EXHIBIT 99

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August 3, 2023

Cummins Reports Strong Second Quarter 2023 Results

Record second quarter revenues of $8.6 billion; GAAP1 Net Income of $720 million
EBITDA in the second quarter was 15.1 percent of sales; Diluted EPS of $5.05
Second quarter results include $23 million, or $0.13 per diluted share, of costs related to the separation of Atmus Filtration Technologies Inc.
The company is maintaining its full year 2023 guidance, expecting revenue to be up 15 to 20 percent and EBITDA of 15.0 to 15.7 percent.

COLUMBUS, IND. - Cummins Inc. (NYSE: CMI) today reported results for the second quarter of 2023.

Second quarter revenues of $8.6 billion increased 31 percent from the same quarter in 2022. Sales in North America increased 31 percent and international revenues increased 32 percent due to the addition of Meritor and strong demand across most global markets.

“Strong demand across most of our key markets and regions resulted in record revenues and solid profitability for the company in the second quarter of 2023,” said Jennifer Rumsey, Chair and CEO. “We are committed to delivering cycle-over-cycle improvement in financial performance, returning cash to our shareholders and prioritizing investments to continue building our product portfolio to power our customers’ success around the world. I want to thank our Cummins employees who continue to work tirelessly to meet customer needs and respond to the strong demand levels by ensuring quality products, strengthening our customer relationships, and navigating continued supply chain constraints.”

Net income attributable to Cummins in the second quarter was $720 million, or $5.05 per diluted share compared to $702 million, or $4.94 per diluted share in 2022. Results included costs associated with the separation of Atmus of $23 million, or $0.13 per diluted share, in the second quarter of 2023, and $29 million, or $0.16 per diluted share, in the second quarter of 2022. The second quarter of 2022 also included $47 million, or $0.33 per diluted share, of benefit from adjusting the reserves related to the indefinite suspension of our operations in Russia. The tax rate in the second quarter was 22.3 percent including $3 million, or $0.02 per diluted share, of unfavorable discrete tax items.

Earnings before interest, taxes, depreciation and amortization (EBITDA) in the second quarter were $1.3 billion, or 15.1 percent of sales, compared to $1.1 billion, or 16.0 percent of sales, a year ago. EBITDA for the second quarter of 2023 included the costs related to the separation of Atmus and the second quarter 2022 EBITDA included the reserve release related to the indefinite suspension of operations in Russia and costs related to the separation of Atmus as noted above. EBITDA percentage decreased in the second quarter principally due to the dilutive impact of Meritor, which currently has a lower gross margin percentage than our company average.


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2023 Outlook:

Based on its current forecast, Cummins is maintaining its full year 2023 revenue guidance to be up 15 to 20 percent due to strong demand across most markets, especially North America. EBITDA is still expected to be in the range of 15.0 to 15.7 percent of sales.

The outlook above includes the projected results of the Meritor business for 2023. The outlook assumes the inclusion of Atmus for the entirety of 2023, but excludes any costs or benefits associated with the planned separation of the business. Within the Components Segment, Cummins expects revenues of the Meritor business for 2023 to be between $4.7 billion to $4.9 billion and EBITDA to be in the range of 10.3 to 11.0 percent of sales, consistent with prior guidance.

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

“While we see demand remaining strong through 2023 and we are maintaining our guidance on revenue and profitability, we continue to closely monitor global economic indicators. Should economic momentum slow, Cummins will remain in a strong position to keep investing in future growth, bringing new technologies to customers as we advance our Destination Zero strategy, and returning cash to shareholders,” said Rumsey.

Recent Highlights:

Progress continues to be made on the separation of the Filtration business. On May 26th, Atmus Filtration Technologies Inc. shares began trading on the New York Stock Exchange (NYSE) under the ticker symbol “ATMU” in connection with the initial public offering (IPO). Upon completion of the IPO, Cummins retained approximately 80.5% of Atmus’ outstanding shares. The Atmus IPO generated $299 million of net proceeds and Atmus added $650 million of debt. Cummins realizes the benefits of the IPO proceeds and the debt issuance, as Atmus will hold the debt at full separation.

Cummins announced two significant milestones with the 5 millionth engine produced at its Rocky Mount Engine Plant (RMEP) in North Carolina and the 2.5 millionth engine produced at its Jamestown Engine Plant (JEP) in New York. The 5 millionth milestone engine was a B6.7, which was received by Daimler, who provided it to Penske. The 2.5 millionth engine at JEP was the new 15-liter natural gas product and provided to Kenworth.

On April 3rd, United States President Joe Biden visited company facilities in Fridley, Minnesota (USA), to tour Accelera by Cummins’ first U.S. manufacturing location for electrolyzers, a key technology to produce low- and no-carbon hydrogen. The official ribbon cutting on May 19th marked the start of electrolyzer production in the United States. Accelera is initially dedicating 89,000 sq. ft. of the existing Cummins power generation facility in Fridley to electrolyzer production.

In the second quarter, Accelera reached a milestone of backlog electrolyzer orders totaling over $500 million. The Fridley facility will help address that growing demand along with other capacity being added globally.

Cummins signed a definitive agreement with Tata Motors Limited (TML), to manufacture a range of low- to zero-emissions technology products in India over the next few years. As a part of this agreement, Cummins and TML have set up a new business entity called TCPL Green Energy Solutions Private Limited (GES), a wholly owned subsidiary under the existing joint venture with a focus on the development and manufacturing of sustainable technology products that will include hydrogen-powered internal combustion engines, fuel delivery systems, and battery electric powertrains and fuel cell electric systems through the Accelera™ by Cummins brand.

Cummins received a 2023 Energy Management Insight Award from the Clean Energy Ministerial. The
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award recognizes organizations demonstrating the benefits of energy management systems and meeting the ISO 50001 international energy standard.

Cummins announced an increase in the quarterly common stock cash dividend from $1.57 to $1.68 per share. The company has increased the quarterly dividend to shareholders for 14 consecutive years.

Second quarter 2023 detail (all comparisons to same period in 2022):
Components Segment

Sales - $3.4 billion, up 76 percent
Segment EBITDA - $486 million, or 14.2 percent of sales, which includes $18 million of costs related to the separation of Atmus compared to $352 million, or 18.1 percent of sales, which included $2 million of benefits from adjusting the reserves related to the indefinite suspension of operations in Russia. The decline in EBITDA percentage was driven primarily by the addition of Meritor, which has a dilutive impact on the segment despite its improvement in the second quarter.
Revenues in North America increased by 70 percent and international sales increased by 84 percent due to the addition of Meritor and increased global demand.

Engine Segment

Sales - $3.0 billion, up 8 percent
Segment EBITDA - $425 million, or 14.2 percent of sales, compared to $421 million or 15.2 percent of sales, which included $1 million of costs from the indefinite suspension of operations in Russia
On-highway revenues increased 7 percent driven by strong demand in the North American truck market and pricing actions.
Sales increased 7 percent in North America and grew 10 percent in international markets due to an increase in global demand.

Distribution Segment

Sales - $2.6 billion, up 15 percent
Segment EBITDA - $299 million, or 11.5 percent of sales, compared to $297 million, or 13.2 percent of sales a year ago when results included $45 million of benefits from adjusting the reserves related to the indefinite suspension of operations in Russia
Revenues in North America increased 20 percent and international sales increased by 5 percent.
Higher revenues were driven by increased demand for whole goods, especially power generation products, and pricing actions.

Power Systems Segment

Sales - $1.5 billion, up 21 percent
Segment EBITDA - $201 million, or 13.8 percent of sales, compared to $128 million, or 10.6 percent of sales, which included $1 million of benefit from adjusting the reserves related to the indefinite suspension of operations in Russia
Second quarter results also included $18 million of costs related to severance costs related to transformation efforts within the segment.
Power generation revenues increased 30 percent driven by increased global demand and pricing actions. Industrial revenues increased 9 percent due to increased demand in mining and oil and gas markets.

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Accelera Segment

Sales - $85 million, up 102 percent
Segment EBITDA loss - $114 million
Revenues increased due to higher demand for battery electric systems in the North American school bus market and the additions of the electric powertrain portion of the Meritor business and Siemens Commercial Vehicle business.
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. The company continues to make investments to support our customers through the energy transition and deliver future profitable growth.

1 Generally Accepted Accounting Principles

About Cummins Inc.

Cummins Inc., a global power leader, is a corporation of complementary business segments that design, manufacture, distribute and service a broad portfolio of power solutions. The company’s products range from diesel, natural gas, electric and hybrid powertrains and powertrain-related components including filtration, aftertreatment, turbochargers, fuel systems, controls systems, air handling systems, automated transmissions, axles, drivelines, brakes, suspension systems, electric power generation systems, batteries, electrified power systems, electric powertrains, hydrogen production and fuel cell products. Headquartered in Columbus, Indiana (U.S.), since its founding in 1919, Cummins employs approximately 73,600 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 $2.2 billion on sales of $28.1 billion in 2022. See how Cummins is powering a world that's always on by accessing news releases and more information at https://www.cummins.com/always-on.

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 results of our internal review into our emissions certification process and compliance with emission standards; increased scrutiny from regulatory agencies, as well as unpredictability in the adoption, implementation and enforcement of emission standards around the world; changes in international, national and regional trade laws, regulations and policies; changes in taxation; global legal and ethical compliance costs and risks; evolving environmental and climate change legislation and regulatory initiatives; 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; any adverse effects of the conflict between Russia and Ukraine and the global response (including government bans or restrictions on doing business in Russia); 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; failure to complete, adverse results from or failure to realize the expected benefits of the separation of our filtration business; 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; climate change, global warming, more stringent climate change regulations, accords, mitigation efforts, greenhouse gas (GHG) regulations or other legislation designed to address climate change; 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
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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 2022 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 press 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. EST. This teleconference will be webcast and available on the Investor Relations section of the Cummins website at www.cummins.com. Participants wishing to view the visuals available with the audio are encouraged to sign-in a few minutes prior to the start of the teleconference.

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CUMMINS INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF NET INCOME
(Unaudited) (a)

Three months ended
 June 30,
In millions, except per share amounts20232022
NET SALES$8,638 $6,586 
Cost of sales6,490 4,860 
GROSS MARGIN 2,148 1,726 
OPERATING EXPENSES AND INCOME   
Selling, general and administrative expenses 873 622 
Research, development and engineering expenses384 299 
Equity, royalty and interest income from investees133 95 
Other operating expense, net27 
OPERATING INCOME 997 897 
Interest expense99 34 
Other income (expense), net51 (8)
INCOME BEFORE INCOME TAXES 949 855 
Income tax expense212 148 
CONSOLIDATED NET INCOME 737 707 
Less: Net income attributable to noncontrolling interests17 
NET INCOME ATTRIBUTABLE TO CUMMINS INC. $720 $702 
EARNINGS PER COMMON SHARE ATTRIBUTABLE TO CUMMINS INC.  
Basic $5.08 $4.97 
Diluted $5.05 $4.94 
WEIGHTED-AVERAGE COMMON SHARES OUTSTANDING   
Basic 141.7 141.2 
Diluted 142.5 142.0 
(a)  Prepared on an unaudited basis in accordance with accounting principles generally accepted in the United States of America.








6


CUMMINS INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF NET INCOME
(Unaudited) (a)

 Six months ended
June 30,
In millions, except per share amounts20232022
NET SALES$17,091 $12,971 
Cost of sales12,914 9,713 
GROSS MARGIN 4,177 3,258 
OPERATING EXPENSES AND INCOME   
Selling, general and administrative expenses1,626 1,237 
Research, development and engineering expenses734 597 
Equity, royalty and interest income from investees252 191 
Other operating expense, net46 114 
OPERATING INCOME 2,023 1,501 
Interest expense186 51 
Other income (expense), net141 (17)
INCOME BEFORE INCOME TAXES 1,978 1,433 
Income tax expense435 303 
CONSOLIDATED NET INCOME 1,543 1,130 
Less: Net income attributable to noncontrolling interests33 10 
NET INCOME ATTRIBUTABLE TO CUMMINS INC. $1,510 $1,120 
 
EARNINGS PER COMMON SHARE ATTRIBUTABLE TO CUMMINS INC.  
Basic $10.66 $7.90 
Diluted $10.60 $7.86 
 
WEIGHTED-AVERAGE COMMON SHARES OUTSTANDING
Basic 141.6 141.7 
Diluted 142.5 142.5 
(a)  Prepared on an unaudited basis in accordance with accounting principles generally accepted in the United States of America.


7


CUMMINS INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(Unaudited) (a)
In millions, except par valueJune 30,
2023
December 31,
2022
ASSETS  
Current assets   
Cash and cash equivalents $1,802 $2,101 
Marketable securities512 472 
Total cash, cash equivalents and marketable securities 2,314 2,573 
Accounts and notes receivable, net5,863 5,202 
Inventories6,026 5,603 
Prepaid expenses and other current assets 1,207 1,073 
Total current assets 15,410 14,451 
Long-term assets   
Property, plant and equipment, net5,723 5,521 
Investments and advances related to equity method investees1,861 1,759 
Goodwill2,404 2,343 
Other intangible assets, net2,584 2,687 
Pension assets1,523 1,398 
Other assets2,230 2,140 
Total assets $31,735 $30,299 
LIABILITIES  
Current liabilities   
Accounts payable (principally trade)$4,308 $4,252 
Loans payable419 210 
Commercial paper1,617 2,574 
Current maturities of long-term debt575 573 
Accrued compensation, benefits and retirement costs 721 617 
Current portion of accrued product warranty751 726 
Current portion of deferred revenue1,017 1,004 
Other accrued expenses1,637 1,465 
Total current liabilities 11,045 11,421 
Long-term liabilities   
Long-term debt5,089 4,498 
Deferred revenue939 844 
Other liabilities3,306 3,311 
Total liabilities $20,379 $20,074 
Redeemable noncontrolling interests$ $258 
EQUITY
Cummins Inc. shareholders’ equity  
Common stock, $2.50 par value, 500 shares authorized, 222.5 and 222.5 shares issued $2,532 $2,243 
Retained earnings 19,102 18,037 
Treasury stock, at cost, 80.9 and 81.2 shares
(9,380)(9,415)
Accumulated other comprehensive loss(1,917)(1,890)
Total Cummins Inc. shareholders’ equity 10,337 8,975 
Noncontrolling interests1,019 992 
Total equity $11,356 $9,967 
Total liabilities, redeemable noncontrolling interests and equity $31,735 $30,299 
(a) Prepared on an unaudited basis in accordance with accounting principles generally accepted in the United States of America.


8


CUMMINS INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited) (a)
 Three months ended
June 30,
In millions20232022
CASH FLOWS FROM OPERATING ACTIVITIES
Consolidated net income $737 $707 
Adjustments to reconcile consolidated net income to net cash provided by operating activities
Depreciation and amortization257 167 
Deferred income taxes(94)(46)
Equity in income of investees, net of dividends(46)14 
Pension and OPEB expense2 
Pension contributions and OPEB payments(11)(12)
Russian suspension recoveries (47)
(Gain) loss on corporate owned life insurance (1)48 
Foreign currency remeasurement and transaction exposure(48)(3)
Changes in current assets and liabilities, net of acquisitions
Accounts and notes receivable(14)165 
Inventories(140)(209)
Other current assets5 (8)
Accounts payable(316)(58)
Accrued expenses110 (30)
Changes in other liabilities11 (81)
Other, net31 (16)
Net cash provided by operating activities 483 599 
CASH FLOWS FROM INVESTING ACTIVITIES  
Capital expenditures(221)(147)
Acquisitions of businesses, net of cash acquired(134)(328)
Investments in marketable securities—acquisitions(322)(236)
Investments in marketable securities—liquidations275 207 
Other, net24 (62)
Net cash used in investing activities(378)(566)
CASH FLOWS FROM FINANCING ACTIVITIES  
Proceeds from borrowings694 42 
Net (payments) borrowings of commercial paper(629)394 
Payments on borrowings and finance lease obligations(86)(47)
Dividend payments on common stock(223)(204)
Repurchases of common stock (36)
Other, net4 (43)
Net cash (used in) provided by financing activities(240)106 
EFFECT OF EXCHANGE RATE CHANGES ON CASH AND CASH EQUIVALENTS (43)47 
Net (decrease) increase in cash and cash equivalents(178)186 
Cash and cash equivalents at beginning of period1,980 2,276 
CASH AND CASH EQUIVALENTS AT END OF PERIOD $1,802 $2,462 
(a)  Prepared on an unaudited basis in accordance with accounting principles generally accepted in the United States of America.
9


CUMMINS INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited) (a)

Six months ended
 June 30,
In millions20232022
CASH FLOWS FROM OPERATING ACTIVITIES
Consolidated net income $1,543 $1,130 
Adjustments to reconcile consolidated net income to net cash provided by operating activities  
Depreciation and amortization503 328 
Deferred income taxes(132)(112)
Equity in income of investees, net of dividends(113)(62)
Pension and OPEB expense3 17 
Pension contributions and OPEB payments(103)(55)
Russian suspension costs, net of recoveries 111 
(Gain) loss on corporate owned life insurance (20)85 
Foreign currency remeasurement and transaction exposure(59)(10)
Changes in current assets and liabilities, net of acquisitions
Accounts and notes receivable(635)(252)
Inventories(403)(498)
Other current assets(137)(65)
Accounts payable65 426 
Accrued expenses261 (281)
Changes in other liabilities75 (11)
Other, net130 12 
Net cash provided by operating activities 978 763 
CASH FLOWS FROM INVESTING ACTIVITIES   
Capital expenditures(414)(251)
Acquisitions of businesses, net of cash acquired(134)(245)
Investments in marketable securities—acquisitions(648)(433)
Investments in marketable securities—liquidations620 461 
Other, net(30)(108)
Net cash used in investing activities(606)(576)
CASH FLOWS FROM FINANCING ACTIVITIES   
Proceeds from borrowings737 56 
Net (payments) borrowings of commercial paper(658)392 
Payments on borrowings and finance lease obligations(228)(71)
Dividend payments on common stock(445)(411)
Repurchases of common stock (347)
Other, net(9)(10)
Net cash used in financing activities (603)(391)
EFFECT OF EXCHANGE RATE CHANGES ON CASH AND CASH EQUIVALENTS (68)74 
Net decrease in cash and cash equivalents(299)(130)
Cash and cash equivalents at beginning of year 2,101 2,592 
CASH AND CASH EQUIVALENTS AT END OF PERIOD $1,802 $2,462 
(a)  Prepared on an unaudited basis in accordance with accounting principles generally accepted in the United States of America.
10


CUMMINS INC. AND SUBSIDIARIES
SEGMENT INFORMATION
(Unaudited)
In millionsComponentsEngineDistributionPower SystemsAcceleraTotal Segments
Intersegment Eliminations (1)
Total
Three months ended June 30, 2023    
External sales$2,924$2,263$2,576$794$81 $8,638$ $8,638
Intersegment sales501725196634 1,912(1,912)
Total sales3,4252,9882,5951,45785 10,550(1,912)8,638
Research, development and engineering expenses103148156652 384 384
Equity, royalty and interest income (loss) from investees24712418(4)133 133
Interest income77821 25 25
EBITDA (2)
486
(3)
425299201(114)1,2977 1,304
Depreciation and amortization (4)
12556283215 256 256
EBITDA as a percentage of segment sales14.2 %14.2 %11.5 %13.8 %NM12.3 %15.1 %
Three months ended June 30, 2022
External sales$1,477$2,092$2,247$734$36 $6,586$— $6,586
Intersegment sales47368364691,637(1,637)
Total sales1,9502,7752,2531,20342 8,223(1,637)6,586
Research, development and engineering expenses73116135839 299— 299
Equity, royalty and interest income (loss) from investees9582110(3)95— 95
Interest income2131— 7— 7
Russian suspension (recoveries) costs(2)1(45)(1)— (47)— (47)
EBITDA (2)
352421297128(79)1,119(64)1,055
Depreciation and amortization (4)
49492931166— 166
EBITDA as a percentage of segment sales18.1 %15.2 %13.2 %10.6 %NM13.6 %16.0 %
"NM" - not meaningful information
(1) Includes intersegment sales, intersegment profit in inventory eliminations and unallocated corporate expenses. There were no significant unallocated corporate expenses for the three months ended June 30, 2023 and 2022, except for $5 million and $24 million of costs associated with the IPO and separation of Atmus Filtration Technologies Inc. (Atmus) in 2023 and 2022, respectively.
(2) EBITDA is defined as earnings or losses before interest expense, income taxes, depreciation and amortization and noncontrolling interests.
(3) Includes $18 million of costs associated with the IPO and separation of Atmus. See "DIVESTITURE AND ACQUISITIONS," note for additional information.
(4) 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.

11

CUMMINS INC. AND SUBSIDIARIES
SEGMENT INFORMATION
(Unaudited)
In millionsComponentsEngineDistributionPower SystemsAcceleraTotal Segments
Intersegment Eliminations (1)
Total
Six months ended June 30, 2023
External sales$5,967$4,515$4,975$1,473$161 $17,091$ $17,091
Intersegment sales1,0151,459261,3279 3,836(3,836)
Total sales6,9825,9745,0012,800170 20,927(3,836)17,091
Research, development and engineering expenses19428229129100 734 734
Equity, royalty and interest income (loss) from investees451364831(8)252 252
Interest income13101541 43 43
EBITDA (2)
993
(3)
882634420(208)2,721(56)2,665
Depreciation and amortization (4)
248107566129 501 501
EBITDA as a percentage of total sales14.2%14.8%12.7 %15.0 %NM13.0 %15.6 %
Six months ended June 30, 2022
External sales$2,994$4,141$4,358$1,417$61 $12,971$— $12,971
Intersegment sales9441,3871294612 3,301(3,301)
Total sales3,9385,5284,3702,36373 16,272(3,301)12,971
Research, development and engineering expenses1492252612275 597— 597
Equity, royalty and interest income (loss) from investees37100
(5)
3721(4)191— 191
Interest income3552— 15— 15
Russian suspension costs 433
(6)
5519— 111— 111
EBITDA (2)
672811407218(144)1,964(154)1,810
Depreciation and amortization (4)
92100576215 326— 326
EBITDA as a percentage of total sales17.1 %14.7 %9.3 %9.2 %NM12.1 %14.0 %
"NM" - not meaningful information
(1) Includes intersegment sales, intersegment profit in inventory eliminations and unallocated corporate expenses. There were no significant unallocated corporate expenses for the six months ended June 30, 2023 and 2022, except for $11 million and $41 million of costs associated with the IPO and separation of Atmus in 2023 and 2022, respectively.
(2) EBITDA is defined as earnings or losses before interest expense, income taxes, depreciation and amortization and noncontrolling interests.
(3) Includes $30 million of costs associated with the IPO and separation of Atmus. See "DIVESTITURE AND ACQUISITIONS," note for additional information.
(4) 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. The amortization of debt discount and deferred costs was $2 million and $2 million for the six months ended June 30, 2023 and 2022, respectively. A portion of depreciation expense is included in research, development and engineering expenses.
(5) Includes a $28 million impairment of our joint venture with KAMAZ and $3 million of royalty charges as part of our costs associated with the indefinite suspension of our Russian operations.
(6) Includes $31 million of Russian suspension costs reflected in the equity, royalty and interest income (loss) from investees line above.
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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 endedSix months ended
 June 30,June 30,
In millions2023202220232022
Manufacturing entities
Dongfeng Cummins Engine Company, Ltd.$18 $11 $37 $27 
Chongqing Cummins Engine Company, Ltd.13 22 16 
Beijing Foton Cummins Engine Co., Ltd.9 14 25 28 
Tata Cummins, Ltd.7 

15 

14 
All other manufacturers32 13 51 
(1)
Distribution entities
Komatsu Cummins Chile, Ltda.13 12 27 19 
All other distributors4 7 
Cummins share of net income96 65 184 112 
Royalty and interest income37 30 68 79 
Equity, royalty and interest income from investees$133 $95 $252 $191 
(1) Includes a $28 million impairment of our joint venture with KAMAZ and $3 million of royalty charges as part of our costs associated with the indefinite suspension of our Russian operations.
DIVESTITURE AND ACQUISITIONS
Divestiture
Formation of Atmus Filtration Technologies Inc. (Atmus) and Initial Public Offering (IPO)
On May 23, 2023, in connection with the Atmus IPO, Cummins issued approximately $350 million of commercial paper with certain lenders. On May 26, 2023, Atmus shares began trading on the New York Stock Exchange under the symbol "ATMU." The IPO was completed on May 30, 2023, whereby Cummins exchanged 19.5 percent (approximately 16 million shares) of its ownership in Atmus, at $19.50 per share, to retire $299 million of the commercial paper as proceeds from the offering through a non-cash transaction.
In connection with the completion of the IPO, through a series of asset and equity contributions, we transferred the filtration business to Atmus. In exchange, Atmus transferred consideration of approximately $650 million to Cummins, which consisted primarily of the net proceeds from a term loan facility and revolver executed by Atmus during May 2023.
As we still own 80.5 percent of Atmus shares, it remains included in our Condensed Consolidated Financial Statements.
Acquisitions
Hydrogenics Corporation
On June 29, 2023, a share purchase agreement was executed with a 19 percent minority shareholder in one of our businesses, Hydrogenics Corporation (Hydrogenics), whereby we agreed to pay the minority shareholder $335 million for their 19 percent ownership, including the settlement of shareholder loans of $48 million. As part of the share purchase agreement, Hydrogenics entered into three non-interest-bearing promissory notes with $175 million paid on July 31, 2023, and the remaining $160 million due in three installments through 2025.
Teksid Hierro de Mexico, S.A. de C.V.
On April 3, 2023, we acquired Teksid Hierro de Mexico, S.A. de C.V. (Teksid MX) business for approximately $150 million, subject to working capital and other customary adjustments. Teksid MX operates a cast iron foundry located in Monclova, Mexico, which primarily forges blocks and heads used in our and other manufacturers’ engines. Teksid, Inc. facilitates the commercialization of Teksid MX products in North America.
13


CUMMINS INC. AND SUBSIDIARIES
SELECT FOOTNOTE DATA
(Unaudited)

Meritor, Inc.
During the second quarter of 2023, we finalized our accounting for the Meritor, Inc. acquisition. The primary components of the change were to increase contingent liabilities by $62 million offset by finalization of deferred taxes and tax reserves, with a net increase to goodwill of $26 million. There was no impact to the Condensed Consolidated Statements of Net Income for any of the changes.
INCOME TAXES
Our effective tax rate for 2023 is expected to approximate 22.0 percent, excluding any discrete items that may arise.
Our effective tax rate for the three months ended June 30, 2023, was 22.3 percent and contained net unfavorable discrete tax items of $3 million, or $0.02 per share.
Our effective tax rate for the six months ended June 30, 2023, was 22.0 percent and contained net discrete tax amounts 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.
Our effective tax rate for the three months ended June 30, 2022, was 17.3 percent and contained favorable discrete tax items of $36 million, or $0.25 per share, primarily due to $36 million of favorable changes in tax reserves, $10 million of favorable changes associated with the indefinite suspension in our Russian operations and $8 million of net favorable other discrete tax items, partially offset by $18 million of unfavorable tax costs associated with internal restructuring ahead of the planned separation of Atmus.
Our effective tax rate for the six months ended June 30, 2022, was 21.1 percent and contained favorable discrete items of $5 million, or $0.04 per share, primarily due to $27 million of favorable changes in tax reserves and $4 million of net favorable other discrete tax items, partially offset by $18 million of unfavorable tax costs associated with internal restructuring ahead of the planned separation of Atmus and $8 million of unfavorable changes associated with the indefinite suspension in our Russian operations.
14


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 costs associated with the IPO and separation of Atmus and indefinite suspension of Russian operations. This statement excludes 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 non-cash items that are excluded from the non-GAAP outlook measure.
EBITDA is not in accordance with, or an alternative for, accounting principles generally accepted in the United States (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 endedSix months ended
 June 30,June 30,
In millions2023202220232022
Net income attributable to Cummins Inc.$720 $702 $1,510 $1,120 
Net income attributable to Cummins Inc. as a percentage of net sales8.3 %10.7 %8.8 %8.6 %
Add:
Net income attributable to noncontrolling interests17 33 10 
Consolidated net income737 707 1,543 1,130 
Add:
Interest expense99 34 186 51 
Income tax expense212 148 435 303 
Depreciation and amortization256 166 501 326 
EBITDA$1,304 $1,055 $2,665 $1,810 
EBITDA as a percentage of net sales15.1 %16.0 %15.6 %14.0 %
Add:
Atmus IPO and separation costs23 29 41 46 
Russian suspension (recoveries) costs— (47)— 111 
EBITDA, excluding costs associated with the IPO and separation of Atmus and indefinite suspension of Russian operations$1,327 $1,037 $2,706 $1,967 
EBITDA, excluding costs associated with the IPO and separation of Atmus and indefinite suspension of Russian operations, as a percentage of net sales15.4 %15.7 %15.8 %15.2 %
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CUMMINS INC. AND SUBSIDIARIES
SEGMENT SALES DATA
(Unaudited)
Components Segment Sales by Business
In the second quarter of 2023, with the Atmus IPO we changed the name of our filtration business to Atmus. Sales for our Components segment by business, adjusted for the reorganized businesses, were as follows:
2023     
In millionsQ1Q2Q3Q4YTD
Axles and brakes$1,272 $1,249 $— $— $2,521 
Emission solutions1,056 964 — — 2,020 
Engine components581 557 — — 1,138 
Atmus417 417 — — 834 
Automated transmissions179 179 — — 358 
Software and electronics52 59 — — 111 
Total sales$3,557 $3,425 $— $— $6,982 
2022     
In millionsQ1Q2Q3Q4YTD
Axles and brakes$— $— $732 $1,147 $1,879 
Emission solutions910 863 853 868 3,494 
Engine components502 503 509 493 2,007 
Atmus382 391 399 385 1,557 
Automated transmissions134 143 159 157 593 
Software and electronics60 50 51 45 206 
Total sales$1,988 $1,950 $2,703 $3,095 $9,736 
Engine Segment Sales by Market and Unit Shipments by Engine Classification
Sales for our Engine segment by market were as follows:
2023     
In millionsQ1Q2Q3Q4YTD
Heavy-duty truck$1,114 $1,117 $— $— $2,231 
Medium-duty truck and bus903 942 — — 1,845 
Light-duty automotive439 445 — — 884 
Off-highway530 484 — — 1,014 
Total sales$2,986 $2,988 $— $— $5,974 
2022     
In millionsQ1Q2Q3Q4YTD
Heavy-duty truck$908 $1,001 $972 $966 $3,847 
Medium-duty truck and bus848 875 868 869 3,460 
Light-duty automotive498 456 466 318 1,738 
Off-highway499 443 473 485 1,900 
Total sales$2,753 $2,775 $2,779 $2,638 $10,945 

16




Unit shipments by engine classification (including unit shipments to Power Systems and off-highway engine units included in their respective classification) were as follows:
2023     
UnitsQ1Q2Q3Q4YTD
Heavy-duty34,700 36,400 — — 71,100 
Medium-duty78,900 76,000 — — 154,900 
Light-duty55,000 53,600 — — 108,600 
Total units168,600 166,000 — — 334,600 
2022     
UnitsQ1Q2Q3Q4YTD
Heavy-duty28,600 30,900 30,200 31,000 120,700 
Medium-duty72,600 68,800 69,800 72,400 283,600 
Light-duty66,500 60,400 58,300 42,400 227,600 
Total units167,700 160,100 158,300 145,800 631,900 
Distribution Segment Sales by Product Line
Sales for our Distribution segment by product line were as follows:
2023     
In millionsQ1Q2Q3Q4YTD
Parts$1,057 $1,019 $— $— $2,076 
Power generation492 614 — — 1,106 
Engines456 531 — — 987 
Service401 431 — — 832 
Total sales$2,406 $2,595 $— $— $5,001 
2022     
In millionsQ1Q2Q3Q4YTD
Parts$924 $990 $945 $959 $3,818 
Power generation401 441 431 501 1,774 
Engines441 429 449 457 1,776 
Service351 393 414 403 1,561 
Total sales$2,117 $2,253 $2,239 $2,320 $8,929 
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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:
2023     
In millionsQ1Q2Q3Q4YTD
Power generation$770 $854 $— $— $1,624 
Industrial455 468 — — 923 
Generator technologies118 135 — — 253 
Total sales$1,343 $1,457 $— $— $2,800 
2022     
In millionsQ1Q2Q3Q4YTD
Power generation$664 $657 $739 $730 $2,790 
Industrial393 428 483 468 1,772 
Generator technologies103 118 127 123 471 
Total sales$1,160 $1,203 $1,349 $1,321 $5,033 
High-horsepower unit shipments by engine classification were as follows:
2023     
UnitsQ1Q2Q3Q4YTD
Power generation2,900 3,300 — — 6,200 
Industrial1,500 1,600 — — 3,100 
Total units4,400 4,900 — — 9,300 
2022     
UnitsQ1Q2Q3Q4YTD
Power generation2,200 2,400 2,400 2,700 9,700 
Industrial1,100 1,200 1,200 1,400 4,900 
Total units3,300 3,600 3,600 4,100 14,600 

18