Fourth Quarter
2024 Earnings
Teleconference
February 4th, 2025
CONTENTS
2024 Summary
Q4 2024 Summary
2025 Guidance
Q4 2024 Supplemental Information
Appendix
2
Disclosure Regarding Forward-Looking Statements
Information provided in this presentation that is not purely historical are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, including statements regarding our forecasts, guidance, preliminary results, expectations, hopes, beliefs and intentions on strategies regarding the future. These forward- looking statements include, without limitation, statements relating to our plans and expectations for our revenues, EBITDA and the Settlement Agreements to resolve regulatory proceedings regarding our emissions certification and compliance process for certain engines primarily used in pick-up truck applications in the U.S. Our actual future results could differ materially from those projected in such forward-looking statements because of a number of factors, including, but not limited to: any adverse consequences resulting from entering into the Settlement Agreements, including required additional mitigation projects, adverse reputational impacts and potential resulting legal actions; increased scrutiny from regulatory agencies, as well as unpredictability in the adoption, implementation and enforcement of emission standards around the world; evolving environmental and climate change legislation and regulatory initiatives; changes in international, national and regional trade laws, regulations and policies; changes in taxation; global legal and ethical compliance costs and risks; future bans or limitations on the use of diesel-powered products; failure to successfully integrate and / or failure to fully realize all of the anticipated benefits of the acquisition of Meritor, Inc.; raw material, transportation and labor price fluctuations and supply shortages; aligning our capacity and production with our demand; the actions of, and income from, joint ventures and other investees that we do not directly control; large truck manufacturers' and original equipment manufacturers' customers discontinuing outsourcing their engine supply needs or experiencing financial distress, or change in control; product recalls; variability in material and commodity costs; the development of new technologies that reduce demand for our current products and services; lower than expected acceptance of new or existing products or services; product liability claims; our sales mix of products; climate change, global warming, more stringent climate change regulations, accords, mitigation efforts, greenhouse gas regulations or other legislation designed to address climate change; our plan to reposition our portfolio of product offerings through exploration of strategic acquisitions and divestitures and related uncertainties of entering such transactions; increasing interest rates; challenging markets for talent and ability to attract, develop and retain key personnel; exposure to potential security breaches or other disruptions to our information technology environment and data security; political, economic and other risks from operations in numerous countries including political, economic and social uncertainty and the evolving globalization of our business; competitor activity; increasing competition, including increased global competition among our customers in emerging markets; failure to meet environmental, social and governance (ESG) expectations or standards, or achieve our ESG goals; labor relations or work stoppages; foreign currency exchange rate changes; the performance of our pension plan assets and volatility of discount rates; the price and availability of energy; continued availability of financing, financial instruments and financial resources in the amounts, at the times and on the terms required to support our future business; and other risks detailed from time to time in our SEC filings, including particularly in the Risk Factors section of our 2023 Annual Report on Form 10-K and Quarterly Reports on Form 10-Q. Shareholders, potential investors and other readers are urged to consider these factors carefully in evaluating the forward-looking statements and are cautioned not to place undue reliance on such forward-looking statements. The forward-looking statements made herein are made only as of the date of this presentation and we undertake no obligation to publicly update any forward-looking statements, whether as a result of new information, future events or otherwise. More detailed information about factors that may affect our performance may be found in our filings with the SEC, which are available at http://www.sec.govor at http://www.cummins.comin the Investor Relations section of our website.
3
2024 Summary
2024 Summary
- Full year revenues of $34.1 billion
- GAAP1 Net Income of $3.9 billion and Diluted EPS of $28.37
- Net income of $3.0 billion and Diluted EPS of $21.37 excluding net benefit related to the separation of Atmus, cost related to restructuring expenses, and cost related to the Accelera reorganization
- EBITDA of $6.3 billion or 18.6 percent of sales
- EBITDA of $5.4 billion or 15.7 percent of sales excluding $1,298 million of net benefit related to the separation of Atmus, $29 million of cost related to restructuring expenses, and $312 million of cost related to the Accelera reorganization
- Full year operating cash flow of $1.5 billion with $969 million returned to shareholders through dividends.
1 Generally Accepted Accounting Principles | 5 |
Cummins Inc.
Selected Financial Data - Full Year
$ MILLIONS | 2024 | 2023 | ||
Sales | 34,102 | 34,065 | ||
Gross Margin (% of Sales)1 | 25.1% | 24.3% | ||
SAR (% of Sales)2 | 13.7% | 13.9% | ||
EBITDA3 | 5,369 | 5,195 | ||
EBITDA (% of Sales)3 | 15.7% | 15.3% | ||
Net Income attributable to Cummins Inc.4 | 2,973 | 2,810 | ||
Net Income (% of Sales)4 | 8.7% | 8.2% | ||
Diluted EPS5 | $21.37 | $19.69 | ||
Dividend Per Share | $7.00 | $6.50 | ||
ROANA (LTM)6 | 30% | 29% | ||
ROIC (LTM)6 | 18% | 17% |
- 2024 Gross Margin excluding $112M of cost related to the Accelera reorganization, $10 million of cost related to restructuring expenses, and $5 million of cost related to the separation of Atmus; 2023 Gross Margin excluding $13 million of cost related to the separation of Atmus and $15 million of cost related to employee voluntary retirement and separation
- 2024 SAR excluding $30 million of cost related to the separation of Atmus, $19 million of cost related to restructuring expenses, and $12 million of cost related to the Accelera reorganization; 2023 SAR excluding $87 million of cost related to the separation of Atmus, and $27 million of cost related to employee voluntary retirement and separation
- 2024 EBITDA excluding $1.298 billion of net benefit related to the separation of Atmus, $312 million of cost related to the Accelera reorganization, and $29 million of cost related to restructuring expenses; 2023 EBITDA excluding $2.036 billion of cost related to the agreement to settle with U.S. regulators, $100 million of cost related to the separation of Atmus, and $42 million of cost related to employee voluntary retirement and separation
- 2024 Net Income excluding $1.291 billion of net benefit from the separation of Atmus, $296 million of cost related to the Accelera reorganization, and $22 million of cost related to restructuring expenses; 2023 Net Income excluding $1.966 billion of cost related to the agreement to settle with U.S. regulators, $77 million of cost related to the separation of Atmus, and $32 million of cost related to employee voluntary retirement and separation
- 2024 Diluted EPS excluding $9.28 per share of net benefit related to the separation of Atmus and $2.12 of cost related to the Accelera reorganization, and $0.16 of cost related to restructuring expenses; 2023 Diluted EPS excluding $13.78 per share of cost related to the agreement to settle with U.S. regulators, $0.54 per share of cost related to the separation of Atmus, and $0.22 per share of cost related to employee voluntary retirement and separation
- 2024 ROANA (LTM) and ROIC (LTM) calculations exclude the net benefit related to the separation of Atmus, cost related to the Accelera reorganization, and cost related to restructuring expenses; 2023 ROANA (LTM) and ROIC (LTM) calculations exclude the cost related to the agreement to settle with U.S. regulators, cost related to employee voluntary retirement and separation, and the cost related to the separation of Atmus
6
2024 Net Sales and EBITDA by Segment
$ MILLIONS
Year ended December 31, 2024
Engine | Components | Distribution | Power | |||
Systems | ||||||
Accelera
Intersegment Eliminations
Total
Net Sales | 11,712 | 11,679 | 11,384 | 6,408 | 414 | (7,495) | |||||
Sales growth vs 2023 | -% | (13)% | 11% | 13% | 17% | 3% | |||||
EBITDA1 | 1,653 | 1,612 | 1,378 | 1,180 | (452) | (2) | |||||
Segment EBITDA %1 | 14.1% | 13.8% | 12.1% | 18.4% | NM3 | ||||||
Year ended December 31, 2023 | |||||||||||
Net Sales | 11,684 | 13,409 | 10,249 | 5,673 | 354 | (7,304) | |||||
EBITDA2 | 1,642 | 1,927 | 1,209 | 836 | (443) | 24 | |||||
Segment EBITDA %2 | 14.1% | 14.4% | 11.8% | 14.7% | NM3 |
-
Excluding net benefit related to the separation of Atmus: Components = $(21) million; Intersegment Eliminations = $1.319 billion
Excluding cost related to the Accelera reorganization: Accelera = $312 million
Excluding cost related to restructuring expenses: Intersegment Eliminations = $29 million - Excluding net cost related to the separation of Atmus: Components = $78 million; Intersegment Eliminations = $22 million
Excluding cost related to employee voluntary retirement and separation: Engine = $12 million; Components = $9 Million; Intersegment Eliminations = $21 million
Excluding cost related to the agreement to settle with U.S regulators: Intersegment Eliminations = $2.036 billion - "NM" - not meaningful information
34,102
-%
5,369
15.7%
34,065
5,195
15.3%
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2024 EBITDA Detail
CMI | Engine | Components | Distribution | Power | Accelera | Eliminations | |||||||
Systems | |||||||||||||
$ MILLIONS | Segment | Segment | Segment | Segment | |||||||||
Segment | |||||||||||||
Reported EBITDA | 6,326 | 1,653 | 1,591 | 1,378 | 1,180 | (764) | 1,288 | ||||||
Reported EBITDA | |||||||||||||
included net benefit | 1,298 | (21) | 1,319 | ||||||||||
related to the separation | |||||||||||||
of Atmus | |||||||||||||
Reported EBITDA | (29) | (29) | |||||||||||
included costs related to | |||||||||||||
restructuring expenses | |||||||||||||
Reported EBITDA | |||||||||||||
included costs related to | (312) | (312) | |||||||||||
the Accelera | |||||||||||||
reorganization | |||||||||||||
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2024 EPS Detail
EPS | ||
Reported EPS | $ | 28.37 |
Reported EPS included net benefit | $ | 9.28 |
related to the separation of Atmus | ||
Reported EPS included restructuring | $ | (0.16) |
expenses | ||
Reported EPS included costs related to | $ | (2.12) |
the Accelera reorganization | ||
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Q4 2024 Summary
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Cummins Inc. published this content on February 04, 2025, and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on February 04, 2025 at 13:37:56.757.