COLUMBUS, Ind. - Cummins Inc . (NYSE: NYSE:CMI), a global power leader, has announced a quarterly common stock cash dividend of $1.82 per share, payable on March 6, 2025, to shareholders of record as of February 21, 2025. This declaration reflects the company's continued commitment to returning value to its shareholders, with a current dividend yield of 1.95%. According to InvestingPro, Cummins has maintained dividend payments for 54 consecutive years and raised them for 19 straight years, demonstrating exceptional dividend reliability.
Cummins, which operates across a diversified set of markets, including Engine, Components, Distribution, Power Systems, and Accelera by Cummins, is known for its broad portfolio of power solutions. These range from advanced diesel, natural gas, electric, and hybrid powertrains to powertrain-related components. The company has been a staple in the power solutions industry since its founding in 1919 and prides itself on its comprehensive service and support network, technological expertise, and global manufacturing capabilities. With a market capitalization of $51.08 billion and a perfect Piotroski Score of 9, Cummins demonstrates strong financial fundamentals and market presence.
With a workforce of approximately 69,600 people, Cummins is dedicated to powering a more prosperous world and is committed to sustainability through its Destination Zero strategy. This strategy is aimed at helping customers navigate the energy transition effectively.
In 2024, Cummins reported earnings of about $3.9 billion on sales of $34.1 billion, trading at an attractive P/E ratio of 13.03. The company's extensive product line includes aftertreatment systems, turbochargers, fuel systems, controls systems, air handling systems, automated transmissions, and electric power generation systems, among others. InvestingPro analysis suggests the stock is currently undervalued based on its Fair Value model, making it an interesting consideration for value investors.
The forward-looking statements included in the company's announcement indicate Cummins' plans and expectations for future revenues and EBITDA. However, they also caution that actual results could differ due to various factors such as changes in trade laws, market demand, product acceptance, and global economic conditions. For deeper insights into Cummins' financial health and future prospects, investors can access comprehensive analysis through InvestingPro's detailed Research Report, which is part of their coverage of over 1,400 top US stocks.
Cummins has emphasized that the information provided in the release is based on statements that are not purely historical and includes projections about the company's future performance. Shareholders and potential investors are advised to consider these factors with caution and to keep abreast of the company's filings with the SEC for more detailed information about risks and uncertainties that may affect Cummins' performance.
This dividend announcement is based on a press release statement from Cummins Inc. and serves to inform shareholders and the market of the company's latest financial distribution.
In other recent news, Cummins Inc. has announced the acquisition of key assets from First Mode, a company specializing in retrofit hybrid solutions for mining and rail operations. The purchased assets include hybrid product lines and an extensive intellectual property portfolio focused on hydrogen and battery powertrain solutions. The acquisition is part of Cummins' broader commitment to environmental sustainability, particularly through its Destination Zero strategy.
Cummins also reported strong financial results, with earnings of approximately $735 million on sales of $34.1 billion in 2023. The company's fourth-quarter performance exceeded Wall Street's expectations, with earnings per share surpassing consensus estimates by 9.8%. Cummins has set its FY 2025 guidance to an EPS of around $22.65, slightly higher than the street estimate.
Recent analyst notes reveal that Truist Securities adjusted the price target for Cummins, lowering it to $420 from the previous target of $425. Meanwhile, Barclays (LON:BARC) analyst Adam Seiden increased the price target for Cummins shares to $381.00, up from the previous $310.00. CFRA analyst Stewart Glickman also adjusted the price target for Cummins, raising it to $385.00 from the previous $345.00. These adjustments reflect the analysts' assessments of the company's recent performance and future prospects.
In addition to financial and acquisition news, Cummins announced a reorganization related to its Accelera initiative, which focuses on the adoption of greener technologies. The company has adjusted its timeline, now aiming to reach breakeven by 2027. This shift in strategy aligns with the longer-than-expected adoption rate of these technologies. These recent developments underscore Cummins' commitment to innovation and sustainability in its operations.
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