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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%.
Revenue by Segment
Revenue by Geographic Location
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.
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
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Avg. Return Before/After Earnings
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