Cummins raises outlook on strong Q1 results

Cummins Inc. reported first-quarter 2026 revenues of $8.4 billion, a 3% increase from the same quarter in 2025. Sales in North America declined 6% while international revenues rose 16%, primarily due to stronger demand in China, the company stated.

Net income in Q1 2026 was $654 million, compared to $824 million the same period last year. The current quarter results include $199 million in charges related to the sale of the company’s low-pressure fuel cell business.

Jennifer Rumsey, Cummins president & CEO. (Photo: Cummins)

EBITDA in the first quarter was $1.3 billion, or 15.4% of sales, compared to $1.5 billion, or 17.9% of sales, a year ago.

“Cummins delivered strong results in the first quarter, led by record performance in our Power Systems segment,” said Jennifer Rumsey, chair and CEO of Cummins. “Our teams executed with discipline to meet continued strong demand for data center backup power and North America truck markets began to improve from a cyclical low.”

Acknowledging the recorded charges related to the sale of the low-pressure fuel cell business, Rumsey the divestiture reflects the lower expectations for hydrogen adoption as well as Cummins’ continued commitment to focusing investments and reducing losses within the Accelera segment.

Results by segment

The Power Systems segment saw sales jump 19% to $2.0 billion, with EBITDA of $577 million, or 29.5% of sales, compared to $389 million, or 23.6% of sales. Revenues in North America increased 19% and international sales rose 18%, driven primarily by increased power generation demand, particularly for data center markets in North America, China and Asia Pacific.

The Distribution segment also saw sales increase to $3.1 billion, up 7% from the prior year period. EBITDA was $444 million, or 14.2% of sales, compared to $376 million, or 12.9% of sales, in Q1 2025. North American revenues were up 3% while international sales climbed 18%, attributed to increased demand for power generation products, particularly for data center applications.

Cummins delivered strong results in Q1 2026, led by record performance in the Power Systems segment. (Photo: Becky Schultz)

Other business segments reported modest declines, including the Engine segment, which dipped 4% to $2.7 billion, with EBITDA of $279 million, or 10.4% of sales, versus $458 million, or 16.5% of sales, the prior year. Revenues fell 12% in North America due to lower medium- and heavy-duty truck demand in the United States, while international sales leapt 22% largely due to stronger construction demand in China.

The Components segment was down 5% to $2.5 billion, with EBITDA of $337 million, or 13.3% of sales, compared to $382 million, or 14.3% of sales, the prior year. Revenues in North America fell 13% and international sales rose 6%, attributable to lower U.S. truck demand and stronger demand in China and Brazil, respectively.

The Accelera segment saw sales down 2% to $101 million. EBITDA loss for the quarter was $277 million but includes the charges related to the sale of the low-pressure fuel cell business. Commenting on the results, Cummins said it “remains committed to pacing and focusing its zero-emissions investments on the most promising paths in order to ensure long-term success as part of Cummins’ Destination Zero strategy, while reducing the rate of ongoing EBITDA losses.”

2026 outlook

Based on its current forecast, Cummins said it is raising its full-year 2026 revenue guidance to be up 8% to 11% due to stronger demand across several markets, particularly North America on-highway and power generation. EBITDA is expected to be in the range of 17.75% to 18.50%, up from its prior guidance of 17.0% to 18.0%, excluding the charges related to the sale of the fuel cell business in the first quarter.

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

“Through the remainder of 2026, we are well-positioned to deliver strong financial performance, invest in future growth and return cash to shareholders,” she added.