Cummins Reports Strong Second Quarter 2026 Results; Raises Full-Year Outlook

(Moderate)

(Very Positive)

Key Terms

gaap financial

GAAP, or Generally Accepted Accounting Principles, are a set of standardized rules and guidelines that companies follow when preparing their financial statements. They ensure consistency, transparency, and comparability across different companies, making it easier for investors to understand and compare financial information accurately. This helps investors make informed decisions based on trustworthy and uniform financial reports.

View in glossary

ebitda financial

EBITDA stands for earnings before interest, taxes, depreciation, and amortization. It measures a company's profitability by focusing on the money it makes from its core operations, ignoring expenses like taxes and accounting adjustments. Investors use EBITDA to compare how well different companies are performing financially, as it provides a clearer picture of operational success without the influence of financial structure or accounting choices.

View in glossary

diluted eps financial

Diluted earnings per share (EPS) shows how much profit a company makes for each share of stock, assuming all possible shares from stock options or convertible securities are used. It provides a more conservative estimate than basic EPS, accounting for potential share increases that could dilute ownership. Investors use diluted EPS to get a clearer picture of a company's true profitability on a per-share basis.

behind-the-meter technical

Equipment or systems located on a customer’s side of the electricity meter—such as rooftop solar panels, battery storage, electric vehicle chargers, or energy controls—that generate, store, or manage power for use on-site rather than being supplied through the utility’s grid. Investors care because behind-the-meter assets change how much power a customer buys, can create new revenue or savings streams, affect demand patterns, and shift regulatory or business models in the energy market, much like a homeowner installing their own water tank reduces municipal supply needs.

microgrid technical

A microgrid is a small, local electricity system that combines power sources (like solar panels, small generators) and storage (batteries) with controls so it can run either connected to the main utility grid or on its own during outages. For investors, microgrids matter because they reduce outage risk, can lower energy costs, enable new revenue streams (selling excess power or grid services), and reflect growing demand for resilient, decentralized energy infrastructure.

See more from StockTitan in Google Search and AI answers. Adds StockTitan as a preferred source · opens Google

Add on Google

08/04/2026 - 07:30 AM

Record second-quarter revenues of $9.5 billion; GAAP¹Net Income of $932 million, or 9.9% of sales
EBITDA² in the second quarter was 17.5% of sales; Diluted EPS of $6.73
Full-year revenues are expected to range from up 10% to up 13%, an improvement from prior guidance of up 8% to 11%
EBITDA is now expected to be in the range of 18.0% to 18.5%, compared to prior guidance of 17.75% to 18.5%
The company returned $501 million to shareholders in the second quarter in the form of cash dividends and share repurchases

COLUMBUS, Ind.--(BUSINESS WIRE)-- Cummins Inc. (NYSE: CMI) today reported results for the second quarter of 2026.

“Cummins delivered record second-quarter results, reflecting robust customer orders for standby power for data centers and improving North American truck markets,” said Jennifer Rumsey, Chair and CEO of Cummins. “Rising demand and disciplined execution drove record performance as we continue to perform well in a complex macroeconomic environment. We are raising our expectations for full year performance and expect the second half of the year to be stronger than the first half. With greater regulatory clarity in on-highway markets in the U.S. and continued momentum across key markets, we are well positioned to deliver for our customers and generate profitable growth.”

Second-quarter 2026 revenues of $9.5 billion increased 9% from the same quarter in 2025. Sales in North America increased 8% while international revenues, led by growth in China, increased 12%.

Net income attributable to Cummins in the second quarter was $932 million, or $6.73 per diluted share, compared to $890 million, or $6.43 per diluted share, in 2025. The tax rate in the second quarter was 25.1% including $29 million, or $0.21 per diluted share, of unfavorable discrete tax items.

EBITDA in the second quarter was $1.7 billion, or 17.5% of sales, compared to $1.6 billion, or 18.4% of sales, a year ago.

2026 Outlook:

Based on its current forecast, Cummins is raising its full-year 2026 revenue guidance to be up 10% to 13%, due to stronger demand across several markets, particularly North America on-highway, China construction and power generation. EBITDA is expected to be in the range of 18.0% to 18.5%, compared to our prior guidance of 17.75% to 18.5%, excluding the charges related to the sale of the fuel cell business in the first quarter.

Cummins plans to continue generating strong operating cash flow and returns for shareholders and is committed to our long-term strategic goal of returning 50% of operating cash flow back to shareholders.

“We’re raising our financial outlook for 2026 as demand continues to outpace expectations across several key markets,” said Rumsey. “North American truck markets continue to improve, while demand for data center power generation remains robust. Our market-leading positions and talented global workforce position us well to capitalize on these trends, meet our customers’ needs, invest in future growth and continue delivering strong returns for shareholders.”

Second Quarter 2026 Highlights:

Cummins announced an increase in the quarterly common stock cash dividend from $2.00 to $2.20 per share. The company has increased the quarterly dividend to shareholders for 17 consecutive years.
In May, Cummins hosted its 2026 Analyst Day and raised its 2030 financial targets, reflecting the strength of its strategy, stronger market positions and rising demand across key markets. The company also announced disciplined capacity and product investments to further strengthen its position in mining and power generation, building on areas where Cummins is already well positioned to deliver long-term growth.
In June, Cummins announced an agreement with Circe Energy to provide a series of natural gas generator sets to support a scalable, behind-the-meter, prime power microgrid solution for their High-Performance Computing (HPC) data center in Texas. Deliveries are scheduled from 2026 through 2030 and will include Cummins’ HSK78 and QSK60 generator set platforms. The announcement reflects Cummins’ expanding role in supporting the North American data center market with natural gas-fueled generator sets and integrated microgrid controls designed to address power grid constraints, improve reliability and enable fast-start response capabilities in an era of unprecedented AI demand.
Cummins announced updated Model Year 2027 North American on-highway product launch plans following the EPA's proposed changes to upcoming emissions regulations. The company will introduce its new X10 and X15 engines through a measured production ramp while maintaining select legacy product availability in 2027. The approach is designed to satisfy the proposed regulatory framework, support customer production schedules and provide additional time to ramp production in a disciplined manner that helps position the industry for a successful transition. Cummins recently showcased these new platforms through the nationwide Forever Rising Tour, providing customers with hands-on experience and direct engagement with the company's latest powertrain technologies.

¹ Generally Accepted Accounting Principles in the U.S.

² Earnings or losses before interest expense, income taxes, depreciation and amortization and noncontrolling interests

Second quarter 2026 detail (all comparisons to same period in 2025):

EBITDA percentage for the company and some of the individual segments declined year-over-year. This was primarily due to higher incentive compensation, tied to expected record full-year results. EBITDA percentage for the company is expected to be higher in the second half and full year 2026 compared to the same periods in 2025.

Engine Segment

Sales - $3.1 billion, up 6%
Segment EBITDA - $386 million, or 12.5% of sales, compared to $400 million, or 13.8% of sales
Revenues in North America increased 1% and international sales increased 23% due to stronger construction demand in China.

Components Segment

Sales - $2.9 billion, up 7%
Segment EBITDA - $381 million, or 13.2% of sales, compared to $397 million, or 14.7% of sales
Revenues in North America increased 6% and international sales increased 8% primarily due to stronger truck demand in the United States and China.

Distribution Segment

Sales - $3.3 billion, up 9%
Segment EBITDA - $451 million, or 13.6% of sales, compared to $445 million, or 14.6% of sales
Revenues in North America increased 13% and international sales increased 1% driven by increased demand for power generation products, particularly for data center applications.

Power Systems Segment

Sales - $2.3 billion, up 19%
Segment EBITDA - $552 million, or 24.5% of sales, compared to $430 million, or 22.8% of sales
Revenues in North America increased 19% and international sales increased 19% driven primarily by increased power generation demand, particularly for data center markets in the United States, China and Asia Pacific.

Accelera Segment

Sales - $145 million, up 38%
Segment EBITDA loss - $69 million
Revenues increased due to stronger eMobility demand. The company remains committed to pacing and focusing its zero-emissions investments on the most promising paths in order to ensure long-term success as part of Cummins’ Destination Zero strategy, while reducing the rate of ongoing EBITDA losses.

About Cummins Inc.

Cummins Inc., a global power leader, is committed to powering a more prosperous world. Since 1919, we have delivered innovative solutions that move people, goods and economies forward. Our five business segments—Engine, Components, Distribution, Power Systems and Accelera™ by Cummins—offer a broad portfolio, including advanced diesel, electric and hybrid powertrains; integrated power generation systems; critical components such as aftertreatment, turbochargers, fuel systems, controls, transmissions, axles and brakes; and zero-emissions technologies like battery and electric powertrain systems. With a global footprint, deep technical expertise and an extensive service network, we deliver dependable, cutting-edge solutions tailored to our customers’ needs, supporting them through the energy transition with our Destination Zero strategy. We create value for customers, investors and employees and strengthen communities through our corporate responsibility global priorities: education, equity and environment. Headquartered in Columbus, Indiana, Cummins employs approximately 67,400 people worldwide and earned $2.8 billion on $33.7 billion in sales in 2025. Learn more at www.cummins.com.

Forward-looking disclosure statement

Information provided in this release that is not purely historical are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, including statements regarding our forecasts, guidance, preliminary results, expectations, hopes, beliefs and intentions on strategies regarding the future. These forward-looking statements include, without limitation, statements relating to our plans and expectations for our revenues and EBITDA. Our actual future results could differ materially from those projected in such forward-looking statements because of a number of factors, including, but not limited to: any adverse consequences resulting from entering into agreements with the U.S. Environmental Protection Agency, California Air Resources Board, the Environmental and Natural Resources Division of the U.S. Department of Justice and the California Attorney General's Office to resolve certain regulatory civil claims regarding our emissions certification and compliance process for certain engines primarily used in pick-up truck applications in the U.S., which became final and effective in April 2024, including required additional mitigation projects, adverse reputational impacts and potential resulting legal actions; increased scrutiny from regulatory agencies, as well as unpredictability in the adoption, implementation and enforcement of emission standards around the world; evolving environmental and climate change legislation and regulatory initiatives; any adverse consequences from changes in tariffs and other trade disruptions; changes in international, national and regional trade laws, regulations and policies; emissions deregulation; changes in taxation; global legal and ethical compliance costs and risks; future bans or limitations on the use of diesel-powered products; raw material, transportation and labor price fluctuations and supply shortages; aligning our capacity and production with our demand; the actions of, and income from, joint ventures and other investees that we do not directly control; large truck manufacturers' and original equipment manufacturers' customers discontinuing outsourcing their engine supply needs or experiencing financial distress, or change in control; product recalls; variability in material and commodity costs; the development of new technologies that reduce demand for our current products and services or not successfully developing new technologies and products to effectively address the energy transition; lower than expected acceptance of new or existing products or services; product liability claims; our sales mix of products; climate change, global warming, more stringent climate change regulations, accords, mitigation efforts, greenhouse gas regulations or other legislation designed to address climate change; our plan to reposition our portfolio of product offerings through exploration of strategic acquisitions, divestitures or exiting the production of certain product lines or product categories and related uncertainties of such decisions; increasing interest rates; challenging markets for talent and ability to attract, develop and retain key personnel; exposure to potential security breaches or other disruptions to our information technology environment and data security; the use of artificial intelligence in our business and in our products, services and features, and challenges with properly managing its use; political, economic and other risks from operations among, between and within numerous countries including political, economic and social uncertainty and the evolving globalization of our business; competitor activity; increasing competition, including increased global competition among our customers in emerging markets; failure to meet sustainability expectations or standards, or achieve our sustainability goals; labor relations or work stoppages; foreign currency exchange rate changes; the performance of our pension plan assets and volatility of discount rates; the price and availability of energy; continued availability of financing, financial instruments and financial resources in the amounts, at the times and on the terms required to support our future business; and other risks detailed from time to time in our SEC filings, including particularly in the Risk Factors section of our 2025 Annual Report on Form 10-K and Quarterly Reports on Form 10-Q. Shareholders, potential investors and other readers are urged to consider these factors carefully in evaluating the forward-looking statements and are cautioned not to place undue reliance on such forward-looking statements. The forward-looking statements made herein are made only as of the date of this release and we undertake no obligation to publicly update any forward-looking statements, whether as a result of new information, future events or otherwise. More detailed information about factors that may affect our performance may be found in our filings with the SEC, which are available at https://www.sec.gov or at https://www.cummins.com in the Investor Relations section of our website.

Presentation of Non-GAAP Financial Information

EBITDA is a non-GAAP measure used in this release and is defined and reconciled to what management believes to be the most comparable GAAP measure in a schedule attached to this release, except for forward-looking measures of EBITDA where a reconciliation to the corresponding GAAP measures is not available due to the variability, complexity and limited visibility of the non-cash items that are excluded from the non-GAAP outlook measure. Cummins presents this information as it believes it is useful to understanding the Company's operating performance, and because EBITDA is a measure used internally to assess the performance of the operating units.

Webcast information

Cummins management will host a teleconference to discuss these results today at 10 a.m. EDT. This teleconference will be webcast and available on the Investor Relations section of the Cummins website at www.cummins.com. Participants wishing to view the visuals available with the audio are encouraged to sign-in a few minutes prior to the start of the teleconference.

CUMMINS INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF NET INCOME (Unaudited) (a)
	Three months ended June 30,				Six months ended June 30,
In millions, except per share amounts		2026		2025		2026		2025
NET SALES	$	9,457	$	8,643	$	17,855	$	16,817
Cost of sales		6,992		6,362		13,147		12,381
GROSS MARGIN		2,465		2,281		4,708		4,436
OPERATING EXPENSES AND INCOME
Selling, general and administrative expenses		893		779		1,738		1,550
Research, development and engineering expenses		385		357		743		701
Equity, royalty and interest income from investees		154		118		302		249
Other operating expense, net		62		37		301		74
OPERATING INCOME		1,279		1,226		2,228		2,360
Interest expense		80		87		156		164
Other income, net		94		86		155		146
INCOME BEFORE INCOME TAXES		1,293		1,225		2,227		2,342
Income tax expense		325		297		579		564
CONSOLIDATED NET INCOME		968		928		1,648		1,778
Less: Net income attributable to noncontrolling interests		36		38		62		64
NET INCOME ATTRIBUTABLE TO CUMMINS INC.	$	932	$	890	$	1,586	$	1,714

EARNINGS PER COMMON SHARE ATTRIBUTABLE TO CUMMINS INC.
Basic	$	6.76	$	6.46	$	11.48	$	12.45
Diluted	$	6.73	$	6.43	$	11.44	$	12.38

WEIGHTED-AVERAGE COMMON SHARES OUTSTANDING
Basic		137.9		137.8		138.1		137.7
Diluted		138.5		138.5		138.6		138.4

^(a) Prepared on an unaudited basis in accordance with accounting principles generally accepted in the United States of America.

CUMMINS INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) (a)
In millions, except par value	June 30, 2026			December 31, 2025
ASSETS
Current assets
Cash and cash equivalents	$	3,179		$	2,845
Marketable securities		745			764
Total cash, cash equivalents and marketable securities		3,924			3,609
Accounts and notes receivable, net		6,585			5,818
Inventories		6,397			5,822
Prepaid expenses and other current assets		1,528			1,676
Total current assets		18,434			16,925
Long-term assets
Property, plant and equipment, net		7,013			6,958
Investments and advances related to equity method investees		2,265			2,133
Goodwill		2,222			2,224
Other intangible assets, net		2,168			2,167
Pension assets		1,008			1,033
Other assets		2,520			2,552
Total assets	$	35,630		$	33,992

LIABILITIES
Current liabilities
Accounts payable (principally trade)	$	4,654		$	3,800
Loans payable		459			313
Commercial paper		348			353
Current maturities of long-term debt		151			94
Accrued compensation, benefits and retirement costs		812			825
Current portion of accrued product warranty		658			693
Current portion of deferred revenue		1,592			1,606
Other accrued expenses		1,999			1,926
Total current liabilities		10,673			9,610
Long-term liabilities
Long-term debt		6,737			6,792
Deferred revenue		1,066			1,054
Other liabilities		3,248			3,128
Total liabilities	$	21,724		$	20,584

EQUITY
Cummins Inc. shareholders’ equity
Common stock, $2.50 par value, 500 shares authorized, 222.5 and 222.5 shares issued	$	2,626		$	2,673
Retained earnings		23,650			22,616
Treasury stock, at cost, 84.9 and 84.4 shares		(11,089	)		(10,662	)
Accumulated other comprehensive loss		(2,340	)		(2,278	)
Total Cummins Inc. shareholders’ equity		12,847			12,349
Noncontrolling interests		1,059			1,059
Total equity	$	13,906		$	13,408
Total liabilities and equity	$	35,630		$	33,992

^(a) Prepared on an unaudited basis in accordance with accounting principles generally accepted in the United States of America.

CUMMINS INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) (a)
	Three months ended June 30,						Six months ended June 30,
In millions		2026			2025			2026			2025
CASH FLOWS FROM OPERATING ACTIVITIES
Consolidated net income	$	968		$	928		$	1,648		$	1,778
Adjustments to reconcile consolidated net income to net cash provided by operating activities
Depreciation and amortization		281			279			563			548
Deferred income taxes		27			(113	)		15			(138	)
Equity in income of investees, net of dividends		(30	)		(18	)		(116	)		(88	)
Pension and OPEB expense		18			20			37			39
Pension contributions and OPEB payments		(15	)		(13	)		(28	)		(26	)
Changes in current assets and liabilities, net of acquisitions and divestiture
Accounts and notes receivable		(60	)		(186	)		(738	)		(643	)
Inventories		(279	)		(105	)		(612	)		(436	)
Other current assets		13			(136	)		(37	)		(172	)
Accounts payable		231			(182	)		860			148
Accrued expenses		317			243			150			(244	)
Other, net		28			68			66			16
Net cash provided by operating activities		1,499			785			1,808			782

CASH FLOWS FROM INVESTING ACTIVITIES
Capital expenditures		(249	)		(231	)		(438	)		(393	)
Investments in marketable securities—acquisitions		(401	)		(326	)		(633	)		(783	)
Investments in marketable securities—liquidations		234			204			641			636
Other, net		(3	)		(16	)		1			(75	)
Net cash used in investing activities		(419	)		(369	)		(429	)		(615	)

CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds from borrowings		107			2,094			320			2,146
Net payments of commercial paper		(1	)		(1,387	)		(5	)		(906	)
Payments on borrowings and finance lease obligations		(140	)		(66	)		(248	)		(210	)
Dividend payments on common stock		(276	)		(251	)		(552	)		(502	)
Repurchases of common stock		(225	)		—			(468	)		—
Payments for purchase of redeemable noncontrolling interests		—			(55	)		—			(55	)
Other, net		11			(3	)		(88	)		(49	)
Net cash (used in) provided by financing activities		(524	)		332			(1,041	)		424
EFFECT OF EXCHANGE RATE CHANGES ON CASH AND CASH EQUIVALENTS		9			39			(4	)		57
Net increase in cash and cash equivalents		565			787			334			648
Cash and cash equivalents at beginning of period		2,614			1,532			2,845			1,671
CASH AND CASH EQUIVALENTS AT END OF PERIOD	$	3,179		$	2,319		$	3,179		$	2,319

^(a) Prepared on an unaudited basis in accordance with accounting principles generally accepted in the United States of America.

CUMMINS INC. AND SUBSIDIARIES SEGMENT INFORMATION (Unaudited)
In millions	Engine			Components			Distribution			Power Systems			Accelera			Total Segments			Intersegment Eliminations ⁽¹⁾			Total
Three months ended June 30, 2026
External sales	$	2,349		$	2,431		$	3,320		$	1,217		$	140		$	9,457		$	—		$	9,457
Intersegment sales		735			460			6			1,038			5			2,244			(2,244	)		—
Total sales		3,084			2,891			3,326			2,255			145			11,701			(2,244	)		9,457
Research, development and engineering expenses		181			88			15			79			22			385			—			385
Equity, royalty and interest income (loss) from investees		79			10			34			34			(3	)		154			—			154
EBITDA ⁽²⁾		386			381			451			552			(69	)		1,701			(48	)		1,653
Depreciation and amortization ⁽³⁾		77			126			34			35			8			280			—			280

EBITDA as a percentage of segment sales		12.5	%		13.2	%		13.6	%		24.5	%		NM			14.5	%					17.5	%

Three months ended June 30, 2025
External sales	$	2,162		$	2,295		$	3,034		$	1,054		$	98		$	8,643		$	—		$	8,643
Intersegment sales		737			410			7			835			7			1,996			(1,996	)		—
Total sales		2,899			2,705			3,041			1,889			105			10,639			(1,996	)		8,643
Research, development and engineering expenses		151			77			14			69			46			357			—			357
Equity, royalty and interest income (loss) from investees		60			10			26			27			(5	)		118			—			118
EBITDA ⁽²⁾		400			397			445			430			(100	)		1,572			15			1,587
Depreciation and amortization ⁽³⁾		68			127			32			35			13			275			—			275

EBITDA as a percentage of segment sales		13.8	%		14.7	%		14.6	%		22.8	%		NM			14.8	%					18.4	%

In millions	Engine			Components			Distribution			Power Systems			Accelera			Total Segments			Intersegment Eliminations ⁽¹⁾			Total
Six months ended June 30, 2026
External sales	$	4,315		$	4,569		$	6,429		$	2,310		$	232		$	17,855		$	—		$	17,855
Intersegment sales		1,441			852			13			1,901			14			4,221			(4,221	)		—
Total sales		5,756			5,421			6,442			4,211			246			22,076			(4,221	)		17,855
Research, development and engineering expenses		345			169			30			145			54			743			—			743
Equity, royalty and interest income (loss) from investees		159			20			62			70			(9	)		302			—			302
EBITDA ⁽²⁾		665			718			895			1,129			(346)	⁽⁴⁾		3,061			(118	)		2,943
Depreciation and amortization ⁽³⁾		149			254			69			71			17			560			—			560

EBITDA as a percentage of total sales		11.6	%		13.2	%		13.9	%		26.8	%		NM			13.9	%					16.5	%

Six months ended June 30, 2025
External sales	$	4,202		$	4,565		$	5,936		$	1,926		$	188		$	16,817		$	—		$	16,817
Intersegment sales		1,468			810			12			1,612			20			3,922			(3,922	)		—
Total sales		5,670			5,375			5,948			3,538			208			20,739			(3,922	)		16,817
Research, development and engineering expenses		306			152			28			126			89			701			—			701
Equity, royalty and interest income (loss) from investees		133			17			54			56			(11	)		249			—			249
EBITDA ⁽²⁾		858			779			821			819			(186	)		3,091			(44	)		3,047
Depreciation and amortization ⁽³⁾		135			249			64			68			25			541			—			541

EBITDA as a percentage of total sales		15.1	%		14.5	%		13.8	%		23.1	%		NM			14.9	%					18.1	%

“NM” - not meaningful information
⁽¹⁾Included intersegment sales, intersegment profit in inventory and unallocated corporate expenses. There were no significant unallocated corporate expenses for the three and six months ended June 30, 2026 and 2025.
⁽²⁾EBITDA is defined as earnings or losses before interest expense, income taxes, depreciation and amortization and noncontrolling interests. We believe EBITDA is a useful measure of our operating performance as it assists investors and debt holders in comparing our performance on a consistent basis without regard to financing methods, capital structure, income taxes or depreciation and amortization methods, which can vary significantly depending upon many factors.
⁽³⁾Depreciation and amortization, as shown on a segment basis, excludes the amortization of debt discount and deferred costs included in the Condensed Consolidated Statements of Net Income as interest expense. A portion of depreciation expense is included in research, development and engineering expenses.
⁽⁴⁾ In the first quarter of 2026, we sold our low pressure fuel cell business to a customer, cancelled future commitments and resolved certain claims against us with that customer resulting in a net payment by us of $175 million. These transactions resulted in a net charge of $199 million which is reflected in other operating expense, net in our Condensed Consolidated Statements of Net Income.

CUMMINS INC. AND SUBSIDIARIES

SELECT FOOTNOTE DATA

(Unaudited)

EQUITY, ROYALTY AND INTEREST INCOME FROM INVESTEES

Equity, royalty and interest income from investees included in our Condensed Consolidated Statements of Net Income for the reporting periods was as follows:

	Three months ended June 30,				Six months ended June 30,
In millions		2026		2025		2026		2025
Manufacturing entities
Chongqing Cummins Engine Company, Ltd.	$	29	$	22	$	58	$	45
Dongfeng Cummins Engine Company, Ltd.		27		19		50		39
Beijing Foton Cummins Engine Co., Ltd.		22		15		43		30
Tata Cummins, Ltd.		8		7		20		17
All other manufacturers		19		14		35		21
Distribution entities
Komatsu Cummins Chile, Ltda.		18		15		32		29
All other distributors		6		4		14		12
Cummins share of net income		129		96		252		193
Royalty and interest income		25		22		50		56
Equity, royalty and interest income from investees	$	154	$	118	$	302	$	249

INCOME TAXES

Our effective tax rate for 2026 is expected to approximate 23.0 percent, excluding any discrete items that may arise.

Our effective tax rates for the three and six months ended June 30, 2026, were 25.1 percent and 26.0 percent, respectively. Our effective tax rates for the three and six months ended June 30, 2025, were 24.2 percent and 24.1 percent, respectively.

The three months ended June 30, 2026, contained net unfavorable discrete items of $29 million, or $0.21 per diluted share, primarily due to $17 million of unfavorable return to provision adjustments and $12 million of other net unfavorable discrete tax items.

The six months ended June 30, 2026, had an unfavorable discrete tax impact due to the $199 million loss on sale of business and settlement of current and future customer obligations for which no tax benefit was recognized. Other discrete items were net unfavorable $22 million, or $0.16 per diluted share, primarily due to $23 million of unfavorable return to provision adjustments, partially offset by $1 million of other net favorable discrete tax items.

The three months ended June 30, 2025, contained net favorable discrete tax items of $3 million, or $0.02 per diluted share, primarily due to $4 million of favorable adjustments for uncertain tax positions, partially offset by $1 million of other unfavorable adjustments.

The six months ended June 30, 2025, contained net favorable discrete tax items of $10 million, or $0.07 per diluted share, primarily due to $8 million of favorable adjustments for share-based compensation tax benefits and $5 million of favorable adjustments for uncertain tax positions, partially offset by $3 million of other unfavorable tax items.

Reconciliation of Non GAAP measures - Earnings or losses before interest expense, income taxes, depreciation and amortization and noncontrolling interests (EBITDA)

We believe EBITDA is a useful measure of our operating performance as it assists investors and debt holders in comparing our performance on a consistent basis without regard to financing methods, capital structure, income taxes or depreciation and amortization methods, which can vary significantly depending upon many factors. We believe EBITDA excluding special items, as noted in the table below, is a useful measure of our operating performance. This statement excludes forward looking measures of EBITDA where a reconciliation to the corresponding accounting principles generally accepted in the United States (GAAP) measures is not available due to the variability, complexity and limited visibility of non-cash items that are excluded from the non-GAAP outlook measure.

EBITDA is not in accordance with, or an alternative for, GAAP and may not be consistent with measures used by other companies. It should be considered supplemental data; however, the amounts included in the EBITDA calculation are derived from amounts included in our Condensed Consolidated Statements of Net Income. Below is a reconciliation of net income attributable to Cummins Inc. to EBITDA for each of the applicable periods:

	Three months ended June 30,						Six months ended June 30,
In millions		2026			2025			2026			2025
Net income attributable to Cummins Inc.	$	932		$	890		$	1,586		$	1,714

Net income attributable to Cummins Inc., as a percentage of net sales		*9.9*	%		10.3	%		*8.9*	%		10.2	%

Add:
Net income attributable to noncontrolling interests		36			38			62			64
Consolidated net income		968			928			1,648			1,778

Add:
Interest expense		80			87			156			164
Income tax expense		325			297			579			564
Depreciation and amortization		280			275			560			541
EBITDA	$	1,653		$	1,587		$	2,943		$	3,047

EBITDA, as a percentage of net sales		*17.5*	%		18.4	%		*16.5*	%		18.1	%

Special items:
Loss on sale of business and settlement of current and future customer obligations		—			—			199			—
EBITDA, excluding special items	$	1,653		$	1,587		$	3,142		$	3,047

EBITDA, excluding special items, as a percentage of net sales		*17.5*	%		18.4	%		*17.6*	%		18.1	%

CUMMINS INC. AND SUBSIDIARIES

SEGMENT SALES DATA

(Unaudited)

Engine Segment Sales by Market and Unit Shipments by Engine Classification

Sales for our Engine segment by market were as follows:

2026
In millions	Q1		Q2		Q3		Q4		YTD
Heavy-duty truck	$	799	$	968	$	—	$	—	$	1,767
Medium-duty truck and bus		871		1,030		—		—		1,901
Light-duty automotive		448		491		—		—		939
Off-highway		554		595		—		—		1,149
Total sales	$	2,672	$	3,084	$	—	$	—	$	5,756

2025
In millions	Q1		Q2		Q3		Q4		YTD
Heavy-duty truck	$	921	$	976	$	772	$	820	$	3,489
Medium-duty truck and bus		986		950		784		893		3,613
Light-duty automotive		421		486		583		440		1,930
Off-highway		443		487		466		447		1,843
Total sales	$	2,771	$	2,899	$	2,605	$	2,600	$	10,875

Total engine shipments by engine classification, including on and off-highway units, were as follows:

2026
Units ⁽¹⁾	Q1		Q2		Q3		Q4		YTD
Heavy-duty		24,700		30,100		—		—		54,800
Medium-duty		79,100		86,100		—		—		165,200
Light-duty		40,500		45,000		—		—		85,500
Total units		144,300		161,200		—		—		305,500

2025
Units ⁽¹⁾	Q1		Q2		Q3		Q4		YTD
Heavy-duty		26,700		29,600		22,400		23,200		101,900
Medium-duty		75,200		73,400		63,100		68,800		280,500
Light-duty		39,100		44,000		49,600		39,100		171,800
Total units		141,000		147,000		135,100		131,100		554,200

⁽¹⁾Unit shipments exclude aftermarket parts.

Components Segment Sales by Business

Sales for our Components segment by business were as follows:

2026
In millions	Q1		Q2		Q3		Q4		YTD
Drivetrain and braking systems	$	919	$	1,122	$	—	$	—	$	2,041
Emission solutions		915		988		—		—		1,903
Components and software		608		657		—		—		1,265
Automated transmissions		88		124		—		—		212
Total sales	$	2,530	$	2,891	$	—	$	—	$	5,421

2025
In millions	Q1		Q2		Q3		Q4		YTD
Drivetrain and braking systems	$	1,056	$	1,095	$	917	$	918	$	3,986
Emission solutions		902		900		788		867		3,457
Components and software		595		587		537		564		2,283
Automated transmissions		117		123		87		96		423
Total sales	$	2,670	$	2,705	$	2,329	$	2,445	$	10,149

Distribution Segment Sales by Product Line

Sales for our Distribution segment by product line were as follows:

2026
In millions	Q1		Q2		Q3		Q4		YTD
Power generation	$	1,275	$	1,378	$	—	$	—	$	2,653
Parts		1,064		1,080		—		—		2,144
Service		433		472		—		—		905
Engines		344		396		—		—		740
Total sales	$	3,116	$	3,326	$	—	$	—	$	6,442

2025
In millions	Q1		Q2		Q3		Q4		YTD
Power generation	$	1,090	$	1,200	$	1,247	$	1,395	$	4,932
Parts		1,031		1,015		1,013		1,024		4,083
Service		416		439		495		448		1,798
Engines		370		387		417		418		1,592
Total sales	$	2,907	$	3,041	$	3,172	$	3,285	$	12,405

Power Systems Segment Sales by Product Line

Sales for our Power Systems segment by product line were as follows:

2026
In millions	Q1		Q2		Q3		Q4		YTD
Power generation	$	1,283	$	1,536	$	—	$	—	$	2,819
Industrial		506		538		—		—		1,044
Generator technologies		167		181		—		—		348
Total sales	$	1,956	$	2,255	$	—	$	—	$	4,211

2025
In millions	Q1		Q2		Q3		Q4		YTD
Power generation	$	1,001	$	1,205	$	1,280	$	1,245	$	4,731
Industrial		498		506		531		528		2,063
Generator technologies		150		178		185		156		669
Total sales	$	1,649	$	1,889	$	1,996	$	1,929	$	7,463

View source version on businesswire.com: https://www.businesswire.com/news/home/20260804268390/en/

Melinda Koski
External Communications
812-377-0500
melinda.koski@cummins.com

Source: Cummins Inc.

Cummins Reports Strong Second Quarter 2026 Results; Raises Full-Year Outlook

Key Terms

Related Articles