Cummins (NYSE: CMI) raises 2026 guidance as Q1 revenue grows and Power Systems surges
Filing Impact
Filing Sentiment
Form Type
8-K
Rhea-AI Filing Summary
Cummins Inc. reported first-quarter 2026 results with modest growth and higher guidance for the full year. Revenue reached $8.4 billion, up 3% from 2025, as strong international demand, especially in China, offset weaker North America truck markets. Net income attributable to Cummins was $654 million, or $4.71 diluted EPS, down from $824 million, or $5.96, primarily due to $199 million of charges tied to selling the low-pressure fuel cell business and settling related customer obligations.
Profitability remained solid despite these charges. EBITDA was $1.3 billion, or 15.4% of sales, and excluding the fuel cell charge, EBITDA was $1.49 billion, or 17.7% of sales, roughly in line with last year’s 17.9%. The Power Systems segment stood out with $2.0 billion in sales, up 19%, and EBITDA of 29.5% of sales, driven by data center power demand, while Distribution sales rose 7%.
Cummins raised its 2026 outlook, signaling confidence in demand. Full-year revenue is now expected to be up 8% to 11%, versus prior guidance of up 3% to 8%, and EBITDA margin is projected at 17.75% to 18.50%, above the previous 17.0% to 18.0% range, excluding the first-quarter fuel cell charge. The company returned $519 million to shareholders in the quarter through dividends and share repurchases and reiterated its long-term goal of returning 50% of operating cash flow to shareholders.
Positive
- Raised 2026 guidance: Full-year revenue now expected to grow 8%–11% with EBITDA margin projected at 17.75%–18.50%, above prior ranges, indicating stronger demand and profitability expectations.
- Power Systems strength: Power Systems sales rose to $2.0 billion, up 19% year over year, with segment EBITDA margin improving to 29.5% of sales, helped by high data center power demand.
Negative
- Fuel cell divestiture charge and Accelera losses: A $199 million charge on the sale of the low-pressure fuel cell business contributed to a $277 million EBITDA loss in the Accelera segment, pressuring consolidated margins and net income.
- Weaker Engine and Components performance: Engine sales fell 4% and Components sales 5%, with Engine segment EBITDA margin dropping from 16.5% to 10.4%, reflecting softer North America truck demand.
Insights
Cummins posts solid Q1, absorbs fuel cell charge, and lifts 2026 guidance.
Cummins generated Q1 2026 revenue of $8.4 billion, up 3%, with net income of $654 million. A $199 million loss on the sale of the low-pressure fuel cell business reduced EPS to $4.71, but core operations remained strong.
EBITDA was $1.29 billion, or 15.4% of sales, and excluding the special charge, EBITDA margin reached 17.7%, comparable to the prior year. Segment trends were mixed: Engine and Components saw lower sales, while Distribution and especially Power Systems benefited from robust demand for data center power and power generation products.
Management raised its 2026 revenue outlook to up 8%–11% and EBITDA margin to 17.75%–18.50%, reflecting stronger expectations for North America on-highway and power generation markets. Cash generation supported $519 million returned to shareholders in Q1, and future filings may show how quickly Accelera’s EBITDA losses narrow after the fuel cell divestiture.
8-K Event Classification
2 items: 2.02, 9.01
2 items
Item 2.02
Results of Operations and Financial Condition
Financial
Disclosure of earnings results, typically an earnings press release or preliminary financials.
Item 9.01
Financial Statements and Exhibits
Exhibits
Financial statements, pro forma financial information, and exhibit attachments filed with this report.
Key Figures
Q1 2026 Revenue: $8.4 billion
Q1 2026 Net Income: $654 million
Diluted EPS: $4.71 per share
+5 more
8 metrics
Q1 2026 Revenue
$8.4 billion
First quarter 2026 net sales, up 3% year over year
Q1 2026 Net Income
$654 million
Net income attributable to Cummins Inc. in Q1 2026
Diluted EPS
$4.71 per share
Q1 2026 diluted earnings per share
Fuel cell business charge
$199 million
Charge related to sale of low-pressure fuel cell business in Q1 2026
EBITDA margin
15.4% of sales
Q1 2026 EBITDA as a percentage of net sales
EBITDA excl. special items
$1.49 billion
Q1 2026 EBITDA excluding $199 million special charge
2026 revenue guidance
Up 8%–11%
Updated full-year 2026 revenue growth outlook
Cash returned to shareholders
$519 million
Dividends and share repurchases in Q1 2026
Key Terms
EBITDA, segment EBITDA, noncontrolling interests, effective tax rate, +2 more
6 terms
EBITDA financial
"EBITDA in the first quarter was 15.4% of sales; Diluted EPS of $4.71"
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.
segment EBITDA financial
"Power Systems Segment •Sales - $2.0 billion, up 19% •Segment EBITDA - $577 million, or 29.5% of sales"
Segment EBITDA measures how much profit a specific part of a company generates from its core operations, before accounting for interest, taxes and long-term accounting items like depreciation and amortization. Investors use it like inspecting a single slice of a pie to compare which business units are most profitable, track performance trends, and decide where to allocate capital because it highlights underlying operating results without financing or accounting differences.
noncontrolling interests financial
"Less: Net income attributable to noncontrolling interests | | 26"
The portion of a subsidiary’s equity and profits that belongs to outside owners rather than the parent company; when a parent reports consolidated results it includes the whole subsidiary but shows the noncontrolling slice separately. Think of a company’s subsidiary as a pie where the parent owns most slices but some are held by other investors — noncontrolling interests tell you how much of the pie and its future earnings don’t belong to the parent, which affects how much profit and net assets are truly attributable to the parent’s shareholders.
effective tax rate financial
"Our effective tax rates for the three months ended March 31, 2026 and 2025, were 27.2 percent and 23.9 percent"
The effective tax rate is the percentage of a company's profits that it pays in taxes. It shows how much of its earnings go to taxes after all deductions and credits are considered. For investors, it indicates how much of the company's income is taken by taxes, impacting overall profitability and financial health.
forward-looking statements regulatory
"Information provided in this release that is not purely historical are forward-looking statements within the meaning"
Forward-looking statements are predictions or plans that companies share about what they expect to happen in the future, like estimating sales or profits. They matter because they help investors understand a company's outlook, but since they are based on guesses and assumptions, they can sometimes be wrong.
Destination Zero strategy other
"The project aligns with Cummins’ Destination Zero strategy to support customers through the energy transition"
Earnings Snapshot
Revenue: $8.4 billion · Guidance included
Q1 2026
Revenue
$8.4 billion
+3% vs Q1 2025
Net income attributable to Cummins
$654 million
down from $824 million in Q1 2025
Diluted EPS
$4.71
down from $5.96 in Q1 2025
EBITDA margin
15.4%
down from 17.9% in Q1 2025
Guidance
For full-year 2026, revenue is expected to be up 8% to 11%, and EBITDA margin is projected between 17.75% and 18.50%, excluding charges related to the fuel cell business sale.
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
Date of Report: May 5, 2026
(Exact name of registrant as specified in its charter)
| (State or other Jurisdiction of Incorporation) | (Commission File Number) | (I.R.S. Employer Identification No.) | ||||||
(Principal Executive Office) (Zip Code)
Registrant's telephone number, including area code: (812 ) 377-5000
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) | |||||
| Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) | |||||
| Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) | |||||
| Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) | |||||
Securities registered pursuant to Sections 12(b) of the Act:
| Title of each class | Trading symbol(s) | Name of each exchange on which registered | ||||||||||||
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter)
Emerging growth company ☐
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
Item 2.02. Results of Operations and Financial Condition.
On May 5, 2026 , Cummins Inc. (“Cummins,” “the Company,” “the registrant,” “we,” “our,” or “us”) issued the attached press release reporting its financial results for the first quarter of 2026, which is furnished herewith as Exhibit 99.
The information furnished pursuant to this Item 2.02, including Exhibit 99, shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934 (the “Exchange Act”) or otherwise subject to the liabilities under that Section and shall not be deemed to be incorporated by reference into any filing of the Company under the Securities Act of 1933 or the Exchange Act.
Item 9.01. Financial Statements and Exhibits.
(d)Exhibits. - The exhibit below is furnished herewith:
Exhibit Index
| Exhibit No. | Description | |||||||
Exhibit 99 | Press Release dated February 5, 2026 | |||||||
| Exhibit 104 | Cover Page Interactive Data File (the cover page Interactive Data File is embedded within the Inline XBRL document) | |||||||
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
Date: May 5, 2026
| CUMMINS INC. | ||
| /s/ LUTHER E. PETERS | ||
Luther E. Peters Vice President - Controller (Principal Accounting Officer) | ||
EXHIBIT 99
May 5, 2026
Cummins delivered strong operating results and returned $519 million to shareholders in the first quarter of 2026; raises full-year outlook
•First-quarter revenues of $8.4 billion; GAAP1 Net Income of $654 million, or 7.8% of sales
•EBITDA2 in the first quarter was 15.4% of sales; Diluted EPS of $4.71
•First-quarter results include $199 million, or $1.44 per diluted share, of charges related to completing the sale of our low-pressure fuel cell business and related customer obligations for this business
•Full-year revenues are expected to range from up 8% to up 11%, an improvement from prior guidance of up 3% to 8%
•EBITDA is now expected to be in the range of 17.75% to 18.50%, an increase from previous guidance of 17.0% to 18.0%
COLUMBUS, IND. – Cummins Inc. (NYSE: CMI) today reported results for the first quarter of 2026.
“Cummins delivered strong results in the first quarter, led by record performance in our Power Systems segment. Our teams executed with discipline to meet continued strong demand for data center backup power and North America truck markets began to improve from a cyclical low,” 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.”
First-quarter 2026 revenues of $8.4 billion increased 3% from the same quarter in 2025. Sales in North America decreased 6% while international revenues increased 16%, primarily due to stronger demand in China.
Net income attributable to Cummins in the first quarter was $654 million, or $4.71 per diluted share, compared to $824 million, or $5.96 per diluted share, in 2025. The current quarter results include charges related to the sale of our low-pressure fuel cell business of $199 million, or $1.44 per diluted share.
EBITDA in the first quarter was $1.3 billion, or 15.4% of sales, compared to $1.5 billion, or 17.9% of sales, a year ago. EBITDA for the first quarter of 2026 included the charges noted above.
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2026 Outlook:
Based on its current forecast, Cummins is raising its full-year 2026 revenue guidance to be up 8% to 11%, due to stronger demand across several markets, particularly North America on-highway and power generation. EBITDA is expected to be in the range of 17.75% to 18.50%, up from our prior guidance of 17.0% to 18.0%, 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 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. Through the remainder of 2026, we are well-positioned to deliver strong financial performance, invest in future growth and return cash to shareholders,” said Rumsey.
First Quarter 2026 Highlights:
•Mack Trucks announced the integration of the Cummins X10 engine into the Mack Granite Chassis. This milestone reflects the strong collaboration between the Mack and Cummins teams and a shared commitment to delivering reliable, high-performing solutions for vocational customers. The X10 is well-suited for demanding work applications, and its integration into the Granite platform will provide customers with a compelling option in the vocational truck segment.
•In February, Cummins announced the deployment of the world’s first commercial hybrid-electric ultra-class mining truck in production at Caserones, an open pit copper-molybdenum mine in Tierra Amarilla, Chile, owned by Lundin Mining. The pilot marks Cummins’ first deployment of a retrofitted 300-ton Komatsu mining haul truck into daily operation using a retrofit hybrid solution powered by its First Mode technology. The project aligns with Cummins’ Destination Zero strategy to support customers through the energy transition by delivering solutions that improve efficiency and reduce CO2 emissions today.
•Cummins received several prestigious honors recognizing the company’s commitment to its people, culture and innovation. Of note, Cummins was named to Ethisphere’s 2026 World’s Most Ethical Companies® list and recognized as a platinum employer on the Where you Work Matters list. Heavy Duty Trucking also recognized several Cummins technologies, including its versatile medium-duty engine portfolio and Acumen advanced computing module, in their 2026 Top 20 Products awards, which highlight innovation and real-world business value for fleets.
First quarter 2026 detail (all comparisons to same period in 2025):
Engine Segment
•Sales - $2.7 billion, down 4%
•Segment EBITDA - $279 million, or 10.4% of sales, compared to $458 million, or 16.5% of sales
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•Revenues in North America decreased 12% and international sales increased 22% due to lower medium-duty and heavy-duty truck demand in the United States and stronger construction demand in China.
Components Segment
•Sales - $2.5 billion, down 5%
•Segment EBITDA - $337 million, or 13.3% of sales, compared to $382 million, or 14.3% of sales
•Revenues in North America decreased 13% and international sales increased 6% primarily due to lower medium-duty and heavy-duty truck demand in the United States and stronger demand in China and Brazil.
Distribution Segment
•Sales - $3.1 billion, up 7%
•Segment EBITDA - $444 million, or 14.2% of sales, compared to $376 million, or 12.9% of sales
•Revenues in North America increased 3% and international sales increased 18% driven by increased demand for power generation products, particularly for data center applications.
Power Systems Segment
•Sales - $2.0 billion, up 19%
•Segment EBITDA - $577 million, or 29.5% of sales, compared to $389 million, or 23.6% of sales
•Revenues in North America increased 19% and international sales increased 18% driven primarily by increased power generation demand, particularly for data center markets in North America, China and Asia Pacific.
Accelera Segment
•Sales - $101 million, down 2%
•Segment EBITDA loss - $277 million, which includes $199 million of charges related to the sale of our low-pressure fuel cell 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 as part of Cummins’ Destination Zero strategy, while reducing the rate of ongoing EBITDA losses.
1 Generally Accepted Accounting Principles in the U.S.
2 Earnings or losses before interest expense, income taxes, depreciation and amortization and noncontrolling interests
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
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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 https://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 (IT) environment and data security; the use of artificial intelligence (AI) 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
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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.
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CUMMINS INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF NET INCOME
(Unaudited) (a)
| Three months ended | ||||||||||||||
| March 31, | ||||||||||||||
| In millions, except per share amounts | 2026 | 2025 | ||||||||||||
| NET SALES | $ | 8,398 | $ | 8,174 | ||||||||||
| Cost of sales | 6,155 | 6,019 | ||||||||||||
| GROSS MARGIN | 2,243 | 2,155 | ||||||||||||
| OPERATING EXPENSES AND INCOME | ||||||||||||||
| Selling, general and administrative expenses | 845 | 771 | ||||||||||||
| Research, development and engineering expenses | 358 | 344 | ||||||||||||
| Equity, royalty and interest income from investees | 148 | 131 | ||||||||||||
| Other operating expense, net | 239 | 37 | ||||||||||||
| OPERATING INCOME | 949 | 1,134 | ||||||||||||
| Interest expense | 76 | 77 | ||||||||||||
| Other income, net | 61 | 60 | ||||||||||||
| INCOME BEFORE INCOME TAXES | 934 | 1,117 | ||||||||||||
| Income tax expense | 254 | 267 | ||||||||||||
| CONSOLIDATED NET INCOME | 680 | 850 | ||||||||||||
| Less: Net income attributable to noncontrolling interests | 26 | 26 | ||||||||||||
| NET INCOME ATTRIBUTABLE TO CUMMINS INC. | $ | 654 | $ | 824 | ||||||||||
| EARNINGS PER COMMON SHARE ATTRIBUTABLE TO CUMMINS INC. | ||||||||||||||
| Basic | $ | 4.73 | $ | 5.99 | ||||||||||
| Diluted | $ | 4.71 | $ | 5.96 | ||||||||||
| WEIGHTED-AVERAGE COMMON SHARES OUTSTANDING | ||||||||||||||
| Basic | 138.3 | 137.6 | ||||||||||||
| Diluted | 138.8 | 138.3 | ||||||||||||
(a) Prepared on an unaudited basis in accordance with accounting principles generally accepted in the United States of America. | ||||||||||||||
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CUMMINS INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(Unaudited) (a)
| In millions, except par value | March 31, 2026 | December 31, 2025 | ||||||||||||
| ASSETS | ||||||||||||||
| Current assets | ||||||||||||||
| Cash and cash equivalents | $ | 2,614 | $ | 2,845 | ||||||||||
| Marketable securities | 568 | 764 | ||||||||||||
| Total cash, cash equivalents and marketable securities | 3,182 | 3,609 | ||||||||||||
| Accounts and notes receivable, net | 6,528 | 5,818 | ||||||||||||
| Inventories | 6,126 | 5,822 | ||||||||||||
| Prepaid expenses and other current assets | 1,543 | 1,676 | ||||||||||||
| Total current assets | 17,379 | 16,925 | ||||||||||||
| Long-term assets | ||||||||||||||
| Property, plant and equipment, net | 6,924 | 6,958 | ||||||||||||
| Investments and advances related to equity method investees | 2,221 | 2,133 | ||||||||||||
| Goodwill | 2,219 | 2,224 | ||||||||||||
| Other intangible assets, net | 2,193 | 2,167 | ||||||||||||
| Pension assets | 1,001 | 1,033 | ||||||||||||
| Other assets | 2,508 | 2,552 | ||||||||||||
| Total assets | $ | 34,445 | $ | 33,992 | ||||||||||
| LIABILITIES | ||||||||||||||
| Current liabilities | ||||||||||||||
| Accounts payable (principally trade) | $ | 4,433 | $ | 3,800 | ||||||||||
| Loans payable | 451 | 313 | ||||||||||||
| Commercial paper | 349 | 353 | ||||||||||||
| Current maturities of long-term debt | 157 | 94 | ||||||||||||
| Accrued compensation, benefits and retirement costs | 597 | 825 | ||||||||||||
| Current portion of accrued product warranty | 638 | 693 | ||||||||||||
| Current portion of deferred revenue | 1,591 | 1,606 | ||||||||||||
| Other accrued expenses | 1,951 | 1,926 | ||||||||||||
| Total current liabilities | 10,167 | 9,610 | ||||||||||||
| Long-term liabilities | ||||||||||||||
| Long-term debt | 6,729 | 6,792 | ||||||||||||
| Deferred revenue | 1,053 | 1,054 | ||||||||||||
| Other liabilities | 3,124 | 3,128 | ||||||||||||
| Total liabilities | $ | 21,073 | $ | 20,584 | ||||||||||
| EQUITY | ||||||||||||||
| Cummins Inc. shareholders’ equity | ||||||||||||||
| Common stock, $2.50 par value, 500 shares authorized, 222.5 and 222.5 shares issued | $ | 2,602 | $ | 2,673 | ||||||||||
| Retained earnings | 22,994 | 22,616 | ||||||||||||
Treasury stock, at cost, 84.5 and 84.4 shares | (10,868) | (10,662) | ||||||||||||
| Accumulated other comprehensive loss | (2,377) | (2,278) | ||||||||||||
| Total Cummins Inc. shareholders’ equity | 12,351 | 12,349 | ||||||||||||
| Noncontrolling interests | 1,021 | 1,059 | ||||||||||||
| Total equity | $ | 13,372 | $ | 13,408 | ||||||||||
| Total liabilities and equity | $ | 34,445 | $ | 33,992 | ||||||||||
(a) Prepared on an unaudited basis in accordance with accounting principles generally accepted in the United States of America. | ||||||||||||||
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CUMMINS INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited) (a)
| Three months ended | ||||||||||||||
| March 31, | ||||||||||||||
| In millions | 2026 | 2025 | ||||||||||||
| CASH FLOWS FROM OPERATING ACTIVITIES | ||||||||||||||
| Consolidated net income | $ | 680 | $ | 850 | ||||||||||
| Adjustments to reconcile consolidated net income to net cash provided by (used in) operating activities | ||||||||||||||
| Depreciation and amortization | 282 | 269 | ||||||||||||
| Deferred income taxes | (12) | (25) | ||||||||||||
| Equity in income of investees, net of dividends | (86) | (70) | ||||||||||||
| Pension and OPEB expense | 19 | 19 | ||||||||||||
| Pension contributions and OPEB payments | (13) | (13) | ||||||||||||
| Changes in current assets and liabilities, net of acquisitions and divestiture | ||||||||||||||
| Accounts and notes receivable | (678) | (457) | ||||||||||||
| Inventories | (333) | (331) | ||||||||||||
| Other current assets | (50) | (36) | ||||||||||||
| Accounts payable | 629 | 330 | ||||||||||||
| Accrued expenses | (167) | (487) | ||||||||||||
| Other, net | 38 | (52) | ||||||||||||
| Net cash provided by (used in) operating activities | 309 | (3) | ||||||||||||
| CASH FLOWS FROM INVESTING ACTIVITIES | ||||||||||||||
| Capital expenditures | (189) | (162) | ||||||||||||
| Investments in marketable securities—acquisitions | (232) | (457) | ||||||||||||
| Investments in marketable securities—liquidations | 407 | 432 | ||||||||||||
| Other, net | 4 | (59) | ||||||||||||
| Net cash used in investing activities | (10) | (246) | ||||||||||||
| CASH FLOWS FROM FINANCING ACTIVITIES | ||||||||||||||
| Proceeds from borrowings | 213 | 52 | ||||||||||||
| Net (payments) borrowings of commercial paper | (4) | 481 | ||||||||||||
| Payments on borrowings and finance lease obligations | (108) | (144) | ||||||||||||
| Dividend payments on common stock | (276) | (251) | ||||||||||||
| Repurchases of common stock | (243) | — | ||||||||||||
| Other, net | (99) | (46) | ||||||||||||
| Net cash (used in) provided by financing activities | (517) | 92 | ||||||||||||
| EFFECT OF EXCHANGE RATE CHANGES ON CASH AND CASH EQUIVALENTS | (13) | 18 | ||||||||||||
| Net decrease in cash and cash equivalents | (231) | (139) | ||||||||||||
| Cash and cash equivalents at beginning of year | 2,845 | 1,671 | ||||||||||||
| CASH AND CASH EQUIVALENTS AT END OF PERIOD | $ | 2,614 | $ | 1,532 | ||||||||||
(a) Prepared on an unaudited basis in accordance with accounting principles generally accepted in the United States of America. | ||||||||||||||
8
CUMMINS INC. AND SUBSIDIARIES
SEGMENT INFORMATION
(Unaudited)
| In millions | Engine | Components | Distribution | Power Systems | Accelera | Total Segments | Intersegment Eliminations (1) | Total | ||||||||||||||||||||||||||||||||||||||||||
| Three months ended March 31, 2026 | ||||||||||||||||||||||||||||||||||||||||||||||||||
| External sales | $ | 1,966 | $ | 2,138 | $ | 3,109 | $ | 1,093 | $ | 92 | $ | 8,398 | $ | — | $ | 8,398 | ||||||||||||||||||||||||||||||||||
| Intersegment sales | 706 | 392 | 7 | 863 | 9 | 1,977 | (1,977) | — | ||||||||||||||||||||||||||||||||||||||||||
| Total sales | 2,672 | 2,530 | 3,116 | 1,956 | 101 | 10,375 | (1,977) | 8,398 | ||||||||||||||||||||||||||||||||||||||||||
| Research, development and engineering expenses | 164 | 81 | 15 | 66 | 32 | 358 | — | 358 | ||||||||||||||||||||||||||||||||||||||||||
| Equity, royalty and interest income (loss) from investees | 80 | 10 | 28 | 36 | (6) | 148 | — | 148 | ||||||||||||||||||||||||||||||||||||||||||
EBITDA (2) | 279 | 337 | 444 | 577 | (277) | (3) | 1,360 | (70) | 1,290 | |||||||||||||||||||||||||||||||||||||||||
Depreciation and amortization (4) | 72 | 128 | 35 | 36 | 9 | 280 | — | 280 | ||||||||||||||||||||||||||||||||||||||||||
| EBITDA as a percentage of total sales | 10.4% | 13.3% | 14.2 | % | 29.5 | % | NM | 13.1 | % | 15.4 | % | |||||||||||||||||||||||||||||||||||||||
| Three months ended March 31, 2025 | ||||||||||||||||||||||||||||||||||||||||||||||||||
| External sales | $ | 2,040 | $ | 2,270 | $ | 2,902 | $ | 872 | $ | 90 | $ | 8,174 | $ | — | $ | 8,174 | ||||||||||||||||||||||||||||||||||
| Intersegment sales | 731 | 400 | 5 | 777 | 13 | 1,926 | (1,926) | — | ||||||||||||||||||||||||||||||||||||||||||
| Total sales | 2,771 | 2,670 | 2,907 | 1,649 | 103 | 10,100 | (1,926) | 8,174 | ||||||||||||||||||||||||||||||||||||||||||
| Research, development and engineering expenses | 155 | 75 | 14 | 57 | 43 | 344 | — | 344 | ||||||||||||||||||||||||||||||||||||||||||
| Equity, royalty and interest income (loss) from investees | 73 | 7 | 28 | 29 | (6) | 131 | — | 131 | ||||||||||||||||||||||||||||||||||||||||||
EBITDA (2) | 458 | 382 | 376 | 389 | (86) | 1,519 | (59) | 1,460 | ||||||||||||||||||||||||||||||||||||||||||
Depreciation and amortization (4) | 67 | 122 | 32 | 33 | 12 | 266 | — | 266 | ||||||||||||||||||||||||||||||||||||||||||
| EBITDA as a percentage of total sales | 16.5 | % | 14.3 | % | 12.9 | % | 23.6 | % | NM | 15.0 | % | 17.9 | % | |||||||||||||||||||||||||||||||||||||
“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 months ended March 31, 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) On March 31, 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. | ||||||||||||||||||||||||||||||||||||||||||||||||||
(4) Depreciation and amortization, as shown on a segment basis, excluded the amortization of debt discount and deferred costs included in the Condensed Consolidated Statements of Net Income as interest expense. The amortization of debt discount and deferred costs was $2 million and $3 million for the three months ended March 31, 2026 and 2025, respectively. A portion of depreciation expense is included in research, development and engineering expenses. | ||||||||||||||||||||||||||||||||||||||||||||||||||
9
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 March 31, | ||||||||||||||
| In millions | 2026 | 2025 | ||||||||||||
| Manufacturing entities | ||||||||||||||
| Chongqing Cummins Engine Company, Ltd. | $ | 29 | $ | 23 | ||||||||||
| Dongfeng Cummins Engine Company, Ltd. | 23 | 20 | ||||||||||||
| Beijing Foton Cummins Engine Co., Ltd. | 21 | 15 | ||||||||||||
| Tata Cummins, Ltd. | 12 | 10 | ||||||||||||
| All other manufacturers | 16 | 7 | ||||||||||||
| Distribution entities | ||||||||||||||
| Komatsu Cummins Chile, Ltda. | 14 | 14 | ||||||||||||
| All other distributors | 8 | 8 | ||||||||||||
| Cummins share of net income | 123 | 97 | ||||||||||||
| Royalty and interest income | 25 | 34 | ||||||||||||
| Equity, royalty and interest income from investees | $ | 148 | $ | 131 | ||||||||||
INCOME TAXES
Our effective tax rate for 2026, excluding discrete items, is expected to approximate 23.0 percent.
Our effective tax rates for the three months ended March 31, 2026 and 2025, were 27.2 percent and 23.9 percent, respectively.
The three months ended March 31, 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 favorable by $7 million, or $0.05 per diluted share.
The three months ended March 31, 2025, contained net favorable discrete tax items of $7 million, or $0.05 per diluted share, primarily due to $8 million of favorable share-based compensation tax benefits, partially offset by $1 million of other unfavorable adjustments.
10
CUMMINS INC. AND SUBSIDIARIES
SELECT FOOTNOTE DATA
(Unaudited)
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 March 31, | ||||||||||||||
| In millions | 2026 | 2025 | ||||||||||||
| Net income attributable to Cummins Inc. | $ | 654 | $ | 824 | ||||||||||
| Net income attributable to Cummins Inc., as a percentage of net sales | 7.8 | % | 10.1 | % | ||||||||||
| Add: | ||||||||||||||
| Net income attributable to noncontrolling interests | 26 | 26 | ||||||||||||
| Consolidated net income | 680 | 850 | ||||||||||||
| Add: | ||||||||||||||
| Interest expense | 76 | 77 | ||||||||||||
| Income tax expense | 254 | 267 | ||||||||||||
| Depreciation and amortization | 280 | 266 | ||||||||||||
| EBITDA | $ | 1,290 | $ | 1,460 | ||||||||||
| EBITDA, as a percentage of net sales | 15.4 | % | 17.9 | % | ||||||||||
| Special items: | ||||||||||||||
| Loss on sale of business and settlement of current and future customer obligations | 199 | — | ||||||||||||
| EBITDA, excluding special items | $ | 1,489 | $ | 1,460 | ||||||||||
| EBITDA, excluding special items, as a percentage of net sales | 17.7 | % | 17.9 | % | ||||||||||
11
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 | $ | — | $ | — | $ | — | $ | 799 | ||||||||||||||||||||||
| Medium-duty truck and bus | 871 | — | — | — | 871 | |||||||||||||||||||||||||||
| Light-duty automotive | 448 | — | — | — | 448 | |||||||||||||||||||||||||||
| Off-highway | 554 | — | — | — | 554 | |||||||||||||||||||||||||||
| Total sales | $ | 2,672 | $ | — | $ | — | $ | — | $ | 2,672 | ||||||||||||||||||||||
| 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 | ||||||||||||||||||||||
Unit shipments by engine classification (including unit shipments to Power Systems and off-highway engine units included in their respective classification) were as follows:
| 2026 | ||||||||||||||||||||||||||||||||
Units (1) | Q1 | Q2 | Q3 | Q4 | YTD | |||||||||||||||||||||||||||
| Heavy-duty | 24,700 | — | — | — | 24,700 | |||||||||||||||||||||||||||
| Medium-duty | 79,100 | — | — | — | 79,100 | |||||||||||||||||||||||||||
| Light-duty | 40,500 | — | — | — | 40,500 | |||||||||||||||||||||||||||
| Total units | 144,300 | — | — | — | 144,300 | |||||||||||||||||||||||||||
| 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. | ||||||||||||||||||||||||||||||||
12
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 | $ | — | $ | — | $ | — | $ | 919 | ||||||||||||||||||||||
| Emission solutions | 915 | — | — | — | 915 | |||||||||||||||||||||||||||
| Components and software | 608 | — | — | — | 608 | |||||||||||||||||||||||||||
| Automated transmissions | 88 | — | — | — | 88 | |||||||||||||||||||||||||||
| Total sales | $ | 2,530 | $ | — | $ | — | $ | — | $ | 2,530 | ||||||||||||||||||||||
| 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 | $ | — | $ | — | $ | — | $ | 1,275 | ||||||||||||||||||||||
| Parts | 1,064 | — | — | — | 1,064 | |||||||||||||||||||||||||||
| Service | 433 | — | — | — | 433 | |||||||||||||||||||||||||||
| Engines | 344 | — | — | — | 344 | |||||||||||||||||||||||||||
| Total sales | $ | 3,116 | $ | — | $ | — | $ | — | $ | 3,116 | ||||||||||||||||||||||
| 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 | ||||||||||||||||||||||
13
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 | $ | — | $ | — | $ | — | $ | 1,283 | ||||||||||||||||||||||
| Industrial | 506 | — | — | — | 506 | |||||||||||||||||||||||||||
| Generator technologies | 167 | — | — | — | 167 | |||||||||||||||||||||||||||
| Total sales | $ | 1,956 | $ | — | $ | — | $ | — | $ | 1,956 | ||||||||||||||||||||||
| 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 | ||||||||||||||||||||||
14
FAQ
How did Cummins (CMI) perform financially in Q1 2026?
Cummins reported Q1 2026 revenue of $8.4 billion, up 3% from 2025. Net income attributable to Cummins was $654 million, or $4.71 diluted EPS, reflecting strong operations offset by a significant fuel cell business divestiture charge.
Why did Cummins’ Q1 2026 earnings decline versus 2025?
Earnings declined mainly due to a $199 million charge from selling the low-pressure fuel cell business and settling related obligations. This reduced net income to $654 million from $824 million, even though revenue grew and core EBITDA performance remained solid.
What guidance did Cummins (CMI) give for full-year 2026?
Cummins raised its 2026 outlook, now expecting full-year revenue to be up 8% to 11%. It projects EBITDA margin between 17.75% and 18.50%, higher than prior guidance of 17.0% to 18.0%, excluding Q1 fuel cell-related charges.
Which Cummins segments drove growth in Q1 2026?
Growth was led by the Power Systems and Distribution segments. Power Systems sales reached $2.0 billion, up 19%, with 29.5% EBITDA margin, while Distribution sales rose 7% to $3.1 billion, boosted by power generation and parts demand.
What is happening with Cummins’ Accelera zero-emissions segment?
The Accelera segment generated $101 million in sales in Q1 2026 and recorded an EBITDA loss of $277 million, including a $199 million charge from selling the low-pressure fuel cell business, as Cummins refocuses investments on its most promising zero-emissions technologies.