A line of finished engines are pictured at the Cummins Inc. Jamestown Engine Plant. Submitted file photo

Cummins officials are reinstating their forecasts for future earnings – a sign that the company sees a brighter future in the coming year.

The company suspended earnings forecasts as part of its quarterly financial reporting in 2025 as a previously forecast demand slowdown began to hit the company’s sales. Earnings projections returned Thursday when Cummins officials announced the company’s fourth quarter 2025 and full-year 2025 earnings.

Based on its current forecast, Cummins announced Thursday that it projects full-year 2026 revenue to be in the range of 3% to 8% higher than 2025 and EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) to be in the range of 17.0% and 18.0% of sales. EBITDA is a financial metric used to evaluate a company’s core operating profitability by excluding non-operating expenses and non-cash items.

“In 2026, we anticipate that demand will be slightly better in the North America on-highway truck markets, particularly in the second half of the year, paired with continued strength in data center power generation markets. Cummins remains well-positioned to invest in future growth, deliver strong financial results and return cash to shareholders in 2026,” said Jennifer Rumsey, Cummins chair and CEO.

The company reported fourth quarter 2025 revenues of $8.5 billion, an increase of 1% from the same quarter in 2024. Sales in North America decreased 2% while international revenues increased 5%.

Fourth quarter 2025 net income was $593 million, an increase from $418 million in 2024. The current quarter results include charges related to the electrolyzer business within Accelera of $218 million, or $1.54 per diluted share. The fourth quarter of 2024 included Accelera reorganization actions of $312 million, or $2.14 per diluted share, which were primarily non-cash charges. EBITDA in the fourth quarter was $1.2 billion, or 13.5% of sales, compared to $1.0 billion, or 12.1% of sales, a year ago. EBITDA for the fourth quarter of 2025 and the fourth quarter of 2024 included the charges noted above.

Full-year 2025 revenues of $33.7 billion decreased 1% from 2024. Sales in North America decreased 3% and international revenues increased 2% compared to 2024. Net income for the full year of 2025 was $2.8 billion, compared to $3.9 billion in 2024. EBITDA in 2025 was $5.4 billion, or 16% of sales, compared to $6.3 billion, or 18.6% of sales, a year ago.

“Cummins delivered strong operational results in the fourth quarter and full year despite continued weakness in North America truck markets,” Rumsey said. “Our Distribution and Power Systems segments achieved record full-year sales and profitability as a result of disciplined execution and robust demand for data center backup power. “In the fourth quarter, we recorded charges related to our electrolyzer business within the Accelera segment, reflecting actions taken as part of a strategic review initiated in response to shifts in hydrogen adoption expectations. These decisions were aimed at streamlining operations and reducing ongoing costs in light of the weaker outlook for demand.”

Mark Smith, Cummins CFO, said in November that company officials had hoped North American on-highway markets had bottomed out, which would mean a rebound starting in the first quarter of 2026.

“2025 marked a historic year for Cummins as we made significant progress in advancing key strategic priorities while continuing to raise performance cycle over cycle. I am tremendously proud of our employees for their resiliency and commitment to delivering for our customers amid persistent market uncertainty and change. Our disciplined cost management, diversified portfolio and effective execution allowed us to deliver strong results despite this challenging environment,” concluded Rumsey.

2026 Outlook:

2025 Highlights:

Cummins increased its common stock cash dividend for the 16th straight year and returned a total of $1,055 million to shareholders through dividends.

Cummins introduced the much-anticipated B7.2 and X10 engines as part of our Cummins HELM™ platforms. Alongside the X15, the X10 and B7.2 provide customers with a power solution to meet their unique operational requirements while maintaining the performance and reliability for which Cummins is known. The B7.2 will feature a slightly higher displacement and is designed to be a global platform that creates flexibility for different applications and duty cycles. The X10 will replace both the L9 and X12 engine platforms to deliver a new level of performance, durability and efficiency for heavy and medium-duty customers. Both engines will be manufactured at Rocky Mount Engine Plant in North Carolina.

In February, Cummins announced the acquisition of assets of First Mode, a leader in retrofit hybrid solutions for mining and rail operations. The acquisition included hybrid mining and rail product lines, and the full IP portfolio of hybrid powertrain solutions. This technology represents the first commercially available retrofit hybrid system for mining equipment, significantly reducing total cost of ownership (TCO) while advancing decarbonization in operations.

Jennifer Rumsey was named one of Barron’s Top CEOs of 2025. Jennifer was recognized for her visionary leadership and commitment to innovation and sustainability. The annual list features 26 leaders whose deft guidance has put their companies in a stronger competitive position.

Cummins received several prestigious honors in 2025 recognizing the company’s commitment to its people, culture and innovation. Of note, Forbes named Cummins one of America’s Best Employers for Company Culture and one of America’s best Employers for Engineers. Military Friendly® recognized the company as a Top Military-Friendly Employer, and Cummins was named a Best Place to Work for Disability Inclusion for the fifth consecutive year with a score of 100 on the Disability Equality Index®. Additionally, Cummins earned the Gold Bell Seal for Workplace Mental Health, received a Platinum Hermes Creative Award for its “It’s OK” campaign, and was recognized for product and technical excellence with a Gold Product of the Year Award for the Centum™ Series generators and Powertrain Magazine’s Alternative Engine of the Year Award for the next-generation X15 Off-Highway engine.