Cummins (NYSE:CMI) delivered a substantial earnings beat for its fourth quarter on Thursday, as record demand for data center backup power and strong international sales helped the engine maker navigate a persistent slump in the North American heavy-duty truck market.
The Columbus, Indiana-based industrial giant reported fourth-quarter revenue of $8.54 billion, a 1% increase that surpassed the $8.15 billion analyst consensus.
While GAAP net income was $593 million ($4.27 per share), adjusted earnings—which strip out a $218 million strategic charge related to its Accelera electrolyzer business—reached $5.81 per share.
This comfortably beat the Zacks estimate of $5.20, reflecting the company’s ability to defend margins even as core engine volumes cooled in the U.S. and Mexico.
The standout performers of the quarter were the Distribution and Power Systems segments, both of which achieved record full-year sales.
Power Systems revenue jumped 11% to $1.9 billion, driven primarily by the global "AI boom" fueling a surge in data center construction.
Conversely, the Engine segment saw a 4% revenue decline as North American freight carriers tightened spending.
Despite these mixed headwinds, Cummins closed 2025 with $33.67 billion in total revenue and returned over $1 billion to shareholders through dividends, marking its 16th consecutive year of dividend growth.
Looking ahead to 2026, CEO Jennifer Rumsey provided a bullish outlook, projecting full-year revenue growth of 3% to 8%.