Here’s what you need to know:
- Cummins' revenues are up 3% year over year even though sales fell in North America.
- The company looks for the on-highway market in the U.S. to pick up the rest of this year and has raised its earnings forecasts.
- Power systems continue to surge as data center market grows around the world.
Cummins reported a 3% increase in revenues for the first quarter even though sales dropped 5% in North America. In the rest of the world, revenues were up 16%, primarily due to stronger demand in China.
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"Cummins delivered strong results in the first quarter, led by record performance in our power systems segment," says Jennifer Rumsey, chair and CEO. "Our teams executed with discipline to meet continued strong demand for data center backup power and North America truck markets began to improve from a cyclical low."
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Net income in the first quarter was $654 million, a 20% drop year over year. This quarter's earnings included charges related to the sale of the low-pressure fuel cell business of $199 million.
Engine, components and distribution segments
Sales in the engine segment were down 4% to $2.7 million. Revenues in North America were down 12%, but were offset by a 22% increase in international sales driven by stronger construction demand in China.
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Mack Trucks announced in the first quarter Cummins' X10 engine will be integrated into the Mack Granite for vocational customers. The company says the X10 is "well-suited for demanding work applications."
In components, sales were down 5% to %1.5 billion. Revenues in North America were down 13% and international sales were up 6%. Cummins says demand has been strong in China and Brazil.
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Cummins's distribution segment was up 7%. North American revenues increased 3% and international sales were up 18%, mainly driven by increased demand for power generation products, particularly those found in data centers.
Accelera's first quarter
Sales in Accelera, Cummins' zero emissions technology brand, were down 2% to $101 million. Cummins says it remains committed to pacing and focusing its zero-emissions investments on the most promising paths in order to ensure long-term success as part of Cummins' Destination Zero strategy.
Power systems segment
Cummins again saw the most growth in its power systems segment. Sales were up 19% to $2 billion. Revenues in North America increased 19% and international sales were up 18%, driven by increased power generation demand, particularly for data centers in North America, China and Asia Pacific.
2026 outlook
Cummins is raising its full-year 2026 guidance to be up 8-11% as demand is stronger across the North American on-highway market and in the power generation segment.
The company plans to continue generating strong operating cash flow and returns for shareholders and says it's committed to the long-term strategic goal of returning 50% of its operating cash flow back to shareholders.
"We raised our 2026 outlook for revenue and profitability as demand strengthens across several key markets," Rumsey says. "We see North America on-highway markets improving, while demand for data center power generation across a range of our products continues to outpace expectations. Through the remainder of 2026, we are well-positioned to deliver strong financial performance, invest in future growth and return cash to shareholders."
