Cummins First Quarter Sales Drop Although Power Generation Rides High
Cummins posted $8.2 billion in first quarter 2025 revenue, with power generation as the strongest segment. The company’s first quarter revenues were a 3-percent year-over-year decline compared to the same period in 2024. Sales in North America dropped 1 percent and international revenues decreased 5 percent because of lower demand in Latin America and Asia Pacific, partially offset by higher sales in China.
“The company delivered strong financial results in the first quarter of 2025, led by record performance in our Power Systems Segment,” said Jennifer Rumsey, chair and CEO. “I want to thank our global employees for their commitment to delivering for our customers in an increasingly challenging environment. Due to growing economic uncertainty driven by tariffs, we have withdrawn our full year forecast. While the outlook for the remainder of the year remains unclear, we remain confident in our position and that our Destination Zero strategy is the right one. Cummins is in a strong position to navigate through economic uncertainty, and we look forward to reinstating our forecast when conditions allow.”
EBITDA in the first quarter were $1.5 billion, or 17.9 percent of sales, compared to $2.6 billion, or 30.6 sales in the first quarter of 2024.
Sales in the Power Systems Segment totaled $1.6 billion, up 19 percent year over year. Segment EBITDA was $389 million, or 23.6 percent of sales, compared to $237 million, or 17.1 percent of sales a year ago. Revenues in North America increased 15 percent and international sales increased 22 percent driven primarily by increased power generation demand, particularly for the data center market.
The Engines segment posted sales of $2.8 billion, a 5-percent year-over-year decline. Revenues decreased 4 percent in North America and 11 percent in international markets because of lower on-highway demand in the United States and Latin America.
The Components Segment reported $2.7 million in sales, down 20 percent. Revenues in North America decreased 20 percent, primarily because of the separation of Atmus and lower on-highway demand in the U.S. and Europe. The Distribution Segment had sales of $2.9 billion, a 15-percent increase as revenues in North America jumped 22 percent primarily because of increased demand for power generation products in North America and favorable pricing.
The Accelera Segment posted sales of $103 million, an 11-percent hike, with revenues improving because of increased eMobility demand and electrolyzer installations. The company remains committed to pacing and focusing its zero emissions investments as part of its Destination Zero strategy.
Cummins is headquartered in Columbus, Ind.
About the Author
Michael Roth
Editor
Michael Roth has covered the equipment rental industry full time for RER since 1989 and has served as the magazine’s editor in chief since 1994. He has nearly 30 years experience as a professional journalist. Roth has visited hundreds of rental centers and industry manufacturers, written hundreds of feature stories for RER and thousands of news stories for the magazine and its electronic newsletter RER Reports. Roth has interviewed leading executives for most of the industry’s largest rental companies and manufacturers as well as hundreds of smaller independent companies. He has visited with and reported on rental companies and manufacturers in Europe, Central America and Asia as well as Mexico, Canada and the United States. Roth was co-founder of RER Reports, the industry’s first weekly newsletter, which began as a fax newsletter in 1996, and later became an online newsletter. Roth has spoken at conventions sponsored by the American Rental Association, Associated Equipment Distributors, California Rental Association and other industry events and has spoken before industry groups in several countries. He lives and works in Los Angeles when he’s not traveling to cover industry events.