Cummins CEO Highlights Secular Growth In Power, Cautions On Truck Market Weakness

Cummins Inc. CMI stock is trading higher on Tuesday after it reported second-quarter 2025 results that beat Wall Street expectations for both earnings and revenue. Strength in its Power Systems and Distribution segments offset declines in other markets.

The company posted diluted earnings per share of $6.43, surpassing the $5.10 analyst estimate. Revenue for the quarter was $8.60 billion, beating the $8.43 billion consensus.

Sales fell 2% year-over-year as North America declined 6%, while international sales rose 5% on higher demand in Europe and China.

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Net income attributable to Cummins was $890 million, or 10.3% of sales, up from $726 million, or $5.26 per share, in the prior-year period.

EBITDA for the quarter rose to $1.6 billion, or 18.4% of sales, compared with $1.3 billion, or 15.3%, a year ago.

Power Systems led segment performance with sales rising 19% to $1.9 billion. North American revenue grew 23%, while international sales rose 16%, driven by demand in data center and mission-critical markets.

Distribution revenue increased 7% to $3.0 billion, as North America rose 9% and international sales climbed 4%, largely due to increased demand for power generation products in the U.S.

The Engine segment reported $2.9 billion in sales, down 8% year-over-year. North American revenue declined 8%, and international revenue fell 7% due to lower on-highway demand in the U.S. and Mexico.

Components revenue declined 9% to $2.7 billion, with North America down 15% and flat international sales.

Accelera, Cummins’ zero-emissions segment, saw sales fall 5% to $105 million due to reduced electrolyzer installations. The company reaffirmed its commitment to long-term investments under its Destination Zero strategy.

Operating cash flow for the quarter was $785 million. Cummins ended the period with $2.32 billion in cash and cash equivalents and $6.81 billion in long-term debt.

On July 15, the company increased its quarterly dividend from $1.82 to $2.00 per share, payable Sept. 4, 2025, to shareholders of record as of Aug. 22, marking 16 consecutive years of dividend growth.

CMI also introduced the S17 Centum generator set, capable of producing up to 1 megawatt in a compact footprint for use in healthcare, water treatment, and commercial sectors.

 “We see a contrast across our markets with robust demand for power generation equipment supported by clear secular drivers, and our more economically sensitive markets, such as truck, where end-user confidence has declined,” commented Chair and CEO Jennifer Rumsey.

“This contrast will become even more pronounced in the second half of the year as North America truck build rates decline sharply, starting in the third quarter,” he added.

Amid ongoing economic and regulatory uncertainty, the company said it will not reinstate a full-year revenue or profitability outlook at this time.

“Our diversified portfolio, disciplined cost management and strong execution have enabled us to navigate recent industry challenges. However, persistent economic and regulatory uncertainty continues to impact a number of our key markets and cloud our near-term outlook for both business and market performance,” stated Rumsey.

Price Action: At last check Tuesday, CMI shares were trading higher by 6.15% to $383.83.

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