Cummins Q3 2026 Revenue Rises 13% on Truck and Power Demand

Cummins Inc. (NYSE: CMI) reported a 13% increase in third-quarter 2026 revenue as stronger North American truck volumes and global demand for power-generation equipment supported growth across most of its businesses. Profitability also increased, while the company maintained full-year guidance for revenue growth of approximately 10% and an EBITDA margin of about 18.2%.

Revenue for the three months ended Sept. 30 rose to $9.44 billion from $8.32 billion a year earlier. Net income attributable to Cummins was $1.14 billion, or $8.25 per diluted share, compared with $536 million, or $3.86 per share, in the prior-year quarter.

The year-earlier results included $240 million, or $1.73 per diluted share, of noncash Accelera charges. Excluding those items, third-quarter 2025 net income was $776 million and diluted earnings were $5.59 per share.

Cummins generated EBITDA of $1.79 billion, representing an 18.9% margin. That compared with reported EBITDA of $1.19 billion and an adjusted result excluding one-time items of $1.43 billion, or 17.2% of sales, a year earlier.

Truck and power-generation demand drive segment growth

Engine segment revenue increased 20% to $3.13 billion, primarily due to stronger North American heavy- and medium-duty truck volumes. Segment EBITDA rose to $422 million from an adjusted $261 million, lifting the margin to 13.5% from 10.0%.

Components revenue climbed 23% to $2.86 billion, also supported mainly by North American heavy- and medium-duty truck demand. EBITDA increased to $408 million from an adjusted $292 million, while the margin expanded to 14.3% from 12.5%.

Distribution sales rose 4% to $3.31 billion as demand for power-generation products increased in North America, particularly for data-center applications. EBITDA declined to $461 million from an adjusted $492 million, and the margin fell to 13.9% from 15.5%. Cummins attributed the decrease primarily to higher variable compensation costs, partly offset by greater power-generation volumes.

Power Systems recorded a 15% revenue increase to $2.29 billion, driven mainly by stronger global power-generation demand, especially for data centers. EBITDA reached $582 million, up from an adjusted $457 million, and the margin increased to 25.4% from 22.9% as higher demand and favorable pricing supported results.

Accelera revenue decreased 15% to $103 million because of lower electrolyzer sales. The segment posted an EBITDA loss of $56 million, narrower than the adjusted loss of $96 million a year earlier. Cummins said the loss reflected continued investment in battery and electric-powertrain development, along with costs associated with fulfilling previous electrolyzer commitments.

Income from joint ventures increased to $127 million from $104 million. Operating cash flow was $1.41 billion, compared with $1.31 billion in the prior-year period, while capital expenditures were $303 million versus $298 million. Total debt to capital declined to 34.4% from 36.8%.

Full-year outlook

For 2026, Cummins expects consolidated revenue to increase by approximately 10% and projects an EBITDA margin of about 18.2%. Earnings from joint ventures are expected to rise 15% to 20%. The company forecasts capital expenditures of $1.35 billion to $1.45 billion, depreciation and amortization of $1.1 billion to $1.2 billion, interest expense of $315 million and a 23% effective tax rate excluding discrete income-tax items.

Power Systems has the strongest segment growth outlook, with revenue expected to rise 15% to 18% and an EBITDA margin of 25.1% to 25.6%. Distribution revenue is projected to increase 10% to 13%, with a margin of 13.6% to 14.1%. Cummins expects both Engine and Components revenue to grow 8% to 11%, with respective EBITDA margins of 12.25% to 12.75% and 13.25% to 13.75%.

Accelera is expected to generate $350 million to $400 million in full-year revenue and an EBITDA loss of $260 million to $290 million, compared with a $438 million loss in 2025.

Cummins maintained its key market assumptions. It expects the North American heavy-duty truck market to grow 10% to 15%, with Class 8 Group 2 volumes of 240,000 to 250,000 units, and the medium-duty truck market to increase 15% to 20%, with volumes of 125,000 to 130,000 units. Heavy- and medium-duty truck markets in both China and India are projected to range from a 5% decline to a 5% increase.

The company expects its power-generation revenue to increase 15% to 25%, construction revenue to rise 10% to 20%, parts revenue to grow 3% to 8%, and mining revenue to range from a 5% decline to a 5% increase.

The outlook remains subject to risks including changes in tariffs and trade policy, emissions regulations and enforcement, fluctuations in raw-material, transportation and labor costs, supply constraints, demand and production alignment, foreign-exchange movements, product recalls and the pace of adoption of new technologies. Cummins also cited continued regulatory and legal exposure related to emissions certification and compliance matters, as well as uncertainty surrounding investments and product development associated with the energy transition.