Cummins Inc. (NYSE: CMI) Posts $8.8 Billion in Second Quarter Revenues, 2% Increase Over 2023
(WNY News Now) – COLUMBUS, Ind. – Cummins Inc. has announced record second-quarter revenues of $8.8 billion for 2024, marking a 2% increase from the same period last year. The company’s net income for Q2 2024 was $726 million, or $5.26 per diluted share, compared to $720 million, or $5.05 per diluted share, in Q2 2023.
“We achieved record quarterly sales and solid profitability in the second quarter, led by significant improvement in our Power Systems business,” said Jennifer Rumsey, Chair and CEO of Cummins. “As we shared during our Analyst Day in May, our Destination Zero strategy is the right strategy for growing our business and meeting our customers’ needs today and in the future. We continue to deliver innovative technologies for our customers, execute on our financial commitments, and strengthen our position in key markets. I want to thank our talented employees for their continued efforts to drive business results and make Cummins more competitive across the globe.”
Key Financial Highlights:
- Revenue: $8.8 billion, up 2% year-over-year.
- Net Income: $726 million, or $5.26 per diluted share.
- EBITDA: $1.3 billion, or 15.3% of sales.
Segment Performance:
- Engine Segment: Sales increased 5% to $3.2 billion.
- Distribution Segment: Sales rose 9% to $2.8 billion.
- Power Systems Segment: Sales surged 9% to $1.6 billion.
- Accelera Segment: Sales jumped 31% to $111 million.
2024 Outlook:
Cummins has updated its full-year 2024 revenue guidance, expecting a range from a 3% decline to flat, an improvement from previous estimates. EBITDA is now projected to be between 15.0% and 15.5%, up from the earlier forecast of 14.5% to 15.5%.
“We have raised our expectations on revenue and profitability for 2024 due to continued demand for Cummins’ products and services. We still expect slowing demand in the North America heavy-duty truck market in the second half of the year,” said Rumsey. “Despite the lower outlook for the second half, Cummins is in a strong position to keep investing in future growth, bringing new technologies to customers and returning cash to shareholders.”
Strategic Developments:
- Dividend Increase: Quarterly dividend increased from $1.68 to $1.82 per share.
- Joint Venture: Completion of the Amplify Cell Technologies joint venture with Daimler Trucks & Buses and PACCAR.
- New Engine Launch: Introduction of the 6.7-liter Isuzu DB6A engine for medium-duty trucks in Japan and other global markets.
Cummins remains committed to its Destination Zero strategy, focusing on sustainability and innovation to navigate the energy transition.
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