Category: 3. Business

American households have become dependent on Amazon.

The numbers say it all: In 2024, 83% of U.S. households received deliveries from Amazon, representing over 1 million packages delivered each day and 9 billion individual items delivered same-day or next-day every year. In remarkably short order, the company has transformed from an online bookseller into a juggernaut that has reshaped retailing. But its impact isn’t limited to how we shop.

Behind that endless stream of packages are more than a million people working in Amazon fulfillment centers and delivery vehicles. Through its growing dominance in retail, Amazon has eclipsed its two major competitors in the delivery business, UPS and FedEx, in terms of package volume.

What is life like for those workers? Between Amazon’s rosy public relations on the one hand and reporters’ and advocates’ troubling exposés on the other, it can be hard to tell. Part of the reason is that researchers like us don’t have much reliable data: Workers’ experiences at companies such as Amazon, UPS and FedEx can be a black box. Amazon’s arm’s-length relationship with the drivers it depends on for deliveries makes finding answers even harder.

But that didn’t stop us. Using unique data from the Shift Project, our new study, co-authored with Julie Su and Kevin Bruey, offers the first direct, large-scale comparison of working conditions for drivers and fulfillment employees at Amazon, UPS and FedEx based on survey responses by more than 9,000 workers.

What we found was deeply troubling – not only for Amazon drivers but also for the future of work in the delivery industry as a whole.

2 models, 2 realities

For nearly a century, driving delivery trucks has been a pathway to the middle class, as epitomized by unionized jobs at UPS. UPS drivers, who have been members of the Teamsters union for decades, are employees with legal protections and a collective-bargaining contract.

In contrast, Amazon has embraced a very different model. Most important is that Amazon does not directly employ nearly any of its delivery drivers.

Instead, its transportation division, Amazon Logistics, relies on two methods to deliver most of its shipments: Amazon Flex, a platform-like system that treats drivers like independent contractors, and Amazon DSP, a franchise-like system that uses subcontractors. DSP subcontractors are almost all nonunion, and the company has cut ties with DSP contractors whose drivers have attempted to unionize. These practices place downward pressure on the wages and working conditions of drivers throughout the industry.

The impact on workers is stark.

Delivery workers at Amazon receive significantly lower wages than at UPS and FedEx, we found. Wage gaps are especially large between the delivery workers at Amazon, who earn US$19 an hour on average, and the unionized drivers at UPS, who make $35.

We also found that unionized UPS drivers have a clear pathway to upward mobility, while Amazon drivers don’t. At UPS, wages increase sharply the longer a worker has been on the job. Pay starts at $21 an hour, reaching nearly $40 an hour for drivers who’ve been with the company for at least 10 years – which is more than half of them.

At Amazon, wages start at $17 an hour and don’t increase with tenure. Nearly half of workers have less than a year on the job.

Between lower wages, more unstable schedules, fewer benefits and limited protections from employment laws, Amazon drivers struggle to make ends meet. More than 1 in 4 told us they had gone hungry because they couldn’t afford enough to eat within the past month, and 33% said they couldn’t cover their utility bills. Compared to drivers at UPS and FedEx, Amazon drivers face significant financial instability.

On top of that, Amazon drivers face intense workplace surveillance and speed tracking – as do workers at the company’s fulfillment centers. Sixty percent of both types of Amazon workers received frequent feedback on the speed of their work from a technological device, and more than two-thirds said that Amazon monitors the quality of their work using technology. That degree of technological surveillance and tracking far outpaces what UPS and FedEx workers told us they were exposed to, representing an extreme case of worker monitoring and performance assessment.

Using nonemployee drivers contributed to the exponential growth of Amazon as a package delivery company. In 2023, Amazon for the first time delivered more packages than UPS, making it the second-largest parcel carrier in the country – surpassed only by the U.S. Postal Service.

By building an online retail empire with the capacity to deliver the majority of its own shipments, Amazon’s expansion continues. UPS, by contrast, has seen drops in its revenues, stock value and market capitalization. Amazon’s sheer size and giglike approach are therefore changing industry standards, putting downward pressure on wages, benefits and job stability across the delivery sector.

The contrast between Amazon and UPS drivers isn’t just about two companies using different models for package delivery – it represents two competing futures for work. As the second-largest retail company and now largest private delivery company in the U.S., Amazon exerts market power that impacts the working conditions of workers beyond its own delivery drivers. Recent reporting indicates that UPS has been experimenting with using gig deliveries, much to the consternation of the union that represents three-quarters of its workforce.

In the post-World War II era, increasing unionization led to better wages and conditions across much of the economy, including nonunionized sectors. The continuing expansion of Amazon’s business model could signal the unraveling of wages, benefits and protections for working people more generally.

MILWAUKEE–(BUSINESS WIRE)–
Fiserv, Inc. (NYSE: FI), a leading global provider of payments and financial services technology, today announced that it has been named a Leader in the IDC MarketScape: North America Retail Digital Banking Solutions 2025-2026 Vendor Assessment (doc #US52039425, November 2025).

According to the report, “Experience Digital is suited for banks and credit unions of all sizes, direct banks, and neobanks seeking a core-agnostic digital banking solution deployable across multiple environments. It is especially relevant for existing Fiserv core clients seeking a unified vendor for both core and digital banking, while also offering flexibility for on-premises or cloud-hosted deployment.”

“We believe being recognized by the IDC MarketScape as a Leader affirms the strength of our strategy and the trust our clients place in us,” said Whitney Russell, Head of Digital and Financial Solutions, Fiserv. “At Fiserv, we are empowering financial institutions to deliver the kind of digital experiences that deepen relationships, drive growth and define the future of banking.”

The IDC MarketScape provides a rigorous, structured framework for evaluating technology providers, going beyond market share to assess product capabilities, strategic direction, and long-term success potential.

“As consumers and small businesses increasingly turn to digital banking, Experience Digital enables institutions of all sizes to deliver a full range of sought-after experiences,” said Marc DeCastro, Research Director at IDC. “This positions financial institutions to remain central to real-time money movement, bill pay, P2P, and alerts for the customers they serve.”

Built to unify consumer and business banking across online and mobile channels, Experience Digital integrates seamlessly with both Fiserv and non-Fiserv core platforms, payments, and merchant services. The platform offers two deployment paths:

– Configure Digital – for institutions seeking a configurable solution

– Create Digital – for those building custom experiences with internal development teams

Experience Digital also connects with:

– Finxact® – Fiserv’s cloud-native core

– CashFlow Central^SM – accounts payable/receivable platform

– Clover® – the world’s smartest point of sale system

Together, these integrations create a unified digital ecosystem that bridges retail banking, small business services, and payments.

About IDC MarketScape

IDC MarketScape vendor assessment model is designed to provide an overview of the competitive fitness of technology and service suppliers in a given market. The research utilizes a rigorous scoring methodology based on both qualitative and quantitative criteria that results in a single graphical illustration of each supplier’s position within a given market. IDC MarketScape provides a clear framework in which the product and service offerings, capabilities and strategies, and current and future market success factors of technology suppliers can be meaningfully compared. The framework also provides technology buyers with a 360-degree assessment of the strengths and weaknesses of current and prospective suppliers.

About Fiserv

Fiserv, Inc. (NYSE: FI), a Fortune 500 company, moves more than money. As a global leader in payments and financial technology, the company helps clients achieve best-in-class results through a commitment to innovation and excellence in areas including account processing and digital banking solutions; card issuer processing and network services; payments; e-commerce; merchant acquiring and processing; and Clover®, the world’s smartest point-of-sale system and business management platform. Fiserv is a member of the S&P 500® Index, one of TIME Magazine’s Most Influential Companies™ and one of Fortune® World’s Most Admired Companies™. Visit fiserv.com and follow on social media for more information and the latest company news.

FI-G

View source version on businesswire.com: https://www.businesswire.com/news/home/20251106402965/en/

For more information contact:

Media Relations:

Mark Jelfs

Senior Manager, Communications

Fiserv, Inc.

+1.262.737.8244

mark.jelfs@fiserv.com

Source: Fiserv, Inc.

Released November 6, 2025

Belfast Harbour

Press Eye

Clean energy transition

‘A fundamental role’

Analysis: Not an investment in renewable power for NI

Vodafone has chosen Germany-based Inter.link to provide automated, high-quality interconnectivity between its European networks and those of third-party Internet Service Providers (ISPs), content players, and other operators. The move will bolster Vodafone’s existing wholesale business offering a broad range of connectivity and messaging services.

Inter.link delivers automated, carrier-grade backbone infrastructure at speeds of 100 gigabits per second (Gbps) or 400 Gbps, connecting essential intersections across diverse networks within the broader Internet ecosystem. 1 Gbps typically supports around 1.5 million instant messages.

Rapidly scale interconnection

Vodafone will use Inter.link’s automated service, which is available in multiple countries, including 30 points of presence in Germany, to more quickly and easily aggregate both mobile and fixed broadband traffic between itself and multiple third-party providers of all sizes.

By utilising the Inter.link system, called FlexPeer, instead of traditional physical internet exchanges, third-party providers can efficiently scale capacity into Vodafone’s fixed and mobile access networks as needed to serve their customers across Europe. They can connect multiple sites over a single ‘Layer 2’ data link, adjusting capacity to actual traffic without affecting the user experience.

Initial launch in Germany

Vodafone, in partnership with Inter.link, will launch the service in Germany next month, where Vodafone currently manages over 4,000 interconnections with other providers. The company plans to extend the service to additional countries in 2026.

This model of interconnection has been developed to address the evolving complexities of a rapidly expanding, multi-tiered commercial internet environment. It enhances resilience and minimises operational overheads, while maintaining efficient Internet traffic flow between end users, their providers, and the services being accessed—such as video streaming, messaging, or browsing social media applications.

Reduce peering costs

Transitioning to an automated and flexible interconnection system will reduce time, resources, and peering costs (expenses for connecting different networks) for Vodafone and its wholesale customers. This approach is particularly beneficial for managing the numerous points that connect infrastructure to exchange internet traffic directly. It also puts less strain on the engineering team that plan where the traffic goes when volumes increase.

Focus on customer service

By integrating Inter.link’s solution at the edge of Vodafone’s networks, Vodafone can concentrate on delivering improved services to other mobile network operators and broadband providers, thereby enhancing its existing carrier services model. Inter.link’s automation streamlines processes and expedites the customer journey by offering single sign-on access and one-click provisioning.

Vodafone aims to migrate all traffic in Germany from existing Internet Exchange Points to the new system by the end of 2025. In addition to Europe, the two companies will enable third party providers connecting to Vodafone’s wider global network infrastructure to also leverage Inter.link’s automated platform for improved latency, resiliency and quality.

• 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/

Cat Lyons

External Communications

812-377-0500

catherine.lyons@cummins.com

Source: Cummins Inc.

Released November 6, 2025