Cummins (CMI) FY2025 10-K Annual Report
Cummins (CMI) 10-K annual report for fiscal year 2025, filed with SEC EDGAR on Feb 10, 2026. This page provides AI-powered analysis including business overview, management discussion & analysis (MD&A), risk factors, and key financial data such as revenue, net income, gross margin, operating margin, and return on equity (ROE) extracted from XBRL.
Cummins FY2025 10-K Analysis
Business Overview
- • Core business: Global power leader providing diesel, electric, hybrid powertrains, power generation, components and zero emissions tech across five segments
- • New divestiture: Completed tax-free split-off of 80.5% ownership of Atmus in March 2024, reducing shares by 5.6 million and gaining $1.3B
- • Strategic shift: Accelera segment impairment of electrolyzer goodwill and exit from new hydrogen electrolyzer commercial activities due to market deterioration
- • Quantitative metric: Distribution segment sales rose to 30% of consolidated net sales in 2025 from 25% in 2023; Power Systems sales increased to 18% in 2025
- • Noteworthy fact: $1.9 billion paid in Q2 2024 to settle US regulatory civil claims related to emissions certification primarily for pick-up truck engines
Management Discussion & Analysis
- • Revenue $33.67B, down 1% YoY ($432M decrease) driven by lower Engine (-7%) and Components (-13%) sales, partially offset by Power Systems (+16%) and Distribution (+9%)
- • Operating margin 11.9% (Operating income $4.03B on $33.67B sales) vs 11.0% (2024), gross margin 25.3% vs 24.7%, SG&A 9.3% vs 9.6%, R&D 4.1% vs 4.3%
- • Best performing segment: Power Systems sales up 16% to $7.46B with EBITDA up 44% to $1.69B; Worst performing segment: Components sales down 13% to $10.15B with EBITDA down 12% to $1.40B
- • Cash from operations $3.6B up $2.1B YoY; dividend increased 10% to $2.00/share; repaid $500M debt; issued $2.0B senior notes; $3.6B cash and marketable securities on hand
- • 2026 risks: ongoing tariff uncertainties, Accelera segment market deterioration with $458M charges in 2025; management continuing mitigation efforts on tariffs and strategic realignment of Accelera investments
Risk Factors
- • Cybersecurity regulatory risk from compliance with NIST Cybersecurity Framework as part of enterprise risk management program
- • Geopolitical supply chain threat via third-party vendors assessed for cybersecurity risks in vendor data sharing
- • Operational vulnerability in product cybersecurity managed by Principal Engineer with 40+ years embedded systems experience
- • Competitive market risk from failure to adapt cybersecurity measures to evolving industry threats and standards
- • Financial risk mitigated partially by cyber insurance to cover material cybersecurity incident impacts
Cummins FY2025 Key Financial MetricsXBRL
Revenue
$33.7B
▼ -1.3% YoY
Net Income
$2.8B
▼ -28.0% YoY
Gross Margin
25.3%
▲ +55bp YoY
Operating Margin
12.0%
▲ +96bp YoY
Net Margin
8.4%
▼ -313bp YoY
ROE
23.0%
▼ -1540bp YoY
Total Assets
$34.0B
▲ +7.8% YoY
EPS (Diluted)
$20.50
▼ -27.7% YoY
Operating Cash Flow
$3.6B
▲ +143.5% YoY
Source: XBRL data from Cummins FY2025 10-K filing on SEC EDGAR. All figures in USD.
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