Cummins Inc
Q2 2025 Earnings
Market Reaction
S&P 500 over the same 30 days: +3.07%.
Did CMI Beat Earnings? Q2 2025 Results
Cummins delivered a blowout second quarter, posting earnings of $6.43 per diluted share against a consensus estimate of $5.21, a beat of 23.53% that reflected the company's sharpest segment divergence in recent memory. Revenue came in at $8.64 billion, edging past estimates by 2.20% even as the top line slipped 1.7% year over year, underscoring a business being pulled in two directions at once. The driving force behind the earnings strength was a surge in power generation demand, particularly for data center and mission-critical applications, which pushed Power Systems revenue up 19% to $1.89 billion and lifted companywide EBITDA margins to 18.4% from 15.3% a year ago. That momentum more than offset deepening weakness in on-highway markets, where Engine segment revenue fell 8% on softer truck demand across North America and Mexico. CEO Jennifer Rumsey cautioned that North America truck build rates are expected to decline sharply beginning in the third quarter, and the company declined to reinstate a full-year financial outlook, citing persistent economic and regulatory uncertainty.
- Record profitability in Power Systems and Distribution segments
- Strong power generation demand driven by data center and mission critical markets
- International revenue growth of 5% driven by higher demand in Europe and China
- Disciplined cost management with SG&A expenses declining from $828M to $779M year-over-year
- Gross margin expansion to 26.4% from 24.9% in Q2 2024
“We delivered strong second quarter results, driven by record profitability in our Power Systems and Distribution segments. Our employees' resilience and commitment continue to power our success in a dynamic environment. 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. 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. Aftermarket demand for parts and service remains stable.”
Cummins CEO, on the earnings call
Forward Guidance & Outlook
Due to continued economic uncertainty, Cummins will not reinstate a full-year outlook for revenue or profitability. The company sees a contrast across its markets, with robust demand for power generation equipment supported by secular drivers, while economically sensitive markets like trucking face declining end-user confidence. North America truck build rates are expected to decline sharply starting in Q3 2025. Aftermarket demand for parts and service remains stable. The company expects its effective tax rate for 2025 to approximate 24.5%, excluding discrete items and potential adjustments for the 'One Big Beautiful Bill Act' signed into law on July 4, 2025.
CMI YoY Financials
CMI Revenue by Segment
Figures from SEC filings and company reports. Not investment advice.