Distribution — Product Warranty Expense
Cummins Distribution — Product Warranty Expense increased by 40.0% to $7.00M in Q4 2025 compared to the prior quarter. Year-over-year, this metric grew by 16.7%, from $6.00M to $7.00M. Over 3 years (FY 2022 to FY 2025), Distribution — Product Warranty Expense shows an upward trend with a 56.5% CAGR. This increase may warrant attention — for this metric, lower values are generally preferred.
Analysis
How to read this metric
Lower expenses suggest high product quality, while rising expenses may indicate quality control problems or increased liability.
Detailed definition
This metric represents the estimated costs the Distribution segment expects to incur for repairing or replacing products...
Peer comparison
Standard operating expense for manufacturing and distribution companies with long-term product warranties.
cmi_segment_distribution_product_warranty_expenseHistorical Data
| 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 | $1.50M | $1.50M | $1.50M | $1.50M | $4.00M | $4.00M | $4.00M | $4.00M | $5.00M | $5.00M | $7.00M | $6.00M | $6.00M | $5.00M | $5.00M | $7.00M |
| QoQ Change | — | +0.0% | +0.0% | +0.0% | +166.7% | +0.0% | +0.0% | +0.0% | +25.0% | +0.0% | +40.0% | -14.3% | +0.0% | -16.7% | +0.0% | +40.0% |
| YoY Change | — | — | — | — | +166.7% | +166.7% | +166.7% | +166.7% | +25.0% | +25.0% | +75.0% | +50.0% | +20.0% | +0.0% | -28.6% | +16.7% |
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Frequently Asked Questions
- What is Cummins's distribution — product warranty expense?
- Cummins (CMI) reported distribution — product warranty expense of $7.00M in Q4 2025.
- How has Cummins's distribution — product warranty expense changed year-over-year?
- Cummins's distribution — product warranty expense increased by 16.7% year-over-year, from $6.00M to $7.00M.
- What is the long-term trend for Cummins's distribution — product warranty expense?
- Over 3 years (2022 to 2025), Cummins's distribution — product warranty expense has grown at a 56.5% compound annual growth rate (CAGR), from $6.00M to $23.00M.
- What does distribution — product warranty expense mean?
- The estimated costs for fulfilling warranty obligations on products sold by the segment.