Cummins’ Efforts Towards Margin Expansion Paying Off? A Strategic Cost-Slaying Masterplan In Progress! 

Cummins Inc. has delivered performance with a mix of achievement and challenge throughout the fiscal year 2024, as captured in the recent Q4 earnings discussion. Cummins faces both tough industrial conditions and strategic evolutions but shows resilience with a solid financial footing and growth initiatives. The company hit record highs in revenues, EBITDA, and earnings per share for the year. The overall revenue for the year came in at $34.1 billion, essentially flat compared to the previous year. Despite a significant drop in the North American heavy-duty truck market, Cummins managed to maintain profitability with an EBITDA of $6.3 billion or 18.6% of sales, adjusted for one-time items. The 2024 results include a $1.3 billion gain from the separation of Atmus Filtration Technologies, a key decision that not only reaffirmed Cummins’ focus but also reduced its share count.