NYSE$CMI

Cummins Inc (Ex. Cummins Engine Inc) · Q2 2021 earnings

Q2 2021 earnings · · Investor relations

Briefing

Cummins' Q2 2021 results were reported, showing significant revenue and earnings growth.

Cummins reported strong second-quarter results with revenues up 59% year-over-year to $6.1 billion and net income of $600 million, driven by robust demand across key markets, particularly in North America.

  • Second quarter revenues reached $6.1 billion, with a GAAP net income of $600 million.
  • EBITDA for the second quarter was 15.9 percent, and diluted EPS was $4.10.
  • Full-year 2021 revenue guidance is maintained, projecting an increase of 20 to 24 percent.
  • Exploration of strategic alternatives for the filtration business was announced.

Headline financials

Total Revenue

$6.11B

Previous: $3.85B+58.6%
EPS (adj)

$4.10

Previous: $1.95+110.3%
EBITDA Margin

15.9%

Previous: 14.3%+11.2%
Capital Expenditures

-$212M

Previous: -$152M-39.5%
Free Cash Flow

$400M

Previous: $117M+241.9%
Net Income

$612M

Previous: $269M+127.5%
Operating Income

$735M

Previous: $336M+118.8%
Gross Profit

$1.48B

Previous: $890M+66.1%
Cash & Equivalents

$2.48B

Previous: $1.75B+41.7%
Total Assets

$22.6B

Previous: $20.3B+11.3%
Stock-Based Comp

$10M

Previous: $8M+25.0%

Revenue & EPS history

Cummins · Revenue · Quarterly

$6.11B

Q2 2021+58.6%vs Q2 2020
Beat estimate in 12 of 16 quarters(75%)
ActualEstimate

Revenue by segment

Cummins · $7.52B total across 5 segments · Q2 2021

  • Engine
    $2.5B+78.6%
  • Components
    $2B+66.7%
  • Distribution
    $1.9B+18.8%
  • Power Systems
    $1.1B+41.6%
  • Accelera
    $24M+140.0%

Forward guidance

Cummins maintains its full year 2021 revenue guidance of up 20 to 24 percent versus last year. EBITDA is expected to be in the range of 15.5 to 16.0 percent and the Company expects to return 75 percent of Operating Cash Flow to shareholders in 2021 in the form of dividends and share repurchases.

Tailwinds

  • Revenue is expected to increase 20-24% compared to the previous year.
  • EBITDA is projected to be in the range of 15.5% to 16.0%.
  • The company plans to return 75% of operating cash flow to shareholders.
  • This will be achieved through dividends and share repurchases.
  • Strategic alternatives for the Filtration business are being explored to enhance stakeholder value.

Headwinds

  • Internal review into emissions certification process and compliance with emission standards
  • Increased scrutiny from regulatory agencies and unpredictability in emission standards adoption.
  • Potential impacts from policy changes in international trade.
  • Supply shortages and supplier financial risk, particularly from single-sourced suppliers affected by the COVID-19 pandemic.
  • Market slowdown due to the impacts from the COVID-19 pandemic and other public health crises.

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 Q2 2021

Historical avgQ2 2021

+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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