Cummins Reports Strong Second Quarter 2024 Results

  • Record second quarter revenues of $8.8 billion; GAAP1 Net Income of $726 million
  • EBITDA in the second quarter was 15.3% of sales; Diluted EPS of $5.26
  • Full year revenues are expected to range from down 3% to flat; an improvement from prior guidance of down 2% to 5%.
  • EBITDA is now expected to be in the range of 15.0% to 15.5%; an increase from previous guidance of 14.5% to 15.5%.

COLUMBUS, Ind.--(BUSINESS WIRE)-- Cummins Inc. (NYSE: CMI) today reported results for the second quarter of 2024.

“We achieved record quarterly sales and solid profitability in the second quarter, led by significant improvement in our Power Systems business,” said Jennifer Rumsey, Chair and CEO of Cummins. “As we shared during our Analyst Day in May, our Destination Zero strategy is the right strategy for growing our business and meeting our customers’ needs today and in the future. We continue to deliver innovative technologies for our customers, execute on our financial commitments, and strengthen our position in key markets. I want to thank our talented employees for their continued efforts to drive business results and make Cummins more competitive across the globe.”

Second quarter revenues of $8.8 billion increased 2% from the same quarter in 2023. Sales in North America increased 4% while international revenues decreased 2%.

Net income attributable to Cummins in the second quarter was $726 million, or $5.26 per diluted share, compared to $720 million, or $5.05 per diluted share, in 2023. The second quarter of 2023 included costs related to the separation of Atmus of $23 million, or $0.13 per diluted share. The tax rate in the second quarter was 23.0% including $9 million, or $0.07 per diluted share, of favorable discrete tax items.

Earnings before interest, taxes, depreciation and amortization (EBITDA) in the second quarter were $1.3 billion, or 15.3% of sales, compared to $1.3 billion, or 15.1% of sales, a year ago. EBITDA for the second quarter of 2023 included the costs related to the separation of Atmus noted above.

2024 Outlook:

Based on its current forecast, Cummins is raising its full-year 2024 revenue guidance to be down 3% to flat, due to stronger than expected demand across several markets, especially in North America on-highway and power generation. EBITDA is expected to be in the range of 15.0% to 15.5%, raising the midpoint and narrowing the range of the previous guidance of 14.5% to 15.5%.

Cummins plans to continue generating strong operating cash flow and returns for shareholders and is committed to our long-term strategic goal of returning 50% of operating cash flow back to shareholders. In the near term, we will focus on reinvesting for profitable growth, dividends and reducing debt.

“We have raised our expectations on revenue and profitability for 2024 due to continued demand for Cummins’ products and services. We still expect slowing demand in the North America heavy-duty truck market in the second half of the year,” said Rumsey. “Despite the lower outlook for the second half, Cummins is in a strong position to keep investing in future growth, bringing new technologies to customers and returning cash to shareholders.”

Second Quarter 2024 Highlights:

  • Cummins announced an increase in the quarterly common stock cash dividend from $1.68 to $1.82 per share. The company has increased the quarterly dividend to shareholders for 15 consecutive years.
  • Accelera™ by Cummins, Daimler Trucks & Buses and PACCAR completed the formation of their joint venture, now known as Amplify Cell Technologies, to localize battery cell production and the battery supply chain in the United States. This strategic collaboration will advance zero-emissions technology for electric commercial vehicles and industrial applications. Amplify began construction of a 21-gigawatt hour (GWh) factory in Marshall County, Miss., with potential for further expansion as demand grows. The factory is expected to create more than 2,000 U.S. manufacturing jobs and is targeting the start of production in 2027.
  • Cummins and Isuzu announced the launch of a new 6.7-liter engine designed for use in Isuzu’s new medium-duty truck lineup. The “Isuzu DB6A” will power on-highway truck applications built for the Japanese market and will be available for the Asia Pacific markets and other global markets later this year. Cummins also announced plans to launch a battery electric powertrain for Isuzu’s F-series in North America. Availability of the medium-duty truck is expected in 2026 and will include Accelera’s next generation lithium iron phosphate (LFP) battery technology.
  • Cummins hosted its biennial Analyst Day and shared plans to raise its long-term financial expectations, relative to its prior Analyst Day, and deliver increasing returns to shareholders.
  • For the third consecutive year, Morgan Stanley Capital International (MSCI) awarded Cummins a AAA rating – the highest in the industry – for the ability to manage the most significant environmental, social and governance risks and opportunities relative to peers.
  • In July, Accelera was awarded $75 million for zero-emissions manufacturing from the Department of Energy to convert approximately 360,000 sq. ft. of existing manufacturing space at our Columbus (Indiana) Engine Plant for zero-emissions components and electric powertrain systems. The $75 million grant is the largest federal grant ever awarded solely to Cummins and is part of the appropriations related to the Inflation Reduction Act.

1 Generally Accepted Accounting Principles in the U.S.

Second quarter 2024 detail (all comparisons to same period in 2023):

Components Segment

  • Sales - $3.0 billion, down 13%
  • Segment EBITDA - $406 million, or 13.6% of sales compared to $486 million, or 14.2% of sales, which included the Atmus business and $18 million of costs related to the separation of Atmus
  • Revenues in North America decreased by 10% and international sales decreased by 17% primarily due to the separation of Atmus and lower demand in China and Europe.

Engine Segment

  • Sales - $3.2 billion, up 5%
  • Segment EBITDA - $445 million, or 14.1% of sales, compared to $425 million, or 14.2% of sales
  • Revenues increased 7% in North America and increased 2% in international markets due to strong demand in the North American medium-duty truck market and pricing actions.

Distribution Segment

  • Sales - $2.8 billion, up 9%
  • Segment EBITDA - $314 million, or 11.1% of sales, compared to $299 million, or 11.5% of sales
  • Revenues in North America increased 6% and international sales increased by 16% driven by increased demand for power generation products and pricing actions.

Power Systems Segment

  • Sales - $1.6 billion, up 9%
  • Segment EBITDA - $301 million, or 18.9% of sales, compared to $201 million, or 13.8% of sales
  • Power generation revenues increased 16% driven by increased global demand, particularly for the data center market. Industrial revenues increased 2% primarily due to strong mining demand more than offsetting weaker demand in oil and gas markets.

Accelera Segment

  • Sales - $111 million, up 31%
  • Segment EBITDA loss - $117 million
  • Revenues increased due to increased electrolyzer installations.
  • Costs associated with the development of electric powertrains, fuel cells and electrolyzers, as well as products to support battery electric vehicles are contributing to EBITDA losses.

About Cummins Inc.

Cummins Inc., a global power solutions leader, is comprised of five business segments – Components, Engine, Distribution, Power Systems and Accelera by Cummins – supported by our global manufacturing and extensive service and support network, skilled workforce and vast technological expertise. Cummins is committed to its Destination Zero strategy, which is grounded in the company’s commitment to sustainability and helping its customers successfully navigate the energy transition with its broad portfolio of products. The products range from advanced diesel, natural gas, electric and hybrid powertrains and powertrain-related components including, aftertreatment, turbochargers, fuel systems, valvetrain technologies, controls systems, air handling systems, automated transmissions, axles, drivelines, brakes, suspension systems, electric power generation systems, batteries, electrified power systems, hydrogen production technologies and fuel cell products. Headquartered in Columbus, Indiana (U.S.), since its founding in 1919, Cummins employs approximately 75,500 people committed to powering a more prosperous world through three global corporate responsibility priorities critical to healthy communities: education, environment, and equality of opportunity. Cummins serves its customers online, through a network of company-owned and independent distributor locations, and through thousands of dealer locations worldwide and earned about $735 million on sales of $34.1 billion in 2023. See how Cummins is powering a world that's always on by accessing news releases and more information at https://www.cummins.com/.

Forward-looking disclosure statement

Information provided in this release that is not purely historical are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, including statements regarding our forecasts, guidance, preliminary results, expectations, hopes, beliefs and intentions on strategies regarding the future. These forward-looking statements include, without limitation, statements relating to our plans and expectations for our revenues, EBITDA and the Settlement Agreements to resolve regulatory proceedings regarding our emissions certification and compliance process for certain engines primarily used in pick-up truck applications in the U.S. 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 the Settlement Agreements, 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; changes in international, national and regional trade laws, regulations and policies; changes in taxation; global legal and ethical compliance costs and risks; future bans or limitations on the use of diesel-powered products; failure to successfully integrate and / or failure to fully realize all of the anticipated benefits of the acquisition of Meritor, Inc.; 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; 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 and divestitures and related uncertainties of entering such transactions; increasing interest rates; challenging markets for talent and ability to attract, develop and retain key personnel; exposure to potential security breaches or other disruptions to our information technology environment and data security; political, economic and other risks from operations in 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 environmental, social and governance (ESG) expectations or standards, or achieve our ESG 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 2023 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 http://www.sec.gov or at http://www.cummins.com in the Investor Relations section of our website.

Presentation of Non-GAAP Financial Information

EBITDA is a non-GAAP measure used in this release and is defined and reconciled to what management believes to be the most comparable GAAP measure in a schedule attached to this release, except for forward-looking measures of EBITDA where a reconciliation to the corresponding GAAP measures is not available due to the variability, complexity and limited visibility of the non-cash items that are excluded from the non-GAAP outlook measure. Cummins presents this information as it believes it is useful to understanding the Company's operating performance, and because EBITDA is a measure used internally to assess the performance of the operating units.

Webcast information

Cummins management will host a teleconference to discuss these results today at 10 a.m. EDT. This teleconference will be webcast and available on the Investor Relations section of the Cummins website at www.cummins.com. Participants wishing to view the visuals available with the audio are encouraged to sign-in a few minutes prior to the start of the teleconference.

 

CUMMINS INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF NET INCOME

(Unaudited) (a)

 

 

 

 

 

Three months ended

 

 

June 30,

In millions, except per share amounts

 

2024

 

2023

NET SALES

 

$

8,796

 

$

8,638

Cost of sales

 

 

6,603

 

 

6,490

GROSS MARGIN

 

 

2,193

 

 

2,148

OPERATING EXPENSES AND INCOME

 

 

 

 

Selling, general and administrative expenses

 

 

828

 

 

873

Research, development and engineering expenses

 

 

379

 

 

384

Equity, royalty and interest income from investees

 

 

103

 

 

133

Other operating expense, net

 

 

44

 

 

27

OPERATING INCOME

 

 

1,045

 

 

997

Interest expense

 

 

109

 

 

99

Other income, net

 

 

41

 

 

51

INCOME BEFORE INCOME TAXES

 

 

977

 

 

949

Income tax expense

 

 

225

 

 

212

CONSOLIDATED NET INCOME

 

 

752

 

 

737

Less: Net income attributable to noncontrolling interests

 

 

26

 

 

17

NET INCOME ATTRIBUTABLE TO CUMMINS INC.

 

$

726

 

$

720

 

 

 

 

 

EARNINGS PER COMMON SHARE ATTRIBUTABLE TO CUMMINS INC.

 

 

 

 

Basic

 

$

5.30

 

$

5.08

Diluted

 

$

5.26

 

$

5.05

 

 

 

 

 

WEIGHTED-AVERAGE COMMON SHARES OUTSTANDING

 

 

 

 

Basic

 

 

137.1

 

 

141.7

Diluted

 

 

137.9

 

 

142.5

 

(a) Prepared on an unaudited basis in accordance with accounting principles generally accepted in the United States of America.

 

CUMMINS INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF NET INCOME

(Unaudited) (a)

 

 

 

 

 

Six months ended

 

 

June 30,

In millions, except per share amounts

 

2024

 

2023

NET SALES

 

$

17,199

 

$

17,091

Cost of sales

 

 

12,965

 

 

12,914

GROSS MARGIN

 

 

4,234

 

 

4,177

OPERATING EXPENSES AND INCOME

 

 

 

 

Selling, general and administrative expenses

 

 

1,667

 

 

1,626

Research, development and engineering expenses

 

 

748

 

 

734

Equity, royalty and interest income from investees

 

 

226

 

 

252

Other operating expense, net

 

 

77

 

 

46

OPERATING INCOME

 

 

1,968

 

 

2,023

Interest expense

 

 

198

 

 

186

Other income, net

 

 

1,428

 

 

141

INCOME BEFORE INCOME TAXES

 

 

3,198

 

 

1,978

Income tax expense

 

 

418

 

 

435

CONSOLIDATED NET INCOME

 

 

2,780

 

 

1,543

Less: Net income attributable to noncontrolling interests

 

 

61

 

 

33

NET INCOME ATTRIBUTABLE TO CUMMINS INC.

 

$

2,719

 

$

1,510

 

 

 

 

 

EARNINGS PER COMMON SHARE ATTRIBUTABLE TO CUMMINS INC.

 

 

 

 

Basic

 

$

19.53

 

$

10.66

Diluted

 

$

19.42

 

$

10.60

 

 

 

 

 

WEIGHTED-AVERAGE COMMON SHARES OUTSTANDING

 

 

 

 

Basic

 

 

139.2

 

 

141.6

Diluted

 

 

140.0

 

 

142.5

 

 

 

 

 

(a) Prepared on an unaudited basis in accordance with accounting principles generally accepted in the United States of America.

 

CUMMINS INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED BALANCE SHEETS

(Unaudited) (a)

 

 

 

 

 

In millions, except par value

 

June 30,
2024

 

December 31,
2023

ASSETS

 

 

 

 

Current assets

 

 

 

 

Cash and cash equivalents

 

$

1,590

 

 

$

2,179

 

Marketable securities

 

 

593

 

 

 

562

 

Total cash, cash equivalents and marketable securities

 

 

2,183

 

 

 

2,741

 

Accounts and notes receivable, net

 

 

5,606

 

 

 

5,583

 

Inventories

 

 

5,857

 

 

 

5,677

 

Prepaid expenses and other current assets

 

 

1,316

 

 

 

1,197

 

Total current assets

 

 

14,962

 

 

 

15,198

 

Long-term assets

 

 

 

 

Property, plant and equipment, net

 

 

6,053

 

 

 

6,249

 

Investments and advances related to equity method investees

 

 

1,828

 

 

 

1,800

 

Goodwill

 

 

2,394

 

 

 

2,499

 

Other intangible assets, net

 

 

2,502

 

 

 

2,519

 

Pension assets

 

 

1,192

 

 

 

1,197

 

Other assets

 

 

2,389

 

 

 

2,543

 

Total assets

 

$

31,320

 

 

$

32,005

 

 

 

 

 

 

LIABILITIES

 

 

 

 

Current liabilities

 

 

 

 

Accounts payable (principally trade)

 

$

4,405

 

 

$

4,260

 

Loans payable

 

 

329

 

 

 

280

 

Commercial paper

 

 

1,581

 

 

 

1,496

 

Current maturities of long-term debt

 

 

167

 

 

 

118

 

Accrued compensation, benefits and retirement costs

 

 

801

 

 

 

1,108

 

Current portion of accrued product warranty

 

 

660

 

 

 

667

 

Current portion of deferred revenue

 

 

1,311

 

 

 

1,220

 

Other accrued expenses

 

 

1,890

 

 

 

3,754

 

Total current liabilities

 

 

11,144

 

 

 

12,903

 

Long-term liabilities

 

 

 

 

Long-term debt

 

 

5,426

 

 

 

4,802

 

Deferred revenue

 

 

1,046

 

 

 

966

 

Other liabilities

 

 

3,128

 

 

 

3,430

 

Total liabilities

 

$

20,744

 

 

$

22,101

 

 

 

 

 

 

EQUITY

 

 

 

 

Cummins Inc. shareholders’ equity

 

 

 

 

Common stock, $2.50 par value, 500 shares authorized, 222.5 and 222.5 shares issued

 

$

2,582

 

 

$

2,564

 

Retained earnings

 

 

20,101

 

 

 

17,851

 

Treasury stock, at cost, 85.5 and 80.7 shares

 

 

(10,797

)

 

 

(9,359

)

Accumulated other comprehensive loss

 

 

(2,335

)

 

 

(2,206

)

Total Cummins Inc. shareholders’ equity

 

 

9,551

 

 

 

8,850

 

Noncontrolling interests

 

 

1,025

 

 

 

1,054

 

Total equity

 

$

10,576

 

 

$

9,904

 

Total liabilities and equity

 

$

31,320

 

 

$

32,005

 

 

 

 

 

 

(a) Prepared on an unaudited basis in accordance with accounting principles generally accepted in the United States of America.

 

CUMMINS INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(Unaudited) (a)

 

 

 

 

 

Three months ended

 

 

June 30,

In millions

 

2024

 

2023

CASH FLOWS FROM OPERATING ACTIVITIES

 

 

 

 

Consolidated net income

 

$

752

 

 

$

737

 

Adjustments to reconcile consolidated net income to net cash (used in) provided by operating activities

 

 

Depreciation and amortization

 

 

263

 

 

 

257

 

Deferred income taxes

 

 

(61

)

 

 

(94

)

Equity in income of investees, net of dividends

 

 

(8

)

 

 

(46

)

Pension and OPEB expense

 

 

10

 

 

 

2

 

Pension contributions and OPEB payments

 

 

(11

)

 

 

(11

)

Changes in current assets and liabilities, net of acquisitions

 

 

 

 

Accounts and notes receivable

 

 

(150

)

 

 

(14

)

Inventories

 

 

(115

)

 

 

(140

)

Other current assets

 

 

24

 

 

 

5

 

Accounts payable

 

 

(64

)

 

 

(316

)

Accrued expenses

 

 

(1,540

)

 

 

110

 

Other, net

 

 

49

 

 

 

(7

)

Net cash (used in) provided by operating activities

 

 

(851

)

 

 

483

 

 

 

 

 

 

CASH FLOWS FROM INVESTING ACTIVITIES

 

 

 

 

Capital expenditures

 

 

(240

)

 

 

(221

)

Acquisition of businesses, net of cash acquired

 

 

1

 

 

 

(134

)

Investments in marketable securities—acquisitions

 

 

(334

)

 

 

(322

)

Investments in marketable securities—liquidations

 

 

254

 

 

 

275

 

Other, net

 

 

(81

)

 

 

24

 

Net cash used in investing activities

 

 

(400

)

 

 

(378

)

 

 

 

 

 

CASH FLOWS FROM FINANCING ACTIVITIES

 

 

 

 

Proceeds from borrowings

 

 

84

 

 

 

694

 

Net borrowings (payments) of commercial paper

 

 

972

 

 

 

(629

)

Payments on borrowings and finance lease obligations

 

 

(475

)

 

 

(86

)

Dividend payments on common stock

 

 

(230

)

 

 

(223

)

Other, net

 

 

(43

)

 

 

4

 

Net cash provided by (used in) financing activities

 

 

308

 

 

 

(240

)

EFFECT OF EXCHANGE RATE CHANGES ON CASH AND CASH EQUIVALENTS

 

 

(8

)

 

 

(43

)

Net decrease in cash and cash equivalents

 

 

(951

)

 

 

(178

)

Cash and cash equivalents at beginning of period

 

 

2,541

 

 

 

1,980

 

CASH AND CASH EQUIVALENTS AT END OF PERIOD

 

$

1,590

 

 

$

1,802

 

 

 

 

 

 

(a) Prepared on an unaudited basis in accordance with accounting principles generally accepted in the United States of America.

 

CUMMINS INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(Unaudited) (a)

 

 

 

 

 

Six months ended

 

 

June 30,

In millions

 

2024

 

2023

CASH FLOWS FROM OPERATING ACTIVITIES

 

 

 

 

Consolidated net income

 

$

2,780

 

 

$

1,543

 

Adjustments to reconcile consolidated net income to net cash (used in) provided by operating activities

 

 

 

 

Gain related to divestiture of Atmus

 

 

(1,333

)

 

 

 

Depreciation and amortization

 

 

528

 

 

 

503

 

Deferred income taxes

 

 

(99

)

 

 

(132

)

Equity in income of investees, net of dividends

 

 

(86

)

 

 

(113

)

Pension and OPEB expense

 

 

19

 

 

 

3

 

Pension contributions and OPEB payments

 

 

(59

)

 

 

(103

)

Changes in current assets and liabilities, net of acquisitions and divestitures

 

 

 

 

Accounts and notes receivable

 

 

(161

)

 

 

(635

)

Inventories

 

 

(469

)

 

 

(403

)

Other current assets

 

 

(151

)

 

 

(137

)

Accounts payable

 

 

263

 

 

 

65

 

Accrued expenses

 

 

(1,933

)

 

 

261

 

Other, net

 

 

126

 

 

 

126

 

Net cash (used in) provided by operating activities

 

 

(575

)

 

 

978

 

 

 

 

 

 

CASH FLOWS FROM INVESTING ACTIVITIES

 

 

 

 

Capital expenditures

 

 

(409

)

 

 

(414

)

Acquisition of businesses, net of cash acquired

 

 

(58

)

 

 

(134

)

Investments in marketable securities—acquisitions

 

 

(713

)

 

 

(648

)

Investments in marketable securities—liquidations

 

 

685

 

 

 

620

 

Cash associated with Atmus divestiture

 

 

(174

)

 

 

 

Other, net

 

 

(137

)

 

 

(30

)

Net cash used in investing activities

 

 

(806

)

 

 

(606

)

 

 

 

 

 

CASH FLOWS FROM FINANCING ACTIVITIES

 

 

 

 

Proceeds from borrowings

 

 

2,482

 

 

 

737

 

Net borrowings (payments) of commercial paper

 

 

85

 

 

 

(658

)

Payments on borrowings and finance lease obligations

 

 

(1,223

)

 

 

(228

)

Dividend payments on common stock

 

 

(469

)

 

 

(445

)

Other, net

 

 

(68

)

 

 

(9

)

Net cash provided by (used in) financing activities

 

 

807

 

 

 

(603

)

EFFECT OF EXCHANGE RATE CHANGES ON CASH AND CASH EQUIVALENTS

 

 

(15

)

 

 

(68

)

Net decrease in cash and cash equivalents

 

 

(589

)

 

 

(299

)

Cash and cash equivalents at beginning of year

 

 

2,179

 

 

 

2,101

 

CASH AND CASH EQUIVALENTS AT END OF PERIOD

 

$

1,590

 

 

$

1,802

 

 

 

 

 

 

(a) Prepared on an unaudited basis in accordance with accounting principles generally accepted in the United States of America.

CUMMINS INC. AND SUBSIDIARIES
SEGMENT INFORMATION
(Unaudited)

REORGANIZATION WITHIN CERTAIN SEGMENTS

Beginning in the second quarter of 2024, we realigned certain businesses within our Components segment to be consistent with how our segment manager now monitors performance. We reorganized the businesses to combine the engine components and software and electronics businesses into the newly formed components and software business. We also renamed our axles and brakes business to “drivetrain and braking systems.” We began reporting results for these changes within our Components segment effective April 1, 2024, and reflected these changes in the historical periods presented. The changes had no impact on our consolidated results. The adjusted prior period balances for the newly combined engine components and software business are shown below:

Components Segment

External sales in 2024, 2023 and 2022 for our Components segment by business, as adjusted, were as follows:

 

2024

 

 

 

 

 

 

 

 

 

 

In millions

 

Q1

 

 

 

 

 

 

 

 

Drivetrain and braking systems

 

$

1,232

 

 

 

 

 

 

 

 

Emission solutions

 

 

856

 

 

 

 

 

 

 

 

Components and software

 

 

300

 

 

 

 

 

 

 

 

Atmus

 

 

289

 

 

 

 

 

 

 

 

Automated transmission

 

 

165

 

 

 

 

 

 

 

 

Total sales

 

$

2,842

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

2023

 

 

 

 

 

 

 

 

 

 

In millions

 

Q1

 

Q2

 

Q3

 

Q4

 

YTD

Drivetrain and braking systems

 

$

1,272

 

$

1,249

 

$

1,177

 

$

1,124

 

$

4,822

Emission solutions

 

 

939

 

 

842

 

 

803

 

 

841

 

 

3,425

Components and software

 

 

312

 

 

312

 

 

289

 

 

312

 

 

1,225

Atmus

 

 

342

 

 

341

 

 

324

 

 

338

 

 

1,345

Automated transmissions

 

 

178

 

 

180

 

 

187

 

 

169

 

 

714

Total sales

 

$

3,043

 

$

2,924

 

$

2,780

 

$

2,784

 

$

11,531

 

 

 

 

 

 

 

 

 

 

 

2022

 

 

 

 

 

 

 

 

 

 

In millions

 

YTD

 

 

 

 

 

 

 

 

Drivetrain and braking systems

 

$

1,879

 

 

 

 

 

 

 

 

Emission solutions

 

 

3,086

 

 

 

 

 

 

 

 

Components and software

 

 

1,030

 

 

 

 

 

 

 

 

Atmus

 

 

1,259

 

 

 

 

 

 

 

 

Automated transmissions

 

 

593

 

 

 

 

 

 

 

 

Total sales

 

$

7,847

 

 

 

 

 

 

 

 

 

Consolidated sales in 2024, 2023, and 2022 for our Components segment by business, as adjusted, are presented in the segment sales data section below.

 

CUMMINS INC. AND SUBSIDIARIES

SEGMENT INFORMATION

(Unaudited)

 

In millions

 

Components

 

Engine

 

Distribution

 

Power Systems

 

Accelera

 

Total Segments

 

Intersegment Eliminations (1)

 

Total

Three months ended June 30, 2024

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

External sales

 

$

2,518

 

 

$

2,468

 

 

$

2,821

 

 

$

888

 

 

$

101

 

 

$

8,796

 

 

$

 

 

$

8,796

 

Intersegment sales

 

 

464

 

 

 

683

 

 

 

8

 

 

 

701

 

 

 

10

 

 

 

1,866

 

 

 

(1,866

)

 

 

 

Total sales

 

 

2,982

 

 

 

3,151

 

 

 

2,829

 

 

 

1,589

 

 

 

111

 

 

 

10,662

 

 

 

(1,866

)

 

 

8,796

 

Research, development and engineering expenses

 

 

81

 

 

 

167

 

 

 

14

 

 

 

63

 

 

 

54

 

 

 

379

 

 

 

 

 

 

379

 

Equity, royalty and interest income (loss) from investees

 

 

13

 

 

 

48

 

 

 

24

 

 

 

26

 

 

 

(8

)

 

 

103

 

 

 

 

 

 

103

 

Interest income

 

 

9

 

 

 

7

 

 

 

11

 

 

 

3

 

 

 

 

 

 

30

 

 

 

 

 

 

30

 

EBITDA (2)

 

 

406

 

 

 

445

 

 

 

314

 

 

 

301

 

 

 

(117

)

 

 

1,349

 

 

 

(4

)

 

 

1,345

 

Depreciation and amortization (3)

 

 

121

 

 

 

61

 

 

 

30

 

 

 

32

 

 

 

15

 

 

 

259

 

 

 

 

 

 

259

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

EBITDA as a percentage of segment sales

 

 

13.6

%

 

 

14.1

%

 

 

11.1

%

 

 

18.9

%

 

 

NM

 

 

 

12.7

%

 

 

 

 

15.3

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three months ended June 30, 2023

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

External sales

 

$

2,924

 

 

$

2,263

 

 

$

2,576

 

 

$

794

 

 

$

81

 

 

$

8,638

 

 

$

 

 

$

8,638

 

Intersegment sales

 

 

501

 

 

 

725

 

 

 

19

 

 

 

663

 

 

 

4

 

 

 

1,912

 

 

 

(1,912

)

 

 

 

Total sales

 

 

3,425

 

 

 

2,988

 

 

 

2,595

 

 

 

1,457

 

 

 

85

 

 

 

10,550

 

 

 

(1,912

)

 

 

8,638

 

Research, development and engineering expenses

 

 

103

 

 

 

148

 

 

 

15

 

 

 

66

 

 

 

52

 

 

 

384

 

 

 

 

 

 

384

 

Equity, royalty and interest income (loss) from investees

 

 

24

 

 

 

71

 

 

 

24

 

 

 

18

 

 

 

(4

)

 

 

133

 

 

 

 

 

 

133

 

Interest income

 

 

7

 

 

 

7

 

 

 

8

 

 

 

2

 

 

 

1

 

 

 

25

 

 

 

 

 

 

25

 

EBITDA (2)

 

 

486

 

(4

)

 

425

 

 

 

299

 

 

 

201

 

 

 

(114

)

 

 

1,297

 

 

 

7

 

 

 

1,304

 

Depreciation and amortization (3)

 

 

125

 

 

 

56

 

 

 

28

 

 

 

32

 

 

 

15

 

 

 

256

 

 

 

 

 

 

256

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

EBITDA as a percentage of segment sales

 

 

14.2

%

 

 

14.2

%

 

 

11.5

%

 

 

13.8

%

 

 

NM

 

 

 

12.3

%

 

 

 

 

15.1

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

"NM" - not meaningful information

(1) Included intersegment sales, intersegment profit in inventory and unallocated corporate expenses. There were no significant unallocated corporate expenses for the three months ended June 30, 2024 and 2023, except for $5 million of costs associated with the divestiture of Atmus Filtration Technologies Inc. (Atmus) in 2023.

(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 $18 million of costs associated with the divestiture of Atmus.

 

CUMMINS INC. AND SUBSIDIARIES

SEGMENT INFORMATION

(Unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

In millions

 

Components

 

Engine

 

Distribution

 

Power Systems

 

Accelera

 

Total Segments

 

Intersegment
Eliminations (1)

 

Total

Six months ended June 30, 2024

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

External sales

 

$

5,360

 

 

$

4,708

 

 

$

5,350

 

 

$

1,596

 

 

$

185

 

 

$

17,199

 

 

$

 

 

$

17,199

 

Intersegment sales

 

 

954

 

 

 

1,371

 

 

 

14

 

 

 

1,382

 

 

 

19

 

 

 

3,740

 

 

 

(3,740

)

 

 

 

Total sales

 

 

6,314

 

 

 

6,079

 

 

 

5,364

 

 

 

2,978

 

 

 

204

 

 

 

20,939

 

 

 

(3,740

)

 

 

17,199

 

Research, development and engineering expenses

 

 

165

 

 

 

321

 

 

 

28

 

 

 

123

 

 

 

109

 

 

 

746

 

 

 

2

 

 

 

748

 

Equity, royalty and interest income (loss) from investees

 

 

39

 

 

 

105

 

 

 

48

 

 

 

45

 

 

 

(11

)

 

 

226

 

 

 

 

 

 

226

 

Interest income

 

 

17

 

 

 

14

 

 

 

22

 

 

 

6

 

 

 

 

 

 

59

 

 

 

 

 

 

59

 

EBITDA (2)

 

 

879

 

(3

)

 

859

 

 

 

608

 

 

 

538

 

 

 

(218

)

 

 

2,666

 

 

 

1,251

 

 

 

3,917

 

Depreciation and amortization (4)

 

 

246

 

 

 

119

 

 

 

61

 

 

 

66

 

 

 

29

 

 

 

521

 

 

 

 

 

 

521

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

EBITDA as a percentage of total sales

 

 

13.9

%

 

 

14.1

%

 

 

11.3

%

 

 

18.1

%

 

 

NM

 

 

 

12.7

%

 

 

 

 

22.8

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Six months ended June 30, 2023

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

External sales

 

$

5,967

 

 

$

4,515

 

 

$

4,975

 

 

$

1,473

 

 

$

161

 

 

$

17,091

 

 

$

 

 

$

17,091

 

Intersegment sales

 

 

1,015

 

 

 

1,459

 

 

 

26

 

 

 

1,327

 

 

 

9

 

 

 

3,836

 

 

 

(3,836

)

 

 

 

Total sales

 

 

6,982

 

 

 

5,974

 

 

 

5,001

 

 

 

2,800

 

 

 

170

 

 

 

20,927

 

 

 

(3,836

)

 

 

17,091

 

Research, development and engineering expenses

 

 

194

 

 

 

282

 

 

 

29

 

 

 

129

 

 

 

100

 

 

 

734

 

 

 

 

 

 

734

 

Equity, royalty and interest income (loss) from investees

 

 

45

 

 

 

136

 

 

 

48

 

 

 

31

 

 

 

(8

)

 

 

252

 

 

 

 

 

 

252

 

Interest income

 

 

13

 

 

 

10

 

 

 

15

 

 

 

4

 

 

 

1

 

 

 

43

 

 

 

 

 

 

43

 

EBITDA (2)

 

 

993

 

(3

)

 

882

 

 

 

634

 

 

 

420

 

 

 

(208

)

 

 

2,721

 

 

 

(56

)

 

 

2,665

 

Depreciation and amortization (4)

 

 

248

 

 

 

107

 

 

 

56

 

 

 

61

 

 

 

29

 

 

 

501

 

 

 

 

 

 

501

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

EBITDA as a percentage of total sales

 

 

14.2

%

 

 

14.8

%

 

 

12.7

%

 

 

15.0

%

 

 

NM

 

 

 

13.0

%

 

 

 

 

15.6

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

"NM" - not meaningful information

(1) Included intersegment sales, intersegment profit in inventory and unallocated corporate expenses. The six months ended June 30, 2024, included a $1.3 billion gain related to the divestiture of Atmus and $14 million of costs associated with the divestiture of Atmus. The six months ended June 30, 2023, included $11 million of costs associated with the divestiture of Atmus.

(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) Included $21 million and $30 million of costs associated with the divestiture of Atmus for the six months ended June 30, 2024 and 2023, respectively.

(4) Depreciation and amortization, as shown on a segment basis, excluded the amortization of debt discount and deferred costs included in the Condensed Consolidated Statements of Net Income as interest expense. The amortization of debt discount and deferred costs was $7 million and $2 million for the six months ended June 30, 2024 and 2023, respectively. A portion of depreciation expense is included in research, development and engineering expenses.

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

 

Six months ended

 

 

June 30,

 

June 30,

In millions

 

2024

 

2023

 

2024

 

2023

Manufacturing entities

 

 

 

 

 

 

 

 

Chongqing Cummins Engine Company, Ltd.

 

$

21

 

$

13

 

$

36

 

$

22

Dongfeng Cummins Engine Company, Ltd.

 

 

15

 

 

18

 

 

37

 

 

37

Beijing Foton Cummins Engine Co., Ltd.

 

 

10

 

 

9

 

 

23

 

 

25

Tata Cummins, Ltd.

 

 

7

 

 

7

 

 

16

 

 

15

All other manufacturers

 

 

11

 

 

32

 

 

34

 

 

51

Distribution entities

 

 

 

 

 

 

 

 

Komatsu Cummins Chile, Ltda.

 

 

14

 

 

13

 

 

27

 

 

27

All other distributors

 

 

2

 

 

4

 

 

7

 

 

7

Cummins share of net income

 

 

80

 

 

96

 

 

180

 

 

184

Royalty and interest income

 

 

23

 

 

37

 

 

46

 

 

68

Equity, royalty and interest income from investees

 

$

103

 

$

133

 

$

226

 

$

252

 

INCOME TAXES

Our effective tax rate for 2024 is expected to approximate 24.0 percent, excluding any discrete items that may arise.

Our effective tax rates for the three and six month periods ended June 30, 2024, were 23.0 percent and 13.1 percent, respectively. Our effective tax rates for the three and six months ended June 30, 2023, were 22.3 percent and 22.0 percent, respectively.

The three months ended June 30, 2024, contained favorable discrete tax items of $9 million, or $0.07 per share, primarily due to share-based compensation tax benefits.

The six months ended June 30, 2024, contained favorable discrete tax items primarily due to the $1.3 billion non-taxable gain on the Atmus split-off. Other discrete tax items were $30 million, or $0.21 per share, primarily due to adjustments related to audit settlements and share-based compensation benefits.

The three months ended June 30, 2023, contained net unfavorable discrete tax items of $3 million, or $0.02 per share.

The six months ended June 30, 2023, contained net discrete tax items of zero, as the result of offsetting amounts for the first two quarters, primarily due to share-based compensation tax benefits and other discrete items.

CUMMINS INC. AND SUBSIDIARIES
FINANCIAL MEASURES THAT SUPPLEMENT GAAP
(Unaudited)

Reconciliation of Non GAAP measures - Earnings before interest, 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 is a useful measure of our operating performance without regard to the impact of the gain recognized and costs associated with the divestiture of Atmus and restructuring actions. 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 the 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

 

Six months ended

 

 

June 30,

 

June 30,

In millions

 

2024

 

2023

 

2024

 

2023

Net income attributable to Cummins Inc.

 

$

726

 

 

$

720

 

 

$

2,719

 

 

$

1,510

 

 

 

 

 

 

 

 

 

 

Net income attributable to Cummins Inc. as a percentage of net sales

 

 

8.3

%

 

 

8.3

%

 

 

15.8

%

 

 

8.8

%

 

 

 

 

 

 

 

 

 

Add:

 

 

 

 

 

 

 

 

Net income attributable to noncontrolling interests

 

 

26

 

 

 

17

 

 

 

61

 

 

 

33

 

Consolidated net income

 

 

752

 

 

 

737

 

 

 

2,780

 

 

 

1,543

 

 

 

 

 

 

 

 

 

 

Add:

 

 

 

 

 

 

 

 

Interest expense

 

 

109

 

 

 

99

 

 

 

198

 

 

 

186

 

Income tax expense

 

 

225

 

 

 

212

 

 

 

418

 

 

 

435

 

Depreciation and amortization

 

 

259

 

 

 

256

 

 

 

521

 

 

 

501

 

EBITDA

 

$

1,345

 

 

$

1,304

 

 

$

3,917

 

 

$

2,665

 

 

 

 

 

 

 

 

 

 

EBITDA as a percentage of net sales

 

 

15.3

%

 

 

15.1

%

 

 

22.8

%

 

 

15.6

%

 

 

 

 

 

 

 

 

 

Less:

 

 

 

 

 

 

 

 

Gain related to the divestiture of Atmus

 

 

 

 

 

 

 

 

1,333

 

 

 

 

Add:

 

 

 

 

 

 

 

 

Atmus divestiture costs

 

 

 

 

 

23

 

 

 

35

 

 

 

41

 

Restructuring actions

 

 

 

 

 

 

 

 

29

 

 

 

 

EBITDA, excluding the impact of gain recognized and costs associated with the divestiture of Atmus and restructuring actions

 

$

1,345

 

 

$

1,327

 

 

$

2,648

 

 

$

2,706

 

 

 

 

 

 

 

 

 

 

EBITDA, excluding the impact of gain recognized and costs associated with the divestiture of Atmus and restructuring actions, as a percentage of net sales

 

 

15.3

%

 

 

15.4

%

 

 

15.4

%

 

 

15.8

%

 

CUMMINS INC. AND SUBSIDIARIES
SEGMENT SALES DATA
(Unaudited)

Components Segment Sales by Business

Sales for our Components segment by business, adjusted for the reorganized businesses as noted above, were as follows:

 

2024

 

 

 

 

 

 

 

 

 

 

In millions

 

Q1

 

Q2

 

Q3

 

Q4

 

YTD

Drivetrain and braking systems

 

$

1,232

 

$

1,256

 

$

 

$

 

$

2,488

Emission solutions

 

 

971

 

 

941

 

 

 

 

 

 

1,912

Components and software

 

 

611

 

 

623

 

 

 

 

 

 

1,234

Atmus (1)

 

 

353

 

 

 

 

 

 

 

 

353

Automated transmissions

 

 

165

 

 

162

 

 

 

 

 

 

327

Total sales

 

$

3,332

 

$

2,982

 

$

 

$

 

$

6,314

 

 

 

 

 

 

 

 

 

 

 

(1) Included sales through the March 18, 2024, divestiture.

 

 

 

 

 

 

 

 

 

 

 

2023

 

 

 

 

 

 

 

 

 

 

In millions

 

Q1

 

Q2

 

Q3

 

Q4

 

YTD

Drivetrain and braking systems

 

$

1,272

 

$

1,249

 

$

1,177

 

$

1,124

 

$

4,822

Emission solutions

 

 

1,056

 

 

964

 

 

893

 

 

922

 

 

3,835

Components and software

 

 

633

 

 

616

 

 

583

 

 

577

 

 

2,409

Atmus

 

 

417

 

 

417

 

 

396

 

 

399

 

 

1,629

Automated transmissions

 

 

179

 

 

179

 

 

187

 

 

169

 

 

714

Total sales

 

$

3,557

 

$

3,425

 

$

3,236

 

$

3,191

 

$

13,409

 

 

 

 

 

 

 

 

 

 

 

2022

 

 

 

 

 

 

 

 

 

 

In millions

 

YTD

 

 

 

 

 

 

 

 

Drivetrain and braking systems

 

$

1,879

 

 

 

 

 

 

 

 

Emission solutions

 

 

3,494

 

 

 

 

 

 

 

 

Components and software

 

 

2,213

 

 

 

 

 

 

 

 

Atmus

 

 

1,557

 

 

 

 

 

 

 

 

Automated transmissions

 

 

593

 

 

 

 

 

 

 

 

Total sales

 

$

9,736

 

 

 

 

 

 

 

 

 

Engine Segment Sales by Market and Unit Shipments by Engine Classification

Sales for our Engine segment by market were as follows:

2024

 

 

 

 

 

 

 

 

 

 

In millions

 

Q1

 

Q2

 

Q3

 

Q4

 

YTD

Heavy-duty truck

 

$

1,059

 

$

1,184

 

$

 

$

 

$

2,243

Medium-duty truck and bus

 

 

995

 

 

1,074

 

 

 

 

 

 

2,069

Light-duty automotive

 

 

438

 

 

461

 

 

 

 

 

 

899

Off-highway

 

 

436

 

 

432

 

 

 

 

 

 

868

Total sales

 

$

2,928

 

$

3,151

 

$

 

$

 

$

6,079

 

 

 

 

 

 

 

 

 

 

 

2023

 

 

 

 

 

 

 

 

 

 

In millions

 

Q1

 

Q2

 

Q3

 

Q4

 

YTD

Heavy-duty truck

 

$

1,114

 

$

1,117

 

$

1,116

 

$

1,052

 

$

4,399

Medium-duty truck and bus

 

 

903

 

 

942

 

 

931

 

 

894

 

 

3,670

Light-duty automotive

 

 

439

 

 

445

 

 

455

 

 

423

 

 

1,762

Off-highway

 

 

530

 

 

484

 

 

429

 

 

410

 

 

1,853

Total sales

 

$

2,986

 

$

2,988

 

$

2,931

 

$

2,779

 

$

11,684

Unit shipments by engine classification (including unit shipments to Power Systems and off-highway engine units included in their respective classification) were as follows:

 

2024

 

 

 

 

 

 

 

 

 

 

Units

 

Q1

 

Q2

 

Q3

 

Q4

 

YTD

Heavy-duty

 

33,600

 

37,500

 

 

 

71,100

Medium-duty

 

75,800

 

79,600

 

 

 

155,400

Light-duty

 

54,800

 

57,200

 

 

 

112,000

Total units

 

164,200

 

174,300

 

 

 

338,500

 

 

 

 

 

 

 

 

 

 

 

2023

 

 

 

 

 

 

 

 

 

 

Units

 

Q1

 

Q2

 

Q3

 

Q4

 

YTD

Heavy-duty

 

34,700

 

36,400

 

36,300

 

34,500

 

141,900

Medium-duty

 

78,900

 

76,000

 

71,300

 

67,900

 

294,100

Light-duty

 

55,000

 

53,600

 

53,300

 

49,600

 

211,500

Total units

 

168,600

 

166,000

 

160,900

 

152,000

 

647,500

 

Distribution Segment Sales by Product Line

Sales for our Distribution segment by product line were as follows:

 

2024

 

 

 

 

 

 

 

 

 

 

In millions

 

Q1

 

Q2

 

Q3

 

Q4

 

YTD

Parts

 

$

1,001

 

$

990

 

$

 

$

 

$

1,991

Power generation

 

 

707

 

 

954

 

 

 

 

 

 

1,661

Engines

 

 

421

 

 

437

 

 

 

 

 

 

858

Service

 

 

406

 

 

448

 

 

 

 

 

 

854

Total sales

 

$

2,535

 

$

2,829

 

$

 

$

 

$

5,364

 

 

 

 

 

 

 

 

 

 

 

2023

 

 

 

 

 

 

 

 

 

 

In millions

 

Q1

 

Q2

 

Q3

 

Q4

 

YTD

Parts

 

$

1,057

 

$

1,019

 

$

995

 

$

1,000

 

$

4,071

Power generation

 

 

492

 

 

614

 

 

606

 

 

797

 

 

2,509

Engines

 

 

456

 

 

531

 

 

511

 

 

499

 

 

1,997

Service

 

 

401

 

 

431

 

 

423

 

 

417

 

 

1,672

Total sales

 

$

2,406

 

$

2,595

 

$

2,535

 

$

2,713

 

$

10,249

 

Power Systems Segment Sales by Product Line and Unit Shipments by Engine Classification

Sales for our Power Systems segment by product line were as follows:

 

2024

 

 

 

 

 

 

 

 

 

 

In millions

 

Q1

 

Q2

 

Q3

 

Q4

 

YTD

Power generation

 

$

853

 

$

987

 

$

 

$

 

$

1,840

Industrial

 

 

420

 

 

478

 

 

 

 

 

 

898

Generator technologies

 

 

116

 

 

124

 

 

 

 

 

 

240

Total sales

 

$

1,389

 

$

1,589

 

$

 

$

 

$

2,978

 

 

 

 

 

 

 

 

 

 

 

2023

 

 

 

 

 

 

 

 

 

 

In millions

 

Q1

 

Q2

 

Q3

 

Q4

 

YTD

Power generation

 

$

770

 

$

854

 

$

850

 

$

866

 

$

3,340

Industrial

 

 

455

 

 

468

 

 

475

 

 

456

 

 

1,854

Generator technologies

 

 

118

 

 

135

 

 

119

 

 

107

 

 

479

Total sales

 

$

1,343

 

$

1,457

 

$

1,444

 

$

1,429

 

$

5,673

 

High-horsepower unit shipments by engine classification were as follows:

 

2024

 

 

 

 

 

 

 

 

 

 

Units

 

Q1

 

Q2

 

Q3

 

Q4

 

YTD

Power generation

 

3,000

 

3,700

 

 

 

6,700

Industrial

 

1,300

 

1,500

 

 

 

2,800

Total units

 

4,300

 

5,200

 

 

 

9,500

 

 

 

 

 

 

 

 

 

 

 

2023

 

 

 

 

 

 

 

 

 

 

Units

 

Q1

 

Q2

 

Q3

 

Q4

 

YTD

Power generation

 

2,900

 

3,300

 

2,800

 

3,300

 

12,300

Industrial

 

1,500

 

1,600

 

1,800

 

1,800

 

6,700

Total units

 

4,400

 

4,900

 

4,600

 

5,100

 

19,000

 

Jon Mills, Director, External Communications
317-658-4540
jon.mills@cummins.com

Source: Cummins Inc.