Cummins Raises Guidance After 23% Power Gen Surge, Record EBITDA
CMI•Cummins raised full-year revenue guidance to 8%-11% growth after Q1 revenue rose 3% on a 23% surge in North American power generation demand, offsetting a 20% decline in medium-duty truck sales. International revenue climbed 16% with a 19% China increase, and Power Systems posted record EBITDA.
1. Q1 Financial Performance
Cummins reported Q1 revenue growth of 3%, driven by a 23% surge in North American power generation demand that offset a 20% decline in medium-duty truck volumes. International revenue rose 16%, buoyed by a 19% China increase, while favorable pricing and joint venture income supported record Power Systems EBITDA.
2. Strategic Business Shifts
The sale of the Low-pressure Fuel Cell business marks a strategic pivot to reduce losses in the Accelera segment and concentrate on higher-potential zero-emission technologies. Operational execution also includes adding a third shift at the Rocky Mount plant to address recovering medium-duty truck demand and delaying the B-series engine launch to January 2028.
3. Guidance and Outlook
Full-year revenue guidance was raised to 8%-11% growth, up from 3%-8%, reflecting stronger-than-expected demand, and global power generation revenue guidance increased to 15%-25% growth. Management anticipates a modest prebuy in late 2026 ahead of 2027 EPA regulations, with X15 and X10 engine launches remaining on track for 2027.
