Cummins Inc. (NYSE: CMI) recently announced its financial results for the fourth quarter and full year of 2024. Despite a decline in demand for heavy-duty trucks in North America, Cummins delivered robust operational performance in the fourth quarter and achieved record-breaking results for full-year sales revenue, net income, EBIT margin, and earnings per share.
For the full year 2024, Cummins reported total sales of $34.1 billion and net income of $3.9 billion, representing 11.6% of sales under U.S. Generally Accepted Accounting Principles (GAAP). The company's full-year EBIT margin stood at 18.6%, with diluted earnings per share reaching $28.37.
Including joint ventures, Cummins' operations in China generated sales revenue of $6.5 billion. For 2025, Cummins projects that full-year revenue will range between a 2% decrease and a 3% increase, with an anticipated EBIT margin of between 16.2% and 17.2%.
In the fourth quarter, Cummins incurred restructuring costs associated with its Accelera business unit. In response to reduced demand for certain zero-emission solutions in specific regions, the company consolidated the Accelera business to streamline processes and refocus investments.
- Jennifer Rumsey, Chairman and CEO, Cummins Inc.
Jennifer Rumsey
2024 was a transformative year for Cummins, marked by significant progress in advancing our zero-carbon strategy and achieving record-breaking performance. I am proud of our employees for delivering innovative technologies to our customers, strengthening our position in key markets, and meeting our financial targets, Jennifer Rumsey concluded.
Cummins reported revenue of $8.4 billion in the fourth quarter of 2024, representing a 1% decrease compared to the same period in 2023. Sales in North America remained stable, while international revenue declined by 3%.
The company's net income attributable to Cummins in the fourth quarter was $418 million, or $3.02 per diluted share, compared to a net loss of $1.4 billion, or $10.01 per diluted share, in the same period of 2023.
Cummins' EBIT for the fourth quarter of 2024 was $1 billion, with an EBIT margin of 12.1%, compared to a loss of $878 million, or -10.3% of sales, in the same period of 2023.
For the full year 2024, Cummins achieved total sales of $34.1 billion, consistent with 2023 levels. Sales in North America increased by 1%, while international revenue decreased by 1%. It is important to note that 2023 included full-year sales from ArvinMeritor, whereas 2024 only included ArvinMeritor sales up to the divestiture date of March 18. Including joint ventures, Cummins' Chinese enterprises generated total sales of $6.5 billion in 2024.
Cummins' net income for the full year of 2024 was $3.9 billion, or $28.37 per diluted share, compared to $735 million, or $5.15 per diluted share, in 2023. The 2024 results included a net gain of $1.3 billion, or $9.28 per diluted share, related to the divestiture of the ArvinMeritor business; a charge of $312 million, or $2.12 per diluted share, associated with the Accelera restructuring; and a restructuring charge of $29 million, or $0.16 per diluted share, in the first quarter.
Cummins' EBIT for 2024 was $6.3 billion, with an EBIT margin of 18.6%, compared to $3 billion and an EBIT margin of 8.9% in 2023.
Outlook for 2025
Based on current projections, Cummins expects full-year revenue in 2025 to range between a 2% decrease and a 3% increase, with an EBIT margin expected to be between 16.2% and 17.2%.
Cummins plans to continue generating strong operating cash flow and creating value for shareholders, remaining committed to its long-term strategic goal of returning 50% of operating cash flow to shareholders.
In 2025, we anticipate a slight weakening in demand for North American on-highway trucks, particularly in the first half of the year, but other key markets will provide robust support. Despite flat revenue and a relatively weak North American truck market, we expect further improvements in profitability and cash flow. Cummins is well-positioned to deliver strong financial performance, invest in future growth, and return cash to shareholders.
- Jennifer Rumsey, Chairman and CEO, Cummins
Highlights of 2024
Cummins increased its common stock cash dividend for the 15th consecutive year and returned a total of $969 million to shareholders through dividends.
Cummins completed the full divestiture of its ArvinMeritor business through a share exchange, reducing approximately 5.6 million Cummins shares outstanding.
Cummins launched the HELM™ multi-fuel engine platform globally, covering the legendary B Series, X10 and X15 Series engines, providing customers with the choice of a multi-fuel platform - whether advanced diesel or alternative fuels such as natural gas and hydrogen options - to meet their business needs while reducing emissions.
Cummins and Isuzu have announced the launch of a new 6.7-liter engine, which will be installed in Isuzu's new medium-duty truck series in Japan and other global markets. Cummins will also provide Isuzu with pure electric power systems, including the next-generation Accelera™ lithium iron phosphate (LFP) battery technology.
Cummins Accelera™, Daimler Trucks and Buses, PACCAR, and EVE Energy have completed the formation of the joint venture Amplify Cell Technologies to produce battery cells and battery supply chains in the United States. This strategic collaboration will advance zero-emission technologies in the electric commercial vehicle and industrial markets.
The award-winning Cummins Centum™ series has added four new generator sets, two of which are powered by Cummins QSK50 engines and the other two by QSK78 engines. To meet the strong market demand, these new models have been engineered specifically for critical applications such as data centers, medical institutions, and wastewater treatment plants. These products have accumulated decades of experience in meeting customer needs and have further enhanced power density, reliability, sustainability, and low-emission performance.
Cummins has received multiple awards in recognition of our focus on employees and the community.
