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Sep 30, 2023
Cummins Q3 2023 Earnings Report
Cummins reported solid profitability and record operating cash flow.
Key Takeaways
Cummins Inc. reported a 15% increase in third-quarter revenues to $8.4 billion compared to the same quarter in 2022. Net income attributable to Cummins was $656 million, or $4.59 per diluted share, compared to $400 million, or $2.82 per diluted share in 2022. The company is raising its full year 2023 revenue guidance to be up 18 to 21 percent.
Third quarter revenues reached $8.4 billion, with a GAAP net income of $656 million.
EBITDA for the third quarter was 14.6 percent of sales, and diluted EPS was $4.59.
Third quarter results included $26 million, or $0.14 per diluted share, in costs related to the separation of Atmus Filtration Technologies Inc.
Third quarter net cash provided by operating activities was a record $1.5 billion.
Revenue by Segment
Forward Guidance
Cummins is raising its full year 2023 revenue guidance to be up 18 to 21 percent. EBITDA is expected to be in the range of 15.2 to 15.4 percent of sales.
Positive Outlook
- Raising full year 2023 revenue guidance to be up 18 to 21 percent.
- Strong demand across most markets, especially North America.
- EBITDA is expected to be in the range of 15.2 to 15.4 percent of sales.
- The company plans to continue to generate strong operating cash flow and returns for shareholders
- Committed to long-term strategic goal of returning 50 percent of operating cash flow back to shareholders.
Challenges Ahead
- Seeing some signs of slowing activity.
- Expecting lower demand in the fourth quarter.
- Focus on reinvesting for profitable growth in the near term.
- Focusing on increasing dividends in the near term.
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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