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Dec 31, 2023
Cummins Q4 2023 Earnings Report
Cummins reported a net loss due to a significant charge related to resolving U.S. regulatory claims, but full-year revenues reached a record high driven by strong global demand.
Key Takeaways
Cummins Inc. reported a net loss for Q4 2023 due to a $2.04 billion charge related to an agreement to resolve U.S. regulatory claims. Despite the loss, revenues increased by 10% compared to the same quarter in 2022, driven by strong demand across most of Cummins’ global markets. Full year revenues and operating cash flow reached record highs.
Q4 2023 revenues reached $8.5 billion, a 10% increase from Q4 2022.
GAAP Net Loss in Q4 2023 was $1.4 billion, or $(10.01) per diluted share, impacted by a $2.04 billion charge related to resolving U.S. regulatory claims.
Full year 2023 revenues were $34.1 billion, a 21% increase compared to 2022.
The company projects full year 2024 revenues to decline 2% to 5% year-over-year with EBITDA in the range of 14.4% and 15.4% of sales.
Revenue by Segment
Forward Guidance
Cummins projects full year 2024 revenues to decline 2% to 5% on a year-over-year basis, and EBITDA to be in the range of 14.4% and 15.4% of sales.
Positive Outlook
- Sustained investment in new technologies and products.
- Commitment to returning 50% of operating cash flow back to shareholders.
- Focus on payment of dividends and debt reduction.
- Continuing to generate profitable growth.
- Inclusion of Atmus for the entirety of 2024 in the outlook.
Challenges Ahead
- Anticipation that demand will slow particularly in the North America heavy-duty truck market.
- Assumes the inclusion of Atmus for the entirety of 2024, but excludes any costs or benefits associated with the planned separation of Atmus.
- Monitoring global economic indicators closely and prepared to adjust the business should economic momentum slow further.
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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