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Cummins Upgrades Outlook After Q1 Results
Power Generation Demand Offsets Weaker North America Truck Volumes
Key Takeaways:
- Cummins reported first-quarter net income of $654 million on revenue of $8.4 billion, with earnings down from a year earlier.
- The company raised its 2026 revenue growth outlook to a range of up 8% to 11% citing improving orders and spot rates.
- Power systems revenue rose 19% while North America heavy- and medium-duty truck volumes declined 20%.
Cummins raised its outlook for the year as truck order activity and the spot market improved during the first quarter of 2026, the company reported May 5.
The Columbus, Ind.-based engine and parts manufacturer posted net income attributable to itself of $654 million, or $4.71 a diluted share, for the three months ending March 31. That compared with $824 million, $5.96, during the 2025 period. Total revenue increased 3% to $8.4 billion from $8.2 billion.
Results were mixed relative to Wall Street expectations. Analysts expected $5.60 per share and quarterly revenue of $8.32 billion, according to Zacks Consensus Estimate.
“Growth was driven primarily by higher demand in power-generation markets, particularly from data centers,” CEO Jennifer Rumsey said during a call with investors. “This increase was partially offset by weaker North America heavy- and medium-duty truck demand, with unit volumes down 20% from a year ago.”
Earnings before interest, taxes, depreciation and amortization came in at $1.3 billion, compared with $1.5 billion a year ago. Rumsey noted this included a net charge of $199 million related to the sale of the low-pressure fuel cell business. EBITDA was unchanged from last year when excluding that sale.
Lower truck volume in North America and higher compensation costs pressured results but were partly offset by stronger power-generation demand, pricing gains and higher joint venture income, with power systems delivering record EBITDA.
Rumsey highlighted several developments during the quarter that she views as reflecting the company’s strategy. These included the deployment of a commercial hybrid-electric ultra-class mining haul truck in February. Cummins is also integrating its X10 engine into the Mack Granite chassis and completed the sale of its low-pressure fuel cell business.
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Rumsey
“We are pleased to share that our expectations for 2026 have improved since our initial guidance issued in February,” Rumsey said. “This increase reflects the trend of strong recent orders and improving spot rates. We now expect the first half of the year to be stronger than previously anticipated, while the second half remains largely consistent with our prior outlook.”
Rumsey noted the forecast for total company revenue increased to a range of 8% to 11%, compared with prior guidance of 3% to 8%. The 2026 North America heavy-duty truck forecast increased to a range of 230,000 to 250,000 units, compared with 220,000 to 240,000 units. Cummins is also expecting modest pre-buy activity ahead of emissions regulations in 2027.
Sales Results by Segment
- Engine: Decreased 4% to $2.7 billion
- Components: Decreased 5% to $2.5 billion
- Distribution: Increased 7% to $3.1 billion
- Power Systems: Increased 19% to $2 billion
- Accelera: Decreased 2% to $101 million
