NYSE$CMI

Cummins Inc (Ex. Cummins Engine Inc) · Q2 2023 earnings

Q2 2023 earnings · · Investor relations

Briefing

Cummins reported record revenues and solid profitability due to strong demand.

Cummins Inc. reported strong second-quarter results, with record revenues of $8.6 billion, a 31% increase compared to the same quarter in 2022. Net income attributable to Cummins was $720 million, or $5.05 per diluted share, compared to $702 million, or $4.94 per diluted share in 2022.

  • Second quarter revenues reached a record $8.6 billion.
  • Net income attributable to Cummins was $720 million, or $5.05 per diluted share.
  • EBITDA was 15.1 percent of sales.
  • The company is maintaining its full-year 2023 guidance, expecting revenue to be up 15 to 20 percent and EBITDA of 15.0 to 15.7 percent.

Headline financials

Total Revenue

$8.64B

Previous: $6.59B+31.2%
EPS (adj)

$5.18

Previous: $4.77+8.6%
EBITDA Margin

15.1%

Previous: 16.0%-5.6%
Capital Expenditures

-$414M

Previous: -$251M-64.9%
Free Cash Flow

$323M

Previous: $456M-29.2%
Net Income

$737M

Previous: $707M+4.2%
Operating Income

$997M

Previous: $897M+11.1%
Gross Profit

$2.15B

Previous: $1.73B+24.4%
Cash & Equivalents

$2.1B

Previous: $2.59B-18.9%
Total Assets

$31.7B

Previous: $24.5B+29.7%

Revenue & EPS history

Cummins · Revenue · Quarterly

$8.64B

Q2 2023+31.2%vs Q2 2022
Beat estimate in 14 of 15 quarters(93%)
ActualEstimate

Revenue by segment

Cummins · $9.09B total across 4 segments · Q2 2023

  • Components
    $3.4B+70.0%
  • Engine
    $3B+7.1%
  • Distribution
    $2.6B+13.0%
  • Accelera
    $85M+102.4%

Forward guidance

Cummins is maintaining its full year 2023 revenue guidance to be up 15 to 20 percent due to strong demand across most markets, especially North America. EBITDA is still expected to be in the range of 15.0 to 15.7 percent of sales.

Tailwinds

  • Strong demand across most markets, especially North America
  • EBITDA is expected to be in the range of 15.0 to 15.7 percent of sales.
  • Projected results of the Meritor business for 2023 are included.
  • The outlook assumes the inclusion of Atmus for the entirety of 2023.
  • Company plans to continue to generate strong operating cash flow and returns for shareholders.

Headwinds

  • Global economic indicators are being closely monitored.
  • Potential slowing of economic momentum.
  • Need to keep investing in future growth.
  • Bringing new technologies to customers as we advance our Destination Zero strategy.
  • Returning cash to shareholders

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 2023

Historical avgQ2 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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