Cummins Inc. reported a solid Q4 2025 in USD terms with revenue of $8.536 billion, delivering an EBITDA of $1.141 billion and net income of $593 million. The company posted an operating margin of 7.50% and a net income margin of 6.95%, supported by a robust cash-generation engine: operating cash flow of $1.534 billion and free cash flow of $990 million. Despite modest top-line growth (YoY revenue up 1.05% and QoQ up 2.63%), the quarter benefited from favorable non-operating items and a favorable tax regime that contributed to a 41.9% rise in net income versus a year ago, alongside a 10.6% QoQ increase in earnings per share to $4.29 (diluted $4.27).
From a balance sheet and cash flow perspective, Cummins maintained substantial liquidity with $2.845 billion in cash at period end, and capital allocation remained constructive: capex of $544 million and quarterly dividends of $277 million, coupled with a modest debt repayment of $45 million. The company generated positive net cash of $279 million for the period, underscoring a resilient business model within a cyclically sensitive Industrials space. Looking ahead, the company’s longer-term growth hinges on aftermarket expansion, pricing and mix optimization, and the execution of electrified power solutions under the New Power umbrella, balanced by ongoing sensitivity to global macro conditions and input-cost volatility. Management commentary on the trajectory of demand and the pace of electrification is a key watchpoint for investors adjusting models into 2026 and beyond.