Cummins reorganizes alt-power business, reports full-year profit of $3.9B

Columbus, Indiana-based Cummins Inc. says it has reorganized its Accelera zero-emissions business unit because of slowing demand.

In its fourth-quarter and full-year 2024 financial report, released Tuesday morning, the manufacturer said it had incurred $312 million in primarily non-cash charges in the fourth quarter related to the Accelera reorganization.

Of that $312 million, Cummins said about $7 million went to severance. Most of the remaining charges were related to inventory write-downs and asset impairments—accounting actions related to the company’s expectations of slower demand.

The company did not disclose how many jobs were cut in the Accelera reorganization.

The Accelera unit is the part of Cummins’ business focused on alternative power solutions such as electric and hydrogen. Accelera represents a small fraction of Cummins’ overall business, and to date the segment has yet to turn a profit.

“As we navigate this long and messy transition for our customers, we remain committed to pacing and refocusing our investments on the most promising path as the adoption of zero-emission solutions slows in some regions around the world,” CEO Jennifer Rumsey said during a Tuesday call with analysts. “This business has long been about remaining agile and investing as we see technology advancing.”

Cummins reported full-year revenue of $34.1 billion, essentially unchanged compared with 2023. Of that annual revenue, $414 million, or 1.2%, came from Accelera.

The company reported a full-year profit of $3.9 billion, or $28.37 per share, up from $735 million, or $515 per share, in 2023.

Rumsey said the company continues to believe that electric, battery-powered vehicles will be important to some of its commercial vehicle and industrial customers, and it will continue to invest in that market as it develops.

Rumsey also said Cummins is pacing its investment in electrolyzers—equipment that produces hydrogen fuel—amid “some slowing in customer demand and uncertainty around incentives” in that market. It is also being selective in its investments in hydrogen fuel cells and other emerging technologies, she said.

Cummins Chief Financial Officer Mark Smith said the company no longer expects that Accelera will reach break-even status in 2027, as the company had previously forecast. He did not say when break-even might happen.

Cummins made its name as a maker of diesel engines, but in recent years the company has taken well-publicized steps into the alternative-power market.

The company’s first all-electric powertrains entered the market in 2019. In that same year, the company began making significant investments into hydrogen power, and established it then called its New Power business segment.

In 2023, Cummins rebranded its New Power segment as Accelera by Cummins as a way to differentiate that part of the company from Cummins’ diesel-engine roots.

Looking at the fourth quarter alone, Cummins revenue was $8.4 billion, with profit of $418 million, or $3.02 per share. In comparison, the company posted a loss of $1.4 billion, or $10.01 per share, during the same period in 2023. The fourth-quarter loss in 2023 was largely due to the $2 billion in penalties Cummins paid to federal and California authorities in a settlement over environmental claims.

Cummins also issued its 2025 revenue guidance, saying it expects revenue ranging between a 2% decline and a 3% increase as compared with 2024.

In response to a question about what impact tariffs may have on the company, Smith said Cummins intends to pass on any cost increases to its customers.

“By and large, our strategy is to make most of our products in the market in which they sold, but of course, we do have a global supply chain,” Smith said. “Of course, nobody knows exactly what the tariff situation is going to be, but to the extent that we do incur them, then we think it’s important that the market feels those and we’ll look to pass those on. Let’s hope that’s not significant for everybody involved.”

Shares of Cummins stock were trading at $362.09 per share just before noon Tuesday, up 4% from Monday’s closing price.