NYSE$CMI

Cummins Inc (Ex. Cummins Engine Inc) · Q2 2022 earnings

Q2 2022 earnings · · Investor relations

Briefing

Cummins achieved record revenues and solid profitability.

Cummins reported record revenues of $6.6 billion and net income of $702 million in Q2 2022. Demand for products remained strong across most key markets, except China. The company is maintaining its full year 2022 guidance, expecting revenue to be up 8 percent and EBITDA of approximately 15.5 percent.

  • Second quarter revenues reached $6.6 billion, with GAAP Net Income of $702 million, representing 10.7% of sales.
  • EBITDA for the second quarter was 16.0% of sales, with diluted EPS of $4.94.
  • Q2 results included $29 million in costs related to the Filtration business separation and a $47 million benefit from adjusting reserves related to the suspension of operations in Russia.
  • The company is maintaining its full year 2022 guidance, expecting revenue to increase by 8% and an EBITDA margin of approximately 15.5%.

Headline financials

Total Revenue

$6.59B

Previous: $6.11B+7.8%
EPS (adj)

$4.77

Previous: $4.10+16.3%
EBITDA Margin

16.0%

Previous: 15.9%+0.6%
Capital Expenditures

-$251M

Previous: -$212M-18.4%
Free Cash Flow

$456M

Previous: $400M+14.0%
Net Income

$707M

Previous: $612M+15.5%
Operating Income

$897M

Previous: $735M+22.0%
Gross Profit

$1.73B

Previous: $1.48B+16.8%
Cash & Equivalents

$2.59B

Previous: $2.48B+4.5%
Total Assets

$24.5B

Previous: $22.6B+8.3%
Stock-Based Comp

$9M

Previous: $10M-10.0%

Revenue & EPS history

Cummins · Revenue · Quarterly

$6.59B

Q2 2022+7.8%vs Q2 2021
Beat estimate in 13 of 16 quarters(81%)
ActualEstimate

Revenue by segment

Cummins · $8.34B total across 5 segments · Q2 2022

  • Engine
    $2.8B+12.0%
  • Distribution
    $2.3B+21.1%
  • Components
    $2B+0.0%
  • Power Systems
    $1.2B+9.1%
  • Accelera
    $42M+75.0%

Forward guidance

Cummins is maintaining its full year 2022 guidance, expecting revenue to be up 8 percent and EBITDA of approximately 15.5 percent. The company plans to return approximately 50 percent of Operating Cash Flow to shareholders in the form of dividends and share repurchases.

Tailwinds

  • Demand for Cummins’ products and services remains strong.
  • Completed the acquisition of JVS, adding key technologies for emissions regulations.
  • Meritor's shareholders voted in favor of the Cummins acquisition bid.
  • Announced collaborations with Daimler Truck North America, Scania, and Komatsu to deliver fuel cell electric powertrains.
  • Working with Chevron and Walmart to integrate Cummins X15N natural gas engine into Walmart’s heavy-duty truck fleet.

Headwinds

  • High inflation and rising global interest rates have increased uncertainty about the pace of growth in the global economy.
  • Results were impacted by adjustments to the reserves related to the indefinite suspension of our operations in Russia.
  • Experienced $48 million of mark to market losses on investments that underpin our unqualified benefit plans.
  • The company continues to monitor economic conditions closely and will adjust operating plans should the outlook for core markets weaken.
  • Costs associated with the development of fuel cells and electrolyzers as well as products to support battery electric vehicles are contributing to EBITDA losses.

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 2022

Historical avgQ2 2022

+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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