, which surpassed the Zacks Consensus Estimate of $5.20 and increased from $5.16 recorded in the corresponding quarter of 2024. Strong performance of Power Systems resulted in the outperformance. Cummins’ revenues totaled $8.53 billion, which beat the Zacks Consensus Estimate of $8.15 billion and rose from $8.45 billion recorded in the year-ago quarter.
In the reported quarter, sales in the Engine segment were down 4% year over year to $2.60 billion. The metric topped our estimate of $2.38 billion. Sales in North America and International markets decreased 5% and 4% year over year, respectively, due to weaker medium-duty and heavy-duty demand in the United States and Mexico. The segment’s EBITDA fell to $263 million (accounting for 10.1% of sales) from $367 million (13.5% of sales) in the year-ago period and missed our estimate of $320.8 million.
Sales in the Distribution segment totaled $3.3 billion, which rose 7% year over year and topped our projection of $3.13 billion. Sales in North America rose 10%, while international sales grew 2% due to increased demand for power generation products. The segment’s EBITDA came in at $495 million (15.1% of sales), which increased from the year-ago quarter’s $400 million (13% of sales) and surpassed our estimate of $439 million.
Sales in the Components segment totaled $2.4 billion, down 7% from the prior-year quarter. Sales topped our estimate of $2.3 billion. Revenues in North America decreased 15% due to weaker demand for medium-duty and heavy-duty trucks in the United States. The segment’s EBITDA was $327 million (13.4% of sales), lower than the year-ago figure of $361 million (13.7% of sales). The metric, however, topped our estimate of $316.7 million.
Sales in the Power Systems segment rose 11% from the year-ago quarter to $1.93 billion and beat our estimate of $1.9 billion. While North America sales grew 15%, international sales rose 8% due to increased demand for power generation. The segment’s EBITDA rose to $418 million (21.7% of sales) from $314 million (18% of sales) and beat our estimate of $415 million.
Sales in the Accelera segment came in at $131 million, which rose 31% from the year-ago level and topped our estimate of $100.7 million. The segment incurred an EBITDA loss of $374 million, wider than our estimate of a loss of $173.1 million. Investment in zero-emission contributed to the EBITDA losses.
CMI's Financials
Cummins’ cash and cash equivalents were $2.84 billion as of Dec. 31, 2025, up from $1.67 billion as of Dec. 31, 2024. Long-term debt totaled $6.79 billion, up from $4.78 billion as of Dec. 31, 2024.
Cummins Provides 2026 Guidance
Cummins expects 2026 revenues to rise in the range of 3-8% year over year. It expects EBITDA margin in the range of 17-18% of sales.
CMI’s Zacks Rank & Key Picks
Cummins carries a Zacks Rank #3 (Hold) at present.
The Zacks Consensus Estimate for MOD’s fiscal 2026 sales and earnings implies year-over-year growth of 17.2% and 14.3%, respectively. The EPS estimate for fiscal 2026 has improved a penny in the past 60 days. The EPS estimate for fiscal 2027 has improved 13 cents in the past seven days.
The Zacks Consensus Estimate for F’s 2025 sales implies year-over-year growth of 0.3%. EPS estimates for 2025 and 2026 have improved 7 cents and 11 cents, respectively, in the past 30 days.
The Zacks Consensus Estimate for PHIN’s 2025 sales and earnings implies year-over-year growth of 1.1% and 33.4%, respectively. EPS estimates for 2025 and 2026 have improved 47 cents and 66 cents, respectively, in the past 60 days.
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Cummins Q4 Earnings Beat on Strong Performance From Power Systems Unit
Key Takeaways
Cummins Inc. (CMI - Free Report) reported fourth-quarter 2025 earnings of $5.81 per share, which surpassed the Zacks Consensus Estimate of $5.20 and increased from $5.16 recorded in the corresponding quarter of 2024. Strong performance of Power Systems resulted in the outperformance. Cummins’ revenues totaled $8.53 billion, which beat the Zacks Consensus Estimate of $8.15 billion and rose from $8.45 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 4% year over year to $2.60 billion. The metric topped our estimate of $2.38 billion. Sales in North America and International markets decreased 5% and 4% year over year, respectively, due to weaker medium-duty and heavy-duty demand in the United States and Mexico. The segment’s EBITDA fell to $263 million (accounting for 10.1% of sales) from $367 million (13.5% of sales) in the year-ago period and missed our estimate of $320.8 million.
Sales in the Distribution segment totaled $3.3 billion, which rose 7% year over year and topped our projection of $3.13 billion. Sales in North America rose 10%, while international sales grew 2% due to increased demand for power generation products. The segment’s EBITDA came in at $495 million (15.1% of sales), which increased from the year-ago quarter’s $400 million (13% of sales) and surpassed our estimate of $439 million.
Sales in the Components segment totaled $2.4 billion, down 7% from the prior-year quarter. Sales topped our estimate of $2.3 billion. Revenues in North America decreased 15% due to weaker demand for medium-duty and heavy-duty trucks in the United States. The segment’s EBITDA was $327 million (13.4% of sales), lower than the year-ago figure of $361 million (13.7% of sales). The metric, however, topped our estimate of $316.7 million.
Sales in the Power Systems segment rose 11% from the year-ago quarter to $1.93 billion and beat our estimate of $1.9 billion. While North America sales grew 15%, international sales rose 8% due to increased demand for power generation. The segment’s EBITDA rose to $418 million (21.7% of sales) from $314 million (18% of sales) and beat our estimate of $415 million.
Sales in the Accelera segment came in at $131 million, which rose 31% from the year-ago level and topped our estimate of $100.7 million. The segment incurred an EBITDA loss of $374 million, wider than our estimate of a loss of $173.1 million. Investment in zero-emission contributed to the EBITDA losses.
CMI's Financials
Cummins’ cash and cash equivalents were $2.84 billion as of Dec. 31, 2025, up from $1.67 billion as of Dec. 31, 2024. Long-term debt totaled $6.79 billion, up from $4.78 billion as of Dec. 31, 2024.
Cummins Provides 2026 Guidance
Cummins expects 2026 revenues to rise in the range of 3-8% year over year. It expects EBITDA margin in the range of 17-18% of sales.
CMI’s Zacks Rank & Key Picks
Cummins carries a Zacks Rank #3 (Hold) at present.
Some better-ranked stocks in the auto space are Modine Manufacturing Company (MOD - Free Report) , Ford Motor Company (F - Free Report) and PHINIA Inc. (PHIN - Free Report) , each sporting a Zacks Rank #1 (Strong Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for MOD’s fiscal 2026 sales and earnings implies year-over-year growth of 17.2% and 14.3%, respectively. The EPS estimate for fiscal 2026 has improved a penny in the past 60 days. The EPS estimate for fiscal 2027 has improved 13 cents in the past seven days.
The Zacks Consensus Estimate for F’s 2025 sales implies year-over-year growth of 0.3%. EPS estimates for 2025 and 2026 have improved 7 cents and 11 cents, respectively, in the past 30 days.
The Zacks Consensus Estimate for PHIN’s 2025 sales and earnings implies year-over-year growth of 1.1% and 33.4%, respectively. EPS estimates for 2025 and 2026 have improved 47 cents and 66 cents, respectively, in the past 60 days.