EXHIBIT 99

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November 2, 2023

Cummins Reports Third Quarter 2023 Results

Third quarter revenues of $8.4 billion; GAAP1 Net Income of $656 million
EBITDA in the third quarter was 14.6 percent of sales; Diluted EPS of $4.59
Third quarter results include $26 million, or $0.14 per diluted share, of costs related to the separation of Atmus Filtration Technologies Inc.
Third quarter net cash provided by operating activities was a record $1.5 billion
The company is raising its full year 2023 revenue guidance to be up 18 to 21 percent; an increase from previous guidance of up 15 to 20 percent
EBITDA is now expected to be in the range of 15.2 to 15.4 percent; narrowing the range of the previous guidance of 15.0 to 15.7 percent

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

Third quarter revenues of $8.4 billion increased 15 percent from the same quarter in 2022. Sales in North America increased 16 percent and international revenues increased 13 percent due to the addition of Meritor and strong demand across most global markets. The third quarter of 2022 included two months of consolidated operations for Meritor following the completion of the acquisition on August 3, 2022.

“We delivered solid profitability and record operating cash flow in the third quarter,” said Jennifer Rumsey, Chair and CEO. “While full year revenues are at the high end of our expectations, we are seeing signs of moderating demand in some markets and are taking steps to reduce costs and position the company for success in 2024. I am deeply appreciative of our Cummins employees, who continue to innovate for our customers and demonstrate the flexibility required to meet global demand.”

Net income attributable to Cummins in the third quarter was $656 million, or $4.59 per diluted share compared to $400 million, or $2.82 per diluted share in 2022. Results included costs associated with the separation of Atmus of $26 million, or $0.14 per diluted share, in the third quarter of 2023, and $16 million in the third quarter of 2022. The third quarter of 2022 also included $77 million of acquisition, integration and inventory valuation adjustments related to Meritor. The tax rate in the third quarter was 21.4 percent including $5 million, or $0.03 per diluted share, of favorable discrete tax items, compared to $57 million of unfavorable discrete tax items a year ago.

Earnings before interest, taxes, depreciation and amortization (EBITDA) in the third quarter were $1.2 billion, or 14.6 percent of sales, compared to $884 million, or 12.1 percent of sales, a year ago. EBITDA for the third quarter of 2023 included the costs related to the separation of Atmus and the third quarter of 2022 EBITDA included costs related to the separation of Atmus and costs related to the acquisition and integration of Meritor as noted above. The third quarter of 2022 also included a one-time employee recognition bonus with a cost impact of $56 million.

Operating cash flow for the third quarter of 2023 was a record inflow of $1.5 billion, compared to $382 million in the third quarter of 2022, as we continue to focus on working capital management within the business.
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2023 Outlook:

Based on its current forecast, Cummins is raising its full year 2023 revenue guidance to be up 18 to 21 percent due to strong demand across most markets, especially North America. EBITDA is expected to be in the range of 15.2 to 15.4 percent of sales, narrowing the range of the previous guidance of 15.0 to 15.7 percent of sales.

The outlook above assumes the inclusion of Atmus for the entirety of 2023, but excludes any costs or benefits associated with the planned separation of Atmus. Our forecast also excludes the impact of broader cost reduction activities that are expected in the fourth quarter. Within the Components Segment, Cummins expects revenues of the Meritor business for 2023 to be between $4.7 billion to $4.9 billion, consistent with prior guidance. EBITDA is expected to be in the range of 10.5 to 11.0 percent of sales, narrowing the range of the previous guidance of 10.3 to 11.0 percent.

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, increasing dividends and reducing debt.

“2023 will be another record year for revenue growth, however we are seeing some signs of slowing activity and are expecting lower demand in the fourth quarter. Our leadership team is experienced in managing through periods of economic uncertainty and will continue to make the decisions that ensure we drive cost improvements and maintain a strong financial position. We’ve announced several major partnerships this quarter as we continue to advance our Destination Zero strategy and remain committed to investing in future growth,” said Rumsey.

Recent Highlights:

Accelera™ by Cummins, Daimler Trucks & Buses, PACCAR and EVE Energy announced in September a joint venture to accelerate and localize battery cell production and the battery supply chain in the United States. The planned joint venture will manufacture battery cells for electric commercial vehicles and industrial applications. Total investment by the partners is expected to be in the range of $2-3 billion for the 21-gigawatt hour (GWh) factory with production expected to begin in 2027.

On October 2nd Cummins completed its acquisition of two Faurecia commercial vehicle manufacturing plants and their related activities, one in Columbus, Indiana (U.S.) and one in Roermond, Netherlands. The acquisition provides an opportunity for the Cummins Emission Solutions business to ensure continued access to the technology and facilities it needs to meet current and future demand for low-emissions products and to ensure continuity for both the employees and customers of the acquired manufacturing facilities.

The company announced several collaborations that further enable our customers to achieve their decarbonization goals. During the third quarter, Freightliner announced they are partnering with Cummins to offer the new Cummins X15N natural gas engine in its heavy-duty Freightliner Cascadia trucks. Also, Cummins Inc. and Knight Transportation, Inc. announced that the industry's largest full truckload company has successfully tested Cummins’ new X15N engine in Southern California, using renewable natural gas to realize reductions in nitrous oxides and greenhouse gas without compromising performance. The X15N, which will launch in North America in 2024, is the first natural gas engine to be designed specifically for heavy-duty and on-highway truck applications.

Cummins received several prestigious honors during the quarter, including earning the number four spot on Forbes' sixth annual ranking of America’s Best Employers for Women, up from last year’s ranking at number 26. Also, Cummins was named Employer of the Year by Diesel Progress, named a Best Place to Work for Disability Inclusion for the third year in a row, and received a 2023 Energy Management Insight Award from the Clean Energy Ministerial.

Cummins increased its 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.
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Third quarter 2023 detail (all comparisons to same period in 2022):

Components Segment

Sales - $3.2 billion, up 20 percent
Segment EBITDA - $441 million, or 13.6 percent of sales, which includes $20 million of costs related to the separation of Atmus compared to $297 million, or 11.0 percent of sales in the prior year, which included $10 million of costs related to the separation of Atmus. The third quarter of 2022 also included $77 million of acquisition, integration and inventory valuation adjustments related to Meritor.
Revenues in North America increased by 21 percent and international sales increased by 19 percent due to an additional month of Meritor operations and increased global demand.

Engine Segment

Sales - $2.9 billion, up 5 percent
Segment EBITDA - $395 million, or 13.5 percent of sales, compared to $362 million or 13.0 percent of sales
On-highway revenues increased 8 percent driven by strong demand in the North American truck market and pricing actions.
Sales increased 5 percent in North America and grew 7 percent in international markets due to an increase in global demand.

Distribution Segment

Sales - $2.5 billion, up 13 percent
Segment EBITDA - $306 million, or 12.1 percent of sales, compared to $225 million, or 10.0 percent of sales
Revenues in North America increased 14 percent and international sales increased by 11 percent.
Higher revenues were driven by increased demand for whole goods, especially power generation products, and pricing actions.

Power Systems Segment

Sales - $1.4 billion, up 7 percent
Segment EBITDA - $234 million, or 16.2 percent of sales, compared to $193 million, or 14.3 percent of sales
Power generation revenues increased 15 percent driven by increased global demand and pricing actions. Industrial revenues decreased 2 percent due to lower mining aftermarket parts demand.

Accelera Segment

Sales - $103 million, up 106 percent
Segment EBITDA loss - $114 million
Revenues increased due to higher demand for battery electric systems, increased electrolyzer installations, and the additions of the Siemens Commercial Vehicle business and electric powertrain portion of the Meritor 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
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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; uncertainties and risks related to timing and potential value to both Atmus Filtration Technologies Inc. (Atmus) and Cummins of the planned separation of Atmus, including business, industry and market risks, as well as the risks involving the anticipated favorable tax treatment if there is a significant delay in the completion of the envisioned separation; 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 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 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.
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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.

5


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

Three months ended
 September 30,
In millions, except per share amounts20232022
NET SALES$8,431 $7,333 
Cost of sales6,360 5,691 
GROSS MARGIN 2,071 1,642 
OPERATING EXPENSES AND INCOME   
Selling, general and administrative expenses 831 708 
Research, development and engineering expenses376 348 
Equity, royalty and interest income from investees118 70 
Other operating expense, net32 30 
OPERATING INCOME 950 626 
Interest expense97 61 
Other income, net25 43 
INCOME BEFORE INCOME TAXES 878 608 
Income tax expense188 199 
CONSOLIDATED NET INCOME 690 409 
Less: Net income attributable to noncontrolling interests34 
NET INCOME ATTRIBUTABLE TO CUMMINS INC. $656 $400 
EARNINGS PER COMMON SHARE ATTRIBUTABLE TO CUMMINS INC.  
Basic $4.63 $2.83 
Diluted $4.59 $2.82 
WEIGHTED-AVERAGE COMMON SHARES OUTSTANDING   
Basic 141.8 141.1 
Diluted 142.8 142.0 
(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)

 Nine months ended
September 30,
In millions, except per share amounts20232022
NET SALES$25,522 $20,304 
Cost of sales19,274 15,404 
GROSS MARGIN 6,248 4,900 
OPERATING EXPENSES AND INCOME   
Selling, general and administrative expenses2,457 1,945 
Research, development and engineering expenses1,110 945 
Equity, royalty and interest income from investees370 261 
Other operating expense, net78 144 
OPERATING INCOME 2,973 2,127 
Interest expense283 112 
Other income, net166 26 
INCOME BEFORE INCOME TAXES 2,856 2,041 
Income tax expense623 502 
CONSOLIDATED NET INCOME 2,233 1,539 
Less: Net income attributable to noncontrolling interests67 19 
NET INCOME ATTRIBUTABLE TO CUMMINS INC. $2,166 $1,520 
 
EARNINGS PER COMMON SHARE ATTRIBUTABLE TO CUMMINS INC.  
Basic $15.29 $10.74 
Diluted $15.19 $10.68 
 
WEIGHTED-AVERAGE COMMON SHARES OUTSTANDING
Basic 141.7 141.5 
Diluted 142.6 142.3 
(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 valueSeptember 30,
2023
December 31,
2022
ASSETS  
Current assets   
Cash and cash equivalents $2,387 $2,020 
Restricted cash225 81 
Marketable securities452 472 
Total cash, cash equivalents, restricted cash and marketable securities 3,064 2,573 
Accounts and notes receivable, net5,662 5,202 
Inventories5,906 5,603 
Prepaid expenses and other current assets 1,280 1,073 
Total current assets 15,912 14,451 
Long-term assets   
Property, plant and equipment, net5,801 5,521 
Investments and advances related to equity method investees1,785 1,759 
Goodwill2,379 2,343 
Other intangible assets, net2,518 2,687 
Pension assets1,500 1,398 
Other assets2,202 2,140 
Total assets $32,097 $30,299 
LIABILITIES  
Current liabilities   
Accounts payable (principally trade)$4,262 $4,252 
Loans payable231 210 
Commercial paper1,710 2,574 
Current maturities of long-term debt573 573 
Accrued compensation, benefits and retirement costs 884 617 
Current portion of accrued product warranty731 726 
Current portion of deferred revenue1,029 1,004 
Other accrued expenses1,706 1,465 
Total current liabilities 11,126 11,421 
Long-term liabilities   
Long-term debt4,950 4,498 
Deferred revenue1,011 844 
Other liabilities3,332 3,311 
Total liabilities $20,419 $20,074 
Redeemable noncontrolling interests$ $258 
EQUITY
Cummins Inc. shareholders’ equity  
Common stock, $2.50 par value, 500 shares authorized, 222.5 and 222.5 shares issued $2,558 $2,243 
Retained earnings 19,520 18,037 
Treasury stock, at cost, 80.8 and 81.2 shares
(9,369)(9,415)
Accumulated other comprehensive loss(2,051)(1,890)
Total Cummins Inc. shareholders’ equity 10,658 8,975 
Noncontrolling interests1,020 992 
Total equity $11,678 $9,967 
Total liabilities, redeemable noncontrolling interests and equity $32,097 $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
September 30,
In millions20232022
CASH FLOWS FROM OPERATING ACTIVITIES
Consolidated net income $690 $409 
Adjustments to reconcile consolidated net income to net cash provided by operating activities
Depreciation and amortization257 216 
Deferred income taxes(106)(82)
Equity in income of investees, net of dividends13 32 
Pension and OPEB expense1 
Pension contributions and OPEB payments(12)(16)
Russian suspension costs, net of recoveries 
Changes in current assets and liabilities, net of acquisitions
Accounts and notes receivable188 (81)
Inventories85 (99)
Other current assets(54)47 
Accounts payable(22)(73)
Accrued expenses282 157 
Other, net207 (135)
Net cash provided by operating activities 1,529 382 
CASH FLOWS FROM INVESTING ACTIVITIES  
Capital expenditures(280)(202)
Acquisitions of businesses, net of cash acquired7 (2,763)
Investments in marketable securities—acquisitions(328)(305)
Investments in marketable securities—liquidations382 358 
Other, net(35)(8)
Net cash used in investing activities(254)(2,920)
CASH FLOWS FROM FINANCING ACTIVITIES  
Proceeds from borrowings42 2,020 
Net borrowings of commercial paper92 1,688 
Payments on borrowings and finance lease obligations(163)(999)
Dividend payments on common stock(238)(222)
Repurchases of common stock (23)
Payments for purchase of redeemable noncontrolling interests(175)— 
Other, net(24)38 
Net cash (used in) provided by financing activities(466)2,502 
EFFECT OF EXCHANGE RATE CHANGES ON CASH, CASH EQUIVALENTS AND RESTRICTED CASH 1 73 
Net increase in cash, cash equivalents and restricted cash810 37 
Cash, cash equivalents and restricted cash at beginning of period1,802 2,462 
CASH, CASH EQUIVALENTS AND RESTRICTED CASH AT END OF PERIOD $2,612 $2,499 
(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)

Nine months ended
 September 30,
In millions20232022
CASH FLOWS FROM OPERATING ACTIVITIES
Consolidated net income $2,233 $1,539 
Adjustments to reconcile consolidated net income to net cash provided by operating activities  
Depreciation and amortization760 544 
Deferred income taxes(238)(194)
Equity in income of investees, net of dividends(100)(30)
Pension and OPEB expense4 23 
Pension contributions and OPEB payments(115)(71)
Russian suspension costs, net of recoveries 112 
Changes in current assets and liabilities, net of acquisitions
Accounts and notes receivable(447)(333)
Inventories(318)(597)
Other current assets(191)(18)
Accounts payable43 353 
Accrued expenses543 (124)
Other, net333 (59)
Net cash provided by operating activities 2,507 1,145 
CASH FLOWS FROM INVESTING ACTIVITIES   
Capital expenditures(694)(453)
Acquisitions of businesses, net of cash acquired(127)(3,008)
Investments in marketable securities—acquisitions(976)(738)
Investments in marketable securities—liquidations1,002 819 
Other, net(65)(116)
Net cash used in investing activities(860)(3,496)
CASH FLOWS FROM FINANCING ACTIVITIES   
Proceeds from borrowings779 2,076 
Net (payments) borrowings of commercial paper(566)2,080 
Payments on borrowings and finance lease obligations(391)(1,070)
Dividend payments on common stock(683)(633)
Repurchases of common stock (370)
Payments for purchase of redeemable noncontrolling interests(175)— 
Other, net(33)28 
Net cash (used in) provided by financing activities (1,069)2,111 
EFFECT OF EXCHANGE RATE CHANGES ON CASH, CASH EQUIVALENTS AND RESTRICTED CASH (67)147 
Net increase (decrease) in cash, cash equivalents and restricted cash511 (93)
Cash, cash equivalents and restricted cash at beginning of year 2,101 2,592 
CASH, CASH EQUIVALENTS AND RESTRICTED CASH AT END OF PERIOD $2,612 $2,499 
(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 September 30, 2023    
External sales$2,780$2,236$2,519$798$98 $8,431$ $8,431
Intersegment sales456695166465 1,818(1,818)
Total sales3,2362,9312,5351,444103 10,249(1,818)8,431
Research, development and engineering expenses93159146050 376 376
Equity, royalty and interest income (loss) from investees26622211(3)118 118
Interest income8493 24 24
EBITDA (2)
441
(3)
395306234(114)1,262(32)1,230
Depreciation and amortization (4)
12059283018 255 255
EBITDA as a percentage of segment sales13.6 %13.5 %12.1 %16.2 %NM12.3 %14.6 %
Three months ended September 30, 2022
External sales$2,220$2,063$2,232$773$45 $7,333$— $7,333
Intersegment sales48371675761,787(1,787)
Total sales2,7032,7792,2391,34950 9,120(1,787)7,333
Research, development and engineering expenses87140136246 348— 348
Equity, royalty and interest income (loss) from investees17272010(4)70— 70
Interest income4343— 14— 14
Russian suspension costs1— 1— 1
EBITDA (2)
297
(5)
362225193(95)982(98)884
Depreciation and amortization (4)
9551293010 215— 215
EBITDA as a percentage of segment sales11.0 %13.0 %10.0 %14.3 %NM10.8 %12.1 %
"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 September 30, 2023 and 2022, except for $6 million and $6 million of costs associated with the 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 $20 million of costs associated with the separation of Atmus for the three months ended September 30, 2023.
(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.
(5) Includes $45 million of costs related to the acquisition and integration of Meritor and $10 million costs associated with the separation of Atmus for the three months ended September 30, 2022.

11

CUMMINS INC. AND SUBSIDIARIES
SEGMENT INFORMATION
(Unaudited)
In millionsComponentsEngineDistributionPower SystemsAcceleraTotal Segments
Intersegment Eliminations (1)
Total
Nine months ended September 30, 2023
External sales$8,747$6,751$7,494$2,271$259 $25,522$ $25,522
Intersegment sales1,4712,154421,97314 5,654(5,654)
Total sales10,2188,9057,5364,244273 31,176(5,654)25,522
Research, development and engineering expenses28744143189150 1,110 1,110
Equity, royalty and interest income (loss) from investees711987042(11)370 370
Interest income21142471 67 67
EBITDA (2)
1,434
(3)
1,277940654(322)3,983(88)3,895
Depreciation and amortization (4)
368166849147 756 756
EBITDA as a percentage of total sales14.0%14.3%12.5 %15.4 %NM12.8 %15.3 %
Nine months ended September 30, 2022
External sales$5,214$6,204$6,590$2,190$106 $20,304$— $20,304
Intersegment sales1,4272,103191,52217 5,088(5,088)
Total sales6,6418,3076,6093,712123 25,392(5,088)20,304
Research, development and engineering expenses23636539184121 945— 945
Equity, royalty and interest income (loss) from investees54127
(5)
5731(8)261— 261
Interest income7895— 29— 29
Russian suspension costs 533
(6)
5519— 112— 112
EBITDA (2)
969
(7)
1,173632411(239)2,946(252)2,694
Depreciation and amortization (4)
187151869225 541— 541
EBITDA as a percentage of total sales14.6 %14.1 %9.6 %11.1 %NM11.6 %13.3 %
"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 nine months ended September 30, 2023 and 2022, except for $17 million and $47 million of costs associated with the initial public offering (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 $50 million of costs associated with the IPO and separation of Atmus for the nine months ended September 30, 2023.
(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 $4 million and $3 million for the nine months ended September 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.
(7) Includes $56 million of costs related to the acquisition and integration of Meritor and $15 million costs associated with the separation of Atmus for the nine months ended September 30, 2022.
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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 endedNine months ended
 September 30,September 30,
In millions2023202220232022
Manufacturing entities
Dongfeng Cummins Engine Company, Ltd.$15 $$52 $35 
Beijing Foton Cummins Engine Co., Ltd.8 33 34 
Chongqing Cummins Engine Company, Ltd.7 29 23 
Tata Cummins, Ltd.6 

21 

19 
All other manufacturers18 11 69 14 
(1)
Distribution entities
Komatsu Cummins Chile, Ltda.13 13 40 32 
All other distributors3 10 
Cummins share of net income70 53 254 165 
Royalty and interest income48 17 116 96 
Equity, royalty and interest income from investees$118 $70 $370 $261 
(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.
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 rates for the three and nine months ended September 30, 2023, were 21.4 percent and 21.8 percent, respectively. Our effective tax rates for the three and nine months ended September 30, 2022, were 32.7 percent and 24.6 percent, respectively.
The three months ended September 30, 2023, contained net favorable discrete tax items of $5 million, or $0.03 per share, primarily due to $13 million of favorable return to provision adjustments and $1 million of favorable share-based compensation tax benefits, partially offset by $9 million of unfavorable adjustments for uncertain tax positions.
The nine months ended September 30, 2023, contained net favorable discrete tax items of $5 million, or $0.03 per share, primarily due to $15 million of favorable return to provision adjustments and $5 million of favorable share-based compensation tax benefit, partially offset by $11 million of unfavorable adjustments for uncertain tax positions and $4 million of other unfavorable adjustments.
The three months ended September 30, 2022, contained unfavorable discrete tax items of $57 million, or $0.40 per share, primarily due to $51 million of unfavorable tax costs associated with internal restructuring ahead of the planned separation of Atmus and $10 million of unfavorable return to provision adjustments, partially offset by $4 million of net favorable other discrete tax items.
The nine months ended September 30, 2022, contained unfavorable net discrete tax items of $52 million, or $0.37 per share, primarily due to $69 million of unfavorable tax costs associated with internal restructuring ahead of the planned separation of Atmus and $10 million of unfavorable return to provision adjustments, partially offset by $27 million of favorable changes in tax reserves.
SUBSEQUENT EVENTS
On October 2, 2023, we purchased from the Forvia Group all of the equity ownership of Faurecia's U.S. and Europe commercial vehicle exhaust business for approximately €199 million, subject to certain adjustments set forth in the agreement. This business provides canning and assembly operations for full exhaust systems primarily for the on-highway applications. This acquisition will be included in our Components segment starting in the fourth quarter of 2023.
On October 2, 2023, we repaid our $500 million senior notes, due 2023, using a combination of cash on hand and additional commercial paper borrowings. On October 31, 2023, we repaid $150 million of our term loan, due 2025, using cash on hand.
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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 Meritor acquisition, integration and inventory valuation adjustments. 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 endedNine months ended
 September 30,September 30,
In millions2023202220232022
Net income attributable to Cummins Inc.$656 $400 $2,166 $1,520 
Net income attributable to Cummins Inc. as a percentage of net sales7.8 %5.5 %8.5 %7.5 %
Add:
Net income attributable to noncontrolling interests34 67 19 
Consolidated net income690 409 2,233 1,539 
Add:
Interest expense97 61 283 112 
Income tax expense188 199 623 502 
Depreciation and amortization255 215 756 541 
EBITDA$1,230 $884 $3,895 $2,694 
EBITDA as a percentage of net sales14.6 %12.1 %15.3 %13.3 %
Add:
Atmus IPO and separation costs26 16 67 62 
Meritor acquisition, integration and inventory valuation adjustments— 77 — 88 
EBITDA, excluding costs associated with the IPO and separation of Atmus and impact of Meritor acquisition, integration and inventory valuation adjustments$1,256 $977 $3,962 $2,844 
EBITDA, excluding costs associated with the IPO and separation of Atmus and impact of Meritor acquisition, integration and inventory valuation adjustments, as a percentage of net sales14.9 %13.3 %15.5 %14.0 %
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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 $1,177 $— $3,698 
Emission solutions1,056 964 893 — 2,913 
Engine components581 557 532 — 1,670 
Atmus417 417 396 — 1,230 
Automated transmissions179 179 187 — 545 
Software and electronics52 59 51 — 162 
Total sales$3,557 $3,425 $3,236 $— $10,218 
2022     
In millionsQ1Q2Q3Q4YTD
Axles and brakes$— $— $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 $1,116 $— $3,347 
Medium-duty truck and bus903 942 931 — 2,776 
Light-duty automotive439 445 455 — 1,339 
Off-highway530 484 429 — 1,443 
Total sales$2,986 $2,988 $2,931 $— $8,905 
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 

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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 36,300 — 107,400 
Medium-duty78,900 76,000 71,300 — 226,200 
Light-duty55,000 53,600 53,300 — 161,900 
Total units168,600 166,000 160,900 — 495,500 
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 $995 $— $3,071 
Power generation492 614 606 — 1,712 
Engines456 531 511 — 1,498 
Service401 431 423 — 1,255 
Total sales$2,406 $2,595 $2,535 $— $7,536 
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 $850 $— $2,474 
Industrial455 468 475 — 1,398 
Generator technologies118 135 119 — 372 
Total sales$1,343 $1,457 $1,444 $— $4,244 
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 2,800 — 9,000 
Industrial1,500 1,600 1,800 — 4,900 
Total units4,400 4,900 4,600 — 13,900 
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 

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