Cummins Raises Full-Year Outlook as Power Systems Sales Climb
The engine manufacturer raised its 2026 revenue growth forecast to a range of 10% to 13% following a record quarter.
Cummins (CMI) reported record second-quarter revenues of $9.5 billion, an increase of 9% from the $8.6 billion recorded in the same period last year.
The results marked a recovery in the company's domestic footprint. North American revenue trajectory shifted from a 6% decrease in the first quarter to an 8% increase in the second quarter.
Growth was led by the Power Systems segment, where sales rose 19% year over year. The segment's EBITDA margin expanded to 24.5%, up from 22.8% in the prior-year period. The company also entered an agreement with Circe Energy to provide natural gas generator sets for a Texas data center, with deliveries scheduled between 2026 and 2030.
The Accelera segment saw sales grow 38% during the quarter, though the unit continued to operate at a loss with a segment EBITDA loss of $69 million. This follows a $199 million net charge reported in the first quarter related to the sale of its low-pressure fuel cell business.
Overall EBITDA margin for the second quarter compressed to 17.5% of sales from 18.4% in the prior year. The decline was primarily due to higher incentive compensation tied to expected record full-year results.
Cummins raised its full-year 2026 revenue guidance to 10%-13% growth, up from the 8%-11% range provided in the first quarter. Full-year EBITDA guidance was also adjusted upward to a range of 18.0%-18.5%, compared to the previous range of 17.75%-18.5%.
The company increased its quarterly common stock cash dividend to $2.20 a share, up from $2.00.