Cummins(CMI) - 2025 Q1 - Quarterly Results

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 Revenue Forecast and Economic Outlook - The company has withdrawn its full-year revenue and profitability forecast due to growing economic uncertainty[6].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].