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, with international revenues up 16% and China up 19%, offsetting weaker North America truck markets.

• Net income attributable to shareholders declined 21% to $654 million ($4.71 per diluted share), mainly 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), with adjusted net earnings of $853 million ($6.15 per share), reflecting adjustments for the fuel cell business sale.

• Major milestones included the deployment of a hybrid mining truck in Chile, integration of the X10 engine into Mack Granite, and the sale of the low-pressure fuel cell business.

• Returned $519 million to shareholders via share repurchases and dividends.

Financial highlights

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

• Operating income was $949 million, down from $1.13 billion in Q1 2025, due to higher compensation costs and the $199 million charge.

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

• Dividend per share increased to $2.00 from $1.82 year-over-year.

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

Outlook and guidance

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

• Power Systems revenue guidance raised to 15%-25% growth, reflecting global data center demand.

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

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

• Accelera segment losses expected to improve, with EBITDA loss guidance reduced to $270-$300 million.