Cummins raises 2026 outlook after record second quarter

Cummins has reported second-quarter 2026 revenues of $9.5bn, up 9 per cent from the same period in 2025. Net income attributable to Cummins was $932m, or $6.73 per diluted share, compared with $890m, or $6.43 per diluted share, a year earlier.

Sales in North America increased 8 per cent, while international revenues rose 12 per cent, led by growth in China. EBITDA was $1.7bn, equivalent to 17.5 per cent of sales, compared with $1.6bn, or 18.4 per cent of sales, in the second quarter of 2025.

“Cummins delivered record second-quarter results, reflecting robust customer orders for standby power for data centers and improving North American truck markets,” says Jennifer Rumsey, chair and CEO of Cummins.

“Rising demand and disciplined execution drove record performance as we continue to perform well in a complex macroeconomic environment. We are raising our expectations for full year performance and expect the second half of the year to be stronger than the first half. With greater regulatory clarity in on-highway markets in the US and continued momentum across key markets, we are well positioned to deliver for our customers and generate profitable growth.”

The tax rate for the quarter was 25.1 per cent, including $29m, or $0.21 per diluted share, in unfavourable discrete tax items.

2026 outlook

Cummins has raised its full-year 2026 revenue guidance to an increase of 10 to 13 per cent, compared with previous guidance of 8 to 11 per cent. The revised outlook reflects stronger demand across several markets, particularly North American on-highway, construction in China and power generation.

Full-year EBITDA is now expected to be between 18.0 and 18.5 per cent of sales, compared with previous guidance of 17.75 to 18.5 per cent. The revised EBITDA guidance excludes charges related to the sale of the fuel cell business in the first quarter.

Cummins says it plans to continue generating operating cash flow and returning capital to shareholders, with a long-term target of returning 50 per cent of operating cash flow to shareholders.

“We’re raising our financial outlook for 2026 as demand continues to outpace expectations across several key markets,” says Rumsey. “North American truck markets continue to improve, while demand for data center power generation remains robust. Our market-leading positions and talented global workforce position us well to capitalize on these trends, meet our customers’ needs, invest in future growth and continue delivering strong returns for shareholders.”

The company returned $501m to shareholders during the quarter through cash dividends and share repurchases. It also increased its quarterly common stock dividend from $2.00 to $2.20 per share, marking the 17th consecutive year of dividend increases.

Second-quarter segment results

The Engine segment recorded sales of $3.1bn, up 6 per cent. Segment EBITDA was $386m, or 12.5 per cent of sales, compared with $400m, or 13.8 per cent of sales, a year earlier. North American revenues increased 1 per cent while international sales rose 23 per cent, primarily due to stronger construction demand in China.

Components sales increased 7 per cent to $2.9bn. Segment EBITDA was $381m, or 13.2 per cent of sales, compared with $397m, or 14.7 per cent of sales, in the second quarter of 2025. North American revenues rose 6 per cent and international sales increased 8 per cent, with higher truck demand in the US and China contributing to the increase.

Distribution sales were $3.3bn, up 9 per cent. Segment EBITDA increased to $451m, although EBITDA as a percentage of sales fell to 13.6 per cent from 14.6 per cent. North American revenues increased 13 per cent while international sales rose 1 per cent, driven by higher demand for power generation products, particularly for data centre applications.

Power Systems sales increased 19 per cent to $2.3bn. Segment EBITDA rose to $552m, or 24.5 per cent of sales, from $430m, or 22.8 per cent of sales. Revenues increased 19 per cent in both North America and international markets, primarily due to higher power generation demand, including from data centre markets in the US, China and Asia Pacific.

Accelera sales increased 38 per cent to $145m. The segment reported an EBITDA loss of $69m. The increase in revenue was attributed to stronger eMobility demand. Cummins says it remains focused on its zero-emissions investments while reducing the rate of ongoing EBITDA losses.

The company said the year-on-year decline in EBITDA percentage for the company and some individual segments was primarily due to higher incentive compensation linked to expected full-year results. It expects the company-wide EBITDA percentage to be higher in the second half and full year of 2026 than in the corresponding periods of 2025.

Cummins Inc. operates across five business segments: Engine, Components, Distribution, Power Systems and Accelera by Cummins. Its products and systems include diesel, electric and hybrid powertrains, power generation systems, aftertreatment systems, turbochargers, fuel systems, controls, transmissions, axles, brakes and zero-emissions technologies.

Headquartered in Columbus, Indiana, Cummins employs approximately 67,400 people worldwide. The company reported $2.8bn in earnings on $33.7bn in sales in 2025.