Cummins Earnings: Results Beat Expectations, but Heavy Duty Truck Market Remains Soft

Cummins’ third-quarter consolidated sales were roughly flat year over year, and the adjusted EBITDA margin improved 150 basis points despite continued headwinds from the US trucking industry pullback and resulting normalization in new heavy-duty truck orders. Net sales were up 17% for the power systems segment and 16% for the distribution segment on increased demand for power generation, particularly for data center applications. On the other hand, engine revenue was down 1% due to the sluggish North American heavy-duty truck market, and components revenue fell 16%, primarily because of the Atmus separation.