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Cummins Inc. (CMI) has submitted its 10-K filing for the fiscal year ended December 31, 2024.
The filing includes financial statements showing net sales of $34.1 billion, a slight increase from $34.1 billion in the prior year. Net income attributable to Cummins Inc. was $3.9 billion, compared to $0.7 billion in 2023, reflecting a significant increase due to the absence of a $2.0 billion charge related to settlement agreements in 2023 and a $1.3 billion gain from the divestiture of Atmus in 2024.
The Engine segment reported flat sales at $11.7 billion, with medium-duty truck and bus sales increasing due to higher demand in North America, offset by declines in light-duty automotive and heavy-duty truck sales.
The Components segment saw a 13% decrease in sales to $11.7 billion, primarily due to the divestiture of Atmus Filtration Technologies Inc.
The Distribution segment experienced an 11% increase in sales to $11.4 billion, driven by higher demand in power generation markets, particularly in North America and Europe.
The Power Systems segment reported a 13% increase in sales to $6.4 billion, attributed to strong demand in global power generation markets.
The Accelera segment's sales increased by 17% to $414 million, with improvements in electrolyzer sales offsetting declines in electrified powertrain sales.
Cummins reported a gross margin of $8.4 billion, or 24.7% of sales, up from 24.2% in 2023, due to favorable pricing and higher volumes.
Operating expenses decreased slightly, with selling, general, and administrative expenses at $3.3 billion and research, development, and engineering expenses at $1.5 billion.
The company recorded $1.5 billion in operating cash flows, down from $4.0 billion in 2023, largely due to higher working capital requirements and payments related to settlement agreements.
Cummins maintains a strong balance sheet with $2.3 billion in cash and marketable securities and a debt to capital ratio of 38.4%, down from 40.3% in 2023.
The filing also details various strategic actions, including the divestiture of Atmus, strategic reorganization actions in the Accelera segment, and the formation of a joint venture, Amplify Cell Technologies LLC, for battery cell production.
This content was summarized by generative artificial intelligence using public filings retrieved from SEC.gov. The original data was derived from the Cummins Inc. annual 10-K report dated February 11, 2025. To report an error, please email earnings@qz.com.