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Sep 30, 2024

Cummins Q3 2024 Earnings Report

Cummins demonstrated strong sales and profitability driven by improvements in the Power Systems and Distribution businesses.

Key Takeaways

Cummins reported strong third-quarter results with revenues of $8.5 billion and net income of $809 million. The company is maintaining its full-year revenue guidance and has adjusted its EBITDA projection to the top end of the previous range.

Third quarter revenues were $8.5 billion.

GAAP Net Income was $809 million, or 9.6% of sales.

EBITDA in the third quarter was 16.4% of sales.

Diluted EPS was $5.86.

Total Revenue
$8.46B
Previous year: $8.43B
+0.3%
EPS
$5.6
Previous year: $4.73
+18.4%
EBITDA as % of sales
16.4%
Previous year: 14.6%
+12.3%
Gross Profit
$2.17B
Previous year: $2.07B
+4.8%
Cash and Equivalents
$2.25B
Previous year: $2.39B
-5.7%
Free Cash Flow
$381M
Previous year: $1.5B
-74.6%
Total Assets
$32.1B
Previous year: $32.1B
-0.1%

Cummins

Cummins

Cummins Revenue by Segment

Forward Guidance

Cummins is maintaining its full-year 2024 revenue guidance to be in the range of down 3% to flat. EBITDA is expected to be approximately 15.5%, at the top end of the previous guidance of 15.0% to 15.5%.

Positive Outlook

  • Maintaining full-year 2024 revenue guidance.
  • EBITDA expected to be approximately 15.5%.
  • Focus on reinvesting for profitable growth.
  • Focus on dividends.
  • Focus on reducing debt.

Challenges Ahead

  • Slowing demand in the North American heavy-duty truck market.
  • Anticipate this trend to persist into the fourth quarter.
  • Unspecified risks detailed in SEC filings.
  • Potential legal actions.
  • Increased scrutiny from regulatory agencies.

Revenue & Expenses

Visualization of income flow from segment revenue to net income