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Cummins
🇺🇸 NYSE:CMI
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•
Dec 31, 2022

Cummins Q4 2022 Earnings Report

Reported strong fourth quarter and full year results, driven by revenue growth and strategic acquisitions.

Key Takeaways

Cummins reported a strong fourth quarter with revenues of $7.8 billion and net income of $631 million. The results reflect the inclusion of Meritor and were driven by strong demand across most key regions, although partially offset by slowdowns in China and Russia. The company is also providing a positive outlook for 2023, expecting revenue growth and continued margin expansion.

Fourth quarter revenues reached $7.8 billion with a GAAP net income of $631 million.

EBITDA for the fourth quarter was 14.2 percent of sales, with diluted EPS at $4.43.

Full year revenues hit a record $28.1 billion, with a GAAP net income of $2.2 billion.

Full year 2023 revenues are expected to increase by 12 to 17 percent, with EBITDA projected in the range of 14.5 to 15.2 percent.

Total Revenue
$7.77B
Previous year: $5.85B
+32.8%
EPS
$4.52
Previous year: $2.85
+58.6%
Gross Profit
$1.82B
Previous year: $1.32B
+38.1%
Cash and Equivalents
$2.1B
Previous year: $2.59B
-18.9%
Free Cash Flow
$354M
Previous year: $360M
-1.7%
Total Assets
$30.3B
Previous year: $23.7B
+27.8%

Cummins

Cummins

Cummins Revenue by Segment

Forward Guidance

Cummins projects full year 2023 revenues to be up 12 to 17 percent, and EBITDA to be in the range of 14.5 and 15.2 percent of sales. The outlook above includes the projected results of the Meritor business for 2023, but excludes any costs or benefits associated with the planned separation of the Filtration business.

Positive Outlook

  • Demand will remain strong in most key regions and markets, especially in the first half of the year.
  • Revenue growth and margin expansion in core business.
  • Strong growth in New Power segment.
  • Focus on dividends and reducing debt related to the Meritor acquisition.
  • Commitment to returning 50% of operating cash flow back to shareholders.

Challenges Ahead

  • Monitoring global economic indicators closely.
  • Prepared should economic momentum slow further.
  • Excludes any costs or benefits associated with the planned separation of the Filtration business.
  • Electric powertrain portion of the Meritor business has been integrated within the New Power portfolio with projected EBITDA losses of $55 million.
  • Focus on dividends and reducing debt related to the Meritor acquisition.

Revenue & Expenses

Visualization of income flow from segment revenue to net income

Company Overview

Full financial data and analysis

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