CMI · Cummins Inc.

Cummins Inc. delivered Q1 2026 results with revenues of $8.4 billion, a 3% increase from Q1 2025, driven by 16% international growth particularly in China offsetting a 6% North America decline. GAAP net income fell to $654 million or $4.71 diluted EPS from $824 million or $5.96, impacted by $199 million charges ($1.44 per share) for the low-pressure fuel cell business sale and customer obligations, reflecting lower hydrogen adoption and Accelera segment focus. EBITDA margin contracted to 15.4% from 17.9%, with the charges contributing to the decline. Segment performance varied: Power Systems surged 19% to $2.0 billion with 29.5% EBITDA margin on robust data center backup power demand in North America, China, and Asia Pacific; Distribution rose 7% to $3.1 billion on power generation; Engine and Components fell 4-5% on softer U.S. truck demand but gained from China construction and Brazil. Accelera reported $101 million sales and $277 million EBITDA loss including charges, with commitment to zero-emissions via Destination Zero while curbing losses. Management, led by CEO Jennifer Rumsey, highlighted disciplined execution amid improving North America truck markets and data center outperformance, raising FY2026 outlook to 8-11% revenue growth (from 3-8%) and 17.75-18.50% EBITDA (from 17.0-18.0%), excluding Q1 charges. Returned $519 million to shareholders, aligning with 50% operating cash flow goal. Highlights include Mack X10 engine integration, Chile hybrid mining truck deployment, and ethical awards, positioning for growth and energy transition.