Business Segments · Product Warranty Expense

Components — Product Warranty Expense

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.

Analysis

StatementSegment
CategoryRisk
SignalLower is better
VolatilityModerate
First reportedQ1 2022
Last reportedQ4 2025

How to read this metric

Decreasing warranty expenses generally signal improved product quality, while rising expenses may indicate manufacturing defects or reliability issues.

Detailed definition

This represents the estimated costs the Components segment expects to incur for repairs, replacements, or service under...

Peer comparison

Standard operating expense for durable goods manufacturers with long-term product warranties.

Metric ID: cmi_segment_components_product_warranty_expense

Historical Data

16 periods
 Q1 '22Q2 '22Q3 '22Q4 '22Q1 '23Q2 '23Q3 '23Q4 '23Q1 '24Q2 '24Q3 '24Q4 '24Q1 '25Q2 '25Q3 '25Q4 '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%
Range$8.00M$66.00M
CAGR+25.1%
Avg YoY Growth+65.8%
Median YoY Growth+85.5%
Current Streak4 quarters growth

Frequently Asked Questions

What is Cummins's components — product warranty expense?
Cummins (CMI) reported components — product warranty expense of $37.00M in Q4 2025.
How has Cummins's components — product warranty expense changed year-over-year?
Cummins's components — product warranty expense increased by 362.5% year-over-year, from $8.00M to $37.00M.
What is the long-term trend for Cummins's components — product warranty expense?
Over 3 years (2022 to 2025), Cummins's components — product warranty expense has grown at a 23.3% compound annual growth rate (CAGR), from $64.00M to $120.00M.
What does components — product warranty expense mean?
The cost of fulfilling warranty obligations for products sold by the segment.