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Mar 31, 2024
Cummins Q1 2024 Earnings Report
Cummins reported strong first-quarter results, driven by continued demand and the separation of Atmus.
Key Takeaways
Cummins reported first-quarter revenues of $8.4 billion and GAAP Net Income of $2.0 billion, which includes a net gain of $1.3 billion from the separation of Atmus. The company is raising its full-year revenue and EBITDA guidance after adjusting for the Atmus separation.
First quarter revenues reached $8.4 billion with a GAAP Net Income of $2.0 billion.
EBITDA was 30.6% of sales, and Diluted EPS was $14.03.
First quarter results include a net gain of $1.3 billion related to the Atmus separation and $29 million of restructuring expenses.
Full-year revenue guidance is projected to decline by 2% to 5%, and EBITDA is expected to be in the range of 14.5% to 15.5%.
Cummins
Cummins
Cummins Revenue by Segment
Cummins Revenue by Geographic Location
Revenue by Segment
Engine Revenue
CapyFin.comComponents Revenue
CapyFin.comDistribution Revenue
CapyFin.comPower Systems Revenue
CapyFin.comAccelera Revenue
CapyFin.comRevenue by Geographic Location
North America Revenue
CapyFin.comInternational Revenue
CapyFin.com Forward Guidance
Cummins projects full year 2024 revenues to decline 2% to 5% year-over-year and EBITDA to be in the range of 14.5% and 15.5% of sales.
Positive Outlook
- Revenue guidance is unchanged despite the separation of Atmus.
- EBITDA guidance increased from previous expectations.
- Company plans to generate strong operating cash flow.
- Company committed to returning 50% of operating cash flow back to shareholders.
- Company is in a strong position to keep investing in future growth.
Challenges Ahead
- Full year revenues are expected to decline 2% to 5%.
- Expect slowing demand in key markets in the second half of the year.
- Near term focus on reinvesting for profitable growth.
- Near term focus on dividends.
- Near term focus on reducing debt.
Revenue & Expenses
Visualization of income flow from segment revenue to net income