August 3, 2022 9:34 AM, EDT

Cummins in Q2 Notches Highest-Ever Quarterly Revenue

Cummins exhibitJohn Sommers II for Transport Topics

[Stay on top of transportation news: Get TTNews in your inbox.]

Cummins Inc. in Q2 posted all-time record quarterly revenue and solid profitability reflecting strength primarily in the North American market, the company announced Aug. 2.

Net income for the quarter ended June 30 was $707 million, or $4.94 per diluted share, compared with $612 million, $4.10, in the 2021 period. Revenue climbed to $6.6 billion compared with $6.1 billion a year earlier.

The bottom-line result outpaced the $4.37 EPS estimate of analysts polled by Zacks Consensus Estimate.

2022-08-02 Cummins Reports ... by Transport Topics

Cummins’ Q2 financial performance included $29 million, 16 cents, of costs related to the separation of Cummins’ filtration business, and a benefit of $47 million, 33 cents, from adjusting its reserves related to the suspension of its operations in Russia, the company reported.

“High inflation and rising global interest rates have increased uncertainty about the pace of growth in the global economy,” said CEO Jennifer Rumsey. “Demand for Cummins’ products and services remains strong, and as a result we have maintained our projection for full-year revenues and profitability from three months ago. We continue to monitor economic conditions closely and will adjust our operating plans should the outlook for our core markets weaken.”

Jennifer Rumsey


Cummins in July announced Rumsey would become CEO and president effective Aug. 1, the first woman to hold the post at the world’s largest independent engine maker and only the seventh CEO in the company’s 103-year history.

In Q2, engine sales were $2.8 billion, up 11% compared with a year earlier. On-highway revenue increased 16%, driven by pricing actions and strong demand in the North American truck markets; and strong aftermarket demand and recovery in the bus market, a segment that was severely impacted by COVID-19. Off-highway revenue decreased 8%, driven by a slowdown in China construction.

Sales increased 15% in North America and 1% in international markets, with higher demand in Western Europe offset by a decline in China.

The new power segment’s sales hit $42 million, up 75% compared with a year earlier. Revenue for the quarter increased due to higher battery demand in the North American school bus market. However, the division posted an EBITDA loss of $80 million, impacted by costs associated with development of fuel cells and electrolyzers as well as products to support battery-electric vehicles.

Component sales were $2 billion, down 2% compared with a year earlier. North American Q2 revenue increased 13% and international sales decreased 19% due to lower demand in China from a high base in 2021.

Looking ahead, Cummins forecasts full-year revenue will increase 8% with about 15.5% in earnings before interest, taxes, depreciation and amortization. The company expects North American production of Class 8s with engines sized 10 liters and over will be 250,000 to 260,000, up 10% to 15% compared with 2021 and flat with its prior forecast. It predicts North American medium-duty production for Classes 6-7 and Class 8 with engines smaller than 10 liters will be 120,000 to 130,000, up 5% to 10% compared with 2021 and flat with a prior forecast.

Among Q2 highlights were:

  • In April 2022, Cummins completed the acquisition of Jacobs Vehicle Systems, adding engine braking and cylinder deactivation technologies that Cummins views as key to meeting current and future emissions regulations.
  • On May 26, Meritor’s shareholders voted in favor of the Cummins acquisition. Cummins in an Aug. 3 news release announced the completion of the acquisition.
  • During Q2, Cummins announced collaborations with Daimler Truck North America and Scania to deliver fuel cell-electric powertrains for heavy-duty truck applications, and with Komatsu on the development of zero-emission haulage equipment, including hydrogen fuel cell applications for mining vehicles. Cummins, Chevron and Walmart are also working together to integrate Cummins X15N natural gas engines, powered by renewable natural gas, into Walmart’s heavy-duty truck fleet.
  • Cummins’ net income for the six months slipped to $1.1 billion, $7.86, compared with $1.2 billion, $8.16, a year earlier. Revenue for the six-month period was $12.9 billion, compared with $12.2 billion a year earlier.

Want more news? Listen to today's daily briefing below or go here for more info: