In Cummins' third quarter, revenue grew 13% year over year to $9.4 billion, EBITDA margin expanded 170 basis points to 18.9%, and earnings per share grew 48% to $8.25. The North American heavy- and medium-duty truck markets and data centers were key growth drivers.
Cummins is a leading manufacturer of diesel and other engines used in heavy- and medium-duty commercial trucks, off-highway equipment, and locomotives, in addition to prime power and standby generators. The company also sells powertrain components, which include filtration products, transmissions, turbochargers, aftertreatment systems, and fuel systems. Sales are approximately 60% US and Canada and 40% rest of the world. Much of Cummins’ foreign sales (China, India, and so forth) are through joint ventures. The company operates 650 distributors and over 19,000 dealer locations across 190 countries. Cummins’ business model is unique as it competes with many of its heavy-duty truck manufacturer customers, which also make their own engines.