Cummins Inc. (NYSE:CMI) reported first-quarter revenue of $8.398 billion on Tuesday, rising 3% year-over-year and beating analyst estimates of $8.352 billion, as steady demand supported top-line growth.
• Cummins shares are testing new highs. Why did CMI hit a new high?
Adjusted EPS came in at $6.15, exceeding estimates of $5.59 and excluding $1.44 per share of charges related to the sale of its low-pressure fuel cell business.
Shares were trading higher following the results. GAAP net income was $654 million, or $4.71 per diluted share, down from $5.96 a year earlier.
Profitability and Regional Trends
EBITDA was $1.3 billion, or 15.4% of sales, compared with 17.9% a year ago, reflecting $199 million in charges tied to the fuel cell business exit.
North America sales declined 6%, while international revenue rose 16%, driven primarily by stronger demand in China.
Segment Performance
Engine sales fell 4% to $2.7 billion, with EBITDA of $279 million (10.4% margin), while shipments rose to 144,300 units.
Components sales declined 5% to $2.5 billion, with EBITDA of $337 million (13.3% margin).
Distribution sales rose 7% to $3.1 billion, with EBITDA of $444 million (14.2% margin), driven by power generation demand.
Power Systems sales increased 19% to $2 billion, with EBITDA of $577 million (29.5% margin).
Accelera sales fell 2% to $101 million, with an EBITDA loss of $277 million.
CEO Commentary
“Cummins delivered strong results in the first quarter, led by record performance in our Power Systems segment,” said Jennifer Rumsey, chair and CEO of Cummins.
“We also recorded charges related to the sale of our low-pressure fuel cell business, reflecting lower hydrogen adoption expectations and our continued commitment to focusing investments and reducing losses within the Accelera segment.”
Cash Flow and Outlook
Operating cash flow was $309 million. Cash, cash equivalents and marketable securities totaled $3.18 billion, including $2.61 billion in cash. Long-term debt stood at $6.73 billion.
Cummins raised its full-year 2026 revenue guidance to $36.364 billion to $37.374 billion, versus estimates of $35.802 billion, implying growth of 8% to 11%.
EBITDA margin is expected to be at 17.75% to 18.50%, excluding fuel-cell charges. The company reiterated its commitment to return 50% of operating cash flow to shareholders.
“We raised our 2026 outlook for revenue and profitability as demand strengthens across several key markets. We see North America on-highway markets improving, while demand for data center power generation across a range of our products continues to outpace expectations,” added Rumsey.
CMI Price Action: Cummins shares were trading 1.95% higher at $669.73 at the time of publication on Tuesday.
Photo: JHVEPhoto/Shutterstock
Login to comment