Cummins Inc.

Strong Q1 Performance: Cummins reported first-quarter revenues of $8.2 billion, a decrease of 3% year-over-year (YOY). However, EBITDA margins improved to 17.9%, driven by strong demand in their Power Systems segment, which saw record performance both in dollar terms and percentage of sales, with revenues rising by 19%.

Uncertainty Due to Tariffs: The company acknowledged the heightened uncertainty caused by trade tariffs, which are projected to start influencing their performance more significantly in Q2 2025. This uncertainty has led to a withdrawal of full-year guidance until there is more stability. The tariffs could potentially impact demand for capital goods and business confidence.

Mixed Demand Across Segments: Cummins is experiencing strong demand in certain sectors like Power Systems and the aftermarket, particularly driven by data center requirements. In contrast, there's a notable softening in the North American truck market, with heavy-duty truck production down by 18% and medium-duty down 21% compared to the previous year.