What is Cummins's power systems — goodwill, impairment loss?

Cummins (CMI) reported power systems — goodwill, impairment loss of $0 in Q4 2025.

What does power systems — goodwill, impairment loss mean?

An impairment loss occurs when the carrying value of goodwill in the Power Systems segment exceeds its implied fair value. This indicates that the expected future economic benefits of past acquisitions have declined. It serves as a critical signal of potential overpayment for past acquisitions or deteriorating market conditions.

Cummins CMI Power Systems — Goodwill, Impairment Loss

Other segment segments

Components

$0—

Distribution

$0—

Engine

$0—

Similar metrics at other companies

BWAPowerDrive Systems — Goodwill, Impaired, Accumulated Impairment Loss

$468M—

CATPower & Energy — Goodwill, Impaired, Accumulated Impairment Loss

$925M0.0%

TGE

TGENEnergy Production — Goodwill, Impairment Loss

$264.31K+387%

BELFBPower Solutions And Protection — Goodwill

$206.48M+3.2%

NOVEnergy Equipments — Goodwill Impairment

$10M—

RRXIndustrial Powertrain Solutions — Cumulative Goodwill Impairment Charges

$18.1M0.0%

Other financials

Income statement

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Revenue$8.4B+2.7%

Gross profit$2.2B+4.1%

Operating income$949.0M-16.3%

Net income$680.0M-20.0%

EPS (diluted)$4.71-21.0%

Balance sheet

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Cash & equivalents$2.6B+70.6%

Total debt$8.0B+25.0%

Total equity$12.4B+13.1%

Total assets$34.4B+5.9%

Cash flow

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Operating cash flow$309.0M+10,400%

CapEx$189.0M+16.7%

Free cash flow$120.0M+173%

Valuation

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Market cap$91.71B+79.6%

Enterprise value$97.13B+69.8%

P/E32.9×+16.3×

P/S2.7×+1.2×

Profitability

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Gross margin25.4%+0.1pp

Operating margin11.3%-0.4pp

Net margin8.2%-0.3pp

FCF margin7.9%+7.9pp

Returns & leverage

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Return on equity23.9%-5.0pp

Debt / equity0.6×+0.1×

Current ratio1.7×+0.4×

Where this comes from

Reported directly by Cummins in its filing.

Tagged under the XBRL concept us-gaap:GoodwillImpairmentLoss.

The official record: Cummins’s 10-K, filed February 10, 2026, on SEC EDGAR. View the filing →

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Questions, answered.

What is Cummins's power systems — goodwill, impairment loss?: Cummins (CMI) reported power systems — goodwill, impairment loss of $0 in Q4 2025.
What does power systems — goodwill, impairment loss mean?: An impairment loss occurs when the carrying value of goodwill in the Power Systems segment exceeds its implied fair value. This indicates that the expected future economic benefits of past acquisitions have declined. It serves as a critical signal of potential overpayment for past acquisitions or deteriorating market conditions.