Cummins (CMI) Q4 2024 earnings summary

Executive summary

• Achieved record 2024 revenues of $34.1 billion and net income of $3.9 billion, driven by strong power generation and aftermarket demand, despite softness in North America heavy-duty truck markets and the Atmus separation.

• Advanced the Destination Zero strategy, launching HELM engine platforms and forming the Amplify Cell Technologies JV for U.S. battery cell production.

• Completed the tax-free separation of Atmus Filtration Technologies, reducing shares outstanding by 5.6 million and resulting in a $1.3 billion gain.

• Streamlined the Accelera segment, incurring $312 million in mostly non-cash charges to align with slower zero-emission adoption.

• Increased common stock dividend for the 15th consecutive year, returning $969 million to shareholders.

Financial highlights

• Full-year 2024 revenues were $34.1 billion (flat year-over-year); EBITDA was $6.3 billion (18.6% margin), including $312 million in Accelera charges.

• Q4 2024 revenues were $8.4 billion, down 1% year-over-year; Q4 EBITDA was $1.0 billion (12.1% margin), with adjusted EBITDA at $1.33 billion (15.8% margin).

• Net earnings for 2024 were $3.9 billion ($28.37 per diluted share), including a $1.3 billion gain from Atmus separation; adjusted net income was $3.0 billion and EPS $21.37.

• Operating cash flow for 2024 was $1.5 billion; Q4 operating cash flow was $1.42 billion.

• Dividend per share increased to $7.00 in 2024 from $6.50 in 2023.

Outlook and guidance

• 2025 revenues projected to be down 2% to up 3% versus 2024; EBITDA margin expected at 16.2%-17.2%.

• North America heavy-duty truck production forecasted at 260,000-290,000 units (flat to down 10%); medium-duty market down 5%-15%.

• Power generation revenues expected to rise 5%-15%, driven by data center demand.

• Accelera sales guided to $400-$450 million, with net losses expected to reduce but not reach break-even by 2027.

• Capital investments planned at $1.4-$1.5 billion for 2025.