CUMMINS INC. (CMI) FY2025 Annual Statement of Cash Flows

Income StatementCash FlowBalance Sheet

Statement of Cash Flows

2025-01-01 to 2025-12-31

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CUMMINS INC. cash flow reconciliation, Jan 1, 2025 through Dec 31, 2025One connected Sankey reconciles operating, investing and financing net cash flows through a shared cash pool, from beginning cash to ending cash. Ribbons flow left to right on one dollar scale. Activity totals are dark gray; beginning and ending cash are blue. Cash basis for beginning and ending balances and net cash change: Cash, cash equivalents, and restricted cash. Intermediate calculation bars are lighter gray. Net income is green for profit and red for loss. Identified asset purchases, sales and maturities are blue in either cash direction. Purple identifies capital transactions such as borrowing, repayments, share issuance and dividends. Free cash flow is a separate comparison, not an added cash flow. Read chart description and values below for full signed amounts, including zero items.Consolidated net income → Net cash from operating activities: $2,957,000,000.00Depreciation and amortization → Operating adjustments reconciliation: $1,105,000,000.00Adjustment to Reconcile Net Income to Cash Provided by (Used in) Operating Activity, Other Item → Operating adjustments reconciliation: $365,000,000.00Deferred income taxes (Note 4) → Operating adjustments reconciliation: $86,000,000.00Pension and OPEB expense (Note 10) → Operating adjustments reconciliation: $79,000,000.00Accrued expenses → Operating adjustments reconciliation: $4,000,000.00Operating adjustments reconciliation → Net cash from operating activities: $664,000,000.00Operating adjustments reconciliation → Accounts and notes receivable: $612,000,000.00Operating adjustments reconciliation → Accounts Payable: $148,000,000.00Operating adjustments reconciliation → Other current assets: $66,000,000.00Operating adjustments reconciliation → Equity in income of investees, net of dividends: $55,000,000.00Operating adjustments reconciliation → Pension contributions and OPEB payments (Note 10): $55,000,000.00Operating adjustments reconciliation → Inventories: $39,000,000.00Investments in marketable securities—liquidations (Note 5) → investing reconciliation: $1,450,000,000.00investing reconciliation → Investments in marketable securities—acquisitions: $1,627,000,000.00investing reconciliation → Capital expenditures: $1,235,000,000.00investing reconciliation → Investments in and net advances (to) from equity investees: $196,000,000.00investing reconciliation → Other, net: $111,000,000.00investing reconciliation → Acquisition of businesses, net of cash acquired (Note 23): $12,000,000.00Net cash used in financing activities → financing reconciliation: $772,000,000.00Proceeds from borrowings → financing reconciliation: $2,335,000,000.00financing reconciliation → Dividend payments on common stock (Note 15): $1,055,000,000.00financing reconciliation → Payments on borrowings and finance lease obligations: $975,000,000.00financing reconciliation → Net payments of commercial paper: $906,000,000.00financing reconciliation → Payments for purchase of redeemable noncontrolling interests: $110,000,000.00financing reconciliation → Other, net: $61,000,000.00Net cash used in investing activities → investing reconciliation: $1,731,000,000.00Exchange-rate effect → Cash sources and uses: $56,000,000.00Beginning cash: Cash, cash equivalents, and restricted cash → Cash sources and uses: $1,671,000,000.00Net cash from operating activities → Cash sources and uses: $3,621,000,000.00Cash sources and uses → Ending cash: Cash, cash equivalents, and restricted cash: $2,845,000,000.00Cash sources and uses → Net cash used in investing activities: $1,731,000,000.00Cash sources and uses → Net cash used in financing activities: $772,000,000.00Consolidated net income: $2,957,000,000.00Consolidated net income+$2.96 BGain related to divestiture of Atmus (Note 21): $0.00Depreciation and amortization: $1,105,000,000.00Depreciation & amortization+$1.11 BDeferred income taxes (Note 4): $86,000,000.00Deferred taxes & credits+$86.00 MEquity in income of investees, net of dividends: -$55,000,000.00Equity-method income, net−$55.00 MPension and OPEB expense (Note 10): $79,000,000.00Pension & benefit plans, net+$79.00 MPension contributions and OPEB payments (Note 10): -$55,000,000.00Pension & retiree contributions−$55.00 MAccounts and notes receivable: -$612,000,000.00Accounts & notes receivable−$612.00 MInventories: -$39,000,000.00Inventories−$39.00 MOther current assets: -$66,000,000.00Other operating assets−$66.00 MAccounts Payable: -$148,000,000.00Accounts payable−$148.00 MAccrued expenses: $4,000,000.00Accrued liabilities+$4.00 MAdjustment to Reconcile Net Income to Cash Provided by (Used in) Operating Activity, Other Item: $365,000,000.00Other operating, net+$365.00 MNet cash from operating activities: $3,621,000,000.00Operating cash+$3.62 BOperating adjustments reconciliation: $1,639,000,000.00Proceeds from borrowings: $2,335,000,000.00Long-term debt issued+$2.34 BNet payments of commercial paper: -$906,000,000.00Commercial paper, net−$906.00 MPayments on borrowings and finance lease obligations: -$975,000,000.00Debt & capital securities repaid−$975.00 MDividend payments on common stock (Note 15): -$1,055,000,000.00Dividends paid−$1.06 BPayments for purchase of redeemable noncontrolling interests: -$110,000,000.00Redeemable minority buybacks−$110.00 MOther, net: -$61,000,000.00Other financing, net−$61.00 MNet cash used in financing activities: -$772,000,000.00. Cash required to fund net payments.Financing cash−$772.00 Mfinancing reconciliation: $3,107,000,000.00Capital expenditures: -$1,235,000,000.00PP&E purchases−$1.24 BInvestments in and net advances (to) from equity investees: -$196,000,000.00Investments in and net advances (to) from equityinvestees−$196.00 MAcquisition of businesses, net of cash acquired (Note 23): -$12,000,000.00Acquisitions, net of cash−$12.00 MInvestments in marketable securities—acquisitions: -$1,627,000,000.00Marketable securities purchases−$1.63 BInvestments in marketable securities—liquidations (Note 5): $1,450,000,000.00Marketable securities proceeds+$1.45 BCash associated with Atmus divestiture: $0.00Other, net: -$111,000,000.00Other investing, net−$111.00 MNet cash used in investing activities: -$1,731,000,000.00. Cash required to fund net payments.Investing cash−$1.73 Binvesting reconciliation: $3,181,000,000.00Cash sources and uses: $5,348,000,000.00Beginning cash: Cash, cash equivalents, and restricted cash: $1,671,000,000.00Beginning cash$1.67 BEnding cash: Cash, cash equivalents, and restricted cash: $2,845,000,000.00Ending cash$2.85 BExchange-rate effect: $56,000,000.00FX effect+$56.00 MCASH RECONCILIATIONOperatingflowsInvestingflowsFinancingflowsFree cash flow$2.39 BOperating cash − cash spent on PP&ECash flow / Net income1.22×Operating cash flow ÷ net incomeNet cash change+$1.17 BEnding cash − beginning cash
Chart details

CUMMINS INC. cash flow reconciliation, Jan 1, 2025 through Dec 31, 2025

Cash flows for Jan 1, 2025 through Dec 31, 2025. Cash basis: Cash, cash equivalents, and restricted cash. Beginning cash: Dec 31, 2024. Ending cash: Dec 31, 2025. Beginning and ending cash are dated balances. Positive cash flows add cash; negative cash flows reduce it.

Beginning cash on Dec 31, 2024
1,671,000,000 US dollars. Beginning cash: Cash, cash equivalents, and restricted cash
Operating activities
3,621,000,000 US dollars. Net cash provided.
Consolidated net income
2,957,000,000 US dollars
Gain related to divestiture of Atmus (Note 21)
0 US dollars
Depreciation and amortization
1,105,000,000 US dollars
Deferred income taxes (Note 4)
86,000,000 US dollars
Equity in income of investees, net of dividends
negative 55,000,000 US dollars
Pension and OPEB expense (Note 10)
79,000,000 US dollars
Pension contributions and OPEB payments (Note 10)
negative 55,000,000 US dollars
Accounts and notes receivable
negative 612,000,000 US dollars
Inventories
negative 39,000,000 US dollars
Other current assets
negative 66,000,000 US dollars
Accounts Payable
negative 148,000,000 US dollars
Accrued expenses
4,000,000 US dollars
Adjustment to Reconcile Net Income to Cash Provided by (Used in) Operating Activity, Other Item
365,000,000 US dollars
Investing activities
negative 1,731,000,000 US dollars. Net cash used.
Capital expenditures
negative 1,235,000,000 US dollars
Investments in and net advances (to) from equity investees
negative 196,000,000 US dollars
Acquisition of businesses, net of cash acquired (Note 23)
negative 12,000,000 US dollars
Investments in marketable securities—acquisitions
negative 1,627,000,000 US dollars
Investments in marketable securities—liquidations (Note 5)
1,450,000,000 US dollars
Cash associated with Atmus divestiture
0 US dollars
Other, net
negative 111,000,000 US dollars
Financing activities
negative 772,000,000 US dollars. Net cash used.
Proceeds from borrowings
2,335,000,000 US dollars
Net payments of commercial paper
negative 906,000,000 US dollars
Payments on borrowings and finance lease obligations
negative 975,000,000 US dollars
Dividend payments on common stock (Note 15)
negative 1,055,000,000 US dollars
Payments for purchase of redeemable noncontrolling interests
negative 110,000,000 US dollars
Other, net
negative 61,000,000 US dollars
Operating adjustment reconciliation
1,639,000,000 US dollars. Intermediate calculation joining the operating reconciliation branches. Its gross amount includes any portion of net income routed through this junction. It is not an additional cash source or use.
financing gross reconciliation
3,107,000,000 US dollars. Gross amount at the activity's junction before offsetting its receipts and deductions. It is not an additional cash source or use.
investing gross reconciliation
3,181,000,000 US dollars. Gross amount at the activity's junction before offsetting its receipts and deductions. It is not an additional cash source or use.
Exchange-rate effect
56,000,000 US dollars
Ending cash on Dec 31, 2025
2,845,000,000 US dollars. Ending cash: Cash, cash equivalents, and restricted cash
Cash sources and uses
5,348,000,000 US dollars. Opening cash plus net sources, equal to net uses plus ending cash.
Net cash change
1,174,000,000 US dollars. Ending cash minus beginning cash.
Cash flow / Net income
1.22×. Operating cash flow divided by reconciliation net income for the same period. Black from 0.90× through 1.10×; green above 1.10×; red below 0.90×. Color uses the unrounded ratio.
Operating cash flow
3,621,000,000 US dollars. Operating cash flow used in the free cash flow calculation.
Cash purchases of property, plant and equipment
1,235,000,000 US dollars. These cash purchases are already included in investing activities above.
Free cash flow
2,386,000,000 US dollars. A supplemental measure; finance-lease payments are excluded from this definition.

Chart connections

  • Beginning cash plus operating, investing and financing cash flows plus the exchange-rate effect equals ending cash. Negative amounts reduce cash.
  • Financing contributions meet at a reconciliation junction before connecting to the net cash total.
  • Investing contributions meet at a reconciliation junction before connecting to the net cash total.
  • Operating reconciliation adjustments are not all independent cash receipts.
  • Net income enters operating cash directly in the reconciliation. The adjustment junction contributes the remaining $664.00M after reconciling the other positive and negative adjustments. These connections depict an accounting reconciliation, not traced cash receipts.
  • Each activity has one net cash bar connected to the shared cash pool. Positive activity totals enter the pool; negative activity totals leave the pool to fund that activity's net payments. The central pool does not assign a particular funding source to a particular payment.
  • The intermediate calculation bars include both sides of the displayed activity breakdowns; they are not additional cash flows.
  • Operating cash flow minus cash purchases of property, plant and equipment equals free cash flow: 3,621,000,000 US dollars minus 1,235,000,000 US dollars equals 2,386,000,000 US dollars.
CUMMINS INC. (CMI) FY2025 Annual Statement of Cash Flows Sankey chart
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