On this page of StockholderLetter.com we present the latest annual shareholder letter from CUMMINS INC — ticker symbol CMI. Reading current and past CMI letters to shareholders can bring important insights into the investment thesis.

 •  3/31/2025 Letter Continued (Full PDF)
 •  3/27/2023 CMI Stockholder Letter
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CMI Shareholder/Stockholder Letter Transcript:

Cummins Inc.
2024 ANNUAL REPORT
2024
ANNUAL
REPORT


Chair   s Letter
Notice of 2025 Annual Meeting
Proxy Statement
Form 10-K
Cummins Inc.

FINANCIAL SUMMARY
Selected financial highlights
20241
20232
Change
Net sales
34,102
34,065
0%
Gross margin
8,439
8,249
2%
395
483
(18%)
Earnings before interest, taxes, depreciation and amortization (EBITDA)3
6,326
3,017
110%
Net income attributable to Cummins Inc.
3,946
735
437%
Basic
28.55
5.19
450%
Diluted
28.37
5.15
451%
7.00
6.50
8%
$ in millions, except per share data
Equity, royalty and interest income from investees
Net earnings per share attributable to Cummins Inc.:
Cash dividends declared per share
Balance sheet data
Cash and cash equivalents
1,671
2,179
Working capital
3,518
2,295
Property, plant and equipment, net
6,356
6,249
31,540
32,005
Total assets
Long-term debt
4,784
4,802
Total equity
11,308
9,904
Cash flow from operating activities
1,487
3,966
Capital expenditures
1,208
1,213
Other data
Depreciation and amortization (Income Statement)
1,053
1,016
EBITDA margin (%)4
18.6%
8.9%
24%
6%
Return on invested capital5
Net sales ($ in billions)
Diluted earnings per share ($)
20241
$34.1
20241
20232
$34.1
20232
$28.1
20223
$24.0
2021
2020
2021
$19.8
2020
EBITDA margin (%) 4
20223
2021
2020
$5.15
18.6%
8.9%
20241
$15.12
14.7%
15.7%
20223
2021
2020
$483
$349
20223
$14.61
$506
2021
$12.01
$452
2020
$1,487
Return on invested capital (%) 5
24%
20241
$3,966
20232
13.5%
$395
20241
20232
Cash flow from operating activities
($ in millions)
20241
20232
20223
$28.37
Equity, royalty and interest income
from investees ($ in millions)
$1,962
$2,256
$2,722
20232
20223
2021
2020
6%
15%
16%
15%
1
All 2024 data includes the net benefit associated with the separation of Atmus, costs related to the Accelera reorganization, and costs related to restructuring expenses.
2
All 2023 data includes the costs related to the agreement to resolve U.S. regulatory claims, costs associated with the separation of Atmus, and costs associated
with the voluntary retirement and separation program.
3
All 2022 data includes the net contribution from the Meritor acquisition, including acquisition and integration costs and purchase accounting impacts.
It also includes all costs related to the indefinite suspension of operations in Russia, as well as all costs related to the separation of Atmus.
4
EBITDA is a non-GAAP measure defined as earnings before interest expense, income taxes, depreciation and amortization and noncontrolling interests.
5
The return on invested capital is a non-GAAP measure   invested capital excludes noncontrolling interests, defined benefit postretirement plans and special items.

Letter from our Chair and Chief Executive Officer
To our Cummins shareholders,
In 2024, I celebrated my 25th anniversary with Cummins and my second year as Chair and CEO. I   m proud of all that we accomplished last year.
Our Destination Zero strategy was the cornerstone of our record performance in 2024 and will remain the driving force behind our sustainable
growth and innovation as we continue powering our customers    evolving energy needs globally.
Operational excellence and strong returns
During our Analyst Day last May, we raised our long-term financial targets, reflecting our confidence in our Destination Zero strategy and our
ability to grow and deliver increasing returns to shareholders. In 2024, we demonstrated notable progress toward these targets by delivering strong
financial results and setting records in several parts of the business. Our full-year revenues reached a record $34.1 billion, up slightly from the
prior year, even with the successful divestiture of our Filtration business, Atmus Filtration Technologies, on March 18. Including the one-time gain
related to the separation, our GAAP net income for the year was $3.9 billion, or 11.6% of sales, our EBITDA for the year was $6.3 billion, or
18.6% of sales, and earnings per diluted share (EPS) were $28.37, all record achievements. 2024 marked a historic year for Cummins as we
delivered strong financial and operational results amid weakness in our North America heavy-duty truck and China markets. Effective operational
execution and strength in other key markets, such as power generation and medium-duty truck, allowed us to deliver profitable growth despite these
challenges. We are proud of our talented, diverse workforce of approximately 70,000 employees worldwide for their ability to show remarkable
dedication and resilience in achieving these outcomes.
Our disciplined approach to cost management, coupled with strategic investments in key areas, has enabled us to maintain our competitive edge
and fuel long-term success. In 2024, we ranked first among our peer group in total shareholder return, and our one-, three- and five-year returns
have outpaced the S&P 500. We increased our common stock cash dividend for the 15th consecutive year, returning $969 million to shareholders,
and with the successful divestiture of Atmus, we reduced our shares outstanding by approximately 5.6 million or 4%.
Destination Zero: The right strategy for a complex energy transition
Our multi-solution Destination Zero strategy, which leverages advancements and solutions from both our core and Accelera    by Cummins
businesses, will continue to position us for success. In 2024, we demonstrated this by further strengthening our position through evolving our
portfolio and expanding relationships with both new and long-standing customers and partners.
Most notably for our core business in 2024, we introduced the Cummins HELM    engine platforms. These platforms, applied across our
legendary B, X10 and X15-series engine portfolios, provide customers with the option to choose the fuel type     either advanced diesel or alternate
fuels like natural gas or hydrogen     that best suit their business needs, while delivering the power and performance they expect. We began full
production of the X15N natural gas engine at the Jamestown engine plant in the fall of 2024, and we are actively engaged with some of North
America   s largest and most demanding heavy-duty fleets as they look to reduce their carbon footprint.
Additionally, in our core business, we introduced four new generator sets to the award-winning Centum    Series, with two models each powered
by Cummins    QSK50 and QSK78 engines. These new models have been engineered specifically for critical applications, such as data centers, in
response to high market demand. To further increase our capacity to meet rising power generation demand, we plan to invest $200 million
across our manufacturing sites in the U.S., England and India. We are excited about the continued impressive performance and growth potential
of our Power Systems business.
In our Accelera business, we partnered with Daimler Trucks & Buses, PACCAR and EVE Energy to create Amplify Cell Technologies, focusing on
localizing battery cell production in the U.S. This collaboration aims to advance zero-emissions technologies for electric commercial vehicles and
industrial applications. Amplify started building a 21-gigawatt hour factory in Mississippi last year, with production expected to begin in 2027.
As we navigate the energy transition, we remain committed to investing in the most promising paths. In late 2024, we streamlined our Accelera
business to reduce costs and position the business for long-term success. Accelera and its mission will continue to play an important role in our
Destination Zero strategy.
2025 Outlook: Navigating market challenges while improving profitability
As we progress through 2025, we anticipate slightly weaker demand in the North America on-highway truck markets, particularly in the first half
of the year. However, this will be offset by continued strength in the power generation market and the resilience of our Distribution business, given
our strong aftermarket presence. We project full-year 2025 revenues to range from down 2% to up 3%, with EBITDA between 16.2% and 17.2%
of sales. Despite a relatively flat revenue forecast, we expect to improve profitability and cash flow across all our segments and continue to invest in
our business.

We remain committed to our multi-solution approach, which is proving to be the right strategy for our customers, the environment and the
continued growth of Cummins. We plan to continue generating strong operating cash flow and are committed to our long-term strategic goal of
returning 50% of operating cash flow to shareholders.
Our legacy of people-centric leadership and sustainable growth
Cummins has a long-standing tradition of placing people at the center of how we operate, harnessing the unique and diverse talents of our
leaders and employees to provide exceptional solutions to our customers and communities worldwide. This unwavering commitment to our people,
along with our dedication to environmental stewardship, community engagement and robust governance practices, is essential to our long-term
success.
Our Destination Zero strategy, supported by our operational excellence, strategic investments and the dedication of our talented workforce,
positions us strongly for the future. We remain devoted to delivering outstanding results and shareholder returns while driving innovation and
sustainability. Thank you for your continued support and trust in Cummins.
Sincerely,
Jennifer Rumsey
Chair and CEO
Cummins Inc.

See Appendix A for reconciliation of GAAP to non-GAAP measures referenced in this section, except for forward-looking measures of EBITDA where a
reconciliation to the corresponding GAAP measure is not available due to the variability, complexity and limited visibility of the non-cash items that are excluded
from the non-GAAP outlook measure.

500 Jackson Street, Box 3005, Columbus, Indiana 47202-3005
NOTICE OF 2025
ANNUAL MEETING OF
SHAREHOLDERS
IMPORTANT NOTICE REGARDING THE
AVAILABILITY OF PROXY MATERIALS FOR
THE 2025 ANNUAL SHAREHOLDER
MEETING TO BE HELD ON MAY 13, 2025:
the Annual Report and Proxy Statement are
available at www.proxyvote.com
13
DATE
May 13, 2025
To Our Shareholders:
TIME
NOTICE IS HEREBY GIVEN that the 2025 Annual Meeting of the Shareholders of Cummins Inc. will be held
virtually on Tuesday, May 13, 2025, at 11:00 a.m. Eastern Time, for the following purposes:
1.
to elect the eleven nominees named in the attached proxy statement as directors for the
ensuing year;
2.
to consider an advisory vote on the compensation of our named executive officers;
3.
to ratify the appointment of PricewaterhouseCoopers LLP as our auditors for 2025;
4.
to consider a proposal from a shareholder regarding an independent Chairman of the Board;
and
5.
to transact any other business that may properly come before the meeting or any adjournment
thereof.
The Annual Meeting of Shareholders will be held in a virtual meeting format only. You will not be able
to attend the Annual Meeting in person. We believe a virtual meeting allows broader access by our
shareholders and other parties without restricting participation while also reducing the environmental
impact and cost of conducting the meeting.
Only shareholders of our Common Stock of record at the close of business on March 14, 2025, are
entitled to notice of, and to vote at, the meeting.
11:00 a.m. Eastern Time
14
RECORD DATE
March 14, 2025
VOTING
BY THE INTERNET
Visit the website noted on your
proxy card to vote online
If you do not expect to be present virtually at the meeting, you are urged to vote your shares by telephone,
via the Internet, or by completing, signing and dating the enclosed proxy card and returning it promptly
in the envelope provided.
You may revoke your proxy card at any time before the meeting. Except with respect to shares attributable
to accounts held in the Cummins Retirement and Savings Plans, any shareholders entitled to vote at the
annual meeting who attend the meeting will be entitled to cast their votes electronically during the
meeting.
NICOLE Y. LAMB-HALE
Secretary
BY TELEPHONE
Use the toll-free telephone number
on your proxy card to vote by
telephone
March 31, 2025
On March 31, 2025, we will commence mailing the notice of Internet availability of proxy materials,
or a proxy statement, proxy card and annual report, to shareholders.
BY MAIL
Sign, date, and return your proxy
card in the enclosed envelope to
vote by mail.



 3/31/2025 Letter Continued (Full PDF)