Cummins Reports Strong Third Quarter 2026 Results
• 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."
• 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 ® .
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):
• 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.
• 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.
• 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.
• 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.
• 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
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
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
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.
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
In millions, except September 30, December 31, par value 2026 2025 ────────────────────────────────────────────────────────────────────────────── ASSETS Current assets Cash and cash $ 3,571 $ 2,845 equivalents Marketable 614 764 securities Total cash, cash equivalents and 4,185 3,609 marketable securities Accounts and notes 6,638 5,818 receivable, net Inventories 6,811 5,822 Prepaid expenses and 1,741 1,676 other current assets Total current 19,375 16,925 assets Long-term assets Property, plant and equipment, 7,114 6,958 net Investments and advances related to 2,384 2,133 equity method investees Goodwill 2,221 2,224 Other intangible 2,012 2,167 assets, net Pension assets 1,011 1,033 Other assets 2,469 2,552 Total assets $ 36,586 $ 33,992 LIABILITIES Current liabilities Accounts payable $ 4,879 $ 3,800 (principally trade) Loans payable 383 313 Commercial 348 353 paper Current maturities of 154 94 long-term debt Accrued compensation, benefits and 965 825 retirement costs Current portion of accrued 664 693 product warranty Current portion of deferred 1,690 1,606 revenue Other accrued 2,049 1,926 expenses Total current 11,132 9,610 liabilities Long-term liabilities Long-term debt 6,634 6,792 Deferred 1,167 1,054 revenue Other 3,307 3,128 liabilities Total $ 22,240 $ 20,584 liabilities EQUITY Cummins Inc. shareholders’ equity Common stock, $2.50 par value, 500 shares $ 2,649 $ 2,673 authorized, 222.5 and 222.5 shares issued Retained 24,488 22,616 earnings Treasury stock, at cost, 85.5 -11,451 -10,662 and 84.4 shares Accumulated other -2,355 -2,278 comprehensive loss Total Cummins Inc. 13,331 12,349 shareholders’ equity Noncontrolling 1,015 1,059 interests Total equity $ 14,346 $ 13,408 Total liabilities and $ 36,586 $ 33,992 equity (a)Prepared on an unaudited basis in accordance with accounting principles generally accepted in the United States of America.
In millio… Three Nine CASH months months FLOWS ended ended FROM Septem… Septemb… OPERAT… 30, 30, ACTIVI… 2026 2025 2026 2025 ────────────────────────────────────────────────────────────────────────────── Consol… net $ 1,169 $ 559 $ 2,817 $ 2,337 income Adjust… to reconc… consol… net income to net cash provid… by operat… activi… Deprec… and 288 277 851 825 amorti… Deferr… income 33 206 48 68 taxes Equity in income of -31 50 -147 -38 invest… net of divide… Pension and 19 21 56 60 OPEB expense Pension contri… and -13 -12 -41 -38 OPEB paymen… Changes in current assets and liabil… net of acquis… and divest… Accoun… and -113 177 -851 -466 notes receiv… Invent… -418 -10 -1,030 -446 Other current -116 26 -153 -146 assets Accoun… 227 -295 1,087 -147 payable Accrued 317 43 467 -201 expens… Other, 43 263 109 279 net Net cash provid… 1,405 1,305 3,213 2,087 by operat… activi… CASH FLOWS FROM INVEST… ACTIVI… Capital -303 -298 -741 -691 expend… Invest… in -266 -350 -899 -1,133 market… securi… Invest… in 390 495 1,031 1,131 market… securi… Other, -55 -78 -54 -153 net Net cash used in -234 -231 -663 -846 invest… activi… CASH FLOWS FROM FINANC… ACTIVI… Procee… from 134 86 454 2,232 borrow… Net paymen… of — — -5 -906 commer… paper Paymen… on borrow… and -196 -617 -444 -827 finance lease obliga… Divide… paymen… on -302 -276 -854 -778 common stock Repurc… of -359 — -827 — common stock Paymen… for purcha… of — — — -55 redeem… noncon… intere… Other, -69 -20 -157 -69 net Net cash used in -792 -827 -1,833 -403 financ… activi… EFFECT OF EXCHAN… RATE CHANGES 13 — 9 57 ON CASH AND CASH EQUIVA… Net increa… in cash 392 247 726 895 and cash equiva… Cash and cash equiva… 3,179 2,319 2,845 1,671 at beginn… of period CASH AND CASH EQUIVA… $ 3,571 $ 2,566 $ 3,571 $ 2,566 AT END OF PERIOD (a)Pre… on an unaudi… basis in accord… with accoun… princi… genera… accept… in the United States of Americ…
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 Nine months In ended ended millions September September Manufactu… 30, 30, entities 2026 2025 2026 2025 ────────────────────────────────────────────────────────────────────────────── Chongqing Cummins Engine $ 28 $ 23 $ 86 $ 68 Company, Ltd. Dongfeng Cummins Engine 16 13 66 52 Company, Ltd. Beijing Foton Cummins 15 17 58 47 Engine Co., Ltd. Tata Cummins, 10 6 30 23 Ltd. All other 15 6 50 27 manufactu… Distribut… entities Komatsu Cummins 13 12 45 41 Chile, Ltda. All other 10 5 24 17 distribut… Cummins share of 107 82 359 275 net income Royalty and 20 22 70 78 interest income Equity, royalty and interest $ 127 $ 104 $ 429 $ 353 income from investees
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
(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:
Total engine shipments by engine classification, including on and off-highway units, were as follows:
Full text with the tables
EXHIBIT 99
News Release
November 5, 2026
Cummins Reports Strong Third Quarter 2026 Results
•
Third-quarter revenues of $9.4 billion; GAAP
1
Net Income of $1,140 million, or 12.1% of sales
•
EBITDA
2
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)
In
mill…
exce… Three Nine
per mont… mont…
share ended Septe… ended Septe…
amou… 2026 30, 2025 2026 30, 2025
──────────────────────────────────────────────────────────────────────────────
NET $ 9,438 $ 8,317 $ 27,293 $ 25,1…
SALES
Cost
of 6,823 6,188 19,970 18,5…
sales
GROSS 2,615 2,129 7,323 6,565
MARG…
OPER…
EXPE…
AND
INCO…
Sell…
gene…
and 868 789 2,606 2,339
admi…
expe…
Rese…
deve…
and 400 345 1,143 1,046
engi…
expe…
Equi…
roya…
and
inte… 127 104 429 353
inco…
from
inve…
Other
oper… 30 247 331 321
expe…
net
OPER… 1,444 852 3,672 3,212
INCO…
Inte… 81 83 237 247
expe…
Other
inco… 57 61 212 207
net
INCO…
BEFO… 1,420 830 3,647 3,172
INCO…
TAXES
Inco…
tax 251 271 830 835
expe…
CONS…
NET 1,169 559 2,817 2,337
INCO…
Less:
Net
inco…
attr… 29 23 91 87
to
nonc…
inte…
NET
INCO…
ATTR… $ 1,140 $ 536 $ 2,726 $ 2,250
TO
CUMM…
INC.
EARN…
PER
COMM…
SHARE
ATTR…
TO
CUMM…
INC.
Basic $ 8.29 $ 3.88 $ 19.77 $ 16.33
Dilu… $ 8.25 $ 3.86 $ 19.70 $ 16.23
WEIG…
COMM…
SHAR…
OUTS…
Basic 137.5 138.0 137.9 137.8
Dilu… 138.1 138.8 138.4 138.6
(a)P…
on an
unau…
basis
in
acco…
with
acco…
prin…
gene…
acce…
in
the
Unit…
Stat…
of
Amer…
7
CUMMINS INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(Unaudited) (a)
In millions,
except September 30, December 31,
par value 2026 2025
──────────────────────────────────────────────────────────────────────────────
ASSETS
Current assets
Cash and cash $ 3,571 $ 2,845
equivalents
Marketable 614 764
securities
Total cash,
cash
equivalents and 4,185 3,609
marketable
securities
Accounts and
notes 6,638 5,818
receivable, net
Inventories 6,811 5,822
Prepaid
expenses and 1,741 1,676
other current
assets
Total current 19,375 16,925
assets
Long-term
assets
Property, plant
and equipment, 7,114 6,958
net
Investments and
advances
related to 2,384 2,133
equity method
investees
Goodwill 2,221 2,224
Other
intangible 2,012 2,167
assets, net
Pension assets 1,011 1,033
Other assets 2,469 2,552
Total assets $ 36,586 $ 33,992
LIABILITIES
Current
liabilities
Accounts
payable $ 4,879 $ 3,800
(principally
trade)
Loans payable 383 313
Commercial 348 353
paper
Current
maturities of 154 94
long-term debt
Accrued
compensation,
benefits and 965 825
retirement
costs
Current portion
of accrued 664 693
product
warranty
Current portion
of deferred 1,690 1,606
revenue
Other accrued 2,049 1,926
expenses
Total current 11,132 9,610
liabilities
Long-term
liabilities
Long-term debt 6,634 6,792
Deferred 1,167 1,054
revenue
Other 3,307 3,128
liabilities
Total $ 22,240 $ 20,584
liabilities
EQUITY
Cummins Inc.
shareholders’
equity
Common stock,
$2.50 par
value, 500
shares $ 2,649 $ 2,673
authorized,
222.5 and 222.5
shares issued
Retained 24,488 22,616
earnings
Treasury stock,
at cost, 85.5 -11,451 -10,662
and 84.4
shares
Accumulated
other -2,355 -2,278
comprehensive
loss
Total Cummins
Inc. 13,331 12,349
shareholders’
equity
Noncontrolling 1,015 1,059
interests
Total equity $ 14,346 $ 13,408
Total
liabilities and $ 36,586 $ 33,992
equity
(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)
In
millio… Three Nine
CASH months months
FLOWS ended ended
FROM Septem… Septemb…
OPERAT… 30, 30,
ACTIVI… 2026 2025 2026 2025
──────────────────────────────────────────────────────────────────────────────
Consol…
net $ 1,169 $ 559 $ 2,817 $ 2,337
income
Adjust…
to
reconc…
consol…
net
income
to net
cash
provid…
by
operat…
activi…
Deprec…
and 288 277 851 825
amorti…
Deferr…
income 33 206 48 68
taxes
Equity
in
income
of -31 50 -147 -38
invest…
net of
divide…
Pension
and 19 21 56 60
OPEB
expense
Pension
contri…
and -13 -12 -41 -38
OPEB
paymen…
Changes
in
current
assets
and
liabil…
net of
acquis…
and
divest…
Accoun…
and -113 177 -851 -466
notes
receiv…
Invent… -418 -10 -1,030 -446
Other
current -116 26 -153 -146
assets
Accoun… 227 -295 1,087 -147
payable
Accrued 317 43 467 -201
expens…
Other, 43 263 109 279
net
Net
cash
provid… 1,405 1,305 3,213 2,087
by
operat…
activi…
CASH
FLOWS
FROM
INVEST…
ACTIVI…
Capital -303 -298 -741 -691
expend…
Invest…
in -266 -350 -899 -1,133
market…
securi…
Invest…
in 390 495 1,031 1,131
market…
securi…
Other, -55 -78 -54 -153
net
Net
cash
used in -234 -231 -663 -846
invest…
activi…
CASH
FLOWS
FROM
FINANC…
ACTIVI…
Procee…
from 134 86 454 2,232
borrow…
Net
paymen…
of — — -5 -906
commer…
paper
Paymen…
on
borrow…
and -196 -617 -444 -827
finance
lease
obliga…
Divide…
paymen…
on -302 -276 -854 -778
common
stock
Repurc…
of -359 — -827 —
common
stock
Paymen…
for
purcha…
of — — — -55
redeem…
noncon…
intere…
Other, -69 -20 -157 -69
net
Net
cash
used in -792 -827 -1,833 -403
financ…
activi…
EFFECT
OF
EXCHAN…
RATE
CHANGES 13 — 9 57
ON CASH
AND
CASH
EQUIVA…
Net
increa…
in cash 392 247 726 895
and
cash
equiva…
Cash
and
cash
equiva… 3,179 2,319 2,845 1,671
at
beginn…
of
period
CASH
AND
CASH
EQUIVA… $ 3,571 $ 2,566 $ 3,571 $ 2,566
AT END
OF
PERIOD
(a)Pre…
on an
unaudi…
basis
in
accord…
with
accoun…
princi…
genera…
accept…
in the
United
States
of
Americ…
9
CUMMINS INC. AND SUBSIDIARIES
SEGMENT INFORMATION
(Unaudited)
… …
… … … …
──────────────────────────────────────────────────────────────────────────────
$ … $ … … $ $ …
… … 8 —
… … … …
… … … …
9 … … …
… … … …
… … 8 …
… % … % … %
$ … $ … … $ $ …
… … 8 —
… … … …
… … … …
7 … … …
… … … … …
… … … …
… % … % … %
10
CUMMINS INC. AND SUBSIDIARIES
SEGMENT INFORMATION
(Unaudited)
… …
… … … …
──────────────────────────────────────────────────────────────────────────────
$ … $ … … $ $ …
… … … —
… … … …
… … … …
… … … …
… … … … …
… … … …
… … % … %
$ … $ … … $ $ …
… … … —
… … … …
… … … …
… … … …
… … … … …
… … … …
… % … % … %
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 Nine months
In ended ended
millions September September
Manufactu… 30, 30,
entities 2026 2025 2026 2025
──────────────────────────────────────────────────────────────────────────────
Chongqing
Cummins
Engine $ 28 $ 23 $ 86 $ 68
Company,
Ltd.
Dongfeng
Cummins
Engine 16 13 66 52
Company,
Ltd.
Beijing
Foton
Cummins 15 17 58 47
Engine
Co., Ltd.
Tata
Cummins, 10 6 30 23
Ltd.
All other 15 6 50 27
manufactu…
Distribut…
entities
Komatsu
Cummins 13 12 45 41
Chile,
Ltda.
All other 10 5 24 17
distribut…
Cummins
share of 107 82 359 275
net income
Royalty
and 20 22 70 78
interest
income
Equity,
royalty
and
interest $ 127 $ 104 $ 429 $ 353
income
from
investees
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 Nine
mont… mont…
In ended Sept… ended Sep…
mil… 2026 30, 2025 30, 2026 2025
──────────────────────────────────────────────────────────────────────────────
Net
inc…
att… $ 1,140 $ 536 $ 2,726 $ 2,2…
to
Cum…
Inc.
Net
inc…
att…
to
Cum…
Inc… 12.1 % 6.4 % 10.0 % 9.0 %
as a
per…
of
net
sal…
Add:
Net
inc…
att… 29 23 91 87
to
non…
int…
Con…
net 1,169 559 2,817 2,3…
inc…
Add:
Int… 81 83 237 247
exp…
Inc…
tax 251 271 830 835
exp…
Dep…
and 285 274 845 815
amo…
EBI… $ 1,786 $ 1,1… $ 4,729 $ 4,2…
EBI…
as a
per… 18.9 % 14.3 % 17.3 % 16.8 %
of
net
sal…
Spe…
ite…
Acc…
goo… — 210 — 210
imp…
Acc…
inv… — 30 — 30
wri…
Loss
on
sale
of
bus…
and
set… — — 199 —
of
cur…
and
fut…
cus…
obl…
EBI…
exc… $ 1,786 $ 1,4… $ 4,928 $ 4,4…
spe…
ite…
EBI…
exc…
spe…
ite…
as a 18.9 % 17.2 % 18.1 % 17.8 %
per…
of
net
sal…
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-du… $ 799 $ 968 $ 1,016 $ — $ 2,783
truck
Medium-d…
truck and 871 1,030 1,045 — 2,946
bus
Light-du… 448 491 500 — 1,439
automoti…
Off-high… 554 595 569 — 1,718
Total $ 2,672 $ 3,084 $ 3,130 $ — $ 8,886
sales
2025
In Q1 Q2 Q3 Q4 YTD
millions
Heavy-du… $ 921 $ 976 $ 772 $ 820 $ 3,489
truck
Medium-d…
truck and 986 950 784 893 3,613
bus
Light-du… 421 486 583 440 1,930
automoti…
Off-high… 443 487 466 447 1,843
Total $ 2,771 $ 2,899 $ 2,605 $ 2,600 $ 10,875
sales
Total engine shipments by engine classification, including on and off-highway
units, were as follows:
2026
Unit… Q1 Q2 Q3 Q4 YTD
Heav… 24,700 30,100 33,200 — 88,000
Medi… 79,100 86,100 85,700 — 250,9…
Ligh… 40,500 45,000 44,800 — 130,3…
Total 144,3… 161,2… 163,7… — 469,2…
units
2025
Unit… Q1 Q2 Q3 Q4 YTD
Heav… 26,700 29,600 22,400 23,200 101,9…
Medi… 75,200 73,400 63,100 68,800 280,5…
Ligh… 39,100 44,000 49,600 39,100 171,8…
Total 141,0… 147,0… 135,1… 131,1… 554,2…
units
(1)U…
ship…
excl…
afte…
part…
14
Components Segment Sales by Business
Sales for our Components segment by business were as follows:
2026
In
millions Q1 Q2 Q3 Q4 YTD
──────────────────────────────────────────────────────────────────────────────
Drivetra…
and $ 919 $ 1,122 $ 1,109 $ — $ 3,150
braking
systems
Emission 915 988 956 — 2,859
solutions
Componen…
and 608 657 646 — 1,911
software
Automated 88 124 145 — 357
transmis…
Total $ 2,530 $ 2,891 $ 2,856 $ — $ 8,277
sales
2025
In Q1 Q2 Q3 Q4 YTD
millions
Drivetra…
and $ 1,056 $ 1,095 $ 917 $ 918 $ 3,986
braking
systems
Emission 902 900 788 867 3,457
solutions
Componen…
and 595 587 537 564 2,283
software
Automated 117 123 87 96 423
transmis…
Total $ 2,670 $ 2,705 $ 2,329 $ 2,445 $ 10,149
sales
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 $ 1,275 $ 1,378 $ 1,328 $ — $ 3,981
generati…
Parts 1,064 1,080 1,049 — 3,193
Service 433 472 483 — 1,388
Engines 344 396 450 — 1,190
Total $ 3,116 $ 3,326 $ 3,310 $ — $ 9,752
sales
2025
In Q1 Q2 Q3 Q4 YTD
millions
Power $ 1,090 $ 1,200 $ 1,247 $ 1,395 $ 4,932
generati…
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 $ 2,907 $ 3,041 $ 3,172 $ 3,285 $ 12,405
sales
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 $ 1,283 $ 1,536 $ 1,557 $ — $ 4,376
generation
Industrial 506 538 518 — 1,562
Generator 167 181 214 — 562
technolog…
Total $ 1,956 $ 2,255 $ 2,289 $ — $ 6,500
sales
2025
In Q1 Q2 Q3 Q4 YTD
millions
Power $ 1,001 $ 1,205 $ 1,280 $ 1,245 $ 4,731
generation
Industrial 498 506 531 528 2,063
Generator 150 178 185 156 669
technolog…
Total $ 1,649 $ 1,889 $ 1,996 $ 1,929 $ 7,463
sales
16