CMI CUMMINS INC

Overview and Growth

Fiscal 2025 results for CUMMINS INC combined $33.67B of revenue with net income of $2.84B and an operating cash inflow of $3.62B. Revenue of $33.67B sets the scale for evaluating how effectively sales translated into profit and cash during the year. The top line contracted 1.3% from $34.10B in fiscal 2024; this top-line contraction left the company with a smaller revenue base. On a per-share basis, diluted EPS was $20.50, which connects the reported earnings outcome with the company’s diluted share count. The per-share result recorded a 27.7% decrease from fiscal 2024 diluted EPS of $28.37. Asset turnover was 0.99x, relating the company’s annual revenue directly to the total assets reported at the period end.

Profitability

After reported cost of revenue, the company retained $8.52B as gross profit before recognizing operating expenses and other items. The gross-profit relationship equaled 25.3% of revenue, quantifying the portion retained before operating expenses were recognized. Operating income was $4.03B, the earnings remaining from reported operations after the company’s recognized operating cost structure. Operating margin measured 12.0%, showing the portion of revenue preserved after the full set of operating costs. The bottom-line result was net income of $2.84B, after the operating, financing, tax, and other items recognized for the period. Net margin was 8.4%, meaning that this portion of revenue remained as net income after all recognized expenses. Pretax income was $3.96B, isolating the reported earnings outcome before the income-tax provision recognized for the fiscal year. The pretax margin was 11.8%, relating income before taxes directly to revenue. Income tax expense totaled $1.01B, providing the reported tax component that separates pretax and after-tax earnings. The income-tax provision equaled 25.4% of pretax income, showing the tax burden absorbed by the year’s earnings. Net income equaled 21.2% of period-end equity, showing the earnings generated on shareholders’ book capital. The net-income-to-assets relationship measured 8.4%, showing earnings relative to the full balance sheet.

Liquidity and Capital Structure

The company held $33.99B of assets against $20.58B of liabilities and $13.41B of equity, revealing how the asset base was financed. Current assets were $16.93B against $9.61B of current liabilities, framing the resources and obligations classified within the near-term balance-sheet horizon. Current assets covered current liabilities by 1.76x, leaving a positive buffer for near-term obligations. The company held $2.85B in cash and equivalents, a narrower liquidity measure than total current assets. Measured only with cash and equivalents, coverage of current liabilities was 29.6%, excluding receivables and other current assets. Relative to total assets, liabilities measured 60.6%, complementing the separate equity-based view of the company’s capital structure. The cash-to-assets relationship was 8.4%, comparing reported cash and equivalents with the full positive asset balance. The asset base changed 7.8% from $31.54B in fiscal 2024, leaving current total assets higher year over year.

Cash Flow and Earnings Quality

Cash flow from operations was $3.62B, a reported cash inflow that can be compared directly with net income and capital spending. Against net income, operating cash flow measured 1.27x, showing the relationship between accrual earnings and operating cash. Capital spending was $1.24B, absorbing part of the cash generated from operations before free cash flow. Capital expenditures represented 34.1% of operating cash flow, leaving the remainder available as free cash flow. Free cash flow came to $2.39B, leaving a positive amount after capital expenditures. Relative to revenue, free cash flow equaled 7.1%, showing how much sales converted into cash after investment. Measured against total assets, free cash flow represented 7.0%, showing the cash productivity of the company’s assets.

Based on the annual report for the fiscal year ending Dec 31, 2025. Analysis generated Sep 24, 2026.