Cummins Inc.: Power Systems Surge Sparks Big Profit Gains What Broader Challenges Does The Company Face?

Cummins Inc. delivered noteworthy second-quarter results for 2025, driven by exceptional performance in its Power Systems and Distribution segments, offsetting challenges faced in the North American truck market. During the quarter, revenues totaled $8.6 billion, reflecting a 2% decrease year-over-year, primarily due to a 6% drop in North American sales amidst a slump in the heavy- and medium-duty truck markets. Despite this revenue dip, Cummins achieved an increase in EBITDA to $1.6 billion, or 18.4% of sales, up from $1.3 billion (15.3% of sales) in the previous year, showcasing significant profitability improvement.