CUMMINS INC

For the period ended Mar 31, 2025. Filed May 5, 2025.

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A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.

Mar 31, 2025 · Filed May 5, 2025

CMI$454.18-2.6%Stored close · as of Nov 10, 2026

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Contents

ITEM 1. Condensed Consolidated Financial Statements (Unaudited)

ITEM 1. Condensed Consolidated Financial Statements

CONDENSED CONSOLIDATED STATEMENTS OF NET INCOME

	Three months ended
	March 31,
In millions, except per share amounts	2025	2024
NET SALES (Notes 1 and 2)	$8,174	$8,403
Cost of sales	6,019	6,362
GROSS MARGIN	2,155	2,041
OPERATING EXPENSES AND INCOME
Selling, general and administrative expenses	771	839
Research, development and engineering expenses	344	369
Equity, royalty and interest income from investees (Note 4)	131	123
Other operating expense, net	37	33
OPERATING INCOME	1,134	923
Interest expense	77	89
Other income, net (Note 14)	60	1,387
INCOME BEFORE INCOME TAXES	1,117	2,221
Income tax expense (Note 5)	267	193
CONSOLIDATED NET INCOME	850	2,028
Less: Net income attributable to noncontrolling interests	26	35
NET INCOME ATTRIBUTABLE TO CUMMINS INC.	$824	$1,993
EARNINGS PER COMMON SHARE ATTRIBUTABLE TO CUMMINS INC.
Basic	$5.99	$14.10
Diluted	$5.96	$14.03
WEIGHTED-AVERAGE COMMON SHARES OUTSTANDING
Basic	137.6	141.3
Dilutive effect of stock compensation awards	0.7	0.8
Diluted	138.3	142.1

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

	Three months ended
	March 31,
In millions	2025	2024
CONSOLIDATED NET INCOME	$850	$2,028
Other comprehensive income (loss), net of tax (Note 12)
Change in pension and other postretirement defined benefit plans	(27)	(13)
Foreign currency translation adjustments	117	(60)
Unrealized (loss) gain on derivatives	(9)	12
Total other comprehensive income (loss), net of tax	81	(61)
COMPREHENSIVE INCOME	931	1,967
Less: Comprehensive income attributable to noncontrolling interests	28	32
COMPREHENSIVE INCOME ATTRIBUTABLE TO CUMMINS INC.	$903	$1,935

CONDENSED CONSOLIDATED BALANCE SHEETS

In millions, except par value	March 31,2025	December 31,2024
ASSETS
Current assets
Cash and cash equivalents	$1,532	$1,671
Marketable securities (Note 6)	626	593
Total cash, cash equivalents and marketable securities	2,158	2,264
Accounts and notes receivable, net	5,680	5,181
Inventories (Note 7)	6,123	5,742
Prepaid expenses and other current assets	1,579	1,565
Total current assets	15,540	14,752
Long-term assets
Property, plant and equipment	12,007	11,796
Accumulated depreciation	(5,600)	(5,440)
Property, plant and equipment, net	6,407	6,356
Investments and advances related to equity method investees	1,990	1,889
Goodwill	2,397	2,370
Other intangible assets, net	2,401	2,351
Pension assets	1,150	1,189
Other assets (Note 8)	2,646	2,633
Total assets	$32,531	$31,540
LIABILITIES
Current liabilities
Accounts payable (principally trade)	$4,311	$3,951
Loans payable (Note 9)	291	356
Commercial paper (Note 9)	1,740	1,259
Current maturities of long-term debt (Note 9)	661	660
Accrued compensation, benefits and retirement costs	523	1,084
Current portion of accrued product warranty (Note 10)	685	679
Current portion of deferred revenue (Note 2)	1,506	1,347
Other accrued expenses (Note 8)	1,858	1,898
Total current liabilities	11,575	11,234
Long-term liabilities
Long-term debt (Note 9)	4,796	4,784
Deferred revenue (Note 2)	1,053	1,065
Other liabilities (Note 8)	3,136	3,149
Total liabilities	$20,560	$20,232
Commitments and contingencies (Note 11)
EQUITY
Cummins Inc. shareholders’ equity
Common stock, $2.50 par value, 500 shares authorized, 222.5 and 222.5 shares issued	$2,600	$2,636
Retained earnings	21,401	20,828
Treasury stock, at cost, 84.8 and 85.1 shares	(10,711)	(10,748)
Accumulated other comprehensive loss (Note 12)	(2,366)	(2,445)
Total Cummins Inc. shareholders’ equity	10,924	10,271
Noncontrolling interests	1,047	1,037
Total equity	$11,971	$11,308
Total liabilities and equity	$32,531	$31,540

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

	Three months ended
	March 31,
In millions	2025	2024
CASH FLOWS FROM OPERATING ACTIVITIES
Consolidated net income	$850	$2,028
Adjustments to reconcile consolidated net income to net cash (used in) provided by operating activities
Gain related to divestiture of Atmus (Note 14)	—	(1,333)
Depreciation and amortization	269	265
Deferred income taxes	(25)	(38)
Equity in income of investees, net of dividends	(70)	(78)
Pension and OPEB expense (Note 3)	19	9
Pension contributions and OPEB payments (Note 3)	(13)	(48)
Changes in current assets and liabilities, net of acquisitions and divestiture
Accounts and notes receivable	(457)	(11)
Inventories	(331)	(354)
Other current assets	(36)	(175)
Accounts payable	330	327
Accrued expenses	(487)	(393)
Other, net	(52)	77
Net cash (used in) provided by operating activities	(3)	276
CASH FLOWS FROM INVESTING ACTIVITIES
Capital expenditures	(162)	(169)
Investments in and net advances to equity investees	(60)	(3)
Acquisition of businesses, net of cash acquired	(12)	(59)
Investments in marketable securities—acquisitions	(457)	(379)
Investments in marketable securities—liquidations (Note 6)	432	431
Cash associated with Atmus divestiture	—	(174)
Other, net	13	(53)
Net cash used in investing activities	(246)	(406)
CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds from borrowings	52	2,398
Net borrowings (payments) of commercial paper	481	(887)
Payments on borrowings and finance lease obligations	(144)	(748)
Dividend payments on common stock	(251)	(239)
Other, net	(46)	(25)
Net cash provided by financing activities	92	499
EFFECT OF EXCHANGE RATE CHANGES ON CASH AND CASH EQUIVALENTS	18	(7)
Net (decrease) increase in cash and cash equivalents	(139)	362
Cash and cash equivalents at beginning of year	1,671	2,179
CASH AND CASH EQUIVALENTS AT END OF PERIOD	$1,532	$2,541

CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY

	Three months ended
In millions, except per share amounts · Common Stock · Additional Paid-in Capital · Retained Earnings · Treasury Stock · Accumulated Other Comprehensive Loss · Total Cummins Inc. Shareholders’ Equity · Noncontrolling Interests · Total Equity
BALANCE AT DECEMBER 31, 2024	$556		$2,080		$20,828			$(10,748)			$(2,445)			$10,271			$1,037	$11,308
Net income				824						824			26			850
Other comprehensive income, net of tax (Note 12)							79			79			2			81
Cash dividends on common stock, $1.82 per share				(251)						(251)			—			(251)
Distributions to noncontrolling interests									—			(31)			(31)
Share-based awards		(19)				35					16			—			16
Other shareholder transactions		(17)				2					(15)			13			(2)
BALANCE AT MARCH 31, 2025	$556		$2,044		$21,401			$(10,711)			$(2,366)			$10,924			$1,047	$11,971
BALANCE AT DECEMBER 31, 2023	$556		$2,008		$17,851			$(9,359)			$(2,206)			$8,850			$1,054	$9,904
Net income				1,993						1,993			35			2,028
Other comprehensive loss, net of tax (Note 12)							(119)			(119)			(3)			(122)
Cash dividends on common stock, $1.68 per share				(239)						(239)			—			(239)
Distributions to noncontrolling interests									—			(33)			(33)
Share-based awards		(6)				60					54			—			54
Divestiture of Atmus (Note 14)					(1,532)			61			(1,471)			(19)			(1,490)
Other shareholder transactions		(1)								(1)			—			(1)
BALANCE AT MARCH 31, 2024	$556		$2,001		$19,605			$(10,831)			$(2,264)			$9,067			$1,034	$10,101

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