Third quarter revenues of $8.3 billion; GAAP1 Net Income of $536 million, or 6.4% of sales
EBITDA in the third quarter was 14.3% of sales; Diluted EPS of $3.86
Third quarter results include $240 million, or $1.73 per diluted share, of Accelera non-cash charges
COLUMBUS, Ind.–(BUSINESS WIRE)–
Cummins Inc. (NYSE: CMI) today reported results for the third quarter of 2025.
“Cummins delivered strong operating results in the third quarter, driven by profitable growth in our Power Systems and Distribution segments, due in part to continued rising demand for backup power for data centers. Effective cost management across the company helped navigate through the anticipated sharp decline in the North American truck market,” said Jennifer Rumsey, Chair and CEO. “During the quarter, we recorded non-cash charges related to our electrolyzer business within the Accelera segment, reflecting policy-driven shifts in hydrogen adoption expectations. Due to the significantly weaker prospects for demand, we are undertaking a strategic review of the electrolyzer business.”
Third quarter revenues of $8.3 billion decreased 2% from the same quarter in 2024. Sales in North America declined 4%, and international revenues increased 2% due to higher demand in China and Europe.
Net income attributable to Cummins in the third quarter was $536 million, or $3.86 per diluted share, compared to $809 million, or $5.86 per diluted share, in 2024. The current quarter results include Accelera non-cash charges of $240 million, or $1.73 per diluted share. The tax rate in the third quarter was 32.7% due primarily to non-deductible costs related to Accelera non-cash charges and $36 million or $0.26 per diluted share of tax costs related to the implementation of the One Big Beautiful Bill Act.
Earnings before interest, taxes, depreciation and amortization (EBITDA) in the third quarter were $1.2 billion, or 14.3% of sales, compared to $1.4 billion, or 16.4% of sales, a year ago. EBITDA for the third quarter of 2025 included the costs noted above.
2025 Outlook:
Cummins will not be providing an outlook for revenue or profitability for the remainder of 2025.
“While uncertainty in a number of our end markets persists, our strong third quarter results are a testament to our diversified portfolio, effective cost discipline and commitment to delivering for our customers,” said Rumsey. “Cummins continues to operate from a position of strength as we navigate this dynamic environment, and we look forward to reinstating our financial guidance in February when we provide our outlook for 2026.”
Third Quarter 2025 Highlights:
Cummins increased its quarterly common stock cash dividend from $1.82 to $2.00 per share. The company has increased the quarterly dividend to shareholders for 16 consecutive years.
Cummins and Komatsu signed a memorandum of understanding (MOU) to collaborate on the development of hybrid powertrains for surface haulage heavy mining equipment. Building on a strong legacy of diesel engine supply across a wide variety of mining and construction equipment, Cummins and Komatsu will add hybrids to their product roadmaps of power technology solutions for progressive decarbonization in large mining haul truck applications.
Cummins was recognized by Forbes as one of America’s best employers for company culture; rated as a top military-friendly employer by Military Friendly®; and named “Best Place to Work for Disability Inclusion” for the fifth consecutive year by achieving a high score of 100 on the Disability Index®.
1 Generally Accepted Accounting Principles in the U.S.
Third quarter 2025 detail (all comparisons to same period in 2024):
Engine Segment
Sales – $2.6 billion, down 11%
Segment EBITDA – $261 million, or 10.0% of sales, compared to $427 million, or 14.7% of sales
Revenues decreased 12% in North America and 5% in international markets due to lower medium-duty and heavy-duty truck demand in the United States and Mexico.
Components Segment
Sales – $2.3 billion, down 15%
Segment EBITDA – $292 million, or 12.5% of sales, compared to $351 million, or 12.9% of sales
Revenues in North America decreased by 24% and international sales were flat primarily due to lower medium-duty and heavy-duty truck demand in the United States.
Distribution Segment
Sales – $3.2 billion, up 7%
Segment EBITDA – $492 million, or 15.5% of sales, compared to $370 million, or 12.5% of sales
Revenues in North America increased 13% due to increased demand for power generation, while international sales declined by 3%.
Power Systems Segment
Sales – $2.0 billion, up 18%
Segment EBITDA – $457 million, or 22.9% of sales, compared to $328 million, or 19.4% of sales
Revenues in North America increased 20% and international sales increased 17% driven primarily by increased power generation demand, particularly for data center markets in North America, India, and China.
Accelera Segment
Sales – $121 million, up 10%
Segment EBITDA loss – $336 million, which includes $240 million of non-cash charges related to goodwill impairment and inventory write-downs.
Revenues increased due to higher eMobility demand. The company remains committed to pacing and focusing our zero emissions investments on the most promising paths in order to ensure we are set up for long-term success as part of our Destination Zero strategy. These continued investments contributed to the EBITDA losses.
About Cummins Inc.
Cummins Inc., a global power leader, is committed to powering a more prosperous world. Since 1919, we have delivered innovative solutions that move people, goods and economies forward. Our five business segments—Engine, Components, Distribution, Power Systems and Accelera™ by Cummins—offer a broad portfolio, including advanced diesel, alternative fuel, electric and hybrid powertrains; integrated power generation systems; critical components such as aftertreatment, turbochargers, fuel systems, controls, transmissions, axles and brakes; and zero-emissions technologies like battery and electric powertrain systems and electrolyzers. With a global footprint, deep technical expertise and an extensive service network, we deliver dependable, cutting-edge solutions tailored to our customers’ needs, supporting them through the energy transition with our Destination Zero strategy. We create value for customers, investors and employees and strengthen communities through our corporate responsibility global priorities: education, equity and environment. Headquartered in Columbus, Indiana, Cummins employs approximately 70,000 people worldwide and earned $3.9 billion on $34.1 billion in sales in 2024. Learn more at www.cummins.com.
Forward-looking disclosure statement
Information provided in this release 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 and EBITDA. 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 from changes in tariffs and other trade disruptions; any adverse consequences resulting from entering into agreements with the U.S. Environmental Protection Agency, California Air Resources Board, the Environmental and Natural Resources Division of the U.S. Department of Justice and the California Attorney General’s Office to resolve certain regulatory civil claims regarding our emissions certification and compliance process for certain engines primarily used in pick-up truck applications in the U.S., which became final and effective in April 2024, 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; 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, divestitures or exiting the production of certain product lines or product categories and related uncertainties of such decisions; 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 (IT) environment and data security; the use of artificial intelligence in our business and in our products and challenges with properly managing its use; 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 sustainability expectations or standards, or achieve our sustainability 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 2024 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 release 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 https://www.sec.gov or at https://www.cummins.com in the Investor Relations section of our website.
Presentation of Non-GAAP Financial Information
EBITDA is a non-GAAP measure used in this release and is defined and reconciled to what management believes to be the most comparable GAAP measure in a schedule attached to this release, except for forward-looking measures of EBITDA where a reconciliation to the corresponding GAAP measures 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. Cummins presents this information as it believes it is useful to understanding the Company’s operating performance, and because EBITDA is a measure used internally to assess the performance of the operating units.
Webcast information
Cummins management will host a teleconference to discuss these results today at 10 a.m. ET. This teleconference will be webcast and available on the Investor Relations section of the Cummins website at www.cummins.com. Participants wishing to view the visuals available with the audio are encouraged to sign-in a few minutes prior to the start of the teleconference.
CUMMINS INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF NET INCOME
(Unaudited) (a)
Three months ended
September 30,
In millions, except per share amounts
2025
2024
NET SALES
$
8,317
$
8,456
Cost of sales
6,188
6,285
GROSS MARGIN
2,129
2,171
OPERATING EXPENSES AND INCOME
Selling, general and administrative expenses
789
807
Research, development and engineering expenses
345
359
Equity, royalty and interest income from investees
104
99
Other operating expense, net
247
54
OPERATING INCOME
852
1,050
Interest expense
83
83
Other income, net
61
76
INCOME BEFORE INCOME TAXES
830
1,043
Income tax expense
271
200
CONSOLIDATED NET INCOME
559
843
Less: Net income attributable to noncontrolling interests
23
34
NET INCOME ATTRIBUTABLE TO CUMMINS INC.
$
536
$
809
EARNINGS PER COMMON SHARE ATTRIBUTABLE TO CUMMINS INC.
Basic
$
3.88
$
5.90
Diluted
$
3.86
$
5.86
WEIGHTED-AVERAGE COMMON SHARES OUTSTANDING
Basic
138.0
137.2
Diluted
138.8
138.1
(a) Prepared on an unaudited basis in accordance with accounting principles generally accepted in the United States of America.
Nine months ended
September 30,
In millions, except per share amounts
2025
2024
NET SALES
$
25,134
$
25,655
Cost of sales
18,569
19,250
GROSS MARGIN
6,565
6,405
OPERATING EXPENSES AND INCOME
Selling, general and administrative expenses
2,339
2,474
Research, development and engineering expenses
1,046
1,107
Equity, royalty and interest income from investees
353
325
Other operating expense, net
321
131
OPERATING INCOME
3,212
3,018
Interest expense
247
281
Other income, net
207
1,504
INCOME BEFORE INCOME TAXES
3,172
4,241
Income tax expense
835
618
CONSOLIDATED NET INCOME
2,337
3,623
Less: Net income attributable to noncontrolling interests
87
95
NET INCOME ATTRIBUTABLE TO CUMMINS INC.
$
2,250
$
3,528
EARNINGS PER COMMON SHARE ATTRIBUTABLE TO CUMMINS INC.
Basic
$
16.33
$
25.47
Diluted
$
16.23
$
25.31
WEIGHTED-AVERAGE COMMON SHARES OUTSTANDING
Basic
137.8
138.5
Diluted
138.6
139.4
(a) Prepared on an unaudited basis in accordance with accounting principles generally accepted in the United States of America.
CUMMINS INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(Unaudited) (a)
In millions, except par value
September 30,
2025
December 31,
2024
ASSETS
Current assets
Cash and cash equivalents
$
2,566
$
1,671
Marketable securities
593
593
Total cash, cash equivalents and marketable securities
3,159
2,264
Accounts and notes receivable, net
5,640
5,181
Inventories
6,256
5,742
Prepaid expenses and other current assets
1,665
1,565
Total current assets
16,720
14,752
Long-term assets
Property, plant and equipment, net
6,658
6,356
Investments and advances related to equity method investees
1,972
1,889
Goodwill
2,222
2,370
Other intangible assets, net
2,345
2,351
Pension assets
1,157
1,189
Other assets
2,564
2,633
Total assets
$
33,638
$
31,540
LIABILITIES
Current liabilities
Accounts payable (principally trade)
$
3,819
$
3,951
Loans payable
315
356
Commercial paper
353
1,259
Current maturities of long-term debt
122
660
Accrued compensation, benefits and retirement costs
770
1,084
Current portion of accrued product warranty
660
679
Current portion of deferred revenue
1,600
1,347
Other accrued expenses
1,815
1,898
Total current liabilities
9,454
11,234
Long-term liabilities
Long-term debt
6,824
4,784
Deferred revenue
1,119
1,065
Other liabilities
3,143
3,149
Total liabilities
$
20,540
$
20,232
EQUITY
Cummins Inc. shareholders’ equity
Common stock, $2.50 par value, 500 shares authorized, 222.5 and 222.5 shares issued
$
2,651
$
2,636
Retained earnings
22,300
20,828
Treasury stock, at cost, 84.5 and 85.1 shares
(10,676
)
(10,748
)
Accumulated other comprehensive loss
(2,211
)
(2,445
)
Total Cummins Inc. shareholders’ equity
12,064
10,271
Noncontrolling interests
1,034
1,037
Total equity
$
13,098
$
11,308
Total liabilities and equity
$
33,638
$
31,540
(a) Prepared on an unaudited basis in accordance with accounting principles generally accepted in the United States of America.
CUMMINS INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited) (a)
Three months ended
September 30,
In millions
2025
2024
CASH FLOWS FROM OPERATING ACTIVITIES
Consolidated net income
$
559
$
843
Adjustments to reconcile consolidated net income to net cash provided by operating activities
Depreciation and amortization
277
266
Deferred income taxes
206
(7
)
Equity in income of investees, net of dividends
50
12
Pension and OPEB expense
21
9
Pension contributions and OPEB payments
(12
)
(13
)
Changes in current assets and liabilities, net of acquisitions
Accounts and notes receivable
177
270
Inventories
(10
)
(257
)
Other current assets
26
(219
)
Accounts payable
(295
)
(236
)
Accrued expenses
43
(67
)
Other, net
263
39
Net cash provided by operating activities
1,305
640
CASH FLOWS FROM INVESTING ACTIVITIES
Capital expenditures
(298
)
(259
)
Investments in and net advances to equity investees
(9
)
(78
)
Investments in marketable securities—acquisitions
(350
)
(349
)
Investments in marketable securities—liquidations
495
428
Other, net
(69
)
(5
)
Net cash used in investing activities
(231
)
(263
)
CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds from borrowings
86
141
Net borrowings of commercial paper
—
55
Payments on borrowings and finance lease obligations
(617
)
(163
)
Dividend payments on common stock
(276
)
(250
)
Other, net
(20
)
(26
)
Net cash used in financing activities
(827
)
(243
)
EFFECT OF EXCHANGE RATE CHANGES ON CASH AND CASH EQUIVALENTS
—
9
Net increase in cash and cash equivalents
247
143
Cash and cash equivalents at beginning of period
2,319
1,590
CASH AND CASH EQUIVALENTS AT END OF PERIOD
$
2,566
$
1,733
(a) Prepared on an unaudited basis in accordance with accounting principles generally accepted in the United States of America.
Nine months ended
September 30,
In millions
2025
2024
CASH FLOWS FROM OPERATING ACTIVITIES
Consolidated net income
$
2,337
$
3,623
Adjustments to reconcile consolidated net income to net cash provided by operating activities
Gain related to divestiture of Atmus
—
(1,333
)
Depreciation and amortization
825
794
Deferred income taxes
68
(106
)
Equity in income of investees, net of dividends
(38
)
(74
)
Pension and OPEB expense
60
28
Pension contributions and OPEB payments
(38
)
(72
)
Changes in current assets and liabilities, net of acquisitions and divestiture
Accounts and notes receivable
(466
)
109
Inventories
(446
)
(726
)
Other current assets
(146
)
(370
)
Accounts payable
(147
)
27
Accrued expenses
(201
)
(2,000
)
Other, net
279
165
Net cash provided by operating activities
2,087
65
CASH FLOWS FROM INVESTING ACTIVITIES
Capital expenditures
(691
)
(668
)
Investments in and net advances to equity investees
(63
)
(133
)
Acquisition of businesses, net of cash acquired
(12
)
(58
)
Investments in marketable securities—acquisitions
(1,133
)
(1,062
)
Investments in marketable securities—liquidations
1,131
1,113
Cash associated with Atmus divestiture
—
(174
)
Other, net
(78
)
(87
)
Net cash used in investing activities
(846
)
(1,069
)
CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds from borrowings
2,232
2,623
Net (payments) borrowings of commercial paper
(906
)
140
Payments on borrowings and finance lease obligations
(827
)
(1,386
)
Dividend payments on common stock
(778
)
(719
)
Payments for purchase of redeemable noncontrolling interests
(55
)
—
Other, net
(69
)
(94
)
Net cash (used in) provided by financing activities
(403
)
564
EFFECT OF EXCHANGE RATE CHANGES ON CASH AND CASH EQUIVALENTS
57
(6
)
Net increase (decrease) in cash and cash equivalents
895
(446
)
Cash and cash equivalents at beginning of year
1,671
2,179
CASH AND CASH EQUIVALENTS AT END OF PERIOD
$
2,566
$
1,733
(a) Prepared on an unaudited basis in accordance with accounting principles generally accepted in the United States of America.
CUMMINS INC. AND SUBSIDIARIES
SEGMENT INFORMATION
(Unaudited)
In millions
Engine
Components
Distribution
Power Systems
Accelera
Total Segments
Intersegment Eliminations (1)
Total
Three months ended September 30, 2025
External sales
$
1,922
$
1,986
$
3,170
$
1,126
$
113
$
8,317
$
—
$
8,317
Intersegment sales
683
343
2
870
8
1,906
(1,906
)
—
Total sales
2,605
2,329
3,172
1,996
121
10,223
(1,906
)
8,317
Research, development and engineering expenses
159
70
14
62
40
345
—
345
Equity, royalty and interest income (loss) from investees
54
7
23
26
(6
)
104
—
104
Interest income
11
8
6
4
—
29
—
29
EBITDA (2)
261
292
492
457
(336
)
(3)
1,166
21
1,187
Depreciation and amortization (4)
71
122
32
36
13
274
—
274
EBITDA as a percentage of segment sales
10.0
%
12.5
%
15.5
%
22.9
%
NM
11.4
%
14.3
%
Three months ended September 30, 2024
External sales
$
2,215
$
2,287
$
2,942
$
912
$
100
$
8,456
$
—
$
8,456
Intersegment sales
698
437
10
775
10
1,930
(1,930
)
—
Total sales
2,913
2,724
2,952
1,687
110
10,386
(1,930
)
8,456
Research, development and engineering expenses
147
85
13
57
57
359
—
359
Equity, royalty and interest income (loss) from investees
53
12
25
20
(11
)
99
—
99
Interest income
2
4
7
1
—
14
—
14
EBITDA (2)
427
351
370
328
(115
)
1,361
28
1,389
Depreciation and amortization (4)
62
121
31
33
16
263
—
263
EBITDA as a percentage of segment sales
14.7
%
12.9
%
12.5
%
19.4
%
NM
13.1
%
16.4
%
“NM” – not meaningful information
(1)
Included intersegment sales, intersegment profit in inventory and unallocated corporate expenses. There were no significant unallocated corporate expenses for the three months ended September 30, 2025 and 2024.
(2)
EBITDA is defined as earnings or losses before interest expense, income taxes, depreciation and amortization and noncontrolling interests. We believe EBITDA is a useful measure of our operating performance as it assists investors and debt holders in comparing our performance on a consistent basis without regard to financing methods, capital structure, income taxes or depreciation and amortization methods, which can vary significantly depending upon many factors.
(3)
Included a $210 million goodwill impairment charge and a $30 million inventory write-down for three months ended September 30, 2025.
(4)
Depreciation and amortization, as shown on a segment basis, excludes the amortization of debt discount and deferred costs included in our Condensed Consolidated Statements of Net Income as interest expense. A portion of depreciation expense is included in research, development and engineering expenses.
In millions
Engine
Components
Distribution
Power Systems
Accelera
Total Segments
Intersegment Eliminations (1)
Total
Nine months ended September 30, 2025
External sales
$
6,124
$
6,551
$
9,106
$
3,052
$
301
$
25,134
$
—
$
25,134
Intersegment sales
2,151
1,153
14
2,482
28
5,828
(5,828
)
—
Total sales
8,275
7,704
9,120
5,534
329
30,962
(5,828
)
25,134
Research, development and engineering expenses
465
222
42
188
129
1,046
—
1,046
Equity, royalty and interest income (loss) from investees
187
24
77
82
(17
)
353
—
353
Interest income
29
25
18
12
1
85
—
85
EBITDA (2)
1,119
1,071
1,313
1,276
(522
)
(3)
4,257
(23
)
4,234
Depreciation and amortization (4)
206
371
96
104
38
815
—
815
EBITDA as a percentage of total sales
13.5
%
13.9
%
14.4
%
23.1
%
NM
13.7
%
16.8
%
Nine months ended September 30, 2024
External sales
$
6,923
$
7,647
$
8,292
$
2,508
$
285
$
25,655
$
—
$
25,655
Intersegment sales
2,069
1,391
24
2,157
29
5,670
(5,670
)
—
Total sales
8,992
9,038
8,316
4,665
314
31,325
(5,670
)
25,655
Research, development and engineering expenses
468
250
41
180
166
1,105
2
1,107
Equity, royalty and interest income (loss) from investees
158
51
73
65
(22
)
325
—
325
Interest income
16
21
29
7
—
73
—
73
EBITDA (2)
1,286
1,230
(5)
978
866
(333
)
4,027
1,279
5,306
Depreciation and amortization (4)
181
367
92
99
45
784
—
784
EBITDA as a percentage of total sales
14.3
%
13.6
%
11.8
%
18.6
%
NM
12.9
%
20.7
%
“NM” – not meaningful information
(1)
Included intersegment sales, intersegment profit in inventory and unallocated corporate expenses. There were no significant unallocated corporate expenses for the nine months ended September 30, 2025. The nine months ended September 30, 2024, included a $1.3 billion gain related to the divestiture of Atmus Filtration Technologies Inc. (Atmus) and $14 million of costs associated with the divestiture of Atmus.
(2)
EBITDA is defined as earnings or losses before interest expense, income taxes, depreciation and amortization and noncontrolling interests. We believe EBITDA is a useful measure of our operating performance as it assists investors and debt holders in comparing our performance on a consistent basis without regard to financing methods, capital structure, income taxes or depreciation and amortization methods, which can vary significantly depending upon many factors.
(3)
Included a $210 million goodwill impairment charge and a $30 million inventory write-down for nine months ended September 30, 2025.
(4)
Depreciation and amortization, as shown on a segment basis, excluded the amortization of debt discount and deferred costs included in the Condensed Consolidated Statements of Net Income as interest expense. The amortization of debt discount and deferred costs was $10 million and $10 million for the nine months ended September 30, 2025 and 2024, respectively. A portion of depreciation expense is included in research, development and engineering expenses.
(5)
Included $21 million of costs associated with the divestiture of Atmus for the nine months ended September 30, 2024.
CUMMINS INC. AND SUBSIDIARIES
SELECT FOOTNOTE DATA
(Unaudited)
EQUITY, ROYALTY AND INTEREST INCOME FROM INVESTEES
Equity, royalty and interest income from investees included in our Condensed Consolidated Statements of Net Income for the reporting periods was as follows:
Three months ended
Nine months ended
September 30,
September 30,
In millions
2025
2024
2025
2024
Manufacturing entities
Chongqing Cummins Engine Company, Ltd.
$
23
$
15
$
68
$
51
Beijing Foton Cummins Engine Co., Ltd.
17
6
47
29
Dongfeng Cummins Engine Company, Ltd.
13
14
52
51
Tata Cummins, Ltd.
6
6
23
22
All other manufacturers
6
7
27
41
Distribution entities
Komatsu Cummins Chile, Ltda.
12
15
41
42
All other distributors
5
3
17
10
Cummins share of net income
82
66
275
246
Royalty and interest income
22
33
78
79
Equity, royalty and interest income from investees
$
104
$
99
$
353
$
325
GOODWILL IMPAIRMENT AND INVENTORY WRITE-DOWN
During the third quarter of 2025, in our Accelera segment, we observed rapidly deteriorating conditions in our electrolyzer markets and overall hydrogen markets, along with significant uncertainty in the alternative power markets resulting from reductions in government incentives. As a result, we determined that a triggering event occurred for our electrolyzer reporting unit, warranting an interim impairment test of goodwill and the related asset group. We also re-evaluated the recoverability of certain inventory in this business due to the declining customer demand, resulting in a $30 million, or $0.22 per diluted share, excess and obsolete inventory write-down recorded in cost of sales. We concluded that the undiscounted cash flows exceeded the carrying value of the related asset group and thus an impairment did not exist for the related long-lived assets. However, we determined that on a fair value basis our goodwill was fully impaired and recorded a charge of $210 million, or $1.51 per diluted share, in other operating expense, net. The fair value of this reporting unit was determined using primarily a discounted cash flow model (a form of the income approach). This model incorporated a number of assumptions and judgements surrounding current market and economic conditions, internal forecasts of future business performance including short and long-term growth rates, earnings or losses before interest expense, income taxes, depreciation and amortization and noncontrolling interests (EBITDA) margins and discount rates. The $240 million of charges were non-deductible for income taxes purposes. These non-cash charges were reflected in net cash provided by operating activities as a change in inventory of $30 million and other, net of $210 million.
INCOME TAXES
On July 4, 2025, the One Big Beautiful Bill Act (The Act) was signed into law, enacting significant changes to U.S. federal income tax rules affecting corporations, such as the ability to immediately deduct domestic research and development costs, restoration of elective 100 percent bonus depreciation for qualified property and changes to the international tax provisions. Implementation of The Act resulted in an increase to tax expense of $36 million, or $0.26 per diluted share, in the third quarter of 2025, primarily due to a reduction in the foreign income deduction and changes to the research and development tax credit.
Our effective tax rate for 2025 is expected to approximate 26.5 percent, excluding any discrete items that may arise, which is a 2 percent increase over our prior estimates. This increase is attributable to the impacts of The Act and the non-deductible goodwill impairment and inventory write-down.
Our effective tax rates for the three and nine months ended September 30, 2025, were 32.7 percent and 26.3 percent, respectively. Our effective tax rates for the three and nine months ended September 30, 2024, were 19.2 percent and 14.6 percent, respectively.
The three months ended September 30, 2025, contained net unfavorable discrete tax items of $4 million, $0.03 per diluted share, primarily due to $32 million of unfavorable return to provision adjustments and net $1 million of other unfavorable tax items, partially offset by $25 million of favorable adjustments for uncertain tax positions and $4 million of favorable adjustments for share-based compensation.
The nine months ended September 30, 2025, contained net favorable discrete tax items of $6 million, $0.04 per diluted share, primarily due to $30 million of favorable adjustments for uncertain tax positions and $12 million of favorable adjustments for share-based compensation, partially offset by $32 million of unfavorable return to provision adjustments and net $4 million of other unfavorable tax items.
The three months ended September 30, 2024, contained net favorable discrete tax items of $36 million, or $0.26 per share, primarily due to $20 million of favorable adjustments from tax return amendments, $15 million of favorable return to provision adjustments and $2 million of favorable share-based compensation tax benefits, partially offset by $1 million of other unfavorable tax items.
The nine months ended September 30, 2024, contained favorable discrete tax items primarily due to the $1.3 billion non-taxable gain on the Atmus split-off. Other discrete tax items were net favorable by $66 million, or $0.47 per share, primarily due to $21 million of favorable adjustments related to audit settlements, $20 million of favorable adjustments from tax return amendments, $18 million of favorable return to provision adjustments and $17 million of favorable share-based compensation tax benefits, partially offset by $7 million of unfavorable adjustments for uncertain tax positions and $3 million of other unfavorable adjustments.
Reconciliation of Non GAAP measures – Earnings before interest, income taxes, depreciation and amortization and noncontrolling interests (EBITDA)
We believe EBITDA is a useful measure of our operating performance as it assists investors and debt holders in comparing our performance on a consistent basis without regard to financing methods, capital structure, income taxes or depreciation and amortization methods, which can vary significantly depending upon many factors. We believe EBITDA excluding special items, as noted in the table below, is a useful measure of our operating performance. This statement excludes forward looking measures of EBITDA where a reconciliation to the corresponding accounting principles generally accepted in the United States (GAAP) measures is not available due to the variability, complexity and limited visibility of non-cash items that are excluded from the non-GAAP outlook measure.
EBITDA is not in accordance with, or an alternative for, GAAP and may not be consistent with measures used by other companies. It should be considered supplemental data; however, the amounts included in the EBITDA calculation are derived from amounts included in our Condensed Consolidated Statements of Net Income. Below is a reconciliation of net income attributable to Cummins Inc. to EBITDA for each of the applicable periods:
Three months ended
Nine months ended
September 30,
September 30,
In millions
2025
2024
2025
2024
Net income attributable to Cummins Inc.
$
536
$
809
$
2,250
$
3,528
Net income attributable to Cummins Inc., as a percentage of net sales
6.4
%
9.6
%
9.0
%
13.8
%
Add:
Net income attributable to noncontrolling interests
23
34
87
95
Consolidated net income
559
843
2,337
3,623
Add:
Interest expense
83
83
247
281
Income tax expense
271
200
835
618
Depreciation and amortization
274
263
815
784
EBITDA
$
1,187
$
1,389
$
4,234
$
5,306
EBITDA, as a percentage of net sales
14.3
%
16.4
%
16.8
%
20.7
%
Special items:
Accelera goodwill impairment
210
—
210
—
Accelera inventory write-down
30
—
30
—
Atmus divestiture costs
—
—
—
35
Restructuring actions
—
—
—
29
Gain related to the divestiture of Atmus
—
—
—
(1,333
)
EBITDA, excluding special items
$
1,427
$
1,389
$
4,474
$
4,037
EBITDA, excluding special items, as a percentage of net sales
17.2
%
16.4
%
17.8
%
15.7
%
CUMMINS INC. AND SUBSIDIARIES
SEGMENT SALES DATA
(Unaudited)
Engine Segment Sales by Market and Unit Shipments by Engine Classification
Sales for our Engine segment by market were as follows:
2025
In millions
Q1
Q2
Q3
Q4
YTD
Heavy-duty truck
$
921
$
976
$
772
$
—
$
2,669
Medium-duty truck and bus
986
950
784
—
2,720
Light-duty automotive
421
486
583
—
1,490
Off-highway
443
487
466
—
1,396
Total sales
$
2,771
$
2,899
$
2,605
$
—
$
8,275
2024
In millions
Q1
Q2
Q3
Q4
YTD
Heavy-duty truck
$
1,059
$
1,184
$
1,021
$
980
$
4,244
Medium-duty truck and bus
995
1,074
1,073
1,024
4,166
Light-duty automotive
438
461
395
301
1,595
Off-highway
436
432
424
415
1,707
Total sales
$
2,928
$
3,151
$
2,913
$
2,720
$
11,712
Unit shipments by engine classification (including unit shipments to Power Systems and off-highway engine units included in their respective classification) were as follows:
2025
Units (1)
Q1
Q2
Q3
Q4
YTD
Heavy-duty
26,700
29,600
22,400
—
78,700
Medium-duty
75,200
73,400
63,100
—
211,700
Light-duty
39,100
44,000
49,600
—
132,700
Total units
141,000
147,000
135,100
—
423,100
2024
Units (1)
Q1
Q2
Q3
Q4
YTD
Heavy-duty
33,600
37,500
32,400
29,400
132,900
Medium-duty
75,800
79,600
79,200
75,700
310,300
Light-duty
54,800
57,200
41,400
36,000
189,400
Total units
164,200
174,300
153,000
141,100
632,600
(1) Unit shipments exclude aftermarket parts.
Components Segment Sales by Business
Sales for our Components segment by business were as follows:
2025
In millions
Q1
Q2
Q3
Q4
YTD
Drivetrain and braking systems
$
1,056
$
1,095
$
917
$
—
$
3,068
Emission solutions
902
900
788
—
2,590
Components and software
595
587
537
—
1,719
Automated transmissions
117
123
87
—
327
Total sales
$
2,670
$
2,705
$
2,329
$
—
$
7,704
2024
In millions
Q1
Q2
Q3
Q4
YTD
Drivetrain and braking systems
$
1,232
$
1,256
$
1,131
$
1,114
$
4,733
Emission solutions
971
941
864
825
3,601
Components and software
611
623
581
589
2,404
Automated transmissions
165
162
148
113
588
Atmus (1)
353
—
—
—
353
Total sales
$
3,332
$
2,982
$
2,724
$
2,641
$
11,679
(1) Included sales through the March 18, 2024, divestiture.
Distribution Segment Sales by Product Line
Sales for our Distribution segment by product line were as follows:
2025
In millions
Q1
Q2
Q3
Q4
YTD
Power generation
$
1,090
$
1,200
$
1,247
$
—
$
3,537
Parts
1,031
1,015
1,013
—
3,059
Service
416
439
495
—
1,350
Engines
370
387
417
—
1,174
Total sales
$
2,907
$
3,041
$
3,172
$
—
$
9,120
2024
In millions
Q1
Q2
Q3
Q4
YTD
Power generation
$
707
$
954
$
1,091
$
1,220
$
3,972
Parts
1,001
990
1,004
985
3,980
Service
406
448
455
444
1,753
Engines
421
437
402
419
1,679
Total sales
$
2,535
$
2,829
$
2,952
$
3,068
$
11,384
Power Systems Segment Sales by Product Line
Sales for our Power Systems segment by product line were as follows:
2025
In millions
Q1
Q2
Q3
Q4
YTD
Power generation
$
1,001
$
1,205
$
1,280
$
—
$
3,486
Industrial
498
506
531
—
1,535
Generator technologies
150
178
185
—
513
Total sales
$
1,649
$
1,889
$
1,996
$
—
$
5,534
2024
In millions
Q1
Q2
Q3
Q4
YTD
Power generation
$
853
$
987
$
1,055
$
1,090
$
3,985
Industrial
420
478
508
526
1,932
Generator technologies
116
124
124
127
491
Total sales
$
1,389
$
1,589
$
1,687
$
1,743
$
6,408
View source version on businesswire.com: https://www.businesswire.com/news/home/20251106123140/en/
The boss of AstraZeneca has said that unless the UK ramps up spending on new drugs, it could be on a trajectory to only being able to afford cheap, generic medicines rather than cutting-edge treatments.
Pascal Soriot made the remarks amid an acrimonious standoff between the pharmaceutical industry and the government over drug pricing, which has been blamed for drugmakers pausing or ditching nearly £2bn of investments in the UK this year.
Britain has been heavily criticised by pharma executives as well as high-profile scientists such as Sir John Bell, for not spending more on medicines, putting it out of line with other countries. Donald Trump has also put pressure on pharma companies to lower their drug prices in the US and increase them elsewhere.
“To say that countries will only be able to afford generics [drugs] is only an extreme case,” Soriot said on Thursday, stressing that “it’s not the case today of course, but if things continue to deteriorate the way they do … it is actually possible that it happens over time, if the ongoing trend that has been in place for 15-20 years doesn’t change.”
Soriot noted that the National Institute for Health and Care Excellence (NICE)cost-effectiveness thresholds for new drugs had not changed for two decades, “andwe’ve had a lot of inflation in the last five years”.
Labour has begun drawing up fresh proposals to try to end the drug pricing standoff after intensive talks with the industry and the Trump administration.
Soriot said that under these proposals, NICE’s cost-effectiveness thresholds would be raised by less than 25%, with an adjustment to get the overall increase to 25%. He called for a “substantial adjustment based on … inflation” to these thresholds, plus a “substantial moderation” to the rate at which the government claws back profits of drug sales to the NHS.
Under a voluntary scheme, drugmakers pay back a chunk of their UK revenues to the government. At the moment, companies repay about a quarter of revenues, compared with rebate rates of 5.7% in France and 7% in Germany. Talks between the industry body and ministers to renegotiate the deal broke down without an agreement in late August.
The AstraZeneca boss said the government should double spending on new medicines to 0.6% of GDP, from 0.3% now – in line with other countries.
According to NICE’s thresholds, medicines costing between £20,000 and £30,000 per year of good health gained for patients represent good value for money for the NHS. The Association of the British Pharmaceutical Industry has called for this to be roughly doubled to between £40,000 and £50,000.
Soriot said these changes are badly needed. “The only thing I can say is what I believe would attract investments in the UK, and really create economic growth on top of improving access for patients.”
The AstraZeneca boss, who is one of the highest-paid chief executives of UK-listed companies, argued that purchasing cutting-edge treatments would save the NHS money elsewhere, by diagnosing and treating patients early.
He denied that the company was slowly relocating to the US, but warned that Europe, including the UK, had been losing out to the US and China in terms of introducing new technologies.
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AstraZeneca, Britain’s biggest drugmaker, recently announced that it would list its shares directly on the New York Stock Exchange, in a decision described as a “knock-back for London”. However, it insisted that it would remain headquartered in Cambridge, England, and stay listed on the London Stock Exchange.
It is one of a number of pharmaceutical companies that have pulled back from UK investments in recent months, ditching the planned £450m expansion of its vaccine facility in Speke in Liverpool at the start of the year, and pausing a new £200m research centre in Cambridge in September.
At the same time, the firm has announced $50bn of investments in the US, and a deal with the Donald Trump administration to lower its prescription drug prices by up to 80% and sell directly to consumers to cut out costly middlemen. This will stave off threatened US tariffs for three years.
AstraZeneca said on Thursday it had broken ground on a new $4.5bn manufacturing facility in Virginia, which will create 3,600 jobs and produce the drug substance for its weight management and metabolic portfolio, including its GLP-1 anti-obesity pill that is in intermediate clinical studies.
It reported an 11% rise in revenues to $43bn for the July to September quarter, with 16% growth in cancer drugs, and made a profit before tax of $3.2bn, up 70%.
CHATHAM, N.J., Nov. 06, 2025 (GLOBE NEWSWIRE) — Tonix Pharmaceuticals Holding Corp. (Nasdaq: TNXP) (“Tonix” or the “Company”), a fully-integrated commercial biotechnology company, today announced that Seth Lederman, M.D., Tonix’s Chief Executive Officer, will be presenting at the Stifel 2025 Healthcare Conference on Thursday, November 13, 2025 at 10:00 AM ET.
Investors interested in arranging a meeting with the Company’s management during the conference should contact their Stifel representative. A webcast of the presentation will be available on the Events page of the Investors section of the Company’s website. A replay of the webcast will be available after the event and will be accessible for 90 days following the event.
Tonix Pharmaceuticals Holding Corp.* Tonix Pharmaceuticals is a fully-integrated biotechnology company with marketed products and a pipeline of development candidates. Tonix has received FDA approval for TonmyaTM, a first-in-class, non-opioid analgesic medicine for the treatment of fibromyalgia, a chronic pain condition that affects millions of adults. This marks the first approval for a new prescription medicine for fibromyalgia in more than 15 years. Tonix also markets two treatments for acute migraine in adults. Tonix’s development portfolio is focused on central nervous system (CNS) disorders, immunology, immuno-oncology, rare disease and infectious disease. TNX-102 SL is being developed to treat acute stress reaction and acute stress disorder under a Physician-Initiated IND at the University of North Carolina in the OASIS study funded by the U.S. Department of Defense (DoD). TNX-102 SL is also in development for major depressive disorder. Tonix’s immunology development portfolio consists of biologics to address organ transplant rejection, autoimmunity and cancer, including TNX-1500, which is an Fc-modified humanized monoclonal antibody targeting CD40-ligand (CD40L or CD154) being developed for the prevention of allograft rejection and for the treatment of autoimmune diseases. Tonix’s rare disease portfolio includes TNX-2900, intranasal oxytocin potentiated with magnesium, in development for Prader-Willi syndrome. Tonix’s infectious disease portfolio includes TNX-801, a vaccine in development for mpox and smallpox, as well as TNX-4800, a monoclonal antibody for the seasonal prevention of Lyme Disease. Finally, TNX-4200 for which Tonix has a contract with the U.S. DoD’s Defense Threat Reduction Agency (DTRA) for up to $34 million over five years, is a small molecule broad-spectrum antiviral agent targeting CD45 for the prevention or treatment of infections to improve the medical readiness of military personnel in biological threat environments. Tonix owns and operates a state-of-the art infectious disease research facility in Frederick, Md.
* Tonix’s product development candidates are investigational new drugs or biologics; their efficacy and safety have not been established and have not been approved for any indication.
This press release and further information about Tonix can be found at www.tonixpharma.com.
Forward Looking Statements Certain statements in this press release are forward-looking within the meaning of the Private Securities Litigation Reform Act of 1995. These statements may be identified by the use of forward-looking words such as “anticipate,” “believe,” “forecast,” “estimate,” “expect,” and “intend,” among others. These forward-looking statements are based on Tonix’s current expectations and actual results could differ materially. There are a number of factors that could cause actual events to differ materially from those indicated by such forward-looking statements. These factors include, but are not limited to, risks related to the failure to successfully launch and commercialize Tonmya™ and any of our approved products; risks related to the failure to obtain FDA clearances or approvals and noncompliance with FDA regulations; risks related to the timing and progress of clinical development of our product candidates; our need for additional financing; uncertainties of patent protection and litigation; uncertainties of government or third party payor reimbursement; limited research and development efforts and dependence upon third parties; and substantial competition. As with any pharmaceutical under development, there are significant risks in the development, regulatory approval and commercialization of new products. Tonix does not undertake an obligation to update or revise any forward-looking statement. Investors should read the risk factors set forth in the Annual Report on Form 10-K for the year ended December 31, 2024, as filed with the Securities and Exchange Commission (the “SEC”) on March 18, 2025, and periodic reports filed with the SEC on or after the date thereof. All of Tonix’s forward-looking statements are expressly qualified by all such risk factors and other cautionary statements. The information set forth herein speaks only as of the date thereof.
Brian Korb astr partners (917) 653-5122 brian.korb@astrpartners.com
Media Contacts Mary Ann Ondish Tonix Pharmaceuticals investor.relations@tonixpharma.com (862) 799-8599
Ray Jordan Putnam Insights ray@putnaminsights.com
INDICATION TONMYA is indicated for the treatment of fibromyalgia in adults. CONTRAINDICATIONS TONMYA is contraindicated: In patients with hypersensitivity to cyclobenzaprine or any inactive ingredient in TONMYA. Hypersensitivity reactions may manifest as an anaphylactic reaction, urticaria, facial and/or tongue swelling, or pruritus. Discontinue TONMYA if a hypersensitivity reaction is suspected. With concomitant use of monoamine oxidase (MAO) inhibitors or within 14 days after discontinuation of an MAO inhibitor. Hyperpyretic crisis seizures and deaths have occurred in patients who received cyclobenzaprine (or structurally similar tricyclic antidepressants) concomitantly with MAO inhibitors drugs. During the acute recovery phase of myocardial infarction, and in patients with arrhythmias, heart block or conduction disturbances, or congestive heart failure. In patients with hyperthyroidism. WARNINGS AND PRECAUTIONS Embryofetal toxicity: Based on animal data, TONMYA may cause neural tube defects when used two weeks prior to conception and during the first trimester of pregnancy. Advise females of reproductive potential of the potential risk and to use effective contraception during treatment and for two weeks after the final dose. Perform a pregnancy test prior to initiation of treatment with TONMYA to exclude use of TONMYA during the first trimester of pregnancy. Serotonin syndrome: Concomitant use of TONMYA with selective serotonin reuptake inhibitors (SSRIs), serotonin norepinephrine reuptake inhibitors (SNRIs), tricyclic antidepressants, tramadol, bupropion, meperidine, verapamil, or MAO inhibitors increases the risk of serotonin syndrome, a potentially life-threatening condition. Serotonin syndrome symptoms may include mental status changes, autonomic instability, neuromuscular abnormalities, and/or gastrointestinal symptoms. Treatment with TONMYA and any concomitant serotonergic agent should be discontinued immediately if serotonin syndrome symptoms occur and supportive symptomatic treatment should be initiated. If concomitant treatment with TONMYA and other serotonergic drugs is clinically warranted, careful observation is advised, particularly during treatment initiation or dosage increases. Tricyclic antidepressant-like adverse reactions: Cyclobenzaprine is structurally related to TCAs. TCAs have been reported to produce arrhythmias, sinus tachycardia, prolongation of the conduction time leading to myocardial infarction and stroke. If clinically significant central nervous system (CNS) symptoms develop, consider discontinuation of TONMYA. Caution should be used when TCAs are given to patients with a history of seizure disorder, because TCAs may lower the seizure threshold. Patients with a history of seizures should be monitored during TCA use to identify recurrence of seizures or an increase in the frequency of seizures. Atropine-like effects: Use with caution in patients with a history of urinary retention, angle-closure glaucoma, increased intraocular pressure, and in patients taking anticholinergic drugs. CNS depression and risk of operating a motor vehicle or hazardous machinery: TONMYA monotherapy may cause CNS depression. Concomitant use of TONMYA with alcohol, barbiturates, or other CNS depressants may increase the risk of CNS depression. Advise patients not to operate a motor vehicle or dangerous machinery until they are reasonably certain that TONMYA therapy will not adversely affect their ability to engage in such activities. Oral mucosal adverse reactions: In clinical studies with TONMYA, oral mucosal adverse reactions occurred more frequently in patients treated with TONMYA compared to placebo. Advise patients to moisten the mouth with sips of water before administration of TONMYA to reduce the risk of oral sensory changes (hypoesthesia). Consider discontinuation of TONMYA if severe reactions occur. ADVERSE REACTIONS The most common adverse reactions (incidence ≥2% and at a higher incidence in TONMYA-treated patients compared to placebo-treated patients) were oral hypoesthesia, oral discomfort, abnormal product taste, somnolence, oral paresthesia, oral pain, fatigue, dry mouth, and aphthous ulcer.
DRUG INTERACTIONS
MAO inhibitors: Life-threatening interactions may occur. Other serotonergic drugs: Serotonin syndrome has been reported. CNS depressants: CNS depressant effects of alcohol, barbiturates, and other CNS depressants may be enhanced. Tramadol: Seizure risk may be enhanced. Guanethidine or other similar acting drugs: The antihypertensive action of these drugs may be blocked. USE IN SPECIFIC POPULATIONS Pregnancy: Based on animal data, TONMYA may cause fetal harm when administered to a pregnant woman. The limited amount of available observational data on oral cyclobenzaprine use in pregnancy is of insufficient quality to inform a TONMYA-associated risk of major birth defects, miscarriage, or adverse maternal or fetal outcomes. Advise pregnant women about the potential risk to the fetus with maternal exposure to TONMYA and to avoid use of TONMYA two weeks prior to conception and through the first trimester of pregnancy. Report pregnancies to the Tonix Medicines, Inc., adverse-event reporting line at 1-888-869-7633 (1-888-TNXPMED). Lactation: A small number of published cases report the transfer of cyclobenzaprine into human milk in low amounts, but these data cannot be confirmed. There are no data on the effects of cyclobenzaprine on a breastfed infant, or the effects on milk production. The developmental and health benefits of breastfeeding should be considered along with the mother’s clinical need for TONMYA and any potential adverse effects on the breastfed child from TONMYA or from the underlying maternal condition. Pediatric use: The safety and effectiveness of TONMYA have not been established. Geriatric patients: Of the total number of TONMYA-treated patients in the clinical trials in adult patients with fibromyalgia, none were 65 years of age and older. Clinical trials of TONMYA did not include sufficient numbers of patients 65 years of age and older to determine whether they respond differently from younger adult patients. Hepatic impairment: The recommended dosage of TONMYA in patients with mild hepatic impairment (HI) (Child Pugh A) is 2.8 mg once daily at bedtime, lower than the recommended dosage in patients with normal hepatic function. The use of TONMYA is not recommended in patients with moderate HI (Child Pugh B) or severe HI (Child Pugh C). Cyclobenzaprine exposure (AUC) was increased in patients with mild HI and moderate HI compared to subjects with normal hepatic function, which may increase the risk of TONMYA-associated adverse reactions. Please see additional safety information in the full Prescribing Information. To report suspected adverse reactions, contact Tonix Medicines, Inc. at 1-888-869-7633, or the FDA at 1-800-FDA-1088 or www.fda.gov/medwatch.
The Bank of England has kept interest rates on hold at 4% as it warned unemployment was rising and growth remains weak as Rachel Reeves prepares for her make-or-break budget.
With less than three weeks before the chancellor’s highly anticipated tax and spending measures, the Bank’s monetary policy committee (MPC) voted by a narrow five-four majority to keep borrowing costs unchanged for a second consecutive meeting.
Holding the casting vote in a finely balanced decision, Andrew Bailey, the Bank’s governor, said that he wanted to “wait and see” whether inflationary pressures in the British economy would continue to fade and if Reeves’s budget would have an impact.
“We held interest rates at 4% today. We still think rates are on a gradual path downwards, but we need to be sure that inflation is on track to return to our 2% target before we cut them again,” he said.
Borrowing costs have been cut five times since Labour came to power in July 2024, easing pressure on households and businesses, with the last reduction made in August. Meanwhile, inflation is running at 3.8% – almost twice the Bank’s 2% target.
In her 26 November fiscal statement the chancellor is expected to increase taxes, potentially slowing the economy, alongside measures taking action against the rising cost of living.
The decision to hold matched economists expectations, with financial markets putting the odds of a reduction in borrowing costs at below 30%.
However, the close hold decision and updated gloomy forecasts from the Bank’s policymakers are likely to fuel expectations for a December rate cut after rate setters have had the chance to digest Reeves’s budget.
Expressing growing concern over the strength of the economy, the Bank said unemployment was on track to climb to a higher peak above 5% early next year amid subdued hiring demand.
It said inflation was likely to have already peaked at 3.8%, below its previous prediction for an increase to about 4% this autumn, and was set to fall back to about 2.5% next year before returning to its 2% target over the course of 2027.
Threadneedle Street warned that speculation over Reeves’s budget had probably contributed to weakness in the economy in recent months, and that households had also kept a lid on spending amid heightened pressures on living costs.
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It also found weaker exports to the US and disruption to Britain’s manufacturing base linked to the Jaguar Land Rover cyber-attack had pulled down output in the third quarter, forecasting a weaker growth rate of 0.2%.
However, policymakers signalled they remained concerned that inflationary pressures could continue to weigh on households and businesses.
But while most of the MPC said it was a risk that current high rates of inflation might encourage workers and firms to drive up their wage expectations and put up prices, the Bank said the risks were becoming tilted to the downside.
Signalling readiness to take action in the coming months, Bailey explained in the MPC minutes: “Upside risks to inflation have become less pressing since August, and I see further policy easing to come if disinflation becomes more clearly established in the period ahead.”
Who is likely to be affected by today’s decision?published at 11:41 GMT
11:41 GMT
Michael Race Business and economics reporter, at the Bank of England
Depending on your individual circumstances, interest rates can impact you in different ways.
Mortgage holders with variable or tracker mortgages, or those who are looking to secure new fixed-rate deals, will face a change in their monthly repayments if rates are altered.
If rates are higher, it becomes harder generally for first-time buyers, as it becomes more expensive to borrow money for a mortgage.
Higher rates tend to mean increased charges for unsecured loans and credit cards, but people with savings should benefit from higher interest rates and get better returns on their money.
Lower rates, while making it cheaper to borrow, mean banks tend to offer lower returns on savings.
Higher rates could also be good news for those on the cusp of retirement, who might get a better annuity rate.
This determines how much guaranteed income you get, when you swap some or all of your pension pot for a secure income.
For the government though, higher interest rates in recent times have meant it has had to pay more interest on the country’s debt.
The cost of government borrowing has been in the spotlight in recent months, with speculation that Chancellor Rachel Reeves could raise taxes in the Budget on 26 November.
FREETOWN, November 6, 2025 – Sierra Leone’s economy is showing signs of stability in the face of heightened global challenges, with growth projected at 4.3 percent in 2025 and reaching 4.6 percent by 2027, according to the latest World Bank Sierra Leone Economic Update (SLEU) launched today in Freetown. This outlook is supported by expected improvements in agricultural productivity, expansion in the mining sector, and steady performance in services.
The report, “Enabling the Private Sector for Growth and Job Creation,” highlights the key constraints faced by the private sector and the critical role of private sector development in sustaining economic progress and generating jobs for Sierra Leone’s growing population.
“Unlocking the potential of the private sector remains critical to diversifying Sierra Leone’s economy and creating more meaningful jobs,” said Abdu Muwonge, World Bank Group Country Manager for Sierra Leone. “Sustaining the current reform trajectory to restore macroeconomic stability, improving the investment climate, and strengthening social spending will foster inclusive growth and development. The World Bank remains committed to supporting Sierra Leone’s journey toward inclusive and sustainable growth.”
Sierra Leone faces an enormous challenge in generating sufficient jobs for its expanding workforce with the country required to create at least 75,000 new jobs annually to maintain the current employment-to-population ratio, the report notes. Growth and employment opportunities are constrained by a lack of vibrant private sector activity, limited access to finance, land, electricity, and skills.
Revitalizing Sierra Leone’s private sector is essential for unlocking the country’s growth potential and creating more jobs,” said Subika Farazi, World Bank Senior Economist and co-author of the report. “As highlighted in the new World Bank Group flagship report, B-READY 2024, there is room to improve and strengthen Sierra Leone’s regulatory environment and service delivery. By doing so, the country can foster a more dynamic, resilient, and competitive business climate that empowers entrepreneurs and attracts investment.
Key policy recommendations from the report include:
Strengthening fiscal management through revenue enhancement, improved expenditure controls, and stronger tax administration to reduce reliance on costly domestic debt and restore fiscal credibility.
Boosting private sector competitiveness by simplifying regulations for business entry, operation, and exit, encouraging market competition, and reducing trade barriers.
Improving access to finance by expanding credit reporting, modernizing collateral registration, and enhancing transparency to unlock inclusive finance and strengthening the private sector.
Enhancing infrastructure by investing in reliable energy, transportation, and digital networks to reduce operational inefficiencies for firms.
Streamlining foreign direct investment regulations and investment protection frameworks, and reforming restrictions in key industries to attract needed capital.
“Unlocking Sierra Leone’s private sector potential to create jobs and drive development should be prioritized,” said Michael Saffa, World Bank Senior Country Economist and lead author of the report.“Sierra Leone’s prospects for growth and poverty reduction depend on strengthening fiscal discipline, improving the business environment, and fostering private sector-led job creation. Without decisive reforms, the country risks falling short of its development objectives.”
Third quarter revenues rose by 11% year-over-year to $2.3 billion, fueled by $590 million of Services revenues, up 12% compared to the same period last year, and 34 aircraft deliveries, up 4 units compared to the same quarter of 2024.
Adjusted EBITDA(1) for the third quarter reached $356 million, marking a 16% year-over-year increase. The adjusted EBITDA margin(2) increased by 60 basis points to 15.4%. Reported EBIT for the quarter was $227 million.
Adjusted net income(1) was $129 million, an increase of 59% year-over-year, and net income(3) was $85 million. Adjusted EPS(2) was positive at $1.21 for the third quarter, with diluted EPS(3) at $0.77.
Strong free cash flow(1) generation of $152 million, an improvement of $279 million compared to the same quarter last year; cash flows from operating activities(3) and net additions to PP&E and intangible assets(4) were at $190 million and $38 million respectively.
Backlog(5) as at September 30, 2025, reached $16.6 billion, reflecting a unit book-to-bill(6) of 1.3 for the quarter.
Available liquidity(1) remained strong at $1.6 billion, including cash and cash equivalents totaling $1.2 billion as at September 30, 2025. Deleveraging continues with the repayment of approximately $100 million in debt announced in November with a repayment date set for December 3, 2025.
Results for the quarter reinforce the Corporation is on track to achieving full-year guidance(7).
All amounts in this press release are in U.S. dollars, unless otherwise indicated. Amounts in tables are in millions except per share amounts, unless otherwise indicated.
Bombardier Inc. (TSX: BBD.B) today announced strong financial results for the third quarter of 2025, with multiple key metrics recording large year-over-year gains. The results emphasize the company’s ability to deliver a high level of performance and place the team in an excellent position to reach full-year guidance(7). The third quarter saw sustained Services growth as well as the launch of a new expansion initiative geared toward the company’s footprint in the U.S. Increases in deliveries and continued momentum in the backlog both highlighted strong, sustained demand for Bombardier products.
“Bombardier’s third quarter performance marked by double-digit growth, or better, across all key indicators is a testament to the entire team’s relentless focus on executing our plan and supporting our customers. We delivered strong year-over-year cash flow improvement, driven by sustained customer demand, efficient operations, and strong uptake on parts and service programs,’’ said Éric Martel, President and Chief Executive Officer, Bombardier. “We are entering the final stretch of 2025 with excellent momentum across the board. The Global 8000, certified this week by Transport Canada, is the fastest business jet in the world, establishing new industry benchmarks with a maximum operating speed of Mach 0.95 and a cabin altitude of 2,691 ft. The aircraft is on track to enter service this year. Our service network is consistently full and expanding in the Middle East and the U.S. Finally, our defense team is well positioned to grow its proportion of deliveries in the near term. The Bombardier team is on track for a strong end of year.”
Revenues, Aircraft Deliveries and Services All Rise
The company generated $2.3 billion in revenues for the third quarter, reflecting 11% year-over-year growth. The delivery mix favored Global aircraft over Challenger, with a total of 34 units.
Bombardier reported $590 million in revenues from its Services activities, achieving 12% year-over-year growth, a segment that continues to show high performance and even further growth potential. In August, the company unveiled major multi-phase U.S. expansion, the first step being the new service centre in Fort Wayne, Indiana, announced in October of 2025.
Adjusted EBITDA(1) reached $356 million for the third quarter, up 16% year-over-year increase. Adjusted EBITDA margin(2) improved by 60 basis points year-over-year to 15.4%. This growth was driven by 4 incremental aircraft deliveries, a favorable delivery mix and increased defense-related content, partially offset by transitory supply chain-related costs. Reported EBIT for the third quarter was $227 million. Adjusted EPS(2) was positive at $1.21 for the third quarter, with diluted EPS(3) at $0.77.
Significant Improvement in Free Cash Flow
The company reported $152 million in free cash flow(1) for the quarter, an impressive $279 million improvement compared to the same quarter last year, driven by increased customer advances, robust order momentum, lower investments in inventories and incremental earnings. Cash flows from operating activities(3) and net additions to PP&E and intangible assets(4) were at $190 million and $38 million respectively.
Backlog Remains Strong
The backlog(5) grew by $0.5 billion during the quarter, reaching $16.6 billion as at September 30, 2025. The backlog(5) remained at a 5-year-high level, supported by strong order intake that represented a unit book-to-bill(6) of 1.3 at the end of the quarter.
Continued Actions to Improve Balance Sheet
The company maintained its disciplined approach to deleveraging, successfully refinancing $250 million in debt during the quarter and announced, in November, the repayment of another approximately $100 million in debt with a repayment date set for December 3, 2025. Building on our efforts to strengthen the balance sheet, Bombardier extended maturities and lowered the average cost of debt. Available liquidity(1) remained strong at $1.6 billion, including cash and cash equivalents totaling $1.2 billion as at September 30, 2025.
(1) Non-GAAP financial measure. A non-GAAP financial measure is not a standardized financial measure under the financial reporting framework used to prepare our financial statements and might not be comparable to similar financial measures used by other issuers. Refer to the section entitled Caution regarding non-GAAP and other financial measures section of this press release and the Non-GAAP and other financial measures section in the MD&A for definitions of these metrics and reconciliations to the most comparable IFRS measures. (2) Non-GAAP financial ratio. A non-GAAP financial ratio is not a standardized financial measure under the financial reporting framework used to prepare our financial statements and might not be comparable to similar financial measures used by other issuers. Refer to the section entitled Caution regarding non-GAAP and other financial measures of this press release and to the Non-GAAP and other financial measures section in the MD&A for definitions of these metrics and reconciliations to the most comparable IFRS measures. (3) Supplementary financial measure. Refer to the section entitled Caution regarding non-GAAP and other financial measures of this press release and to the Non-GAAP and other financial measures section in the MD&A for definitions of these metrics. (4) Discontinued operations are related to the sale of the Transportation business. The expenses recorded in discontinued operations for the three- and nine-month periods ended September 30, 2025 principally relate to change in estimates of a provision for professional fees. (5) Only from continuing operations. (6) Represents order backlog for both manufacturing and Services.
Selected results (PDF)
About Bombardier
At Bombardier (BBD-B.TO), we design, build, modify and maintain the world’s best-performing aircraft for the world’s most discerning people and businesses, governments and militaries. That means not simply exceeding standards, but understanding customers well enough to anticipate their unspoken needs.
For them, we are committed to pioneering the future of aviation – innovating to make flying more reliable, efficient and sustainable. And we are passionate about delivering unrivaled craftsmanship and care, giving our customers greater confidence and the elevated experience they deserve and expect. Because people who shape the world will always need the most productive and responsible ways to move through it.
Bombardier customers operate a fleet of more than 5,100 aircraft, supported by a vast network of Bombardier team members worldwide and 10 service facilities across six countries. Bombardier’s performance-leading jets are proudly manufactured in aerostructure, assembly and completion facilities in Canada, the United States and Mexico. In 2024, Bombardier was honoured with the prestigious “Red Dot: Best of the Best” award for Brands and Communication Design.
For Information
For corporate news and information, including Bombardier’s Sustainability report, as well as the company’s plans to cover all its flight operations with a Sustainable Aviation Fuel (SAF) blend utilizing the Book and Claim system visit bombardier.com.
Learn more about Bombardier’s industry-leading products and customer service network at bombardier.com. Follow us on X @Bombardier. Bombardier, Challenger, Global and Global 8000 are registered trademarks of Bombardier Inc. or its subsidiaries.
Media Contacts
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Francis Richer de La Flèche Vice President, Financial Planning and Investor Relations Bombardier +1 514 240-9649
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The Management’s Discussion and Analysis and the Interim Consolidated Financial Statements are available at ir.bombardier.com.
CAUTION REGARDING NON-GAAP AND OTHER FINANCIAL MEASURES
This press release is based on reported earnings in accordance with IFRS and on the following non-GAAP and other financial measures:
Non-GAAP and Other Financial Measures
Non-GAAP Financial Measures
Adjusted EBIT
EBIT excluding certain items which do not reflect the Corporation’s core performance or where their separate presentation will assist users of the consolidated financial statements in understanding the Corporation’s results for the period. Such items include restructuring charges (reversals), loss (gain) related to disposal of business, impairment and program termination (reversals), certain one-time pension related items included in other expense (income) such as loss (gain) on pension annuity purchases, and non-commercial legal claims.
Adjusted EBITDA
Adjusted EBIT plus amortization charges on PP&E and intangible assets.
Adjusted net income (loss)
Net income (loss) from continuing operations excluding restructuring charges (reversals), loss (gain) related to disposal of business, impairment and program termination (reversals), certain one-time pension related items included in other expense (income) such as loss (gain) on pension annuity purchases, non-commercial legal claims, certain net gains and losses arising from changes in measurement of provisions and of financial instruments carried at FVTP&L, accretion on net retirement benefit obligation, losses (gains) on repayment of long-term debt, changes in discount rates of provisions and the related tax impacts of these items.
Free cash flow (usage)
Cash flows from operating activities – continuing operations less net additions to PP&E and intangible assets.
Available liquidity
Cash and cash equivalents, plus undrawn amounts under credit facilities.
Non-GAAP Financial Ratios
Adjusted EPS
EPS calculated based on adjusted net income attributable to equity holders of Bombardier Inc., using the treasury stock method, giving effect to the exercise of all dilutive elements.
Adjusted EBIT margin
Adjusted EBIT, as a percentage of total revenues.
Adjusted EBITDA margin
Adjusted EBITDA, as a percentage of total revenues.
Supplementary Financial Measures
EBIT margin
EBIT, as a percentage of total revenues.
Net additions to PP&E and intangible assets
Additions to PP&E and intangible assets less proceeds from disposals of PP&E and intangible assets.
Non-GAAP and other financial measures are measures mainly derived from the consolidated financial statements but are not standardized financial measures under the financial reporting framework used to prepare our financial statements. Therefore, these might not be comparable to similar non-GAAP and other financial measures used by other issuers. The exclusion of certain items from non-GAAP or other financial measures does not imply that these items are necessarily non-recurring.
Adjusted EBIT
Adjusted EBIT is defined as the EBIT excluding certain items which do not reflect the Corporations core performance or where their separate presentation will assist users of the consolidated financial statements in understanding the Corporation’s results for the period. Such items include restructuring charges (reversals)(1), loss (gain) related to disposal of business(2), impairment and program termination (reversals)(3), certain one-time pension related items included in other expense (income) such as loss (gain) on pension annuity purchases, and non-commercial legal claims. Management uses adjusted EBIT for purposes of evaluating underlying business performance. Management believes presentation of this non-GAAP operating earnings measure in addition to IFRS measures provides users of our Financial Report with enhanced understanding of our results and related trends and increases the transparency and clarity of the core results of our business. For these reasons, a significant number of users of the MD&A analyze our results based on this financial measure. Management believes this measure helps users of the MD&A to better analyze results, enabling better comparability of our results from one period to another and with peers.
(1) Includes severance charges or related reversal, as well as curtailment losses (gains), if any. (2) Includes changes in provisions related to past divestitures. (3) Includes impairment or reversal of impairment of PP&E and intangible assets, as well as provisions related to program termination or their related reversal, if any.
Adjusted EBITDA
Adjusted EBITDA is defined as the EBIT excluding restructuring charges (reversals)(1), loss (gain) related to disposal of business(2), impairment and program termination (reversals)(3), certain one-time pension related items included in other expense (income) such as loss (gain) on pension annuity purchases, non-commercial legal claims, and amortization charges on PP&E and intangible assets. Management uses adjusted EBITDA for purposes of evaluating underlying business performance. Management believes this non-GAAP operating earnings measure in addition to IFRS measures provides users of our Financial Report with enhanced understanding of our results and related trends and increases the transparency and clarity of the core results of our business, since it excludes the effects of items that are usually associated with investing or financing activities and items that do not reflect our core performance or where their exclusion will assist users in understanding our results for the period. For these reasons, a significant number of users of the MD&A analyze our results based on this financial measure. Management believes this measure helps users of the MD&A to better analyze results, enabling better comparability of our results from one period to another and with peers.
Adjusted net income (loss)
Adjusted net income (loss) is defined as the net income (loss) from continuing operations adjusted for certain specific items that are significant but are not, based on management’s judgment, reflective of the Corporation’s underlying operations. These include adjustments related to restructuring charges (reversals)(1), loss (gain) related to disposal of business(2), impairment and program termination (reversals)(3), certain one-time pension related items included in other expense (income) such as loss (gain) on pension annuity purchases, non-commercial legal claims, certain net gains and losses arising from changes in measurement of provisions and of financial instruments carried at FVTP&L, accretion on net retirement benefit obligation, losses (gains) on repayment of long-term debt, changes in discount rates of provisions and the related tax impacts of these items. Management uses adjusted net income (loss) for purposes of evaluating underlying business performance. Management believes this non-GAAP earnings measure in addition to IFRS measures provides users of our Financial Report with enhanced understanding of our results and related trends and increase the transparency and clarity of the core results of our business. Adjusted net income (loss) excludes items that do not reflect our core performance or where their exclusion will assist users in understanding our results for the period. For these reasons, a significant number of users of the MD&A analyze our results based on this financial measure. Management believes this measure helps users of the MD&A to better analyze results, enabling better comparability of our results from one period to another and with peers.
Free cash flow (usage)
Free cash flow (usage) is defined as cash flows from operating activities – continuing operations less net additions to PP&E and intangible assets. Management believes that this non-GAAP cash flow measure provides investors with an important perspective on the Corporation’s generation of cash available for shareholders, debt repayment, and acquisitions after making the capital investments required to support ongoing business operations and long-term value creation. This non-GAAP cash flow measure does not represent the residual cash flow available for discretionary expenditures as it excludes certain mandatory expenditures such as repayment of maturing debt. Management uses free cash flow (usage) as a measure to assess both business performance and overall liquidity generation.
Available liquidity
Available liquidity is defined as cash and cash equivalents plus undrawn amounts under credit facilities. Management believes that this non-GAAP financial measure provides investors with an important perspective on the Corporation’s ability to meet expected liquidity requirements, including the support of product development initiatives and to ensure financial flexibility. This measure does not have any standardized meaning prescribed by IFRS and therefore, may not be comparable to similar measures presented by other companies.
(1) Includes severance charges or related reversal, as well as curtailment losses (gains), if any. (2) Includes changes in provisions related to past divestitures. (3) Includes impairment or reversal of impairment of PP&E and intangible assets, as well as provisions related to program termination or their related reversal, if any.
Adjusted EPS
Adjusted EPS is defined as the adjusted net income (loss) attributable to equity shareholders of Bombardier Inc., divided by the weighted-average diluted number of common shares for the period. Management uses adjusted EPS for purposes of evaluating underlying business performance. Management believes this non-GAAP financial ratio in addition to IFRS measures provides users of our Financial Report with enhanced understanding of our results and related trends and increases the transparency and clarity of the core results of our business. Adjusted EPS excludes items that do not reflect our core performance or where their exclusion will assist users in understanding our results for the period. For these reasons, a significant number of users of the MD&A analyze our results based on this financial measure. Management believes this measure helps users of the MD&A to better analyze results, enabling better comparability of our results from one period to another and with peers.
Adjusted EBIT margin
Adjusted EBIT margin is defined as the adjusted EBIT expressed as a percentage of total revenues. Management uses adjusted EBIT margin for purposes of evaluating underlying business performance. Management believes this non-GAAP financial ratio in addition to IFRS measures provides users of our Financial Report with enhanced understanding of our results and related trends and increase the transparency and clarity of the core results of our business. Adjusted EBIT margin excludes items that do not reflect our core performance or where their exclusion will assist users in understanding our results for the period. For these reasons, a significant number of users of the MD&A analyze our results based on this financial measure. Management believes this measure helps users of the MD&A to better analyze results, enabling better comparability of our results from one period to another and with peers.
Adjusted EBITDA margin
Adjusted EBITDA margin is defined as the adjusted EBITDA expressed as a percentage of total revenues. Management uses adjusted EBITDA margin for purposes of evaluating underlying business performance. Management believes this non-GAAP financial ratio in addition to IFRS measures provides users of our Financial Report with enhanced understanding of our results and related trends and increase the transparency and clarity of the core results of our business. Adjusted EBITDA margin excludes items that do not reflect our core performance or where their exclusion will assist users in understanding our results for the period. For these reasons, a significant number of users of the MD&A analyze our results based on this financial measure. Management believes this measure helps users of the MD&A to better analyze results, enabling better comparability of our results from one period to another and with peers.
Reconciliations to the closest IFRS measures (PDF)
FORWARD-LOOKING STATEMENTS
This press release includes forward-looking statements, which may involve, but are not limited to: statements with respect to our objectives, anticipations and outlook or guidance in respect of various financial and global metrics and sources of contribution thereto, targets, goals, priorities, market and strategies, financial position, financial performance, market position, capabilities, competitive strengths, credit ratings, beliefs, prospects, plans, expectations, anticipations, estimates and intentions; general economic and business outlook, prospects and trends of our industry; customer value; expected demand for products and services; growth strategies including, potential revenues and year-over-year growth generated therefrom; product development, including projected design, characteristics, capacity or performance; expected or scheduled entry-into-service of products and services, orders, deliveries, testing, lead times, certifications and execution of orders in general; competitive position; expectations regarding revenue and backlog mix; the expected impact of the legislative and regulatory environment and legal proceedings; strength of capital profile and balance sheet, creditworthiness, credit ratings, available liquidities and capital resources, expected financial requirements, capital allocation and deployment of excess liquidity and ongoing review of strategic and financial alternatives; the introduction and anticipated results of productivity enhancements and profitability initiatives, operational efficiencies optimizing the use of our manufacturing and services facilities, cost reduction and potential future restructuring initiatives, and anticipated costs, intended benefits and timing thereof; the ability to continue business growth and cash generation; expectations, objectives and strategies regarding debt repayment, refinancing of maturities and interest cost reduction; compliance with restrictive debt covenants; expectations regarding the declaration and payment of dividends on our preferred shares; intentions and objectives for our programs, assets and operations; expectations regarding the availability of government assistance programs; the impact of new, or exacerbation of existing global health, geopolitical or military events, or international trade disputes or renegotiation of existing trade arrangements, and the ability to mitigate the impacts resulting from a prolonged U.S. federal government shutdown, on the foregoing and the effectiveness of our plans and measures in response thereto; and expectations regarding the strength of markets, economic downturns or recession, and inflationary and supply chain pressures.
In addition, statements that “we believe” and similar statements reflect our beliefs and opinions on the relevant subject. These statements are based on information available to us as of the date of this press release. While we believe that information provides a reasonable basis for these statements, that information may be limited or incomplete. Our statements should not be read to indicate that we have conducted an exhaustive inquiry into, or review of all relevant information. These statements are inherently uncertain, and investors are cautioned not to unduly rely on these statements.
Forward-looking statements can generally be identified by the use of forward-looking terminology such as “may”, “will”, “shall”, “can”, “expect”, “estimate”, “intend”, “anticipate”, “plan”, “foresee”, “believe”, “continue”, “maintain” or “align”, the negative of these terms, variations of them or similar terminology. Forward-looking statements are presented for the purpose of assisting investors and others in understanding certain key elements of our current objectives, strategic priorities, expectations, guidance, outlook and plans, and in obtaining a better understanding of our business and anticipated operating environment. Readers are cautioned that such information may not be appropriate for other purposes.
By their nature, forward-looking statements require management to make assumptions and are subject to important known and unknown risks and uncertainties, which may cause our actual results in future periods to differ materially from forecast results set forth in forward-looking statements. While management considers these assumptions to be reasonable and appropriate based on information currently available, there is risk that they may not be accurate. The assumptions underlying the forward-looking statements made in this press release include the following: alignment of production rates to market demand, including the supply base supporting our product development and production rates in a commercially acceptable and timely manner; deployment and execution of growth strategies, including our Services, Pre-owned and Defense businesses; and mitigation of international trade disputes and protection measures (including tariffs), changes to existing trade agreements and the ability to mitigate the impacts resulting from a prolonged U.S. federal government shutdown. For additional information about these and other assumptions underlying the forward-looking statements made in this press release, refer to the Forward-looking statements – Assumptions section in the MD&A of the Corporation’s Interim Financial Report for the quarter ended September 30, 2025. Given the impact of the changing circumstances surrounding new or continuing global health, geopolitical and military events, and new or threatened international protectionist trade policies or measures, as well as the related response from the Corporation, governments (federal, provincial and municipal, both domestic, foreign and multinational inter-governmental organizations), regulatory authorities, businesses, suppliers, customers, counterparties and third-party service providers, there is an inherently higher degree of uncertainty associated with the Corporation’s assumptions.
Certain factors that could cause actual results to differ materially from those anticipated in the forward-looking statements include, but are not limited to: operational risks (such as risks related to business development and growth; order backlog; deployment and execution of our strategy, including cost reductions and working capital improvements and manufacturing and productivity enhancement initiatives; developing new products and services, including technological innovation and disruption; the certification of products and services; pressures on cash flows and capital expenditures, including due to seasonality and cyclicality; doing business with partners; product performance warranty and casualty claim losses; environmental, health and safety concerns and regulations; dependence on a limited number of contracts, customers and suppliers; supply chain risks; human resources risks including the departure of senior executives, the global availability of a skilled workforce, and the failure to attract and retain quality employees; reliance on information systems (including technology vulnerabilities, cybersecurity threats and privacy breaches); reliance on and protection of intellectual property rights; reputation risks; scrutiny and perception gaps regarding sustainability and corporate social responsibility matters; adequacy of insurance coverage; acquisitions; risk management; and tax matters); financing risks (such as risks related to liquidity and access to capital markets; substantial debt and interest payment requirements, including execution of debt management and interest cost reduction strategies; restrictive and financial debt covenants; retirement benefit plan risk; exposure to credit risk; and availability of government support); risks related to regulatory and legal proceedings, as well as changes in laws and regulations; risks associated with general economic conditions and disruptions, both regionally and globally, that may impact our sales and operations; business environment risks (such as risks associated with the financial condition of business aircraft customers; trade policy; increased competition; political instability and geopolitical tensions; a prolonged U.S. federal government shutdown; financial and economic sanctions and trade control limitations; global climate change; and force majeure events); market risks (such as foreign currency fluctuations and changing interest rates, including our ability to hedge exposures thereto; increases in commodity prices; and inflation); and other unforeseen adverse events. For more details, see the Risks and uncertainties section in Other in this press release and in the MD&A of the Corporation’s Interim Financial Report for the quarter ended September 30, 2025 and for the Corporation’s Financial Report for the fiscal year ended December 31, 2024. Any one or more of the foregoing factors may be exacerbated by new or continuing global health, geopolitical or military events, or new or exacerbated international trade disputes or renegotiation of existing trade arrangements, which may have a significantly more severe impact on the Corporation’s business, results of operations and financial condition than in the absence of such events.
Readers are cautioned that the foregoing list of factors that may affect future growth, results and performance is not exhaustive and undue reliance should not be placed on forward-looking statements. Other risks and uncertainties not presently known to us or that we presently believe are not material could also cause actual results or events to differ materially from those expressed or implied in our forward-looking statements. The forward-looking statements set forth herein reflect management’s expectations as at the date of this press release and are subject to change after such date. Unless otherwise required by applicable securities laws, we expressly disclaim any intention, and assume no obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. The forward-looking statements contained in this press release are expressly qualified by this cautionary statement.
In this study, we introduced a method for performing ULM brain imaging in awake mice under a longitudinal study setting. Our method enabled high-resolution imaging of deep cerebral microvasculature with the animal under the awake state. We translated the awake imaging techniques previously described in fUS (Brunner et al., 2021) to our study to enable awake ULM and established a quantitative metric for ULM image reconstruction. Based on the setup above, we studied CBF changes induced by anesthesia, which aligned well with literature. Isoflurane has been shown to increase vascular diameter and CBF in mice, as validated by multiple imaging modalities including optical coherence tomography (Rakymzhan et al., 2021), photoacoustic microscopy (Cao et al., 2017), two-photon microscopy (Lyons et al., 2016), and laser speckle imaging (Sullender et al., 2022; Takuwa et al., 2012). These effects have also been validated in larger animal models such as rats (Sicard et al., 2003), dogs (Iida et al., 1998), and marmosets (Santisakultarm et al., 2016). In humans, vasodilation and increased CBF caused by volatile anesthetics such as isoflurane have also been reported (Slupe and Kirsch, 2018).
Statistical analysis from Figure 4 shows that certain vessels exhibit a larger diameter under isoflurane anesthesia, and the fractional vessel area, calculated as the percentage of vascular area within selected brain region ROIs, is also higher in the anesthetized state. These findings suggest a vasodilation effect induced by isoflurane, consistent with existing research (Sullender et al., 2022; Rakymzhan et al., 2021; Cao et al., 2017; Lyons et al., 2016; Takuwa et al., 2012). It is worth noting that although our data indicate a global elevation of CBF under isoflurane anesthesia, individual vessels exhibit large discrepancies in behavior. For example, the vessel at the left lower corner from Mouse 3 in the entorhinal cortex (Figure 3) shows almost no blood flow during anesthesia but then exhibits high vessel pixel density after awakening. The wide range of vessel behaviors was also previously reported in literature (Sullender et al., 2022; Santisakultarm et al., 2016). Our results indicate that awake ULM imaging has ample spatial resolution and imaging depth of penetration to resolve individual vessel variations down to micron-sized vessels deep into the brain. This is a unique capability that is not available from other biomedical imaging modalities.
Increased blood flow velocity induced by isoflurane has also been reported by other studies (Rakymzhan et al., 2021; Cao et al., 2017). However, previous research presented different speculations on the predominant factor contributing to the increase in CBF induced by anesthesia, specifically whether the increase is attributed to vasodilation or increase in blood flow velocity (Sullender et al., 2022). One study found significant changes in both blood flow and vessel diameter but minor changes in flow velocity, suggesting that the increase in blood flow was largely driven by vasodilation (Rakymzhan et al., 2021). Conversely, another study drew the opposite conclusion (Sullender et al., 2022). Benefiting from the large field of view of ULM and its capability to directly quantify microvascular blood flow velocity, we can make a more comprehensive inference regarding the relationship among the changes in vessel diameter, flow speed, and flow volume from anesthetized to awake states. For arteries, the change in blood flow velocity is not significant, indicating that the alteration in blood flow may be primarily due to vasodilation instead of velocity change. Isoflurane causes vasodilation by acting on the ion channels (e.g., potassium channel) of smooth muscle (Iida et al., 1998), which is more abundantly found in arteries than in veins. In the case of veins, which do not actively dilate or constrict, their vessel diameter and blood flow variations are more likely controlled by passive mechanisms. Figure 5 reveals significant differences in flow velocity of veins between anesthesia and awake state, suggesting that the changes in flow velocity may have a greater impact on venous blood flow volume compared with arterial volume.
The differences in cerebral vasculature between anesthetized and awake states observed using ULM are also in agreement with other studies (Sullender et al., 2022; Rakymzhan et al., 2021; Cao et al., 2017; Takuwa et al., 2012). However, previous studies mostly used optical imaging techniques, which have limited penetration depth and can only observe surface pial vessels in the cortex. Some other studies using fMRI can detect deeper CBF changes in the whole brain, but they do not provide insights about small vessel blood flow variations due to insufficient spatial resolution (Sicard et al., 2003). As a bridging imaging modality between MRI and optical techniques, awake ULM enables observations of detailed microvascular variations induced by anesthesia across the whole depth of the brain, which provides complementary information to existing biomedical imaging modalities.
Although isoflurane is widely used in ultrasound imaging because it provides long-lasting and stable anesthetic effects, it is important to note that the vasodilation observed with isoflurane is not representative of all anesthetics. Some anesthesia protocols, such as ketamine combined with medetomidine, do not produce significant vasodilation and are therefore preferred in experiments where vascular stability is essential, such as functional ultrasound imaging (Réaux-Le-Goazigo et al., 2022). Our current study primarily focused on demonstrating the feasibility of longitudinal ULM imaging in awake animals, instead of conducting a systematic investigation of how isoflurane anesthesia alters CBF. Due to the limited number of animals used, the analyses presented in this work should be interpreted as example case studies. While the trends observed across animals were consistent, the small sample size restricts the scope of statistical inference. For future work, it would be valuable to design more rigorous control experiments with larger sample sizes to systematically compare the effects of isoflurane anesthesia, awake states, and other anesthetics that do not induce vasodilation on CBF.
Our proposed method enabled repeatable longitudinal brain imaging over a 3-week period, addressing a key limitation of conventional ULM imaging and offering potential for various preclinical applications. However, there are still some limitations in this study.
One of the limitations is the lack of objective measures to assess the effectiveness of head-fix habituation in reducing anxiety. This may introduce variability in stress levels among mice. Recent studies suggest that tracking physiological parameters such as heart rate, respiratory rate, and corticosterone levels during habituation can confirm that mice reach a low stress state prior to imaging (Chabouh et al., 2024). This approach would be highly beneficial for future awake imaging studies. Furthermore, alternative head-fixation setups, such as air-floated balls or treadmills, which allow the free movement of limbs, have been shown to reduce anxiety and facilitate natural behaviors during imaging (Bertolo et al., 2021). Adopting these approaches in future studies could enhance the reliability of awake imaging data by minimizing stress-related confounds.
Another limitation of this study is the potential residual vasodilatory effect of isoflurane anesthesia on awake imaging sessions and the short imaging window available after bolus injection. The awake imaging sessions were conducted shortly after the mice had emerged from isoflurane anesthesia, required for the MB bolus injections. The lasting vasodilatory effects of isoflurane may have influenced vascular responses, potentially contributing to an underestimation of differences in vascular dynamics between anesthetized and awake states. In addition, since MBs are rapidly cleared from circulation, the duration of effective imaging is limited to only a few minutes, which also overlaps with the anesthesia recovery period, constraining the usable awake-state imaging window. Future improvement on MB infusion using an indwelling jugular vein catheter presents a promising alternative to address these limitations. This method allows for stable MB infusion without the need for anesthesia induction, ensuring that the awake imaging condition is free from residual anesthetic effects. Moreover, it has the potential to extend the duration of imaging sessions, offering a longer and more stable time window for data acquisition. Furthermore, by performing ULM imaging in the awake state first, instead of starting with anesthetized imaging, researchers can achieve a more rigorous comparison of how various anesthetics influence cerebral microvascular dynamics relative to the awake baseline.
In our longitudinal study, consistent imaging results were obtained over a 3-week period, demonstrating the feasibility of awake ULM imaging for this duration. However, for certain research applications, a monitoring period of several months would be valuable. Extending the duration of longitudinal awake ULM imaging to enable such long-term studies is a potential direction for future development.
Tissue motion is also a critical concern of ULM imaging. While rigid motion correction is often effective in anesthetized animals, awake animal imaging presents greater challenges due to the more prominent non-rigid motion, particularly in deeper brain regions. This is evidenced in Figure 1—figure supplement 1 (Mouse 7), where cortical vessels remain relatively stable, but regions around the colliculi and mesencephalon exhibit more noticeable motion artifacts, indicating that displacement is more pronounced in deeper areas. To address these deeper, non-rigid motions, recent studies suggest estimating non-rigid transformations from unfiltered tissue signals before applying corrections to ULM vascular images (Renaudin et al., 2022; Hingot et al., 2017). Such advanced motion correction strategies may be more effective for awake ULM imaging, which experiences higher motion variability. The development of more robust and effective motion correction techniques will be crucial to reduce motion artifacts in future awake ULM applications. Meanwhile, with 2D imaging, we cannot correct for out-of-plane motion, which necessitates 3D imaging. In the future, 3D motion correction techniques that account for complex tissue motions and are computationally efficient need to be developed for awake and longitudinal ULM imaging.
Advances in ULM imaging methods can benefit longitudinal awake imaging. For instance, dynamic ULM can differentiate between arteries and veins by leveraging pulsatility features (Bourquin et al., 2022). 3D ULM, with volumetric imaging array (McCall et al., 2023; Heiles et al., 2019), enables the reconstruction of whole-brain vascular network, providing a more comprehensive understanding of vessel branching patterns. Meanwhile, 3D ULM also helps to mitigate the challenge of aligning the identical coronal plane for longitudinal imaging, a process that requires precise manual alignment in 2D ULM to ensure consistency. Additionally, this alignment issue can also be alleviated in 2D imaging using backscattering amplitude method, which may assist in estimating out-of-plane positioning during longitudinal imaging (Renaudin et al., 2023).
Longitudinal brain imaging in the awake state offers a promising tool for neuroscience research as it not only avoids the confounding effects of anesthesia on cerebral vasculature, but also enables observations of intrinsic dynamics of the vasculature within the same subject, minimizing potential sources of bias associated with inter-subject variability. In the future, this technique is expected to be further integrated with disease models to study the changes in cerebral vasculature during the development of diseases. Also, this technique can be further combined with the latest functional ULM (fULM) studies (Renaudin et al., 2022) to allow awake fULM imaging. Our study laid the foundation for these studies with awake fULM, which is expected to improve the sensitivity of conventional fULM techniques because hemodynamic responses are much stronger in the awake state than in anesthesia (Aksenov et al., 2015; Pisauro et al., 2013; Desai et al., 2011). However, it is also important to note that although longitudinal awake imaging presents promise to avoid the confounding effects of anesthetics, imaging under anesthesia remains more convenient and controllable in many cases. For applications where the physiological question of interest is not sensitive to anesthesia-induced vascular effects, anesthetized imaging still offers a simpler and more stable approach. Awake imaging inherently exhibits greater physiological variability. However, care must be taken at the experimental level to minimize confounding sources of variation, such as stress level of the animal or handling inconsistencies, to ensure that the measurements are physiologically meaningful.
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