Cummins reports positive Q4 and record FY 2024 results

Cummins Inc. has reported solid fourth quarter and record full year 2024 results, despite a decline in heavy-duty truck demand in North America and costs incurred in Q4 related to the reorganization of its Accelera by Cummins, said Jennifer Rumsey, chair and CEO.

Jennifer Rumsey, Cummins president & CEO, has been named chair of the company’s Board of Directors. (Photo: Cummins)

“2024 marked a transformative year for Cummins as we made significant progress in advancing our Destination Zero strategy and delivered record results,” she stated. “I am tremendously proud of our employees for delivering innovative technologies for our customers, strengthening our position in key markets and achieving our financial performance targets.”

Fourth quarter 2024 revenues dipped 1% to $8.4 billion compared to the same quarter in 2023. Sales in North America were flat while international revenues fell 3%.

Net income attributable to Cummins in the quarter was $418 million, compared to a net loss of $1.4 billion in 2023. The fourth quarter of 2023 included the recording of a $2.0 billion charge related to the Settlement Agreements; $42 million in costs related to the voluntary retirement and separation programs; and $33 million in costs related to the separation of Atmus.

The current quarter results include Accelera reorganization actions of $312 million, which the company said were primarily non-cash charges.

“The charges were the result of a strategic review to streamline operations and focus investments, as the adoption of certain zero-emissions solutions has slowed in some regions around the world,” Rumsey explained.

Earnings before interest, taxes, depreciation and amortization (EBITDA) in Q4 were $1.0 billion, or 12.1% of sales, compared to a loss of $878 million, or -10.3% of sales, a year ago.

Fourth quarter detail by segment compared to the same period in 2023 were as follows:

• Engine Segment – Sales were down 2% to $2.7 billion, with EBITDA of $367 million, or 13.5% of sales, compared to $353 million, or 12.7% of sales in 2023. Revenues decreased 25% in North America and 3% in international markets, which Cummins attributed to softened demand in global heavy-duty truck markets and lower North America pickup units.
• Component Segment – Sales decreased 17% to $2.6 billion, with EBITDA of $361 million, or 13.7% of sales, compared to $406 million, or 12.7% of sales. Revenues in North America decreased 12% and international sales fell 24%, primarily attributed to the separation of Atmus and lower heavy-duty truck demand.
• Distribution Segment – Sales rose 13% to $3.1 billion, with EBITDA of $400 million, or 13% of sales, compared to $269 million, or 9.9% of sales. Revenues in North America grew 10% and international sales rose 19%, which the company said was driven in part by higher demand for power generation products, particularly for data center applications.
• Power Systems Segment – Sales were up 22% year over year to $1.7 billion, with EBITDA of $314 million, or 18.0% of sales, compared to $182 million, or 12.7% of sales. Revenues in North America jumped 42% and international sales rose by 12%, again driven primarily by increased power generation demand, particularly in the data center market.
• Accelera Segment – Sales in the segment were up 23% to $100 million, which Cummins said due to higher eMobility demand. The reported EBIDTA loss of $431 million included the $312 million costs related to strategic reorganization actions, as well as costs associated with development of electric powertrains, fuel cells and electrolyzers, as well as products to support battery-electric vehicles.

Full year 2024

At $34.1 billion, full year 2024 revenues remained flat with 2023. Sales in North America rose just 1% and international revenues decreased 1% year over year. Cummins noted that 2023 included a full year of Atmus Filtration Technologies revenues, while 2024 included Atmus until final separation on March 18.

Net income for 2024 was $3.9 billion compared to $735 million in 2023. The 2024 results included a $1.3 billion gain related to the separation of Atmus, net of transaction costs and other expenses; the previously noted charges related to Accelera reorganization actions; and first quarter restructuring expenses of $29 million.

EBITDA in 2024 was $6.3 billion, or 18.6% of sales, compared to $3.0 billion, or 8.9% of sales, the previous year.

2025 Outlook

Based on its current forecast, Cummins said it is projecting full year 2025 revenue to be in the range of down 2% to up 3%, and EBITDA to be in the range of 16.2% and 17.2% of sales.

“In 2025, we anticipate that demand will be slightly weaker in the North America on-highway truck markets, particularly in the first half of the year, but offset by strength in other key markets,” Rumsey stated. “Despite a relatively flat revenue forecast and relative weakness in the key North America truck markets, we expect to improve profitability and cash flow.”

She added, “Cummins remains well-positioned to deliver strong financial performance, invest in future growth and return cash to shareholders.”