Cummins Misses Revenue Estimates at $9.44 Billion; Lowers Revenue Growth Outlook

Cummins Inc. (NYSE: CMI) reported third-quarter revenue of $9.44 billion, below the $9.87 billion analysts expected. Diluted earnings per share were $8.25, against the $8.28 consensus estimate. That EPS is GAAP, not adjusted, and includes $0.54 per share of favorable discrete tax items; the release gives no adjusted EPS figure. The results were furnished in an 8-K on Thursday. Revenue rose 13% from a year earlier, when diluted EPS was $3.86.

Segment results

Power Systems sales rose 15% to $2.3 billion, with segment EBITDA of $582 million, or 25.4% of sales. Engine sales rose 20% to $3.1 billion and Components sales rose 23% to $2.9 billion. Distribution sales rose 4% to $3.3 billion. Accelera sales fell 15% to $103 million, with a segment EBITDA loss of $56 million.

Margins and pickup truck demand

EBITDA was a record $1.8 billion, or 18.9% of sales, compared with 14.3% a year ago. Net income attributable to Cummins was $1.14 billion. Third-quarter diluted EPS included $0.54 per share of favorable discrete tax items.

Chair and CEO Jennifer Rumsey said customer orders in the pickup truck market have weakened, and that weaker than expected pickup truck demand in North America affected the third quarter and is expected to persist through the end of the year. The company returned $661 million to shareholders in the quarter through cash dividends and share repurchases. In July, it raised its quarterly dividend to $2.20 per share from $2.00.

Guidance

Cummins lowered its 2026 revenue growth outlook to about 10%, from prior guidance of 10% to 13%. It expects an EBITDA margin of about 18.2%, consistent with its prior range of 18% to 18.5%, excluding charges related to the sale of the low-pressure fuel cell business in the first quarter. The company said fourth-quarter revenue should step up from third-quarter levels and set a new record. Analysts expected fourth-quarter revenue of $10.01 billion.

Cummins closed at $471.84 on Wednesday, Nov. 4, the last trading session before the filing.