Cummins (CMI) Q1 2026 earnings summary

Executive summary

• Q1 2026 sales reached $8.4 billion, up 3% year-over-year, driven by strong power generation demand, especially from data centers and international markets, offsetting weaker North America truck markets.

• Net income attributable to shareholders was $654 million ($4.71 per diluted share), down 21% due to a $199 million charge from the sale of the low-pressure fuel cell business and settlement of customer obligations.

• Adjusted EBITDA was $1.5 billion (17.7% margin), while reported EBITDA was $1.3 billion (15.4% margin) including special charges.

• Returned $519 million to shareholders in Q1, including $243 million in share repurchases and $276 million in dividends.

• Major milestones included the deployment of the first commercial hybrid electric ultra-class mining truck and integration of the X10 engine into Mack Granite chassis.

Financial highlights

• North America revenues decreased 6% year-over-year; international revenues rose 16%, with China up 19% and India up 12%.

• Gross margin was $2.24 billion (26.7% of sales), up from 26.4% last year, driven by favorable pricing and power generation sales.

• Operating cash flow was $309 million, up from an outflow of $3 million in Q1 2025.

• Net earnings were $654 million ($4.71 per diluted share), or $853 million ($6.15–$6.615 per share) excluding the fuel cell sale charge.

• Debt to capital ratio was 36.5% at quarter-end.

Outlook and guidance

• Raised 2026 revenue growth guidance to 8%-11% (from 3%-8% prior), with EBITDA margin guidance increased to 17.75%-18.5%.

• North America heavy-duty truck forecast raised to 230,000-250,000 units; medium-duty to 125,000-135,000 units.

• China revenue outlook improved to +10% for 2026; India now expected to grow 2%.

• Power generation revenue growth forecast raised to 15%-25%.

• Capital expenditures projected at $1.35-$1.45 billion for 2026.