Cummins Q3 profit beats on strong data center demand
CMI•Cummins reported third-quarter revenue of $9.40 billion, up 13% year over year but below analysts’ $9.85 billion estimate, while adjusted EPS of $8.25 topped the $8.20 estimate. The company expects full-year revenue growth of about 10%, an EBITDA margin of about 18.2%, and record revenue in the fourth quarter.
1. Quarterly results
Cummins’ third-quarter revenue rose 13% year over year to $9.40 billion, missing the $9.85 billion analyst estimate. Adjusted EPS was $8.25, above the $8.20 estimate; net income was $1.14 billion and EBITDA was $1.80 billion.
2. Demand and outlook
The company said strong Power Systems demand, especially for data center power generation, drove results. It reported strong U.S. medium- and heavy-duty truck demand, weaker pickup truck orders, and revenue growth in North America and China. Cummins expects full-year revenue growth of about 10%, an EBITDA margin of about 18.2%, and fourth-quarter revenue to exceed the third quarter and reach a new record.
