Cummins Q1 2022 Earnings Report
Key Takeaways
Cummins reported a 5% increase in first-quarter revenues to $6.4 billion, driven by strong demand in North America. Net income was $418 million, impacted by costs related to the suspension of operations in Russia and the separation of the Filtration business. The company is raising its full-year revenue guidance to up 8 percent.
First quarter revenues reached $6.4 billion, with a GAAP net income of $418 million.
EBITDA was 11.8 percent of sales, and diluted EPS was $2.92.
Results include $158 million in costs related to the suspension of operations in Russia and $17 million related to the separation of the Filtration business.
Full year 2022 revenue guidance raised to up 8 percent, while maintaining EBITDA guidance of approximately 15.5 percent.
Cummins
Cummins
Cummins Revenue by Segment
Forward Guidance
Cummins is raising its full year 2022 revenue guidance to up 8 percent. Full-year 2022 EBITDA is expected to be approximately 15.5 percent.
Positive Outlook
- Stronger demand in North America
- Strong demand in other markets
- Company plans to return approximately 50 percent of Operating Cash Flow to shareholders
- Company plans to return cash in the form of dividends
- Company plans to return cash in the form of share repurchases
Challenges Ahead
- Ongoing impact of COVID-19, especially in China
- Effect of the conflict in Ukraine continue to present challenges to our global operations
- Global supply chain challenges
- Expenses associated with the separation of the Filtration business have been excluded from the outlook provided
- Expenses associated with the indefinite suspension of our operations in Russia have been excluded from the outlook provided
Revenue & Expenses
Visualization of income flow from segment revenue to net income