Cummins cuts 2026 revenue growth forecast, Q3 sales miss estimates

Cummins (CMI) shares were little changed at 10:13 a.m. ET, from a $471.84 close.

Cummins (CMI) missed the $9.95 billion consensus estimate for third-quarter revenue, reporting $9.44 billion, and lowered its full-year revenue growth forecast.

The year-earlier diluted EPS of $3.86 included $240 million of non-cash charges at Accelera.

Revenue rose 13%. North America sales grew 15%, while international revenue, led by growth in China, increased 11%.

Here's how the company did:

• Revenue: $9.44 billion vs. $8.32 billion a year earlier, below the $9.95 billion expected
• Diluted EPS: $8.25 vs. $3.86 a year earlier, in line with the $8.28 expected
• EBITDA: $1.79 billion, or 18.9% of sales, vs. $1.19 billion, or 14.3% of sales, a year earlier

Third-quarter diluted EPS also included favorable discrete tax items worth 54 cents per share.

2026 guidance

Cummins now expects revenue growth of about 10% for 2026, compared with the 10% to 13% it forecast on Aug. 4. It expects EBITDA margin of about 18.2%, consistent with its prior range of 18% to 18.5%, excluding charges related to the sale of the low-pressure fuel cell business in the first quarter.

Chair and CEO Jennifer Rumsey said the revenue and profitability changes reflect "continued weaker than expected pickup truck demand in North America."

The company expects fourth-quarter revenue to step up from third-quarter levels.

Segment results

Engine sales rose 20% to $3.1 billion, and segment EBITDA was $422 million, or 13.5% of sales.

Components sales rose 23% to $2.9 billion, with segment EBITDA of $408 million.

Distribution sales rose 4% to $3.3 billion, while segment EBITDA fell to $461 million from $492 million.

Power Systems sales rose 15% to $2.3 billion, with segment EBITDA of $582 million, or 25.4% of sales.

Accelera sales fell 15% to $103 million, and the segment posted an EBITDA loss of $56 million. Revenue decreased mainly because electrolyzer sales fell following a strategic review of the business.

Cash returns and business updates

The company returned $661 million to shareholders in the quarter through cash dividends and share repurchases. It has raised its quarterly dividend for 17 consecutive years, most recently to $2.20 per share from $2.00 in July.

The company is committed to returning 50% of operating cash flow to shareholders.

In August, its Power Generation business was selected to supply battery energy storage systems for a large U.S. data center project, the company's largest battery energy storage deployment to date.