Cummins Inc., a global power solutions leader, reported strong financial results for the fourth quarter and full year 2024, despite a decline in heavy-duty truck demand in North America.

In the fourth quarter of 2024, Cummins recorded charges of $312 million, or $2.14 per diluted share, related to the strategic reorganization of its Accelera segment, which focuses on zero-emission solutions. The charges were primarily non-cash and resulted from a strategic review to streamline operations and focus investments as the adoption of certain zero-emission solutions has slowed in some regions.

Key highlights from Cummins' fourth-quarter and full-year 2024 results:

Fourth Quarter 2024:

• Net sales: $8.45 billion, down 1.1% year-over-year, but beating analysts' estimates of $8.07 billion
• GAAP net income: $418 million, or $3.02 per diluted share
• Adjusted EPS (excluding charges): $5.14, beating analysts' expectations of $4.68 per share
• EBITDA: $1.02 billion, or 12.1% of sales

Full Year 2024:

• Net sales: $34.1 billion, flat compared to 2023
• GAAP net income: $3.95 billion, or $28.37 per diluted share
• EBITDA: $6.33 billion, or 18.6% of sales

Despite the charges, Cummins achieved record full-year revenues, net income, EBITDA, and EPS for 2024. The company's Distribution and Power Systems segments, which engage in the sale and maintenance of power generators, experienced double-digit sales growth due to strong demand for power generation products, particularly for data centers.

Looking ahead to 2025, Cummins expects annual revenue to range from down 2% to up 3%, with EBITDA between 16.2% and 17.2% of sales. The company anticipates slightly weaker demand in the North American on-highway truck markets in the first half of the year but offset by strength in other key markets.