Cummins Components — Product Warranty Expense increased by 27.6% to $37.00M in Q4 2025 compared to the prior quarter. Year-over-year, this metric grew by 362.5%, from $8.00M to $37.00M. Over 3 years (FY 2022 to FY 2025), Components — Product Warranty Expense shows an upward trend with a 23.3% CAGR. This increase may warrant attention — for this metric, lower values are generally preferred.
Decreasing warranty expenses generally signal improved product quality, while rising expenses may indicate manufacturing defects or reliability issues.
This represents the estimated costs the Components segment expects to incur for repairs, replacements, or service under...
Standard operating expense for durable goods manufacturers with long-term product warranties.
cmi_segment_components_product_warranty_expense| Q1 '22 | Q2 '22 | Q3 '22 | Q4 '22 | Q1 '23 | Q2 '23 | Q3 '23 | Q4 '23 | Q1 '24 | Q2 '24 | Q3 '24 | Q4 '24 | Q1 '25 | Q2 '25 | Q3 '25 | Q4 '25 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Value | $16.00M | $16.00M | $16.00M | $16.00M | $34.50M | $34.50M | $34.50M | $34.50M | $62.00M | $66.00M | $37.00M | $8.00M | $26.00M | $28.00M | $29.00M | $37.00M |
| QoQ Change | — | +0.0% | +0.0% | +0.0% | +115.6% | +0.0% | +0.0% | +0.0% | +79.7% | +6.5% | -43.9% | -78.4% | +225.0% | +7.7% | +3.6% | +27.6% |
| YoY Change | — | — | — | — | +115.6% | +115.6% | +115.6% | +115.6% | +79.7% | +91.3% | +7.2% | -76.8% | -58.1% | -57.6% | -21.6% | +362.5% |