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鈥檚 Board of Directors. (Photo: Cummins)

鈥�2024 marked a transformative year for Cummins as we made significant progress in advancing our Destination Zero strategy and delivered record results,鈥� she stated. 鈥淚 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.鈥�

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.

鈥淭he 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,鈥� 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 鈥� 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 鈥� 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 鈥� 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 鈥� 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 鈥� 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.

鈥淚n 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,鈥� Rumsey stated. 鈥淒espite a relatively flat revenue forecast and relative weakness in the key North America truck markets, we expect to improve profitability and cash flow.鈥�

She added, 鈥淐ummins remains well-positioned to deliver strong financial performance, invest in future growth and return cash to shareholders.鈥�