Cash flow generation remains erratic, evidenced by an OCF/NI ratio that swung from -1.17 in 2024Q2 to 3.40 in 2024Q4, reflecting significant working capital volatility.
| Metric | TTM | Dec'25 | Dec'24 | Dec'23 | Dec'22 | Dec'21 | Dec'20 | Dec'19 | Dec'18 | Dec'17 | Dec'16 | Dec'15 | Dec'14 | Dec'13 | Dec'12 | Dec'11 | Dec'10 | Dec'09 | Dec'08 | Dec'07 | Dec'06 | Dec'05 | Dec'04 | Dec'03 | Dec'02 | Dec'01 | Dec'00 | Dec'99 | Dec'98 | Dec'97 | Dec'96 |
|---|
| Cash from Operations | 3.93B | 3.62B | 1.49B | 3.97B | 1.96B | 2.26B | 2.72B | 3.18B | 2.38B | 2.28B | 1.94B | 2.06B | 2.27B | 2.09B | 1.53B | 2.07B | 1.01B | 1.14B | 987M | 810M | 840M | 760M | 614M | 158M | 193M | 144M | 388M | 307M | 271M | 200M | 193M |
| Operating CF Margin % | - | 10.75% | 4.36% | 11.64% | 6.99% | 9.39% | 13.74% | 13.5% | 10% | 11.15% | 11.05% | 10.77% | 11.79% | 12.07% | 8.84% | 11.49% | 7.61% | 10.53% | 6.88% | 6.21% | 7.39% | 7.66% | 7.28% | 2.51% | 3.3% | 2.53% | 5.88% | 4.62% | 4.32% | 3.56% | 3.67% |
| Operating CF Growth % | 10704.03% | 143.51% | -62.51% | 102.14% | -13.03% | -17.12% | -14.43% | 33.77% | 4.44% | 17.67% | -6.02% | -9.13% | 8.47% | 36.36% | -26.1% | 106.06% | -11.52% | 15.2% | 21.85% | -3.57% | 10.53% | 23.78% | 288.61% | -18.13% | 34.03% | -62.89% | 26.38% | 13.28% | 35.5% | 3.63% | -52.46% |
| Net Income | 2.67B | 2.84B | 4.07B | 735M | 2.18B | 2.16B | 1.81B | 2.27B | 2.19B | 994M | 1.46B | 1.47B | 1.74B | 1.59B | 1.74B | 1.95B | 1.14B | 484M | 755M | 739M | 715M | 550M | 350M | 50M | 82M | -102M | 8M | 160M | -21M | 212M | 160M |
| Depreciation & Amortization | 1.12B | 1.1B | 1.06B | 1.02B | 784M | 662M | 673M | 672M | 611M | 583M | 530M | 514M | 455M | 407M | 361M | 325M | 320M | 326M | 314M | 290M | 296M | 294M | 266M | 216M | 219M | 231M | 240M | 233M | 199M | 158M | 149M |
| Stock-Based Compensation | 0 | 0 | 0 | 0 | 33M | 37M | 31M | 49M | 53M | 41M | 32M | 24M | 36M | 37M | 36M | 42M | 22M | 20M | 28M | 28M | 18M | 16M | 16M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Deferred Taxes | 99M | 86M | -209M | -457M | -274M | 7M | 7M | -4M | -82M | 766M | 50M | -108M | 31M | 100M | 116M | 85M | 56M | 5M | -1M | 60M | 139M | 124M | -51M | 0 | 0 | 2M | 2M | -31M | -65M | 22M | 17M |
| Other Non-Cash Items | -490M | 83M | -1.27B | -102M | 242M | -249M | -354M | -13M | 19M | -438M | -67M | 127M | -342M | -189M | -158M | -310M | -420M | 175M | 158M | -252M | -170M | 13M | -18M | -13M | -7M | 57M | 141M | 73M | 148M | -24M | -42M |
| Working Capital Changes | 469M | -496M | -2.17B | 2.77B | -1.01B | -359M | 554M | 209M | -410M | 331M | -66M | 32M | 350M | 146M | -561M | -15M | -112M | 127M | -267M | -55M | -158M | -237M | 51M | -95M | -101M | -44M | -3M | -128M | 10M | -168M | -91M |
| Change in Receivables | -155M | -612M | 298M | -330M | -697M | -174M | 31M | -12M | -92M | -142M | -446M | -274M | 80M | -148M | 87M | -137M | -16M | -2.85B | 88M | -203M | -301M | -309M | -163M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Change in Inventory | -41M | -39M | -402M | 0 | -567M | -945M | 46M | 291M | -695M | -407M | -4M | 150M | -256M | -46M | -32M | -225M | -574M | 482M | -251M | -255M | -158M | -187M | -204M | -63M | 46M | 67M | 9M | -60M | -26M | -65M | -62M |
| Change in Payables | 151M | -148M | -183M | -66M | 538M | 217M | 288M | -310M | 302M | 639M | 184M | -136M | 244M | 163M | -256M | 208M | 345M | -75M | -174M | 136M | 149M | 108M | 210M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Cash from Investing | -1.6B | -1.84B | -1.78B | -1.64B | -4.17B | -873M | -719M | -1.15B | -974M | -1.05B | -917M | -918M | -1.23B | -846M | -982M | -552M | -651M | -509M | -848M | -515M | -277M | -212M | -189M | -135M | -152M | -86M | -312M | -166M | -752M | -354M | -259M |
| Capital Expenditures | -1.26B | -1.24B | -1.21B | -1.21B | -916M | -786M | -575M | -775M | -784M | -587M | -594M | -799M | -798M | -740M | -777M | -682M | -407M | -345M | -625M | -420M | -301M | -186M | -151M | -140M | -90M | -206M | -228M | -215M | -271M | -405M | -304M |
| CapEx % of Revenue | 3.72% | 3.67% | 3.54% | 3.56% | 3.26% | 3.27% | 2.9% | 3.29% | 3.3% | 2.87% | 3.39% | 4.18% | 4.15% | 4.28% | 4.48% | 3.78% | 3.08% | 3.19% | 4.36% | 3.22% | 2.65% | 1.88% | 1.79% | 2.22% | 1.54% | 3.63% | 3.46% | 3.24% | 4.32% | 7.2% | 5.78% |
| Acquisitions | -110M | -122M | -58M | -292M | -3.19B | -48M | -51M | -257M | -107M | -728M | -75M | -124M | -496M | -189M | -252M | 199M | -104M | -5M | -167M | 15M | 22M | -2M | -18M | 13M | 48M | 1M | -42M | 0 | -468M | 0 | 0 |
| Investments | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
| Other Investing | -123M | -111M | 984M | -63M | -143M | 94M | 31M | -12M | -46M | 191M | -76M | 17M | -1M | 16M | 23M | 9M | 55M | -1M | -13M | 23M | 50M | -27M | -39M | -5M | -80M | 119M | -42M | 49M | -13M | 51M | 45M |
| Cash from Financing | -1.27B | -662M | -173M | -2.18B | 1.67B | -2.23B | 280M | -2.1B | -1.4B | -1.07B | -1.41B | -1.64B | -1.34B | 52M | -694M | -1.02B | -267M | -141M | -237M | -576M | -508M | -372M | 74M | -145M | 131M | -27M | -86M | -105M | 471M | 96M | 110M |
| Debt Issued (Net) | 65M | 454M | 915M | -1.05B | 2.81B | -32M | 1.61B | -152M | 457M | 38M | -52M | -73M | -39M | 911M | -81M | -104M | 80M | -23M | -43M | -141M | -309M | -294M | -10M | -124M | 167M | -257M | -15M | -13M | 520M | 219M | 185M |
| Equity Issued (Net) | 0 | 0 | 0 | 0 | -374M | -1.35B | -641M | -1.2B | -1.14B | -451M | -778M | -900M | -670M | -381M | -256M | -629M | -183M | 52M | -65M | -331M | -112M | -8M | 148M | 52M | 0 | 291M | -16M | -34M | -14M | -75M | -34M |
| Dividends Paid | -1.08B | -1.05B | -969M | -921M | -855M | -809M | -782M | -761M | -718M | -701M | -676M | -622M | -512M | -420M | -340M | -255M | -200M | -141M | -146M | -89M | -66M | -56M | -61M | -50M | -50M | -50M | -50M | -47M | -46M | -45M | -40M |
| Share Repurchases | -243M | 0 | 0 | 0 | -374M | -1.4B | -641M | -1.27B | -1.14B | -451M | -778M | -900M | -670M | -381M | -256M | -629M | -241M | -20M | -128M | -335M | -121M | -38M | 0 | 0 | 0 | 0 | -16M | -34M | -14M | -75M | -34M |
| Other Financing | -256M | -61M | -119M | -202M | 84M | -40M | 89M | 13M | 1M | 40M | 93M | -49M | -122M | -58M | -17M | -37M | 8M | -29M | -7M | -15M | -21M | -14M | -11M | -73M | 14M | -11M | -5M | -11M | 11M | -3M | -1M |
| Net Change in Cash | 1.08B | 1.17B | -508M | 78M | -491M | -809M | 2.27B | -174M | -66M | 249M | -591M | -590M | -398M | 1.33B | -115M | 461M | 93M | 504M | -151M | -263M | 61M | 168M | 503M | -116M | 174M | 30M | -12M | 36M | -11M | -59M | 48M |
| Free Cash Flow | 2.67B | 2.39B | 279M | 2.75B | 1.05B | 1.47B | 2.15B | 2.41B | 1.59B | 1.69B | 1.34B | 1.26B | 1.47B | 1.35B | 755M | 1.39B | 599M | 792M | 362M | 390M | 539M | 574M | 463M | 18M | 103M | -62M | 160M | 92M | 0 | -205M | -111M |
| FCF Margin % | 7.88% | 7.09% | 0.82% | 8.08% | 3.73% | 6.12% | 10.84% | 10.21% | 6.71% | 8.27% | 7.66% | 6.59% | 7.64% | 7.8% | 4.36% | 7.71% | 4.53% | 7.33% | 2.52% | 2.99% | 4.74% | 5.79% | 5.49% | 0.29% | 1.76% | -1.09% | 2.43% | 1.39% | - | -3.64% | -2.11% |
| FCF Growth % | 38057.14% | 755.2% | -89.87% | 163.19% | -28.84% | -31.53% | -10.76% | 50.94% | -5.68% | 26.03% | 6.43% | -14.17% | 8.82% | 78.68% | -45.72% | 132.22% | -24.37% | 118.78% | -7.18% | -27.64% | -6.1% | 23.97% | 2472.22% | -82.52% | 266.13% | -138.75% | 73.91% | - | 100% | -84.68% | -160.66% |
| FCF per Share | 19.24 | 17.20 | 2.01 | 19.29 | 7.35 | 10.08 | 14.41 | 15.41 | 9.79 | 10.10 | 7.92 | 7.06 | 8.02 | 7.20 | 3.98 | 7.18 | 3.04 | 4.01 | 1.84 | 1.95 | 2.68 | 2.87 | 2.44 | 0.11 | 0.66 | -0.41 | 1.00 | 0.59 | - | -1.32 | -0.70 |
| FCF Conversion (FCF/Net Income) | 1.00x | 1.27x | 0.38x | 5.40x | 0.91x | 1.06x | 1.52x | 1.41x | 1.11x | 2.28x | 1.39x | 1.47x | 1.37x | 1.41x | 0.93x | 1.12x | 0.97x | 2.66x | 1.31x | 1.10x | 1.17x | 1.38x | 1.75x | 3.16x | 2.35x | -1.41x | 48.50x | 1.92x | -12.90x | 0.94x | 1.21x |
| Interest Paid | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 30M | 32M | 47M | 42M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Taxes Paid | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 380M | 691M | 532M | 312M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
Cyclical Working Capital Volatility
As reported in financial statements, the relationship between net income and operating cash flow is highly erratic, with OCF/NI ratios swinging from -1.17 in 2024Q2 to 3.40 in 2024Q4, indicating that headline earnings are frequently decoupled from the actual cash generation capabilities of the core business.
The extreme variance in the OCF/NI ratio suggests that Cummins' net income is heavily impacted by non-cash charges and timing differences rather than consistent operational cash conversion. Investors should monitor whether this volatility stems from aggressive revenue recognition or the lumpy nature of warranty and regulatory accruals.
Based on the provided quarterly data, FCF margins have demonstrated significant instability, ranging from a negative 12.4% in 2024Q2 to a peak of 12.1% in 2025Q3, reflecting the company's struggle to maintain consistent cash flow generation amidst shifting demand cycles and heavy capital expenditure requirements.
The inability to maintain a stable FCF margin suggests that the company's cash flow trajectory is highly sensitive to cyclical volume shifts. This inconsistency warrants further investigation into whether the current capital allocation strategy is effectively balancing growth investments with the need for reliable shareholder returns.
According to recent SEC filings, Cummins' capital intensity, measured by CapEx as a percentage of revenue, reached as high as 6.4% in 2025Q4, highlighting the substantial ongoing investment required to maintain its manufacturing footprint and support the transition toward new powertrain technologies in a competitive landscape.
The elevated CapEx levels relative to revenue suggest that the company is in a sustained period of asset replacement and technological upgrading. This capital intensity may continue to pressure free cash flow, particularly if revenue growth remains stagnant or faces further cyclical headwinds.
Data from the cash flow statement reveals that working capital changes are a primary driver of cash flow volatility, with a massive $2.8 billion inflow in 2023Q4 followed by a $1.8 billion outflow in 2024Q2, illustrating the significant impact of inventory and receivables management on liquidity.
These dramatic swings in working capital suggest that Cummins' cash flow is highly susceptible to the timing of OEM production schedules and supply chain fluctuations. The lack of predictability in these cycles makes it difficult to rely on short-term cash flow metrics as a proxy for underlying operational health.
As reported in financial statements, Cummins has maintained a consistent dividend payout, totaling $276 million in 2026Q1, even as operating cash flow has fluctuated, suggesting a management priority on shareholder returns despite the cyclical pressures currently impacting the broader industrial machinery and engine manufacturing sector.
While the dividend appears stable, the use of cash for share repurchases and acquisitions in periods of negative free cash flow warrants close scrutiny. Investors should monitor whether this capital deployment strategy remains sustainable if the current cyclical downturn in the North American market persists.
Quick answers to the most common questions about buying CMI stock.
Cummins Inc. (CMI) generated $3.62B in net cash from operating activities in 2025. This reflects the cash generated directly from core business operations.
Cummins Inc. (CMI) generated $2.39B in free cash flow in 2025. Free cash flow is the cash left over after capital expenditures, which can be used to pay dividends, repurchase shares, or pay down debt.
Cummins Inc. (CMI) spent $1.24B on capital expenditures in 2025. CapEx represents the cash invested in physical assets like property, plant, and equipment to maintain or grow the business.
In 2025, Cummins Inc. (CMI) returned $1.05B to shareholders via cash dividends. This shows the company's commitment to returning capital to its equity investors.