Cummins Q3 2026 earnings rise to $8.25 a share
Weaker-than-expected North American pickup demand shaped revenue guidance of approximately 10%, while EBITDA margin guidance is approximately 18.2%.
Sentiment and the balance of points
Rhea-AI Sentiment reads the wording of the document, how positive or negative its language is on a 1 to 5 scale. The balance of points shown with the takes weighs what the document actually discloses, so the two can disagree, for example when a trial that missed its main goal is described in upbeat language.
Form Type
8-K
Rhea-AI Filing Summary
Cummins Inc. (CMI) reported third-quarter 2026 revenue of $9.438 billion, up 13% from a year earlier. Net income attributable to Cummins was $1.140 billion versus $536 million, and diluted EPS was $8.25 versus $3.86. EBITDA was $1.786 billion, or 18.9% of sales, compared with $1.187 billion and 14.3% a year earlier. Engine, Components and Power Systems sales rose 20%, 23% and 15%, respectively; Accelera sales fell 15% to $103 million and had a $56 million EBITDA loss.
For 2026, Cummins expects revenue growth of approximately 10%, versus prior guidance of 10% to 13%, and EBITDA margins of approximately 18.2%, consistent with prior guidance of 18% to 18.5%; the margin outlook excludes charges related to the first-quarter sale of its low-pressure fuel cell business. The company attributed the revenue outlook update primarily to weaker-than-expected North American pickup-truck demand, expected to persist through year-end. Cummins returned $661 million through dividends and share repurchases in the quarter and raised its quarterly dividend in July from $2.00 to $2.20 per share.
3 points · 0 major0 major · 0 points
How this balance works
Rhea-AI gives every point it takes from this document a weight. Minor counts 1, Moderate 3 and Major 9, so one Major point outweighs several Minor ones. The bar adds up the weights on each side, and when neither side holds more than 65% of the total the balance reads Mixed.
It reads the document as published, with the same rules for every company, and it does not look at what the market expected or at how the stock traded, so a point can be objectively good on a day the stock falls.
Rhea-AI Sentiment measures something else, the tone of the wording.
Positive
- Moderate pointThird-quarter revenue rose 13% to $9.438 billion year over year.
- Moderate pointThird-quarter net income reached $1.140 billion, versus $536 million.
- Moderate pointThird-quarter EBITDA reached $1.786 billion, or 18.9% of sales.
Negative
- None.
Filing Explained
The year-over-year earnings comparison has two stated qualifiers: third-quarter 2025 included
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, or exhibit attachments filed with this report.
Key Figures
Third-quarter net sales: $9.438 billion
Net income attributable to Cummins: $1.140 billion
Diluted EPS: $8.25 per share
+4 more
7 metrics
Third-quarter net sales
$9.438 billion
Third quarter 2026; up 13% from third quarter 2025
Net income attributable to Cummins
$1.140 billion
Third quarter 2026; compared with $536 million in third quarter 2025
Diluted EPS
$8.25 per share
Third quarter 2026; compared with $3.86 per share in third quarter 2025
EBITDA
$1.786 billion
Third quarter 2026; compared with $1.187 billion in third quarter 2025
EBITDA as a percentage of sales
18.9%
Third quarter 2026; compared with 14.3% in third quarter 2025
Full-year revenue growth outlook
Approximately 10%
2026 outlook; prior guidance was 10% to 13%
Full-year EBITDA margin outlook
Approximately 18.2%
2026 outlook; consistent with prior guidance of 18% to 18.5%
Key Terms
EBITDA, non-GAAP, discrete tax items, battery energy storage systems (BESS), +1 more
5 terms
EBITDA financial
"EBITDA is a non-GAAP measure used in this release"
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.
non-GAAP financial
"EBITDA is a non-GAAP measure used in this release"
Non-GAAP refers to financial measures that companies use to show their earnings or performance without including certain expenses or income that are often added back to give a different picture. It matters because it can make a company's results look better or more favorable, but it may also hide important costs, so investors need to look at both GAAP (official rules) and non-GAAP numbers to get a full understanding.
discrete tax items financial
"net favorable discrete tax items of $75 million"
battery energy storage systems (BESS) technical
"battery energy storage systems (BESS)"
Battery energy storage systems (BESS) are large installations that store electricity in batteries and release it when needed, like a giant rechargeable battery for the power grid. They matter to investors because they help smooth out supply and demand, support more renewable energy, and create new revenue streams (selling stored power, providing backup and stability), which can change utility costs, business models, and the value of energy-related companies.
diluted EPS financial
"Diluted EPS of $8.25"
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.
Earnings Snapshot
Net sales: $9.438 billion · Guidance included
Third quarter 2026
Net sales
$9.438 billion
Up 13% from third quarter 2025
Net income attributable to Cummins Inc.
$1.140 billion
Compared with $536 million in third quarter 2025
Diluted EPS
$8.25 per share
Compared with $3.86 per share in third quarter 2025
EBITDA
$1.786 billion
Compared with $1.187 billion in third quarter 2025
EBITDA as a percentage of net sales
18.9%
Compared with 14.3% in third quarter 2025
Guidance
Full-year revenue growth of approximately 10%; EBITDA margins of approximately 18.2%, excluding charges related to the first-quarter sale of the low-pressure fuel cell business.
FAQ
AI-generated questions and answers. How Rhea-AI works. Not financial advice.
How did CMI perform in the third quarter of 2026?
Revenue was $9.438 billion, up 13% year over year. Net income attributable to Cummins was $1.140 billion, versus $536 million, and diluted EPS was $8.25, versus $3.86. EBITDA was $1.786 billion, or 18.9% of sales, compared with $1.187 billion, or 14.3%.
What is CMI's 2026 revenue and EBITDA outlook?
Cummins expects full-year revenue growth of approximately 10%, compared with prior guidance of 10% to 13%, and EBITDA margins of approximately 18.2%, consistent with prior guidance of 18% to 18.5%. The company attributed the revenue update primarily to weaker-than-expected North American pickup-truck demand, expected to persist through year-end.
AI-generated analysis. How Rhea-AI works. Not financial advice.
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: November 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 November 5, 2026 , Cummins Inc. (“Cummins,” “the Company,” “the registrant,” “we,” “our,” or “us”) issued the attached press release reporting its financial results for the third 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 November 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: November 5, 2026
| CUMMINS INC. | ||
| /s/ LUTHER E. PETERS | ||
Luther E. Peters Vice President - Controller (Principal Accounting Officer) | ||
EXHIBIT 99
| News Release |  | ||||
November 5, 2026
Cummins Reports Strong Third Quarter 2026 Results
•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. – 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.
1
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 updated 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
2
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.
3
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 https://www.cummins.com.
4
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.
5
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.
6
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. | ||||||||||||||||||||||||||
7
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. | ||||||||||||||
8
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. | ||||||||||||||||||||||||||
9
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 | % | |||||||||||||||||||||||||||||||||||||
10
CUMMINS INC. AND SUBSIDIARIES
SEGMENT INFORMATION
(Unaudited)
| 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. | ||||||||||||||||||||||||||||||||||||||||||||||||||
11
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.
12
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 | 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 | % | ||||||||||||||||||
13
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. | ||||||||||||||||||||||||||||||||
14
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 | ||||||||||||||||||||||
15
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 | ||||||||||||||||||||||
16