Cummins Inc.: Q1 FY2026 earnings call

What management said about Q1 FY2026, from the documents filed with the SEC on 5 May 2026: press release. Guidance figures: 2 raised, 1 lowered, 1 kept. The quarter’s numbers.

Read the filing

Key takeaways

• Revenue rose 3% to $8.4 billion: Revenues were $8.4 billion, up 3% from the first quarter of 2025, the company reported. Source
• EBITDA margin fell to 15.4%: EBITDA was $1.3 billion, or 15.4% of sales, against $1.5 billion, or 17.9%, a year ago. Excluding the fuel cell charges, EBITDA was $1,489 million, or 17.7% of sales. Source
• Power Systems margin rose to 29.5%: Power Systems sales rose 19% to $2.0 billion; segment EBITDA was $577 million, or 29.5% of sales, against $389 million, or 23.6%. Management called this a record performance. Source
• Fuel cell sale produced $199 million charge: The company sold its low-pressure fuel cell business to a customer, cancelled future commitments and resolved claims with that customer, with a net payment of $175 million. Source
• Data center demand above expectations: Management described continued demand for data center backup power and said data center power generation demand across its products continues to exceed expectations. Source
• $519 million returned to shareholders: Dividends were $276 million and share repurchases $243 million, against no repurchases a year earlier. Source

“Cummins delivered strong results in the first quarter, led by record performance in our Power Systems segment.”

Jennifer Rumsey, Chair and CEO of Cummins

Guidance

What changed from last quarter

• Guidance raised: Full-year 2026 revenue growth guidance raised from up 3% to 8% to up 8% to 11%. Source
• Guidance raised: Full-year 2026 EBITDA margin guidance raised from 17.0% to 18.0% to 17.75% to 18.50%. Source
• Guidance lowered: Expected 2026 effective tax rate, excluding discrete items, lowered from 24.0 percent to 23.0 percent. Source
• New: Low-pressure fuel cell business sold to a customer on March 31, 2026, with future commitments cancelled and claims resolved. Source

Results and growth drivers

• Revenue rose 3% to $8.4 billion: Revenues were $8.4 billion, up 3% from the first quarter of 2025, the company reported. Source
• Net income lower after fuel cell charge: Net income attributable to Cummins was $654 million, or $4.71 per diluted share, against $824 million, or $5.96, in 2025, after the fuel cell charge. Source
• EBITDA margin fell to 15.4%: EBITDA was $1.3 billion, or 15.4% of sales, against $1.5 billion, or 17.9%, a year ago. Excluding the fuel cell charges, EBITDA was $1,489 million, or 17.7% of sales. Source

Segments and regions

• North America down, international up: North America sales fell 6% while international revenues rose 16%, mainly on stronger demand in China. Source
• Power Systems margin rose to 29.5%: Power Systems sales rose 19% to $2.0 billion; segment EBITDA was $577 million, or 29.5% of sales, against $389 million, or 23.6%. Management called this a record performance. Source
• Engine EBITDA margin fell to 10.4%: Engine sales fell 4% to $2.7 billion; segment EBITDA was $279 million, or 10.4% of sales, against $458 million, or 16.5%. North America revenues fell on lower truck demand. Source
• Components sales down 5%: Components sales fell 5% to $2.5 billion; segment EBITDA was $337 million, or 13.3% of sales, against $382 million, or 14.3%. Source
• Distribution sales up 7%: Distribution sales rose 7% to $3.1 billion; segment EBITDA was $444 million, or 14.2% of sales, against $376 million, or 12.9%. International sales rose 18% on power generation. Source
• Accelera loss included fuel cell charges: Accelera sales were $101 million, down 2%. Segment EBITDA was a loss of $277 million, which includes the fuel cell charges. Source

“We raised our 2026 outlook for revenue and profitability as demand strengthens across several key markets.”

Jennifer Rumsey, Chair and CEO of Cummins

Products and customers

• Engine sales by market mixed: Engine heavy-duty truck sales were $799 million against $921 million, and medium-duty truck and bus $871 million against $986 million. Light-duty automotive rose to $448 million from $421 million. Source
• Engine unit shipments rose year on year: Total engine units were 144,300 against 141,000. Heavy-duty units were 24,700 against 26,700; medium-duty 79,100 against 75,200; light-duty 40,500 against 39,100. Source
• Drivetrain and transmission sales fell: Drivetrain and braking systems sales were $919 million against $1,056 million, and automated transmissions $88 million against $117 million. Emission solutions rose to $915 million from $902 million. Source
• Distribution power generation grew: Distribution power generation sales were $1,275 million against $1,090 million, while engines fell to $344 million from $370 million. Parts reached $1,064 million and service $433 million. Source
• Power Systems power generation rose: Power Systems power generation sales were $1,283 million against $1,001 million; industrial sales were $506 million and generator technologies $167 million. Source
• Mack integrates X10 into Granite: Mack Trucks announced integration of the Cummins X10 engine into the Mack Granite chassis, aimed at vocational customers. Source

Costs, charges and margins

• Fuel cell sale produced $199 million charge: The company sold its low-pressure fuel cell business to a customer, cancelled future commitments and resolved claims with that customer, with a net payment of $175 million. Source
• Operating expenses rose; operating income fell: SG&A rose to $845 million from $771 million and R&D to $358 million from $344 million. Other operating expense was $239 million against $37 million; operating income was $949 million against $1,134 million. Source
• Effective tax rate rose: Effective tax rate was 27.2% against 23.9%. The fuel cell loss had no tax benefit recognized; other discrete items were net favorable by $7 million, or $0.05 per diluted share. Source
• Equity income from investees rose: Equity, royalty and interest income from investees was $148 million against $131 million; Cummins' share of net income from investees was $123 million against $97 million. Source

“We see North America on-highway markets improving, while demand for data center power generation across a range of our products continues to outpace expectations.”

Jennifer Rumsey, Chair and CEO of Cummins

Demand and truck markets

• North America truck markets improving: Management said North America truck markets began to improve from a cyclical low during the quarter. Source
• Data center demand above expectations: Management described continued demand for data center backup power and said data center power generation demand across its products continues to exceed expectations. Source
• Revenue guidance tied to truck, power demand: The company attributed the raised revenue guidance to demand across several markets, particularly North America on-highway and power generation. Source

Cash, capital and shareholder returns

• $519 million returned to shareholders: Dividends were $276 million and share repurchases $243 million, against no repurchases a year earlier. Source
• Operating cash flow rose to $309 million: Operating cash flow was $309 million against negative $3 million a year earlier; capital expenditures were $189 million against $162 million. Source
• Receivables and inventory rose: Accounts and notes receivable were $6,528 million at March 31 against $5,818 million at year-end; inventories were $6,126 million against $5,822 million. Source
• Cash and marketable securities declined: Cash, cash equivalents and marketable securities were $3,182 million at March 31, against $3,609 million at December 31, 2025. Source

Strategy and Accelera investments

• Fuel cell exit reflects lower hydrogen demand: Management tied the fuel cell charges to lower hydrogen adoption expectations and to focusing investments within Accelera. Source
• Hybrid mining truck deployed in Chile: The pilot is the company's first deployment of a retrofitted 300-ton Komatsu haul truck in daily operation, at Lundin Mining's Caserones mine. Source
• Hybrid retrofit aims to cut CO2: Management said the project supports customers through the energy transition by improving efficiency and reducing CO2 emissions today. Source

Recognition and workforce

• Workforce of about 67,400: Cummins employs approximately 67,400 people worldwide, headquartered in Columbus, Indiana; the February release gave about 70,000. Source
• Named to ethics and employer lists: Cummins was named to Ethisphere's 2026 World's Most Ethical Companies list and recognized as a platinum employer on the Where you Work Matters list. Source
• Medium-duty engine and Acumen recognized: Heavy Duty Trucking recognized the medium-duty engine portfolio and Acumen advanced computing module in its 2026 Top 20 Products awards. Source

Coming up, as management said on 5 May 2026

• Rest-of-2026 performance and cash returns: Management said it is well-positioned through the remainder of 2026 to deliver financial performance, invest in growth and return cash to shareholders. Source

Figures management reported

Risks management discussed

• Demand: Lower hydrogen adoption expectations led to the fuel cell business sale and related charges within Accelera. Source
• Demand: North America engine revenues fell 12% on lower medium-duty and heavy-duty truck demand in the United States. Source
• Financial: The fuel cell charge recognized no tax benefit, which raised the first-quarter effective tax rate. Source

Earlier plans management reported on

• Not stated: Management said it remains committed to pacing and focusing zero-emissions investments on the most promising paths. Source
• Not stated: Management reiterated its long-term goal of returning 50% of operating cash flow to shareholders. Source

Other quarters

• Q2 FY2026 earnings call
• Q4 FY2025 earnings call
• Q3 FY2025 earnings call
• Q2 FY2025 results

Summarised with AI from the documents the company filed with the SEC. Every point is checked against the filing before it is shown: management’s own words word for word, figures against the line or table row they come from. A point that fails the check is left out. Source opens the filing at that line.