Cummins Inc. reported third‑quarter 2025 revenue of $8.317 billion, a figure that exceeded consensus estimates of roughly $7.97 billion and represented a 2% year‑over‑year decline. The revenue beat was largely driven by an 18% increase in the Power Systems segment and a 7% rise in Distribution, both of which benefited from heightened demand for data‑center backup power and industrial distribution solutions. The decline in the Engine segment—down 11%—offset the gains, reflecting weaker truck demand in North America.
GAAP earnings per share were $3.86, falling short of the consensus estimate of $4.86. However, the company’s adjusted EPS—excluding pretax expenses—was $5.59, beating the adjusted consensus of $4.81. The GAAP miss was largely attributable to a 14% decline in Engine volumes and non‑cash charges related to the Accelera electrolyzer business, while the adjusted beat was supported by strong cost control and a favorable product mix that favored higher‑margin Power Systems and Distribution units.
Adjusted operating income, measured as EBITDA, reached $1.2 billion, or 14.3% of sales, down from 16.4% a year earlier. The margin contraction reflects the lower Engine mix and the impact of non‑cash Accelera charges, but it was partially offset by the higher contribution margin of the Power Systems segment, which grew 18% and carried a higher operating leverage.
Chair and CEO Jennifer Rumsey highlighted the company’s resilience, noting that “Cummins delivered strong operating results in the third quarter, driven by profitable growth in our Power Systems and Distribution segments, due in part to continued rising demand for backup power for data centers.” She added that the company is conducting a strategic review of its electrolyzer business within Accelera, citing policy‑driven shifts in hydrogen adoption expectations and weaker demand prospects.
Shares of Cummins rose more than 7% in pre‑market trading, a reaction that was driven by the revenue beat, the robust performance of Power Systems and Distribution, the adjusted EPS beat, and the company’s decision to raise its quarterly dividend to $2.00 per share—marking 16 consecutive years of dividend growth.
The company did not provide full‑year 2025 guidance, citing market uncertainty, but indicated it will issue a 2026 outlook in February. The lack of guidance signals management’s cautious stance amid macro‑economic headwinds, while the continued focus on high‑margin segments and cost discipline suggests confidence in sustaining profitability in the near term.
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