Cummins Reports Strong Third Quarter 2026 Results

Weaker North American pickup demand narrowed the full-year revenue growth outlook despite higher quarterly earnings.

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• Third-quarter revenues of $9.4 billion; GAAP¹ Net Income of $1,140 million, or 12.1% of sales
• EBITDA² in the third quarter was a record 18.9% of sales; Diluted EPS of $8.25
• The company expects full-year revenue growth of approximately 10% and EBITDA of approximately 18.2%
• The company returned $661 million to shareholders in the third quarter in the form of cash dividends and share repurchases

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

“We delivered record EBITDA and earnings per share in the third quarter, led by continued strength in our Power Systems business,” said Jennifer Rumsey, Chair and CEO of Cummins. “Global demand for power generation equipment remains exceptionally strong, driven by data center buildout. While the U.S. medium- and heavy-duty truck markets strengthened, customer orders in the pickup truck market have weakened. I’m proud of our employees’ focus on execution and confident our market-leading positions and broad portfolio will enable us to continue to deliver for customers, improve our financial performance cycle-over-cycle and return cash to shareholders.”

Third-quarter 2026 revenues of $9.4 billion increased 13% from the same quarter in 2025. Sales in North America grew 15% while international revenues, led by growth in China, increased 11%.

Net income attributable to Cummins in the third quarter was $1.14 billion, or $8.25 per diluted share, compared with $536 million, or $3.86 per diluted share, in 2025. Third-quarter 2025 results included $240 million, or $1.73 per diluted share, of Accelera non-cash charges. Third-quarter 2026 diluted EPS included $0.54 per share of favorable discrete tax items.

EBITDA in the third quarter was a record $1.8 billion, or 18.9% of sales, compared to $1.2 billion, or 14.3% of sales, a year ago. EBITDA for the third quarter of 2025 included costs noted above.

2026 Outlook:

Based on its current forecast, Cummins expects revenue growth of approximately 10% compared to our prior guidance of 10% to 13%. EBITDA margins are expected to be approximately 18.2%, consistent with our prior guidance range of 18% to 18.5%, and excluding charges related to the sale of the low-pressure 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 goal of returning 50% of operating cash flow back to shareholders.

"We have adjusted our full-year revenue and profitability guidance primarily due to continued weaker than expected pickup truck demand in North America, which impacted our third quarter and is expected to persist through the end of this year,” said Rumsey. “Global power generation and North America heavy duty truck demand remain strong, and we expect fourth quarter revenues to step up from third quarter levels and set a new record."

Third Quarter 2026 Highlights:

• In July, Cummins increased its 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 August, Cummins announced that its Power Generation business had been selected to supply battery energy storage systems (BESS) for a large U.S. data center project, supporting utility-defined requirements for managing AI-driven load fluctuations, mitigating load oscillations and enhancing ride-through performance. This announcement marks a significant milestone for Cummins’ BESS business as this project will be the company’s largest BESS deployment to date. It also reflects Cummins’ continued role in supporting the data center market with reliable, sustainable power solutions.

• Cummins made important progress preparing for the launch of its upcoming HELM™ engine platforms. During the quarter, it completed the 2026 Forever Rising Tour, giving more than 500 customers and dealers the opportunity to experience its 2027 X15 engine, alongside the X10 and natural gas X15N engines.

• Cummins was named as a World's Top Disability Inclusive Business^® for the sixth consecutive year, earning a top score of 100 on the Disability Index^®.

1 Generally Accepted Accounting Principles in the U.S.

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

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

Engine Segment

• Sales: $3.1 billion, up 20%
• Segment EBITDA: $422 million, or 13.5% of sales, compared to $261 million, or 10.0% of sales
• Revenues in North America increased 21% and international sales increased 18% due to stronger North American truck demand and construction demand in China.

Components Segment

• Sales: $2.9 billion, up 23%
• Segment EBITDA: $408 million, or 14.3% of sales, compared to $292 million, or 12.5% of sales
• Revenues in North America increased 35% and international sales increased 8% primarily due to stronger truck demand in the United States.

Distribution Segment

• Sales: $3.3 billion, up 4%
• Segment EBITDA: $461 million, or 13.9% of sales, compared to $492 million, or 15.5% of sales
• Revenues in North America increased 5% and international sales increased 4%, driven by increased demand for power generation products, particularly for data center applications.

Power Systems Segment

• Sales: $2.3 billion, up 15%
• Segment EBITDA: $582 million, or 25.4% of sales, compared to $457 million, or 22.9% of sales
• Revenues in North America increased 20% and international sales increased 11% driven primarily by increased power generation demand, particularly for data center markets in the United States, China and Asia Pacific.

Accelera Segment

• Sales: $103 million, down 15%
• Segment EBITDA loss: $56 million
• Revenues decreased primarily due to reduction in electrolyzer sales following the strategic review of this business. The company remains committed to pacing and focusing its zero-emissions investments on the most promising paths in order to ensure long-term success, 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						Nine months ended
		September 30,						September 30,
In millions, except per share amounts		2026			2025			2026			2025
NET SALES		$	9,438		$	8,317		$	27,293		$	25,134
Cost of sales			6,823			6,188			19,970			18,569
GROSS MARGIN			2,615			2,129			7,323			6,565
OPERATING EXPENSES AND INCOME
Selling, general and administrative expenses			868			789			2,606			2,339
Research, development and engineering expenses			400			345			1,143			1,046
Equity, royalty and interest income from investees			127			104			429			353
Other operating expense, net			30			247			331			321
OPERATING INCOME			1,444			852			3,672			3,212
Interest expense			81			83			237			247
Other income, net			57			61			212			207
INCOME BEFORE INCOME TAXES			1,420			830			3,647			3,172
Income tax expense			251			271			830			835
CONSOLIDATED NET INCOME			1,169			559			2,817			2,337
Less: Net income attributable to noncontrolling interests			29			23			91			87
NET INCOME ATTRIBUTABLE TO CUMMINS INC.		$	1,140		$	536		$	2,726		$	2,250
EARNINGS PER COMMON SHARE ATTRIBUTABLE TO CUMMINS INC.
Basic		$	8.29		$	3.88		$	19.77		$	16.33
Diluted		$	8.25		$	3.86		$	19.70		$	16.23
WEIGHTED-AVERAGE COMMON SHARES OUTSTANDING
Basic			137.5			138.0			137.9			137.8
Diluted			138.1			138.8			138.4			138.6
(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		September 30, 2026				December 31, 2025
ASSETS
Current assets
Cash and cash equivalents		$	3,571			$	2,845
Marketable securities			614				764
Total cash, cash equivalents and marketable securities			4,185				3,609
Accounts and notes receivable, net			6,638				5,818
Inventories			6,811				5,822
Prepaid expenses and other current assets			1,741				1,676
Total current assets			19,375				16,925
Long-term assets
Property, plant and equipment, net			7,114				6,958
Investments and advances related to equity method investees			2,384				2,133
Goodwill			2,221				2,224
Other intangible assets, net			2,012				2,167
Pension assets			1,011				1,033
Other assets			2,469				2,552
Total assets		$	36,586			$	33,992
LIABILITIES
Current liabilities
Accounts payable (principally trade)		$	4,879			$	3,800
Loans payable			383				313
Commercial paper			348				353
Current maturities of long-term debt			154				94
Accrued compensation, benefits and retirement costs			965				825
Current portion of accrued product warranty			664				693
Current portion of deferred revenue			1,690				1,606
Other accrued expenses			2,049				1,926
Total current liabilities			11,132				9,610
Long-term liabilities
Long-term debt			6,634				6,792
Deferred revenue			1,167				1,054
Other liabilities			3,307				3,128
Total liabilities		$	22,240			$	20,584
EQUITY
Cummins Inc. shareholders’ equity
Common stock, $2.50 par value, 500 shares authorized, 222.5 and 222.5 shares issued		$	2,649			$	2,673
Retained earnings			24,488				22,616
Treasury stock, at cost, 85.5 and 84.4 shares			(11,451	)			(10,662	)
Accumulated other comprehensive loss			(2,355	)			(2,278	)
Total Cummins Inc. shareholders’ equity			13,331				12,349
Noncontrolling interests			1,015				1,059
Total equity		$	14,346			$	13,408
Total liabilities and equity		$	36,586			$	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								Nine months ended
		September 30,								September 30,
In millions		2026				2025				2026				2025
CASH FLOWS FROM OPERATING ACTIVITIES
Consolidated net income		$	1,169			$	559			$	2,817			$	2,337
Adjustments to reconcile consolidated net income to net cash provided by operating activities
Depreciation and amortization			288				277				851				825
Deferred income taxes			33				206				48				68
Equity in income of investees, net of dividends			(31	)			50				(147	)			(38	)
Pension and OPEB expense			19				21				56				60
Pension contributions and OPEB payments			(13	)			(12	)			(41	)			(38	)
Changes in current assets and liabilities, net of acquisitions and divestitures
Accounts and notes receivable			(113	)			177				(851	)			(466	)
Inventories			(418	)			(10	)			(1,030	)			(446	)
Other current assets			(116	)			26				(153	)			(146	)
Accounts payable			227				(295	)			1,087				(147	)
Accrued expenses			317				43				467				(201	)
Other, net			43				263				109				279
Net cash provided by operating activities			1,405				1,305				3,213				2,087
CASH FLOWS FROM INVESTING ACTIVITIES
Capital expenditures			(303	)			(298	)			(741	)			(691	)
Investments in marketable securities—acquisitions			(266	)			(350	)			(899	)			(1,133	)
Investments in marketable securities—liquidations			390				495				1,031				1,131
Other, net			(55	)			(78	)			(54	)			(153	)
Net cash used in investing activities			(234	)			(231	)			(663	)			(846	)
CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds from borrowings			134				86				454				2,232
Net payments of commercial paper			—				—				(5	)			(906	)
Payments on borrowings and finance lease obligations			(196	)			(617	)			(444	)			(827	)
Dividend payments on common stock			(302	)			(276	)			(854	)			(778	)
Repurchases of common stock			(359	)			—				(827	)			—
Payments for purchase of redeemable noncontrolling interests			—				—				—				(55	)
Other, net			(69	)			(20	)			(157	)			(69	)
Net cash used in financing activities			(792	)			(827	)			(1,833	)			(403	)
EFFECT OF EXCHANGE RATE CHANGES ON CASH AND CASH EQUIVALENTS			13				—				9				57
Net increase in cash and cash equivalents			392				247				726				895
Cash and cash equivalents at beginning of period			3,179				2,319				2,845				1,671
CASH AND CASH EQUIVALENTS AT END OF PERIOD		$	3,571			$	2,566			$	3,571			$	2,566
(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 September 30, 2026
External sales		$	2,389			$	2,397			$	3,307			$	1,250			$	95				$	9,438			$	—			$	9,438
Intersegment sales			741				459				3				1,039				8					2,250				(2,250	)			—
Total sales			3,130				2,856				3,310				2,289				103					11,688				(2,250	)			9,438
Research, development and engineering expenses			186				85				16				85				28					400				—				400
Equity, royalty and interest income (loss) from investees			58				9				29				35				(4	)				127				—				127
EBITDA (2)			422				408				461				582				(56	)				1,817				(31	)			1,786
Depreciation and amortization (3)			79				125				37				36				8					285				—				285
EBITDA as a percentage of segment sales			13.5	%			14.3	%			13.9	%			25.4	%			NM					15.5	%							18.9	%
Three months ended September 30, 2025
External sales		$	1,922			$	1,986			$	3,170			$	1,126			$	113				$	8,317			$	—			$	8,317
Intersegment sales			683				343				2				870				8					1,906				(1,906	)			—
Total sales			2,605				2,329				3,172				1,996				121					10,223				(1,906	)			8,317
Research, development and engineering expenses			159				70				14				62				40					345				—				345
Equity, royalty and interest income (loss) from investees			54				7				23				26				(6	)				104				—				104
EBITDA (2)			261				292				492				457				(336	)	(4	)		1,166				21				1,187
Depreciation and amortization (3)			71				122				32				36				13					274				—				274
EBITDA as a percentage of segment sales			10.0	%			12.5	%			15.5	%			22.9	%			NM					11.4	%							14.3	%

In millions		Engine				Components				Distribution				Power Systems				Accelera					Total Segments				Intersegment Eliminations (1)				Total
Nine months ended September 30, 2026
External sales		$	6,704			$	6,966			$	9,736			$	3,560			$	327				$	27,293			$	—			$	27,293
Intersegment sales			2,182				1,311				16				2,940				22					6,471				(6,471	)			—
Total sales			8,886				8,277				9,752				6,500				349					33,764				(6,471	)			27,293
Research, development and engineering expenses			531				254				46				230				82					1,143				—				1,143
Equity, royalty and interest income (loss) from investees			217				29				91				105				(13	)				429				—				429
EBITDA (2)			1,087				1,126				1,356				1,711				(402	)	(5	)		4,878				(149	)			4,729
Depreciation and amortization (3)			228				379				106				107				25					845				—				845
EBITDA as a percentage of total sales			12.2	%			13.6	%			13.9	%			26.3	%			NM					14.4	%							17.3	%
Nine months ended September 30, 2025
External sales		$	6,124			$	6,551			$	9,106			$	3,052			$	301				$	25,134			$	—			$	25,134
Intersegment sales			2,151				1,153				14				2,482				28					5,828				(5,828	)			—
Total sales			8,275				7,704				9,120				5,534				329					30,962				(5,828	)			25,134
Research, development and engineering expenses			465				222				42				188				129					1,046				—				1,046
Equity, royalty and interest income (loss) from investees			187				24				77				82				(17	)				353				—				353
EBITDA (2)			1,119				1,071				1,313				1,276				(522	)	(4	)		4,257				(23	)			4,234
Depreciation and amortization (3)			206				371				96				104				38					815				—				815
EBITDA as a percentage of total sales			13.5	%			13.9	%			14.4	%			23.1	%			NM					13.7	%							16.8	%
“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 nine months ended September 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) Included a $210 million goodwill impairment charge and a $30 million inventory write-down for the three and nine months ended September 30, 2025.
(5) 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						Nine months ended
		September 30,						September 30,
In millions		2026			2025			2026			2025
Manufacturing entities
Chongqing Cummins Engine Company, Ltd.		$	28		$	23		$	86		$	68
Dongfeng Cummins Engine Company, Ltd.			16			13			66			52
Beijing Foton Cummins Engine Co., Ltd.			15			17			58			47
Tata Cummins, Ltd.			10			6			30			23
All other manufacturers			15			6			50			27
Distribution entities
Komatsu Cummins Chile, Ltda.			13			12			45			41
All other distributors			10			5			24			17
Cummins share of net income			107			82			359			275
Royalty and interest income			20			22			70			78
Equity, royalty and interest income from investees		$	127		$	104		$	429		$	353

INCOME TAXES

Our effective tax rate for 2026 is expected to approximate 23.0 percent, excluding all discrete items and the unfavorable tax impact of the $199 million loss on the sale of our low pressure fuel cell business and settlement of current and future customer obligations for which no tax benefit was recognized.

Our effective tax rates for the three and nine months ended September 30, 2026, were 17.7 percent and 22.8 percent, respectively. Our effective tax rates for the three and nine months ended September 30, 2025, were 32.7 percent and 26.3 percent, respectively.

The three months ended September 30, 2026, contained net favorable discrete items of $75 million, or $0.54 per diluted share, primarily due to $38 million of favorable adjustments for uncertain tax positions and $37 million of favorable return to provision adjustments

The nine months ended September 30, 2026, included an unfavorable tax impact due to the $199 million loss on the sale of our low pressure fuel cell business and settlement of current and future customer obligations for which no tax benefit was recognized. Discrete tax items were a net favorable $53 million, or $0.38 per diluted share, primarily due to $32 million of favorable adjustments for uncertain tax positions, $14 million of favorable return to provision adjustments and $7 million of other favorable discrete tax items.

The three months ended September 30, 2025, contained net unfavorable discrete tax items of $4 million, or $0.03 per diluted share, primarily due to $32 million of unfavorable return to provision adjustments and net $1 million of other unfavorable tax items, partially offset by $25 million of favorable adjustments for uncertain tax positions and $4 million of favorable adjustments for share-based compensation.

The nine months ended September 30, 2025, contained net favorable discrete tax items of $6 million, or $0.04 per diluted share, primarily due to $30 million of favorable adjustments for uncertain tax positions and $12 million of favorable adjustments for share-based compensation, partially offset by $32 million of unfavorable return to provision adjustments and net $4 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								Nine months ended
		September 30,								September 30,
In millions		2026				2025				2026				2025
Net income attributable to Cummins Inc.		$	1,140			$	536			$	2,726			$	2,250
Net income attributable to Cummins Inc., as a percentage of net sales			12.1	%			6.4	%			10.0	%			9.0	%
Add:
Net income attributable to noncontrolling interests			29				23				91				87
Consolidated net income			1,169				559				2,817				2,337
Add:
Interest expense			81				83				237				247
Income tax expense			251				271				830				835
Depreciation and amortization			285				274				845				815
EBITDA		$	1,786			$	1,187			$	4,729			$	4,234
EBITDA, as a percentage of net sales			18.9	%			14.3	%			17.3	%			16.8	%
Special items:
Accelera goodwill impairment			—				210			—					210
Accelera inventory write-down			—				30			—					30
Loss on sale of business and settlement of current and future customer obligations			—				—				199				—
EBITDA, excluding special items		$	1,786			$	1,427			$	4,928			$	4,474
EBITDA, excluding special items, as a percentage of net sales			18.9	%			17.2	%			18.1	%			17.8	%

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		$	1,016		$	—		$	2,783
Medium-duty truck and bus			871			1,030			1,045			—			2,946
Light-duty automotive			448			491			500			—			1,439
Off-highway			554			595			569			—			1,718
Total sales		$	2,672		$	3,084		$	3,130		$	—		$	8,886
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		33,200		—		88,000
Medium-duty		79,100		86,100		85,700		—		250,900
Light-duty		40,500		45,000		44,800		—		130,300
Total units		144,300		161,200		163,700		—		469,200
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		$	1,109		$	—		$	3,150
Emission solutions			915			988			956			—			2,859
Components and software			608			657			646			—			1,911
Automated transmissions			88			124			145			—			357
Total sales		$	2,530		$	2,891		$	2,856		$	—		$	8,277
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		$	1,328		$	—		$	3,981
Parts			1,064			1,080			1,049			—			3,193
Service			433			472			483			—			1,388
Engines			344			396			450			—			1,190
Total sales		$	3,116		$	3,326		$	3,310		$	—		$	9,752
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		$	1,557		$	—		$	4,376
Industrial			506			538			518			—			1,562
Generator technologies			167			181			214			—			562
Total sales		$	1,956		$	2,255		$	2,289		$	—		$	6,500
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/20261105285199/en/

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

Source: Cummins Inc.

Key Terms

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.

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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.

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BESS stands for Battery Energy Storage System, a technology that stores electricity for later use. Think of it as a large rechargeable battery that can hold excess power generated during times of low demand and release it when usage is high, helping balance supply and demand. This is important for investors because it supports the stability of energy grids, enables the integration of renewable sources, and can create new opportunities for profitability in the energy market.