Cummins Earnings: Revenue Surpasses Expectations Despite Industry Headwinds

Cummins' second-quarter revenue rose 2%, beating our expectations, despite underlying headwinds from the US trucking industry pullback and resulting normalization in new heavy-duty truck orders. Net sales were up a solid 5% for the engine segment on resilient demand from the North American medium-duty truck market, while the power generation segment was up 9% thanks to solid data center and mission-critical power demand. Distribution revenue grew 9% due in part to higher pricing and increased demand for power generation products. These factors were only partly offset by 13% lower components revenue, driven by the separation of Atmus and softer demand in China and Europe.