NYSE$CMI

Cummins Inc (Ex. Cummins Engine Inc) · Q1 2023 earnings

Q1 2023 earnings · · Investor relations

Briefing

Cummins achieved record revenues, EBITDA and EPS due to strong demand and cycle-over-cycle financial improvement.

Cummins reported record first-quarter results for 2023, with revenues reaching $8.5 billion, a 32% increase from the previous year. The company's net income was $790 million, or $5.55 per diluted share, driven by strong demand across key markets and regions and the addition of Meritor. The company is raising its full year 2023 revenue guidance to be up 15 to 20 percent.

  • Record first quarter revenues of $8.5 billion.
  • Record GAAP Net Income of $790 million.
  • EBITDA in the first quarter was 16.1 percent of sales.
  • Diluted EPS of $5.55.

Headline financials

Total Revenue

$8.45B

Previous: $6.39B+32.4%
EPS (adj)

$5.65

Previous: $4.04+39.9%
EBITDA Margin

16.1%

Previous: 11.8%+36.4%
Capital Expenditures

-$193M

Previous: -$104M-85.6%
Free Cash Flow

$613M

Previous: $319M+92.2%
Net Income

$806M

Previous: $423M+90.5%
Operating Income

$1.03B

Previous: $604M+69.9%
Gross Profit

$2.03B

Previous: $1.53B+32.4%
Cash & Equivalents

$2.1B

Previous: $2.59B-18.9%
Total Assets

$31.4B

Previous: $24.1B+30.3%

Revenue & EPS history

Cummins · Revenue · Quarterly

$8.45B

Q1 2023+32.4%vs Q1 2022
Beat estimate in 14 of 15 quarters(93%)
ActualEstimate

Revenue by segment

Cummins · $9.09B total across 4 segments · Q1 2023

  • Components
    $3.6B+81.1%
  • Engine
    $3B+9.0%
  • Distribution
    $2.4B+13.4%
  • Accelera
    $85M

Forward guidance

Cummins is raising its full year 2023 revenue guidance to be up 15 to 20 percent, an increase from prior projections of up 12 to 17 percent due to stronger demand across most markets. EBITDA is expected to be in the range of 15.0 to 15.7 percent, an increase from the prior range of 14.5 and 15.2 percent of sales.

Tailwinds

  • Revenue guidance raised to 15-20% increase.
  • Stronger demand across most markets.
  • EBITDA expected to be in the range of 15.0 to 15.7 percent.
  • Continued demand for Cummins’ products and services.
  • Strong position to keep investing in future growth.

Headwinds

  • Global economic indicators monitored closely.
  • Prepared should economic momentum slow.
  • Persistent supply chain constraints.
  • Excludes any costs or benefits associated with the planned separation of the Filtration business.
  • Includes the projected results of the Meritor business for 2023

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q1 2023

Historical avgQ1 2023

+0.6%

Avg return

Earnings day

+0.5%

Avg return

5 days after

+1.5%

Avg return

30 days after

56%

41 / 73 earnings

Positive

+9.3%

Q3 2024

Best reaction

-10.7%

Q4 2025

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026-0.0%+3.4%+1.8%
Q4 2025-10.7%-2.9%-11.0%
Q3 2025+5.2%+8.4%+16.3%
Q2 2025+3.2%+7.0%+10.9%
Q1 2025+0.7%+2.3%+7.7%
Q4 2024+4.4%+6.8%-1.0%
Q3 2024+9.3%+9.5%+16.3%
Q2 2024-0.5%+0.2%+7.2%
Q1 2024-1.1%+1.1%-0.8%
Q4 2023+2.9%+4.4%+10.4%
Q3 2023+3.6%+0.7%+3.8%
Q2 2023-9.8%-9.1%-9.8%
Q1 2023-4.3%-3.5%-11.8%
Q4 2022-1.7%-3.6%+0.1%
Q3 2022-1.2%-0.9%+3.5%
Q2 2022-0.0%+1.0%-1.3%
Q1 2022+7.1%+3.5%+8.6%
Q4 2021+0.9%-1.3%-10.8%
Q3 2021-4.0%-3.4%-12.0%
Q2 2021+0.9%+0.0%+3.5%
Q1 2021+2.9%+5.0%+2.9%
Q4 2020-2.5%+4.0%+12.9%
Q3 2020-3.2%-0.4%+4.4%
Q2 2020+4.1%+1.2%+8.8%
Q1 2020+9.1%+4.0%+12.1%
Q4 2019+2.2%-1.3%-8.7%
Q3 2019-3.0%-1.9%+2.7%
Q2 2019-5.7%-8.8%-14.3%
Q1 2019+0.8%+3.1%-3.4%
Q4 2018-0.1%-1.1%+3.2%
Q3 2018+4.0%+8.0%+12.8%
Q2 2018+1.8%+3.2%+3.2%
Q1 2018-8.6%-9.6%-10.9%
Q4 2017-3.5%-8.4%-11.1%
Q3 2017-4.2%-4.0%-7.2%
Q2 2017-6.0%-4.6%-5.1%
Q1 2017+4.8%+2.7%+6.1%
Q4 2016+3.3%+4.3%+4.0%
Q3 2016-4.8%-2.7%+11.6%
Q2 2016+0.4%+2.9%+3.0%
Q1 2016-1.8%
Q4 2015+9.2%
Q3 2015-7.9%
Q2 2015+5.2%
Q1 2015-0.9%
Q4 2014-5.8%
Q3 2014+6.8%
Q2 2014-4.3%
Q1 2014+3.9%
Q4 2013+6.0%
Q3 2013-7.0%
Q2 2013+4.1%
Q1 2013-8.5%
Q4 2012+1.3%
Q3 2012+5.3%
Q2 2012+3.5%
Q1 2012+1.4%
Q4 2011+0.3%
Q3 2011+8.3%
Q2 2011-1.5%
Q1 2011+0.4%
Q4 2010+1.6%
Q3 2010-0.9%
Q2 2010+2.9%
Q1 2009-2.1%
Q1 2010+1.2%
Q4 2007+5.2%
Q4 2009+5.2%
Q3 2008-4.0%
Q3 2009-4.0%
Q2 2009+8.3%
Q2 2008+8.3%
Q4 2008+8.3%

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