May. 5 at 3:16 PM
$CMI: Cummins, a manufacturer of power generation and propulsion equipment and technologies, blew out 1Q25 EPS expectations, driven by record results in its Power Systems segment and strong operational execution. However, earnings and EBITDA still faced significant yr/yr declines, with net income plunging by nearly 59% to
$824 mln and EBITDA margin contracting to 17.9% from 30.6%, reflecting softer demand in certain markets, higher costs, and the absence of one-time gains from the prior year. Also, CMI withdrew its FY25 guidance, citing growing economic uncertainty driven by tariffs, which could disrupt supply chains, increase input costs, and pressure margins.
Tariffs pose a significant risk to CMI, especially for its Components and Engine segments, where higher costs for imported materials or reduced demand from tariff-impacted customers could erode profitability. https://www.briefing.com/story-stocks/archive/2025/5/5/cummins-crushes-q1-eps-expectations-but-pulls-fy25-guidance-amid-tariff-uncertainty-(cmi)?utm_campaign=storystocks&utm_medium=social&utm_source=st&utm_content=link
