Cummins has demonstrated pricing power by maintaining a consistent gross margin profile averaging approximately 25% despite revenue growth remaining range-bound between -2.7% and 2.7% over the last five quarters.
| 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 |
|---|
| Sales/Revenue | 33.89B | 33.67B | 34.1B | 34.06B | 28.07B | 24.02B | 19.81B | 23.57B | 23.77B | 20.43B | 17.51B | 19.11B | 19.22B | 17.3B | 17.33B | 18.05B | 13.23B | 10.8B | 14.34B | 13.05B | 11.36B | 9.92B | 8.44B | 6.3B | 5.85B | 5.68B | 6.6B | 6.64B | 6.27B | 5.63B | 5.26B |
| Revenue Growth % | 0.06% | -1.27% | 0.11% | 21.34% | 16.87% | 21.25% | -15.95% | -0.84% | 16.36% | 16.67% | -8.38% | -0.58% | 11.1% | -0.19% | -3.96% | 36.46% | 22.46% | -24.7% | 9.92% | 14.84% | 14.56% | 17.54% | 34.02% | 7.57% | 3.03% | -13.89% | -0.63% | 5.95% | 11.4% | 7% | 0.23% |
| Cost of Goods Sold | 25.29B | 25.15B | 25.66B | 25.82B | 21.36B | 18.33B | 14.92B | 17.59B | 18.03B | 15.33B | 13.05B | 14.16B | 14.36B | 13.02B | 12.92B | 13.46B | 10.06B | 8.63B | 11.4B | 10.49B | 8.77B | 7.73B | 6.76B | 5.17B | 4.81B | 4.67B | 5.33B | 5.22B | 4.92B | 4.34B | 4.07B |
| COGS % of Revenue | - | 74.71% | 75.25% | 75.78% | 76.07% | 76.29% | 75.3% | 74.63% | 75.87% | 75.03% | 74.54% | 74.11% | 74.71% | 75.26% | 74.52% | 74.57% | 76.05% | 79.92% | 79.5% | 80.41% | 77.16% | 77.96% | 80.09% | 82.16% | 82.15% | 82.17% | 80.79% | 78.64% | 78.6% | 77.24% | 77.46% |
| Gross Profit | 8.6B | 8.52B | 8.44B | 8.25B | 6.72B | 5.7B | 4.89B | 5.98B | 5.74B | 5.1B | 4.46B | 4.95B | 4.86B | 4.28B | 4.42B | 4.59B | 3.17B | 2.17B | 2.94B | 2.56B | 2.6B | 2.19B | 1.68B | 1.12B | 1.04B | 1.01B | 1.27B | 1.42B | 1.34B | 1.28B | 1.19B |
| Gross Margin % | 25.39% | 25.29% | 24.75% | 24.22% | 23.93% | 23.71% | 24.7% | 25.37% | 24.13% | 24.97% | 25.46% | 25.89% | 25.29% | 24.74% | 25.48% | 25.43% | 23.95% | 20.08% | 20.5% | 19.59% | 22.84% | 22.04% | 19.91% | 17.84% | 17.85% | 17.83% | 19.21% | 21.36% | 21.4% | 22.76% | 22.54% |
| Gross Profit Growth % | - | 0.91% | 2.3% | 22.77% | 17.98% | 16.37% | -18.16% | 4.24% | 12.49% | 14.4% | -9.88% | 1.77% | 13.57% | -3.08% | -3.77% | 44.85% | 46.06% | -26.22% | 15.02% | -1.5% | 18.71% | 30.12% | 49.6% | 7.46% | 3.16% | -20.05% | -10.65% | 5.74% | 4.77% | 8.02% | -6.77% |
| Operating Expenses | 4.79B | 4.65B | 4.69B | 6.49B | 3.79B | 2.99B | 2.63B | 3.28B | 2.95B | 2.77B | 2.58B | 2.89B | 2.5B | 2.18B | 2.16B | 1.91B | 1.57B | 1.49B | 1.67B | 1.4B | 1.46B | 1.42B | 1.26B | 1.03B | 929M | 1.07B | 1.17B | 1.09B | 1.26B | 1B | 977M |
| OpEx % of Revenue | - | 13.81% | 13.75% | 19.05% | 13.5% | 12.44% | 13.25% | 13.92% | 12.41% | 13.54% | 14.72% | 15.12% | 12.99% | 12.59% | 12.47% | 10.57% | 11.84% | 13.77% | 11.63% | 10.71% | 12.89% | 14.35% | 14.89% | 16.36% | 15.87% | 18.78% | 17.78% | 16.36% | 20.09% | 17.85% | 18.58% |
| Selling, General & Admin | 3.2B | 3.13B | 3.27B | 3.33B | 2.69B | 2.37B | 2.13B | 2.45B | 2.44B | 2.43B | 2.1B | 2.09B | 2.1B | 1.82B | 1.81B | 1.84B | 1.49B | 1.24B | 1.45B | 1.3B | 1.28B | 1.15B | 1.01B | 830M | 736M | 721M | 773M | 781M | 787M | 744M | 725M |
| SG&A % of Revenue | - | 9.28% | 9.6% | 9.78% | 9.57% | 9.88% | 10.73% | 10.41% | 10.25% | 11.89% | 11.99% | 10.95% | 10.9% | 10.5% | 10.43% | 10.18% | 11.24% | 11.47% | 10.11% | 9.93% | 11.29% | 11.54% | 12.03% | 13.18% | 12.57% | 12.69% | 11.72% | 11.76% | 12.56% | 13.23% | 13.79% |
| Research & Development | 1.41B | 1.4B | 1.46B | 1.5B | 1.28B | 1.09B | 906M | 1B | 902M | 752M | 636M | 735M | 754M | 713M | 728M | 629M | 414M | 362M | 422M | 329M | 321M | 278M | 241M | 200M | 201M | 220M | 244M | 245M | 255M | 260M | 252M |
| R&D % of Revenue | - | 4.15% | 4.29% | 4.4% | 4.55% | 4.54% | 4.57% | 4.25% | 3.79% | 3.68% | 3.63% | 3.85% | 3.92% | 4.12% | 4.2% | 3.49% | 3.13% | 3.35% | 2.94% | 2.52% | 2.83% | 2.8% | 2.86% | 3.18% | 3.43% | 3.87% | 3.7% | 3.69% | 4.07% | 4.62% | 4.79% |
| Other Operating Expenses | 1000K | 130M | -49M | 1.66B | -175M | -475M | -406M | -175M | -388M | -417M | -158M | 63M | -353M | -351M | -374M | -558M | -335M | -114M | -204M | -227M | -140M | 0 | 0 | 0 | -8M | 126M | 154M | 60M | 217M | 0 | 0 |
| Operating Income | 3.81B | 3.87B | 3.75B | 1.76B | 2.93B | 2.71B | 2.27B | 2.7B | 2.79B | 2.33B | 1.88B | 2.06B | 2.37B | 2.1B | 2.25B | 2.68B | 1.6B | 682M | 1.27B | 1.16B | 1.13B | 763M | 424M | 93M | 116M | -54M | 94M | 332M | 82M | 276M | 208M |
| Operating Margin % | 11.24% | 11.48% | 11% | 5.17% | 10.43% | 11.27% | 11.45% | 11.45% | 11.72% | 11.43% | 10.74% | 10.76% | 12.3% | 12.14% | 13% | 14.85% | 12.11% | 6.31% | 8.87% | 8.87% | 9.95% | 7.69% | 5.02% | 1.48% | 1.98% | -0.95% | 1.42% | 5% | 1.31% | 4.91% | 3.96% |
| Operating Income Growth % | - | 3.07% | 112.95% | -39.88% | 8.24% | 19.26% | -15.96% | -3.09% | 19.37% | 24.15% | -8.6% | -13.02% | 12.57% | -6.79% | -15.93% | 67.35% | 134.9% | -46.38% | 9.84% | 2.39% | 48.23% | 79.95% | 355.91% | -19.83% | 314.81% | -157.45% | -71.69% | 304.88% | -70.29% | 32.69% | 5.05% |
| EBITDA | 4.57B | 4.97B | 4.82B | 2.79B | 3.71B | 3.37B | 2.94B | 3.37B | 3.4B | 2.92B | 2.41B | 2.57B | 2.82B | 2.51B | 2.62B | 3.01B | 1.92B | 1.01B | 1.59B | 1.45B | 1.43B | 1.06B | 690M | 309M | 331M | 173M | 334M | 565M | 281M | 434M | 357M |
| EBITDA Margin % | 13.49% | 14.76% | 14.12% | 8.18% | 13.23% | 14.02% | 14.85% | 14.31% | 14.29% | 14.28% | 13.76% | 13.45% | 14.67% | 14.5% | 15.09% | 16.66% | 14.53% | 9.33% | 11.06% | 11.1% | 12.56% | 10.66% | 8.18% | 4.91% | 5.66% | 3.05% | 5.06% | 8.51% | 4.48% | 7.72% | 6.79% |
| EBITDA Growth % | -9.09% | 3.22% | 72.89% | -24.99% | 10.24% | 14.48% | -12.75% | -0.74% | 16.46% | 21.04% | -6.26% | -8.83% | 12.44% | -4.09% | -13.01% | 56.4% | 90.67% | -36.44% | 9.53% | 1.47% | 35% | 53.19% | 123.3% | -6.65% | 91.33% | -48.2% | -40.88% | 101.07% | -35.25% | 21.57% | 4.69% |
| D&A (Non-Cash Add-back) | 824M | 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 | 215M | 227M | 240M | 233M | 199M | 158M | 149M |
| EBIT | 3.99B | 4.29B | 5.27B | 2B | 3.02B | 2.86B | 2.44B | 2.94B | 2.87B | 2.45B | 2B | 2.09B | 2.5B | 2.16B | 2.3B | 2.71B | 1.66B | 675M | 1.22B | 1.16B | 1.13B | 763M | 424M | 93M | 108M | 72M | 248M | 392M | 299M | 276M | 208M |
| Net Interest Income | -247M | -118M | -184M | -136M | -74M | -29M | -5M | -50M | -56M | -14M | -14M | -8M | -13M | 12M | 15M | 15M | -19M | -27M | -24M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Interest Income | 81M | 211M | 186M | 239M | 125M | 82M | 95M | 59M | 58M | 67M | 64M | 66M | 63M | 63M | 62M | 75M | 21M | 8M | 18M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Interest Expense | 328M | 329M | 370M | 375M | 199M | 111M | 100M | 109M | 114M | 81M | 69M | 65M | 64M | 41M | 32M | 44M | 40M | 35M | 42M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Other Income/Expense | -30M | 98M | 1.15B | -135M | -110M | 45M | 69M | 134M | -33M | 31M | 50M | -32M | 69M | 18M | 17M | -10M | 15M | -42M | -94M | 1.15B | -48M | 35M | 8M | -27M | -75M | -95M | -100M | -111M | -88M | 10M | 6M |
| Pretax Income | 3.78B | 3.96B | 4.9B | 1.63B | 2.82B | 2.75B | 2.34B | 2.83B | 2.75B | 2.37B | 1.93B | 2.02B | 2.43B | 2.12B | 2.27B | 2.67B | 1.62B | 640M | 1.18B | 1.17B | 1.08B | 798M | 432M | 66M | 41M | -118M | 3M | 221M | -6M | 286M | 214M |
| Pretax Margin % | 11.15% | 11.77% | 14.38% | 4.77% | 10.04% | 11.45% | 11.8% | 12.02% | 11.58% | 11.58% | 11.02% | 10.6% | 12.66% | 12.25% | 13.1% | 14.8% | 12.23% | 5.93% | 8.21% | 8.96% | 9.53% | 8.05% | 5.12% | 1.05% | 0.7% | -2.08% | 0.05% | 3.33% | -0.1% | 5.08% | 4.07% |
| Income Tax | 993M | 1.01B | 835M | 786M | 636M | 587M | 527M | 566M | 566M | 1.37B | 474M | 555M | 698M | 531M | 533M | 725M | 477M | 156M | 360M | 381M | 324M | 216M | 56M | 12M | -38M | -42M | -19M | 55M | 4M | 74M | 54M |
| Effective Tax Rate % | 26.27% | 25.38% | 17.03% | 48.34% | 22.56% | 21.34% | 22.54% | 19.97% | 20.56% | 57.97% | 24.56% | 27.41% | 28.68% | 25.06% | 23.47% | 27.14% | 29.5% | 24.38% | 30.56% | 32.59% | 29.92% | 27.07% | 12.96% | 18.18% | -92.68% | 35.59% | -633.33% | 24.89% | -66.67% | 25.87% | 25.23% |
| Net Income | 2.67B | 2.84B | 3.95B | 735M | 2.15B | 2.13B | 1.79B | 2.26B | 2.14B | 999M | 1.39B | 1.4B | 1.65B | 1.48B | 1.65B | 1.85B | 1.04B | 428M | 755M | 739M | 715M | 550M | 350M | 50M | 82M | -102M | 8M | 160M | -21M | 212M | 160M |
| Net Margin % | 7.89% | 8.44% | 11.57% | 2.16% | 7.66% | 8.87% | 9.03% | 9.59% | 9.01% | 4.89% | 7.96% | 7.32% | 8.59% | 8.57% | 9.49% | 10.24% | 7.86% | 3.96% | 5.26% | 5.66% | 6.29% | 5.55% | 4.15% | 0.79% | 1.4% | -1.8% | 0.12% | 2.41% | -0.34% | 3.77% | 3.04% |
| Net Income Growth % | -3.74% | -27.95% | 436.87% | -65.83% | 0.94% | 19.12% | -20.84% | 5.56% | 114.31% | -28.34% | -0.36% | -15.26% | 11.33% | -9.85% | -10.98% | 77.69% | 142.99% | -43.31% | 2.17% | 3.36% | 30% | 57.14% | 600% | -39.02% | 180.39% | -1375% | -95% | 861.9% | -109.91% | 32.5% | -28.57% |
| Net Income (Continuing) | 2.79B | 2.96B | 4.07B | 840M | 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 | 818M | 788M | 759M | 582M | 376M | 54M | 79M | -103M | 14M | 166M | -10M | 212M | 160M |
| Discontinued Operations | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Minority Interest | 1.02B | 1.06B | 1.04B | 1.05B | 1.25B | 927M | 927M | 958M | 911M | 905M | 299M | 344M | 344M | 360M | 371M | 339M | 326M | 247M | 250M | 293M | 254M | 225M | 208M | 123M | 92M | 83M | 72M | 74M | 62M | 53M | 0 |
| EPS (Diluted) | 19.26 | 20.50 | 28.37 | 5.15 | 15.12 | 14.61 | 12.01 | 14.48 | 13.15 | 5.97 | 8.23 | 7.84 | 9.02 | 7.91 | 8.67 | 9.55 | 5.28 | 2.16 | 3.84 | 3.70 | 3.55 | 2.75 | 1.85 | 0.32 | 0.53 | -0.67 | 0.05 | 1.03 | -0.14 | 1.37 | 1.00 |
| EPS Growth % | -4.23% | -27.74% | 450.87% | -65.94% | 3.49% | 21.65% | -17.06% | 10.11% | 120.27% | -27.46% | 4.97% | -13.08% | 14.03% | -8.77% | -9.21% | 80.87% | 144.44% | -43.75% | 3.78% | 4.23% | 29.09% | 48.65% | 478.13% | -39.62% | 179.1% | -1440% | -95.15% | 835.71% | -110.22% | 37% | -27.54% |
| EPS (Basic) | - | 20.62 | 28.55 | 5.19 | 15.20 | 14.74 | 12.07 | 14.54 | 13.20 | 6.00 | 8.25 | 7.86 | 9.04 | 7.93 | 8.69 | 9.58 | 5.29 | 2.17 | 3.87 | 3.72 | 3.75 | 3.11 | 2.07 | 0.32 | 0.53 | -0.67 | 0.05 | 1.04 | -0.14 | 1.39 | 1.01 |
| Diluted Shares Outstanding | 138.8M | 138.7M | 139.1M | 142.7M | 142.3M | 145.9M | 149M | 156.1M | 162.8M | 167.3M | 169.3M | 178.4M | 183.1M | 187.4M | 189.7M | 193.6M | 197.1M | 197.7M | 196.53M | 199.73M | 201.27M | 199.82M | 189.45M | 158M | 155.2M | 152.59M | 160M | 154.96M | 152.73M | 154.8M | 159.6M |
| Basic Shares Outstanding | 138.3M | 137.9M | 138.2M | 141.7M | 141.5M | 144.6M | 148.2M | 155.4M | 162.2M | 166.6M | 169M | 178M | 182.7M | 187M | 189.3M | 193M | 196.7M | 197.4M | 194.96M | 198.66M | 190.41M | 176.99M | 168.67M | 157.2M | 154.4M | 152.59M | 160M | 153.85M | 152.73M | 152.8M | 159.2M |
| Dividend Payout Ratio | - | 37.11% | 24.56% | 125.31% | 39.75% | 37.96% | 43.71% | 33.67% | 33.54% | 70.17% | 48.49% | 44.46% | 31.01% | 28.32% | 20.67% | 13.8% | 16.54% | 32.94% | 16.16% | 12.04% | 9.23% | 10.18% | 15.14% | - | 60.98% | - | 625% | 29.38% | - | 21.23% | 25% |
Cyclical North American Demand
According to the provided quarterly data, Cummins' revenue growth has remained largely range-bound, fluctuating between -2.7% and 2.7% over the last five quarters, which suggests the company is currently navigating a period of cyclical stagnation within its core North American heavy-duty engine and components markets.
The lack of consistent top-line expansion indicates that Cummins is struggling to offset the softening demand in the Class 8 truck sector. While the company maintains a dominant market position, the current revenue trajectory implies that organic growth is being constrained by broader industrial freight cycles rather than internal execution issues.
As reported in financial statements, Cummins has maintained a gross margin profile averaging approximately 25% over the last ten quarters, demonstrating a degree of pricing power that allows the firm to absorb input cost fluctuations despite the inherent cyclicality of the heavy-duty machinery manufacturing industry.
The stability of these margins suggests that the company's aftermarket and service-heavy distribution segment acts as a critical buffer against the lower-margin original equipment sales. Investors should monitor whether this margin floor holds if the current revenue contraction persists, as fixed-cost absorption could become a significant challenge.
Based on the reported figures, operating margins have shown significant variance, peaking at 14.2% in 2025Q2 before compressing to 11.3% in 2026Q1, which highlights the company's sensitivity to volume-driven operating leverage in its capital-intensive manufacturing footprint and the ongoing investment drag from the New Power segment.
The fluctuation in operating income relative to gross profit suggests that SG&A and R&D expenses remain relatively sticky, preventing the company from fully protecting its bottom line during revenue dips. This indicates that management may face difficulty in scaling profitability until the New Power segment reaches a more mature, self-sustaining phase.
Data from the income statement reveals significant EPS volatility, including a sharp 152.8% growth spike in 2024Q1 followed by a 57.5% decline in 2025Q1, which suggests that headline net income figures are heavily influenced by non-operating items and potential accounting adjustments rather than pure operational performance.
The extreme swings in net income, particularly the negative results in 2023Q4, warrant further investigation into the impact of one-time charges and the equity earnings from unconsolidated joint ventures. Analysts should focus on normalized operating income to better gauge the underlying health of the business, as reported EPS appears prone to significant distortion.
While Cummins maintains a strong competitive moat, the persistent investment in the New Power segment, combined with a -1.27% YoY revenue trend, suggests that short-sellers may focus on the risk of margin compression if the transition to zero-emission technologies fails to achieve expected economies of scale.
The reliance on legacy diesel engines to fund the capital-intensive pivot to hydrogen and electric powertrains creates a precarious balancing act. If the regulatory environment shifts faster than the company can monetize its new technology, the current profitability profile may prove unsustainable, leading to a potential re-rating of the stock.
Quick answers to the most common questions about buying CMI stock.
For fiscal year 2025, Cummins Inc. (CMI) reported total revenue of $33.67B. This represents a 540.5% increase compared to $5.26B in 1996.
Cummins Inc. (CMI) is profitable, generating $2.84B in net income for the fiscal year ending 2025 with a net profit margin of 8.4%.
Cummins Inc. (CMI) reported an operating income of $3.87B, resulting in an operating profit margin of 11.5%. This margin reflects the operational efficiency of the business before interest and taxes.
Cummins Inc. (CMI) generated $8.52B in gross profit for the year, representing a gross profit margin of 25.3%. This demonstrates the company's core pricing power and production efficiency.