Cummins Inc. Q3 2026 Earnings Recap

Cummins fell 4.9% after earnings, with investors likely focused on demand and execution falling short of management’s expectations in several areas. Medium-duty demand and pickup-engine shipments were weaker than anticipated, while supply constraints held power-generation revenue below expectations despite record sales.

Key Takeaways

• Third-quarter revenue rose 13% year over year to $9.4 billion; EBITDA was a record $1.8 billion, or 18.9% of sales. Excluding prior-year Accelera charges, EBITDA margin improved about 170 basis points.
• North American medium-duty industry production rose 77%, but Cummins said demand was below expectations amid regulatory uncertainty and delayed purchasing decisions.
• Pickup-engine shipments fell 16% year over year to 34,000, with demand weaker than anticipated amid elevated diesel prices and interest rates.
• North American power-generation revenue increased 22% and sales were a record, but supply-chain constraints kept revenue below expectations. Cummins expects to largely catch up in the fourth quarter.
• International revenue increased 11%; China revenue, including joint ventures, rose 9% to $1.9 billion, while Chinese medium- and heavy-duty truck demand declined 5%.