Core Insights - Hexagon Agility has received new orders valued at USD 4.3 million for natural gas fuel systems for trucks powered by Cummins' X15N engine, bringing the total order value to USD 20 million [2][4]. Company Developments - The new orders include over 20 leading Class 8 fleets, indicating strong market interest despite economic uncertainties [2][4]. - Daimler Truck North America has opened orders for Freightliner Cascadia trucks equipped with the Cummins X15N, expanding the availability of natural gas truck options [3][4]. Market Dynamics - The North American heavy-duty truck market sells approximately 300,000 trucks annually, with the addressable market for natural gas solutions increasing from 100,000 to 300,000 trucks due to the introduction of the X15N engine [5][6]. - The X15N engine offers power ratings up to 500 hp and a torque of 1850 lb.-ft, matching diesel capabilities and providing a range of up to 1,200 miles [6]. Infrastructure Support - There is a robust network of over 1,600 public and private CNG/RNG fueling stations across key transport corridors in North America, supporting the adoption of natural gas trucking [6].

Financial Performance - Net sales for the first quarter of 2025 were $8.174 billion, a decrease of 3% compared to $8.403 billion in the same period of 2024[104]. - Net income attributable to Cummins Inc. for Q1 2025 was $824 million, or $5.96 per diluted share, down from $1.993 billion, or $14.03 per diluted share in Q1 2024[104]. - The divestiture of Atmus resulted in a gain of $1.3 billion in Q1 2024, which significantly impacted year-over-year comparisons[104]. - Total net sales for the three months ended March 31, 2025, decreased by $229 million, or 3%, compared to the same period in 2024, totaling $8,174 million[115]. - Consolidated net income attributable to Cummins Inc. was $824 million, a decrease of 59% from $1,993 million in the prior year[115]. - Gross margin increased by $114 million, or 6%, with gross margin as a percentage of net sales rising to 26.4% from 24.3%[115][119]. - Operating income for the three months ended March 31, 2025, was $1,134 million, reflecting a 23% increase compared to $923 million in 2024[115]. Sales Performance by Segment - Engine segment sales decreased by 5% to $2,771 million, while Components segment sales fell by 20% to $2,670 million, primarily due to the Atmus divestiture[116][117]. - Distribution segment sales increased by 15% to $2,907 million, driven by higher demand in power generation markets, particularly in North America[116]. - Power Systems segment sales rose by 19% to $1,649 million, mainly due to increased demand in power generation markets in China and North America[116]. - Engine segment external sales decreased by $200 million (9%) to $2,040 million in Q1 2025, while total sales fell by $157 million (5%) to $2,771 million[134][136]. - Components segment external sales decreased by $572 million (20%) to $2,270 million in Q1 2025, with total sales down by $662 million (20%) to $2,670 million[138][140]. - Power Systems segment external sales increased by $164 million (23%) to $872 million for the three months ended March 31, 2025, compared to $708 million in 2024[146]. - Total sales for the Power Systems segment rose by $260 million (19%) to $1,649 million in Q1 2025, driven by higher volumes and favorable pricing[148]. - Accelera segment total sales increased by $10 million (11%) to $103 million, primarily due to improved sales of electrified powertrains and electrolyzers[149]. Market and Economic Factors - International sales decreased by 5% in Q1 2025, primarily due to lower sales in Latin America and Asia Pacific, partially offset by higher sales in China[106]. - U.S. and Canada net sales declined by 1% in Q1 2025, primarily due to the divestiture of Atmus and lower demand in on-highway truck markets[106]. - Unfavorable foreign currency fluctuations impacted international sales by 4%, primarily affecting the Brazilian real, Euro, and Indian rupee[106]. - The foreign currency translation adjustment resulted in a net gain of $117 million for Q1 2025, compared to a net loss of $60 million in Q1 2024[131]. Operational and Strategic Initiatives - The company is focusing on the development of electrified power systems and related components, including battery and hydrogen production technologies[98]. - The company is actively managing supply chain impacts due to an escalating tariff environment, which may affect future financial results[102]. - The company operates five business segments: Engine, Components, Distribution, Power Systems, and Accelera, with a global service network of approximately 650 locations[97]. Capital and Liquidity - Cash and marketable securities on hand totaled $2.2 billion, with access to $4.0 billion in credit facilities[110]. - The debt to capital ratio at March 31, 2025, was 38.5%, slightly up from 38.4% at December 31, 2024, due to higher debt balances[110]. - Working capital increased to $3,965 million as of March 31, 2025, compared to $3,518 million at the end of 2024, with a current ratio of 1.34[153]. - Total debt increased to $7,488 million as of March 31, 2025, with total debt as a percentage of total capital at 38.5%[153]. - The company maintains strong liquidity, with access to capital markets and existing cash flow to fund various obligations through 2025 and beyond[174]. Pension and Stockholder Returns - The company anticipates making additional defined benefit pension contributions of $39 million during the remainder of 2025[113]. - Global pension plans were 115% funded as of December 31, 2024, with U.S. defined benefit plans at 117% and U.K. plans at 109%[170]. - The Board authorized the acquisition of up to $2.0 billion of common stock, with $218 million remaining available for future purchases under the 2019 program as of March 31, 2025[171]. - The company paid dividends totaling $251 million during the three months ended March 31, 2025[167]. Risk Management and Outlook - Credit ratings from Standard and Poor's and Moody's are A and A2 respectively, both with a stable outlook[173]. - The company has not identified any reasonably likely events that would result in changes to critical accounting estimates in the first three months of 2025[178]. - There have been no material changes in market risk disclosures since the filing of the 2024 Form 10-K[180].

Financial Data and Key Metrics Changes - Revenues for Q1 2025 were $8.2 billion, a decrease of 3% compared to Q1 2024 [11] - EBITDA was $1.5 billion, or 17.9% of sales, compared to $2.6 billion, or 30.6% of sales a year ago [21] - Gross margin improved to $2.2 billion, or 26.4% of sales, up from $2.1 billion, or 24.5% last year [22] - Net earnings for the quarter were $824 million, or $5.96 per diluted share, compared to $2 billion, or $14.3 per diluted share a year ago [24] Business Line Data and Key Metrics Changes - Engine segment revenues decreased by 5% to $2.8 billion, but EBITDA increased to 16.5% from 14.1% [25] - Components segment revenue decreased by 20%, with EBITDA excluding costs related to the separation of Atmos decreasing to 14.3% from 14.8% [26] - Distribution segment revenues increased by 15% to $2.9 billion, with EBITDA also increasing to 12.9% of sales [26] - Power Systems segment revenues increased by 19% to $1.6 billion, with EBITDA rising from 17.1% to 23.6% of sales [26] - Accelera revenues increased by 11% to $103 million, with an EBITDA loss of $86 million compared to a loss of $101 million a year ago [26] Market Data and Key Metrics Changes - North America revenues decreased by 1% compared to 2024, with heavy-duty truck industry production down 18% [12] - International revenues decreased by 5%, with revenues in China increasing by 9% to $1.8 billion [13] - Industry demand for medium and heavy-duty trucks in China decreased by 4%, while excavator demand increased by 23% [14] Company Strategy and Development Direction - The company is focused on executing its Destination Zero strategy and has introduced new engine platforms to enhance performance and efficiency [7][9] - The acquisition of First Mode aims to advance decarbonization solutions in mining and rail operations [10] - The company is investing over $1 billion in U.S. manufacturing operations to strengthen its position amid tariff uncertainties [16][17] Management's Comments on Operating Environment and Future Outlook - Management expressed heightened uncertainty regarding the global economy due to trade tariffs, impacting demand for capital goods [15] - The company is well-positioned to navigate through uncertainty, with a strong financial position and experienced leadership [19] - Future guidance will be reinstated when there is more clarity regarding economic conditions and tariff impacts [28] Other Important Information - The company is actively working on mitigating tariff impacts through inventory strategies and dual sourcing [91] - There is ongoing uncertainty regarding North America emissions regulations for 2027, which could affect product launches and customer contracts [18][46] Q&A Session Summary Question: Can you quantify the gross or net tariff cost impacting your business? - Management stated that it is uncertain to quantify the tariff costs at this time due to the evolving nature of tariffs [35] Question: Which businesses have the most visibility regarding backlog? - Management indicated that the power generation business has a multi-year order board, allowing for reallocation of orders if needed [37] Question: What are the expectations for margins in the Power Systems business moving forward? - Management noted that the strong performance in Q1 was driven by high aftermarket sales, and margins are expected to remain strong if demand trends continue [44] Question: What is the impact of tariffs on financial results in Q1? - Management reported that the impact of tariffs in Q1 was immaterial, but they expect changes in the second half of the year [52] Question: What tariff mitigation actions have been taken? - Management mentioned inventory strategies and dual sourcing as part of their mitigation efforts [91]

Cummins (CMI) Q1 2025 Earnings Call May 05, 2025 10:00 AM ET Company Participants Chris Clulow - Vice President-Investor RelationsJennifer Rumsey - President & Chief Executive OfficerMark Smith - CFO & VPJamie Cook - Managing Director - Equity ResearchAngel Castillo - Executive DirectorDavid Raso - Senior Managing Director & PartnerRob Wertheimer - Director of ResearchJeffrey Kauffman - Partner & Transportation and Logistics Equity Research Conference Call Participants Jerry Revich - AnalystTim Thein - Mana ...

Financial Performance - First quarter 2025 revenues were $8.2 billion, a decrease of 3% compared to the same quarter in 2024[3]. - Net income attributable to Cummins in Q1 2025 was $824 million, or $5.96 per diluted share, down from $2.0 billion, or $14.03 per diluted share in Q1 2024[4]. - EBITDA for Q1 2025 was $1.5 billion, representing 17.9% of sales, compared to $2.6 billion, or 30.6% of sales in the same period last year[5]. - Consolidated net income for Q1 2025 was $850 million, a decrease of 58% compared to $2,028 million in Q1 2024[21]. - Total sales for Q1 2025 reached $10,100 million, a slight decrease from $10,277 million in Q1 2024, reflecting a decline of 1.73%[23]. - EBITDA for Q1 2025 was $1,460 million, with an EBITDA margin of 17.9%, compared to $1,317 million and a margin of 12.8% in Q1 2024[23]. - Net income attributable to Cummins Inc. for Q1 2025 was $824 million, representing 10.1% of net sales, compared to $1,993 million or 23.7% in Q1 2024[30]. - EBITDA for Q1 2025 was $1,460 million, accounting for 17.9% of net sales, down from $2,572 million or 30.6% in Q1 2024[30]. Revenue Forecast and Economic Outlook - The company has withdrawn its full-year revenue and profitability forecast due to growing economic uncertainty[6]. Product Development and Innovation - Cummins introduced the new X10 engine, which replaces the L9 and X12 platforms, aimed at enhancing performance and efficiency for heavy and medium-duty customers[7]. - The new Cummins B7.2 diesel engine was unveiled, designed for global applications with a slightly higher displacement, set to go into production in 2027[10]. - Cummins acquired assets from First Mode, focusing on hybrid solutions for mining and rail operations, which includes hydrogen and battery powertrain technologies[10]. - Accelera™ by Cummins announced a 100-megawatt PEM electrolyzer system for bp's Lingen green hydrogen project, expected to produce up to 11,000 tons of green hydrogen annually once operational in 2027[10]. - The company expects to continue focusing on market expansion and new product development in the upcoming quarters[29]. Segment Performance - Sales in the Engine Segment were $2.8 billion, down 5%, while the Power Systems Segment saw sales of $1.6 billion, up 19%[10]. - Total sales for the Engine segment in Q1 2025 were $2,771 million, a decrease from $2,928 million in Q1 2024[32]. - The Components segment reported sales of $2,670 million in Q1 2025, compared to $3,332 million in Q1 2024[33]. - The Distribution segment's sales in Q1 2025 reached $2,907 million, an increase from $2,535 million in Q1 2024[34]. - Power Systems segment sales for Q1 2025 were $1,649 million, compared to $1,389 million in Q1 2024[35]. - Unit shipments for heavy-duty engines in Q1 2025 totaled 26,700 units, down from 33,600 units in Q1 2024[32]. Financial Position and Cash Flow - Total assets increased to $32,531 million as of March 31, 2025, up from $31,540 million at December 31, 2024, representing a growth of 3.15%[19]. - Cash and cash equivalents at the end of Q1 2025 were $1,532 million, down from $2,541 million at the beginning of the year, indicating a decrease of 39.7%[21]. - The company reported a net cash used in investing activities of $246 million for Q1 2025, compared to $406 million in Q1 2024, indicating a decrease of 39.43%[21]. - Total current liabilities rose to $11,575 million as of March 31, 2025, compared to $11,234 million at December 31, 2024, an increase of 3.05%[19]. - Long-term debt remained stable at $4,796 million as of March 31, 2025, compared to $4,784 million at the end of 2024[19]. Research and Development - Research, development, and engineering expenses totaled $344 million in Q1 2025, compared to $369 million in Q1 2024, showing a reduction of 6.77%[23]. Taxation - The effective tax rate for 2025 is expected to be approximately 24.5%, while the rates for Q1 2025 and Q1 2024 were 23.9% and 8.7%, respectively[26]. - The effective tax rate for Q1 2025 included net favorable discrete tax items of $7 million, primarily due to share-based compensation tax benefits[26].

First Quarter 2025 Earnings Teleconference May 5th, 2025 ® ß CONTENTS Q1 2025 Summary Q1 2025 Supplemental Information 2 Cummins Disclosure Regarding Forward-Looking Statements Information provided in this presentation that is not purely historical are for ward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, including statements regarding our forecasts; guidance, preliminary results, expectations, hopes, beliefs and intentions on strategies regarding the future ...

Core Viewpoint - Analysts project that Cummins (CMI) will report quarterly earnings of $4.82 per share, reflecting a 5.5% decline year over year, with revenues expected to reach $8.07 billion, down 4% from the same quarter last year [1]. Earnings Estimates - Over the past 30 days, the consensus EPS estimate has been revised downward by 7.1%, indicating a collective reassessment by covering analysts [2]. - Changes in earnings estimates are crucial for predicting investor reactions, as empirical research shows a strong correlation between earnings estimate revisions and short-term stock performance [3]. Key Metrics Forecast - Analysts estimate 'Net Sales- Distribution' at $2.66 billion, representing a 5.1% increase year over year [5]. - 'Net Sales- Accelera' is projected to reach $97.47 million, indicating a 4.8% increase from the prior year [5]. - 'Net Sales- Engine- Off-highway' is expected to be $432.45 million, reflecting a 0.8% decline year over year [5]. Additional Sales Estimates - The consensus for 'Net Sales- Engine- Medium-duty truck and bus' is $956.99 million, suggesting a 3.8% decrease year over year [6]. - 'Net Sales- Engine- Light-duty automotive' is forecasted at $425.95 million, indicating a 2.8% decline [6]. - 'Net Sales- Engine- Heavy-duty truck' is expected to be $1.01 billion, reflecting a 4.3% decrease [6]. Power System and Components Sales - Analysts project 'Net Sales- Power System' at $1.50 billion, indicating an 8% increase year over year [7]. - 'Net Sales- Components' is expected to reach $2.85 billion, reflecting a 14.3% decline [7]. - The combined estimate for 'Net Sales- Engine' is $2.74 billion, indicating a 6.3% decrease from the prior year [7]. Automated Transmissions and Power Generation - 'Net Sales- Components- Automated transmissions' is projected at $146.75 million, reflecting an 11.1% decline [8]. - 'Net Sales- Power System- Industrial' is expected to be $428.73 million, indicating a 2.1% increase year over year [8]. - 'Net Sales- Power System- Power generation' is forecasted to reach $960.32 million, reflecting a 12.6% increase year over year [9]. Stock Performance - Cummins shares have returned -7% over the past month, compared to a -0.2% change in the Zacks S&P 500 composite [9].

Core Viewpoint - The market anticipates a year-over-year decline in Cummins' earnings due to lower revenues, with a focus on how actual results compare to estimates impacting stock price [1][2]. Earnings Expectations - Cummins is expected to report quarterly earnings of $4.82 per share, reflecting a year-over-year decrease of 5.5% [3]. - Revenue projections stand at $8.07 billion, which is a 4% decline from the same quarter last year [3]. Estimate Revisions - The consensus EPS estimate has been revised down by 7.13% over the last 30 days, indicating a bearish sentiment among analysts regarding the company's earnings prospects [4][10]. - The Most Accurate Estimate is lower than the Zacks Consensus Estimate, resulting in an Earnings ESP of -1.79% [10][11]. Earnings Surprise Prediction - The Zacks Earnings ESP model suggests that a positive or negative reading indicates the likely deviation of actual earnings from consensus estimates, with positive readings being more predictive of earnings beats [5][7]. - Stocks with a positive Earnings ESP and a Zacks Rank of 1, 2, or 3 have historically shown a nearly 70% chance of delivering a positive surprise [8]. Historical Performance - In the last reported quarter, Cummins exceeded the expected earnings of $4.68 per share by delivering $5.16, resulting in a surprise of +10.26% [12]. - Over the past four quarters, Cummins has beaten consensus EPS estimates three times [13]. Conclusion - Despite the potential for an earnings beat, various factors can influence stock movement, making it essential to consider other elements beyond just earnings results [14][16].

Core Viewpoint - Rockland Resources Ltd. has appointed Tracy Hughes to its Board of Directors, enhancing its leadership in the critical metals sector, particularly in beryllium exploration [1][3]. Company Developments - Tracy Hughes brings over 30 years of experience as an entrepreneur and capital markets leader, having founded the Critical Minerals Institute and InvestorNews Inc., and co-founded REE Stocks PLC [2]. - The company has granted 200,000 stock options to Ms. Hughes at a price of $0.11 for a period of 3 years, aligning with its stock option plan [3]. - Charles Desjardins has resigned from the Board to focus on future endeavors, and the company expresses gratitude for his service [4]. Industry Context - Rockland Resources is focused on advancing critical metals exploration, particularly beryllium, at its Beryllium Butte and Claybank projects in Utah, which are strategically located near the world's largest beryllium producer [4]. - Beryllium is recognized as a high-value, essential metal with applications across various sectors, including aerospace, telecommunications, and defense, and is classified as a critical mineral by the US government [5].

I’m a big fan of Cummins Inc (NYSE: CMI ). I first recommended the stock in September last year as a ‘buy’ noting that the company was probably among the most underappreciated ‘compounders’ on the market as a steady business that’s been resilientI'm an insurance Case Manager with a deep interest in investing. My investment philosophy is all about buying high quality stocks and great businesses. My favorite businesses are those led by disciplined capital allocators, earn exceptional returns on capital, and c ...