Jennifer Rumsey, the chairman and CEO of Cummins, said: "Cummins achieved strong operating results in the third quarter, thanks to the profitable growth of the power systems and distribution business segments. Part of the reason is the continuous increase in demand for backup power supplies for data centers. The company's effective cost management has responded to the expected sharp decline in the North American truck market. Non-cash expenses related to the electrolytic cell business within the Accelera business segment in this quarter reflect the expected shift in hydrogen application under policy-driven circumstances. Due to the weak demand outlook, we are evaluating the electrolytic cell business."
The revenue for the third quarter was $8.3 billion, a 2% decrease compared to the same period in 2024. Sales in the North American market declined by 4%, while international market revenue increased by 2% due to the growth in demand from China and Europe. Cumming's net profit attributable to the company was $536 million, with a diluted earnings per share of $3.86; in the same period of 2024, the net profit was $809 million, with a diluted earnings per share of $5.86. This quarter's performance included a non-cash expense of $240 million (or $1.73 per share) from the Accelera segment. The tax rate for the third quarter was 32.7%, mainly due to the non-deductible costs related to the Accelera non-cash expenses and the $36 million (or $0.26 per share) in taxes resulting from the implementation of the Beautiful Bill Act. EBITDA was $1.2 billion, accounting for 14.3% of sales; compared to the same period in 2024, it was $1.4 billion, accounting for 16.4% of sales. The EBITDA for the third quarter of 2025 included the aforementioned costs.
Highlights of the third quarter of 2025
• Cummins has raised its quarterly common stock cash dividend from $1.82 per share to $2.00 per share. The company has increased the quarterly dividend paid to shareholders for 16 consecutive years.
• Cummins and Komatsu signed a memorandum of understanding to jointly develop a hybrid power system for heavy mining equipment used in open-pit mining. Based on their long-standing cooperative history in the supply of diesel engines for various mines and construction machinery, Cummins and Komatsu will incorporate hybrid power solutions into their product roadmaps to facilitate the gradual decarbonization of the large mining truck application sector.
• Cummins has been ranked as one of the best employers with a strong corporate culture by Forbes; has been recognized as a top employer friendly to military families by Military Friendly®; and has been awarded the title of Best Place to Work for Disability Inclusion for the fifth consecutive year due to its high score of 100 in the Disability Index®.
Details of each business department for the third quarter of 2025 (all comparisons are based on the same period last year):
Engine Department
Sales revenue - $2.61 billion, down 11%
Department EBITDA - $261 million, accounting for 10.0% of sales revenue. Last year it was $427 million, accounting for 14.7% of sales revenue.
Revenue decreased by 12% in North America and 5% in the international market. This was mainly due to the decline in demand for medium and heavy trucks in the United States and Mexico.
Components Department
Sales revenue - $2.3 billion, down 15%
Department EBITDA - $292 million, accounting for 12.5% of sales revenue. Last year it was $351 million, accounting for 12.9% of sales revenue.
North American revenue decreased by 24%, while international sales remained unchanged. This was mainly due to the decline in demand for heavy-duty trucks in the United States.
Distribution Department
Sales revenue - $3.2 billion, an increase of 7%
Department EBITDA - $492 million, accounting for 15.5% of sales revenue, compared to $370 million last year, which accounted for 12.5% of sales revenue
North American revenue increased by 13%, thanks to the increased demand for power generation equipment, while international sales decreased by 3%.
Power System Department
Sales revenue - $2 billion, an increase of 18%
Department EBITDA - $457 million, accounting for 22.9% of sales revenue. Last year it was $328 million, accounting for 19.4% of sales revenue.
North American revenue increased by 20%, international sales increased by 17%. The main driving force was the growth in demand for power generation equipment, especially in the data center markets of North America, India, and China.
Accelera Department
Sales - $121 million, an increase of 10%
Department EBITDA loss - $336 million, which includes $240 million of non-cash expenses related to goodwill impairment and inventory write-downs.
Revenue growth was driven by the increased demand for electric mobility. The company remains committed to adjusting its pace and focusing its zero-emission investments on the most promising paths to ensure readiness for long-term success as part of the zero-carbon-target strategy. These ongoing investments have led to an EBITDA loss.