0000026172false00000261722024-08-012024-08-01

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C.  20549
cumminslogoa02.jpg
FORM 8-K
 
CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

Date of Report:  August 1, 2024

 
  CUMMINS INC.
(Exact name of registrant as specified in its charter)
Indiana1-494935-0257090
(State or other Jurisdiction of
Incorporation)
 (Commission File Number)
 (I.R.S. Employer Identification No.)

500 Jackson Street
P. O. Box 3005
Columbus, Indiana  47202-3005
(Principal Executive Office)  (Zip Code)

Registrant's telephone number, including area code: (812) 377-5000
 
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
☐
Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
 
☐Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
 
☐Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
 
☐Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Securities registered pursuant to Sections 12(b) of the Act:
Title of each classTrading symbol(s)Name of each exchange on which registered
Common stock, $2.50 par valueCMINew York Stock Exchange

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter)

Emerging growth company ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐


Item 2.02. Results of Operations and Financial Condition.
 
On August 1, 2024, Cummins Inc. (“Cummins,” “the Company,” “the registrant,” “we,” “our,” or “us”) issued the attached press release reporting its financial results for the second quarter of 2024, which is furnished herewith as Exhibit 99.

The information furnished pursuant to this Item 2.02, including Exhibit 99, shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934 (the “Exchange Act”) or otherwise subject to the liabilities under that Section and shall not be deemed to be incorporated by reference into any filing of the Company under the Securities Act of 1933 or the Exchange Act.


Item 9.01. Financial Statements and Exhibits.
 
(d)Exhibits. - The exhibit below is furnished herewith:

Exhibit Index
Exhibit No.Description
Exhibit 104Cover Page Interactive Data File (the cover page Interactive Data File is embedded within the Inline XBRL document)


SIGNATURE

 
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
 
Date: August 1, 2024

 
CUMMINS INC.
 /s/ LUTHER E. PETERS
Luther E. Peters
Vice President - Controller
(Principal Accounting Officer)




EXHIBIT 99

earningsreleasea06.jpg
August 1, 2024

Cummins Reports Strong Second Quarter 2024 Results

•Record second quarter revenues of $8.8 billion; GAAP1 Net Income of $726 million
•EBITDA in the second quarter was 15.3% of sales; Diluted EPS of $5.26
•Full year revenues are expected to range from down 3% to flat; an improvement from prior guidance of down 2% to 5%.
•EBITDA is now expected to be in the range of 15.0% to 15.5%; an increase from previous guidance of 14.5% to 15.5%.

COLUMBUS, IND. - Cummins Inc. (NYSE: CMI) today reported results for the second quarter of 2024.

“We achieved record quarterly sales and solid profitability in the second quarter, led by significant improvement in our Power Systems business,” said Jennifer Rumsey, Chair and CEO of Cummins. “As we shared during our Analyst Day in May, our Destination Zero strategy is the right strategy for growing our business and meeting our customers’ needs today and in the future. We continue to deliver innovative technologies for our customers, execute on our financial commitments, and strengthen our position in key markets. I want to thank our talented employees for their continued efforts to drive business results and make Cummins more competitive across the globe.”

Second quarter revenues of $8.8 billion increased 2% from the same quarter in 2023. Sales in North America increased 4% while international revenues decreased 2%.

Net income attributable to Cummins in the second quarter was $726 million, or $5.26 per diluted share, compared to $720 million, or $5.05 per diluted share, in 2023. The second quarter of 2023 included costs related to the separation of Atmus of $23 million, or $0.13 per diluted share. The tax rate in the second quarter was 23.0% including $9 million, or $0.07 per diluted share, of favorable discrete tax items.

Earnings before interest, taxes, depreciation and amortization (EBITDA) in the second quarter were $1.3 billion, or 15.3% of sales, compared to $1.3 billion, or 15.1% of sales, a year ago. EBITDA for the second quarter of 2023 included the costs related to the separation of Atmus noted above.

2024 Outlook:

Based on its current forecast, Cummins is raising its full-year 2024 revenue guidance to be down 3% to flat, due to stronger than expected demand across several markets, especially in North America on-highway and power generation. EBITDA is expected to be in the range of 15.0% to 15.5%, raising the midpoint and narrowing the range of the previous guidance of 14.5% to 15.5%.

Cummins plans to continue generating strong operating cash flow and returns for shareholders and is committed to our long-term strategic goal of returning 50% of operating cash flow back to shareholders. In the near term, we will focus on reinvesting for profitable growth, dividends and reducing debt.
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“We have raised our expectations on revenue and profitability for 2024 due to continued demand for Cummins’ products and services. We still expect slowing demand in the North America heavy-duty truck market in the second half of the year,” said Rumsey. “Despite the lower outlook for the second half, Cummins is in a strong position to keep investing in future growth, bringing new technologies to customers and returning cash to shareholders.”

Second Quarter 2024 Highlights:

•Cummins announced an increase in the quarterly common stock cash dividend from $1.68 to $1.82 per share. The company has increased the quarterly dividend to shareholders for 15 consecutive years.

•Accelera™ by Cummins, Daimler Trucks & Buses and PACCAR completed the formation of their joint venture, now known as Amplify Cell Technologies, to localize battery cell production and the battery supply chain in the United States. This strategic collaboration will advance zero-emissions technology for electric commercial vehicles and industrial applications. Amplify began construction of a 21-gigawatt hour (GWh) factory in Marshall County, Miss., with potential for further expansion as demand grows. The factory is expected to create more than 2,000 U.S. manufacturing jobs and is targeting the start of production in 2027.

•Cummins and Isuzu announced the launch of a new 6.7-liter engine designed for use in Isuzu’s new medium-duty truck lineup. The “Isuzu DB6A” will power on-highway truck applications built for the Japanese market and will be available for the Asia Pacific markets and other global markets later this year. Cummins also announced plans to launch a battery electric powertrain for Isuzu’s F-series in North America. Availability of the medium-duty truck is expected in 2026 and will include Accelera’s next generation lithium iron phosphate (LFP) battery technology.

•Cummins hosted its biennial Analyst Day and shared plans to raise its long-term financial expectations, relative to its prior Analyst Day, and deliver increasing returns to shareholders.

•For the third consecutive year, Morgan Stanley Capital International (MSCI) awarded Cummins a AAA rating – the highest in the industry – for the ability to manage the most significant environmental, social and governance risks and opportunities relative to peers.

•In July, Accelera was awarded $75 million for zero-emissions manufacturing from the Department of Energy to convert approximately 360,000 sq. ft. of existing manufacturing space at our Columbus (Indiana) Engine Plant for zero-emissions components and electric powertrain systems. The $75 million grant is the largest federal grant ever awarded solely to Cummins and is part of the appropriations related to the Inflation Reduction Act.


Second quarter 2024 detail (all comparisons to same period in 2023):

Components Segment

•Sales - $3.0 billion, down 13%
•Segment EBITDA - $406 million, or 13.6% of sales compared to $486 million, or 14.2% of sales, which included the Atmus business and $18 million of costs related to the separation of Atmus
•Revenues in North America decreased by 10% and international sales decreased by 17% primarily due to the separation of Atmus and lower demand in China and Europe.

2


Engine Segment

•Sales - $3.2 billion, up 5%
•Segment EBITDA - $445 million, or 14.1% of sales, compared to $425 million, or 14.2% of sales
•Revenues increased 7% in North America and increased 2% in international markets due to strong demand in the North American medium-duty truck market and pricing actions.

Distribution Segment

•Sales - $2.8 billion, up 9%
•Segment EBITDA - $314 million, or 11.1% of sales, compared to $299 million, or 11.5% of sales
•Revenues in North America increased 6% and international sales increased by 16% driven by increased demand for power generation products and pricing actions.

Power Systems Segment

•Sales - $1.6 billion, up 9%
•Segment EBITDA - $301 million, or 18.9% of sales, compared to $201 million, or 13.8% of sales
•Power generation revenues increased 16% driven by increased global demand, particularly for the data center market. Industrial revenues increased 2% primarily due to strong mining demand more than offsetting weaker demand in oil and gas markets.

Accelera Segment

•Sales - $111 million, up 31%
•Segment EBITDA loss - $117 million
•Revenues increased due to increased electrolyzer installations.
•Costs associated with the development of electric powertrains, fuel cells and electrolyzers, as well as products to support battery electric vehicles are contributing to EBITDA losses.
1 Generally Accepted Accounting Principles
About Cummins Inc.
Cummins Inc., a global power solutions leader, is comprised of five business segments – Components, Engine, Distribution, Power Systems and Accelera by Cummins – supported by our global manufacturing and extensive service and support network, skilled workforce and vast technological expertise. Cummins is committed to its Destination Zero strategy, which is grounded in the company’s commitment to sustainability and helping its customers successfully navigate the energy transition with its broad portfolio of products. The products range from advanced diesel, natural gas, electric and hybrid powertrains and powertrain-related components including, aftertreatment, turbochargers, fuel systems, valvetrain technologies, controls systems, air handling systems, automated transmissions, axles, drivelines, brakes, suspension systems, electric power generation systems, batteries, electrified power systems, hydrogen production technologies and fuel cell products. Headquartered in Columbus, Indiana (U.S.), since its founding in 1919, Cummins employs approximately 75,500 people committed to powering a more prosperous world through three global corporate responsibility priorities critical to healthy communities: education, environment, and equality of opportunity. Cummins serves its customers online, through a network of company-owned and independent distributor locations, and through thousands of dealer locations worldwide and earned about $735 million on sales of $34.1 billion in 2023. See how Cummins is powering a world that's always on by accessing news releases and more information at https://www.cummins.com/.
Forward-looking disclosure statement
Information provided in this release that is not purely historical are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, including statements regarding our forecasts, guidance, preliminary
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results, expectations, hopes, beliefs and intentions on strategies regarding the future. These forward-looking statements include, without limitation, statements relating to our plans and expectations for our revenues, EBITDA and the Settlement Agreements to resolve regulatory proceedings regarding our emissions certification and compliance process for certain engines primarily used in pick-up truck applications in the U.S. Our actual future results could differ materially from those projected in such forward-looking statements because of a number of factors, including, but not limited to: any adverse consequences resulting from entering into the Settlement Agreements, including required additional mitigation projects, adverse reputational impacts and potential resulting legal actions; increased scrutiny from regulatory agencies, as well as unpredictability in the adoption, implementation and enforcement of emission standards around the world; evolving environmental and climate change legislation and regulatory initiatives; changes in international, national and regional trade laws, regulations and policies; changes in taxation; global legal and ethical compliance costs and risks; future bans or limitations on the use of diesel-powered products; failure to successfully integrate and / or failure to fully realize all of the anticipated benefits of the acquisition of Meritor, Inc.; raw material, transportation and labor price fluctuations and supply shortages; aligning our capacity and production with our demand; the actions of, and income from, joint ventures and other investees that we do not directly control; large truck manufacturers' and original equipment manufacturers' customers discontinuing outsourcing their engine supply needs or experiencing financial distress, or change in control; product recalls; variability in material and commodity costs; the development of new technologies that reduce demand for our current products and services; lower than expected acceptance of new or existing products or services; product liability claims; our sales mix of products; climate change, global warming, more stringent climate change regulations, accords, mitigation efforts, greenhouse gas regulations or other legislation designed to address climate change; our plan to reposition our portfolio of product offerings through exploration of strategic acquisitions and divestitures and related uncertainties of entering such transactions; increasing interest rates; challenging markets for talent and ability to attract, develop and retain key personnel; exposure to potential security breaches or other disruptions to our information technology environment and data security; political, economic and other risks from operations in numerous countries including political, economic and social uncertainty and the evolving globalization of our business; competitor activity; increasing competition, including increased global competition among our customers in emerging markets; failure to meet environmental, social and governance (ESG) expectations or standards, or achieve our ESG goals; labor relations or work stoppages; foreign currency exchange rate changes; the performance of our pension plan assets and volatility of discount rates; the price and availability of energy; continued availability of financing, financial instruments and financial resources in the amounts, at the times and on the terms required to support our future business; and other risks detailed from time to time in our SEC filings, including particularly in the Risk Factors section of our 2023 Annual Report on Form 10-K and Quarterly Reports on Form 10-Q. Shareholders, potential investors and other readers are urged to consider these factors carefully in evaluating the forward-looking statements and are cautioned not to place undue reliance on such forward-looking statements. The forward-looking statements made herein are made only as of the date of this release and we undertake no obligation to publicly update any forward-looking statements, whether as a result of new information, future events or otherwise. More detailed information about factors that may affect our performance may be found in our filings with the SEC, which are available at http://www.sec.gov or at http://www.cummins.com in the Investor Relations section of our website.
Presentation of Non-GAAP Financial Information
EBITDA is a non-GAAP measure used in this release and is defined and reconciled to what management believes to be the most comparable GAAP measure in a schedule attached to this release, except for forward-looking measures of EBITDA where a reconciliation to the corresponding GAAP measures is not available due to the variability, complexity and limited visibility of the non-cash items that are excluded from the non-GAAP outlook measure. Cummins presents this information as it believes it is useful to understanding the Company's operating performance, and because EBITDA is a measure used internally to assess the performance of the operating units.
Webcast information
Cummins management will host a teleconference to discuss these results today at 10 a.m. EDT. This teleconference will be webcast and available on the Investor Relations section of the Cummins website at www.cummins.com. Participants wishing to view the visuals available with the audio are encouraged to sign-in a few minutes prior to the start of the teleconference.

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CUMMINS INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF NET INCOME
(Unaudited) (a)

Three months ended
 June 30,
In millions, except per share amounts20242023
NET SALES$8,796 $8,638 
Cost of sales6,603 6,490 
GROSS MARGIN 2,193 2,148 
OPERATING EXPENSES AND INCOME   
Selling, general and administrative expenses 828 873 
Research, development and engineering expenses379 384 
Equity, royalty and interest income from investees103 133 
Other operating expense, net44 27 
OPERATING INCOME 1,045 997 
Interest expense109 99 
Other income, net41 51 
INCOME BEFORE INCOME TAXES 977 949 
Income tax expense225 212 
CONSOLIDATED NET INCOME 752 737 
Less: Net income attributable to noncontrolling interests26 17 
NET INCOME ATTRIBUTABLE TO CUMMINS INC. $726 $720 
EARNINGS PER COMMON SHARE ATTRIBUTABLE TO CUMMINS INC. 
Basic $5.30 $5.08 
Diluted $5.26 $5.05 
WEIGHTED-AVERAGE COMMON SHARES OUTSTANDING   
Basic 137.1 141.7 
Diluted 137.9 142.5 
(a)  Prepared on an unaudited basis in accordance with accounting principles generally accepted in the United States of America.








5

CUMMINS INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF NET INCOME
(Unaudited) (a)

Six months ended
June 30,
In millions, except per share amounts20242023
NET SALES$17,199 $17,091 
Cost of sales12,965 12,914 
GROSS MARGIN 4,234 4,177 
OPERATING EXPENSES AND INCOME   
Selling, general and administrative expenses1,667 1,626 
Research, development and engineering expenses748 734 
Equity, royalty and interest income from investees226 252 
Other operating expense, net77 46 
OPERATING INCOME 1,968 2,023 
Interest expense198 186 
Other income, net1,428 141 
INCOME BEFORE INCOME TAXES 3,198 1,978 
Income tax expense418 435 
CONSOLIDATED NET INCOME 2,780 1,543 
Less: Net income attributable to noncontrolling interests61 33 
NET INCOME ATTRIBUTABLE TO CUMMINS INC. $2,719 $1,510 
 
EARNINGS PER COMMON SHARE ATTRIBUTABLE TO CUMMINS INC.  
Basic $19.53 $10.66 
Diluted $19.42 $10.60 
 
WEIGHTED-AVERAGE COMMON SHARES OUTSTANDING
Basic 139.2 141.6 
Diluted 140.0 142.5 
(a)  Prepared on an unaudited basis in accordance with accounting principles generally accepted in the United States of America.


6

CUMMINS INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(Unaudited) (a)
In millions, except par valueJune 30,
2024		December 31,
2023
ASSETS  
Current assets   
Cash and cash equivalents $1,590 $2,179 
Marketable securities593 562 
Total cash, cash equivalents and marketable securities 2,183 2,741 
Accounts and notes receivable, net5,606 5,583 
Inventories5,857 5,677 
Prepaid expenses and other current assets 1,316 1,197 
Total current assets 14,962 15,198 
Long-term assets   
Property, plant and equipment, net6,053 6,249 
Investments and advances related to equity method investees1,828 1,800 
Goodwill2,394 2,499 
Other intangible assets, net2,502 2,519 
Pension assets1,192 1,197 
Other assets2,389 2,543 
Total assets $31,320 $32,005 
LIABILITIES  
Current liabilities   
Accounts payable (principally trade)$4,405 $4,260 
Loans payable329 280 
Commercial paper1,581 1,496 
Current maturities of long-term debt167 118 
Accrued compensation, benefits and retirement costs 801 1,108 
Current portion of accrued product warranty660 667 
Current portion of deferred revenue1,311 1,220 
Other accrued expenses1,890 3,754 
Total current liabilities 11,144 12,903 
Long-term liabilities   
Long-term debt5,426 4,802 
Deferred revenue1,046 966 
Other liabilities3,128 3,430 
Total liabilities $20,744 $22,101 
EQUITY
Cummins Inc. shareholders’ equity  
Common stock, $2.50 par value, 500 shares authorized, 222.5 and 222.5 shares issued $2,582 $2,564 
Retained earnings 20,101 17,851 
Treasury stock, at cost, 85.5 and 80.7 shares
(10,797)(9,359)
Accumulated other comprehensive loss(2,335)(2,206)
Total Cummins Inc. shareholders’ equity 9,551 8,850 
Noncontrolling interests1,025 1,054 
Total equity $10,576 $9,904 
Total liabilities and equity $31,320 $32,005 
(a) Prepared on an unaudited basis in accordance with accounting principles generally accepted in the United States of America.


7

CUMMINS INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited) (a)
 Three months ended
June 30,
In millions20242023
CASH FLOWS FROM OPERATING ACTIVITIES
Consolidated net income $752 $737 
Adjustments to reconcile consolidated net income to net cash (used in) provided by operating activities
Depreciation and amortization263 257 
Deferred income taxes(61)(94)
Equity in income of investees, net of dividends(8)(46)
Pension and OPEB expense10 2 
Pension contributions and OPEB payments(11)(11)
Changes in current assets and liabilities, net of acquisitions
Accounts and notes receivable(150)(14)
Inventories(115)(140)
Other current assets24 5 
Accounts payable(64)(316)
Accrued expenses(1,540)110 
Other, net49 (7)
Net cash (used in) provided by operating activities (851)483 
CASH FLOWS FROM INVESTING ACTIVITIES  
Capital expenditures(240)(221)
Acquisition of businesses, net of cash acquired1 (134)
Investments in marketable securities—acquisitions(334)(322)
Investments in marketable securities—liquidations254 275 
Other, net(81)24 
Net cash used in investing activities(400)(378)
CASH FLOWS FROM FINANCING ACTIVITIES  
Proceeds from borrowings84 694 
Net borrowings (payments) of commercial paper972 (629)
Payments on borrowings and finance lease obligations(475)(86)
Dividend payments on common stock(230)(223)
Other, net(43)4 
Net cash provided by (used in) financing activities308 (240)
EFFECT OF EXCHANGE RATE CHANGES ON CASH AND CASH EQUIVALENTS (8)(43)
Net decrease in cash and cash equivalents(951)(178)
Cash and cash equivalents at beginning of period2,541 1,980 
CASH AND CASH EQUIVALENTS AT END OF PERIOD $1,590 $1,802 
(a)  Prepared on an unaudited basis in accordance with accounting principles generally accepted in the United States of America.
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CUMMINS INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited) (a)

 Six months ended
June 30,
In millions20242023
CASH FLOWS FROM OPERATING ACTIVITIES
Consolidated net income $2,780 $1,543 
Adjustments to reconcile consolidated net income to net cash (used in) provided by operating activities  
Gain related to divestiture of Atmus(1,333)— 
Depreciation and amortization528 503 
Deferred income taxes(99)(132)
Equity in income of investees, net of dividends(86)(113)
Pension and OPEB expense19 3 
Pension contributions and OPEB payments(59)(103)
Changes in current assets and liabilities, net of acquisitions and divestitures
Accounts and notes receivable(161)(635)
Inventories(469)(403)
Other current assets(151)(137)
Accounts payable263 65 
Accrued expenses(1,933)261 
Other, net126 126 
Net cash (used in) provided by operating activities (575)978 
CASH FLOWS FROM INVESTING ACTIVITIES   
Capital expenditures(409)(414)
Acquisition of businesses, net of cash acquired(58)(134)
Investments in marketable securities—acquisitions(713)(648)
Investments in marketable securities—liquidations685 620 
Cash associated with Atmus divestiture (174)— 
Other, net(137)(30)
Net cash used in investing activities(806)(606)
CASH FLOWS FROM FINANCING ACTIVITIES   
Proceeds from borrowings2,482 737 
Net borrowings (payments) of commercial paper85 (658)
Payments on borrowings and finance lease obligations(1,223)(228)
Dividend payments on common stock(469)(445)
Other, net(68)(9)
Net cash provided by (used in) financing activities807 (603)
EFFECT OF EXCHANGE RATE CHANGES ON CASH AND CASH EQUIVALENTS (15)(68)
Net decrease in cash and cash equivalents(589)(299)
Cash and cash equivalents at beginning of year 2,179 2,101 
CASH AND CASH EQUIVALENTS AT END OF PERIOD $1,590 $1,802 
(a)  Prepared on an unaudited basis in accordance with accounting principles generally accepted in the United States of America.
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CUMMINS INC. AND SUBSIDIARIES
SEGMENT INFORMATION
(Unaudited)
REORGANIZATION WITHIN CERTAIN SEGMENTS
Beginning in the second quarter of 2024, we realigned certain businesses within our Components segment to be consistent with how our segment manager now monitors performance. We reorganized the businesses to combine the engine components and software and electronics businesses into the newly formed components and software business. We also renamed our axles and brakes business to “drivetrain and braking systems.” We began reporting results for these changes within our Components segment effective April 1, 2024, and reflected these changes in the historical periods presented. The changes had no impact on our consolidated results. The adjusted prior period balances for the newly combined engine components and software business are shown below:
Components Segment
External sales in 2024, 2023 and 2022 for our Components segment by business, as adjusted, were as follows:
2024
In millionsQ1
Drivetrain and braking systems$1,232 
Emission solutions856 
Components and software300 
Atmus289 
Automated transmission165 
Total sales$2,842 
2023     
In millionsQ1Q2Q3Q4YTD
Drivetrain and braking systems$1,272 $1,249 $1,177 $1,124 $4,822 
Emission solutions939 842 803 841 3,425 
Components and software312 312 289 312 1,225 
Atmus342 341 324 338 1,345 
Automated transmissions178 180 187 169 714 
Total sales$3,043 $2,924 $2,780 $2,784 $11,531 
2022
In millionsYTD
Drivetrain and braking systems$1,879 
Emission solutions3,086 
Components and software1,030 
Atmus1,259 
Automated transmissions593 
Total sales$7,847 
Consolidated sales in 2024, 2023, and 2022 for our Components segment by business, as adjusted, are presented in the segment sales data section below.
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CUMMINS INC. AND SUBSIDIARIES
SEGMENT INFORMATION
(Unaudited)
In millionsComponentsEngineDistributionPower SystemsAcceleraTotal Segments
Intersegment Eliminations (1)
Total
Three months ended June 30, 2024    
External sales$2,518$2,468$2,821$888$101 $8,796$— $8,796
Intersegment sales464683870110 1,866(1,866)—
Total sales2,9823,1512,8291,589111 10,662(1,866)8,796
Research, development and engineering expenses81167146354 379— 379
Equity, royalty and interest income (loss) from investees13482426(8)103— 103
Interest income97113— 30— 30
EBITDA (2)
406445314301(117)1,349(4)1,345
Depreciation and amortization (3)
12161303215 259— 259
EBITDA as a percentage of segment sales13.6 %14.1 %11.1 %18.9 %NM12.7 %15.3 %
Three months ended June 30, 2023
External sales$2,924$2,263$2,576$794$81 $8,638$— $8,638
Intersegment sales501725196634 1,912(1,912)—
Total sales3,4252,9882,5951,45785 10,550(1,912)8,638
Research, development and engineering expenses103148156652 384— 384
Equity, royalty and interest income (loss) from investees24712418(4)133— 133
Interest income77821 25— 25
EBITDA (2)
486
(4)
425299201(114)1,2977 1,304
Depreciation and amortization (3)
12556283215 256— 256
EBITDA as a percentage of segment sales14.2 %14.2 %11.5 %13.8 %NM12.3 %15.1 %
"NM" - not meaningful information
(1) Included intersegment sales, intersegment profit in inventory and unallocated corporate expenses. There were no significant unallocated corporate expenses for the three months ended June 30, 2024 and 2023, except for $5 million of costs associated with the divestiture of Atmus Filtration Technologies Inc. (Atmus) in 2023.
(2) EBITDA is defined as earnings or losses before interest expense, income taxes, depreciation and amortization and noncontrolling interests. We believe EBITDA is a useful measure of our operating performance as it assists investors and debt holders in comparing our performance on a consistent basis without regard to financing methods, capital structure, income taxes or depreciation and amortization methods, which can vary significantly depending upon many factors.
(3) Depreciation and amortization, as shown on a segment basis, excludes the amortization of debt discount and deferred costs included in the Condensed Consolidated Statements of Net Income as interest expense. A portion of depreciation expense is included in research, development and engineering expenses.
(4) Included $18 million of costs associated with the divestiture of Atmus.
11
CUMMINS INC. AND SUBSIDIARIES
SEGMENT INFORMATION
(Unaudited)
In millionsComponentsEngineDistributionPower SystemsAcceleraTotal Segments
Intersegment Eliminations (1)
Total
Six months ended June 30, 2024
External sales$5,360$4,708$5,350$1,596$185 $17,199$— $17,199
Intersegment sales9541,371141,38219 3,740(3,740)—
Total sales6,3146,0795,3642,978204 20,939(3,740)17,199
Research, development and engineering expenses16532128123109 7462 748
Equity, royalty and interest income (loss) from investees391054845(11)226— 226
Interest income1714226— 59— 59
EBITDA (2)
879
(3)
859608538(218)2,6661,251 3,917
Depreciation and amortization (4)
246119616629 521— 521
EBITDA as a percentage of total sales13.9%14.1%11.3 %18.1 %NM12.7 %22.8 %
Six months ended June 30, 2023
External sales$5,967$4,515$4,975$1,473$161 $17,091$— $17,091
Intersegment sales1,0151,459261,3279 3,836(3,836)—
Total sales6,9825,9745,0012,800170 20,927(3,836)17,091
Research, development and engineering expenses19428229129100 734— 734
Equity, royalty and interest income (loss) from investees451364831(8)252— 252
Interest income13101541 43— 43
EBITDA (2)
993
(3)
882634420(208)2,721(56)2,665
Depreciation and amortization (4)
248107566129 501— 501
EBITDA as a percentage of total sales14.2 %14.8 %12.7 %15.0 %NM13.0 %15.6 %
"NM" - not meaningful information
(1) Included intersegment sales, intersegment profit in inventory and unallocated corporate expenses. The six months ended June 30, 2024, included a $1.3 billion gain related to the divestiture of Atmus and $14 million of costs associated with the divestiture of Atmus. The six months ended June 30, 2023, included $11 million of costs associated with the divestiture of Atmus.
(2) EBITDA is defined as earnings or losses before interest expense, income taxes, depreciation and amortization and noncontrolling interests. We believe EBITDA is a useful measure of our operating performance as it assists investors and debt holders in comparing our performance on a consistent basis without regard to financing methods, capital structure, income taxes or depreciation and amortization methods, which can vary significantly depending upon many factors.
(3) Included $21 million and $30 million of costs associated with the divestiture of Atmus for the six months ended June 30, 2024 and 2023, respectively.
(4) Depreciation and amortization, as shown on a segment basis, excluded the amortization of debt discount and deferred costs included in the Condensed Consolidated Statements of Net Income as interest expense. The amortization of debt discount and deferred costs was $7 million and $2 million for the six months ended June 30, 2024 and 2023, respectively. A portion of depreciation expense is included in research, development and engineering expenses.
12

CUMMINS INC. AND SUBSIDIARIES
SELECT FOOTNOTE DATA
(Unaudited)


EQUITY, ROYALTY AND INTEREST INCOME FROM INVESTEES
Equity, royalty and interest income from investees included in our Condensed Consolidated Statements of Net Income for the reporting periods was as follows:
Three months ended
Six months ended
 June 30,June 30,
In millions2024202320242023
Manufacturing entities
Chongqing Cummins Engine Company, Ltd.$21 $13 $36 $22 
Dongfeng Cummins Engine Company, Ltd.15 18 37 37 
Beijing Foton Cummins Engine Co., Ltd.10 9 23 25 
Tata Cummins, Ltd.7 

7 16 

15 
All other manufacturers11 32 34 51 
Distribution entities
Komatsu Cummins Chile, Ltda.14 13 27 27 
All other distributors2 4 7 7 
Cummins share of net income80 96 180 184 
Royalty and interest income23 37 46 68 
Equity, royalty and interest income from investees$103 $133 $226 $252 
INCOME TAXES
Our effective tax rate for 2024 is expected to approximate 24.0 percent, excluding any discrete items that may arise.
Our effective tax rates for the three and six month periods ended June 30, 2024, were 23.0 percent and 13.1 percent, respectively. Our effective tax rates for the three and six months ended June 30, 2023, were 22.3 percent and 22.0 percent, respectively.
The three months ended June 30, 2024, contained favorable discrete tax items of $9 million, or $0.07 per share, primarily due to share-based compensation tax benefits.
The six months ended June 30, 2024, contained favorable discrete tax items primarily due to the $1.3 billion non-taxable gain on the Atmus split-off. Other discrete tax items were $30 million, or $0.21 per share, primarily due to adjustments related to audit settlements and share-based compensation benefits.
The three months ended June 30, 2023, contained net unfavorable discrete tax items of $3 million, or $0.02 per share.
The six months ended June 30, 2023, contained net discrete tax items of zero, as the result of offsetting amounts for the first two quarters, primarily due to share-based compensation tax benefits and other discrete items.
13

CUMMINS INC. AND SUBSIDIARIES
FINANCIAL MEASURES THAT SUPPLEMENT GAAP
(Unaudited)

Reconciliation of Non GAAP measures - Earnings before interest, income taxes, depreciation and amortization and noncontrolling interests (EBITDA)
We believe EBITDA is a useful measure of our operating performance as it assists investors and debt holders in comparing our performance on a consistent basis without regard to financing methods, capital structure, income taxes or depreciation and amortization methods, which can vary significantly depending upon many factors. We believe EBITDA excluding special items is a useful measure of our operating performance without regard to the impact of the gain recognized and costs associated with the divestiture of Atmus and restructuring actions. This statement excludes forward looking measures of EBITDA where a reconciliation to the corresponding accounting principles generally accepted in the United States (GAAP) measures is not available due to the variability, complexity and limited visibility of non-cash items that are excluded from the non-GAAP outlook measure.
EBITDA is not in accordance with, or an alternative for, GAAP and may not be consistent with measures used by other companies. It should be considered supplemental data; however, the amounts included in the EBITDA calculation are derived from amounts included in the Condensed Consolidated Statements of Net Income. Below is a reconciliation of net income attributable to Cummins Inc. to EBITDA for each of the applicable periods:
Three months ended
Six months ended
 June 30,June 30,
In millions2024202320242023
Net income attributable to Cummins Inc.$726 $720 $2,719 $1,510 
Net income attributable to Cummins Inc. as a percentage of net sales8.3 %8.3 %15.8 %8.8 %
Add:
Net income attributable to noncontrolling interests26 17 61 33 
Consolidated net income752 737 2,780 1,543 
Add:
Interest expense109 99 198 186 
Income tax expense225 212 418 435 
Depreciation and amortization259 256 521 501 
EBITDA$1,345 $1,304 $3,917 $2,665 
EBITDA as a percentage of net sales15.3 %15.1 %22.8 %15.6 %
Less:
Gain related to the divestiture of Atmus— — 1,333 — 
Add:
Atmus divestiture costs— 23 35 41 
Restructuring actions— — 29 — 
EBITDA, excluding the impact of gain recognized and costs associated with the divestiture of Atmus and restructuring actions$1,345 $1,327 $2,648 $2,706 
EBITDA, excluding the impact of gain recognized and costs associated with the divestiture of Atmus and restructuring actions, as a percentage of net sales15.3 %15.4 %15.4 %15.8 %
14

CUMMINS INC. AND SUBSIDIARIES
SEGMENT SALES DATA
(Unaudited)
Components Segment Sales by Business
Sales for our Components segment by business, adjusted for the reorganized businesses as noted above, were as follows:
2024     
In millionsQ1Q2Q3Q4YTD
Drivetrain and braking systems$1,232 $1,256 $— $— $2,488 
Emission solutions971 941 — — 1,912 
Components and software611 623 — — 1,234 
Atmus (1)
353 — — — 353 
Automated transmissions165 162 — — 327 
Total sales$3,332 $2,982 $— $— $6,314 
 (1) Included sales through the March 18, 2024, divestiture.
2023     
In millionsQ1Q2Q3Q4YTD
Drivetrain and braking systems$1,272 $1,249 $1,177 $1,124 $4,822 
Emission solutions1,056 964 893 922 3,835 
Components and software633 616 583 577 2,409 
Atmus417 417 396 399 1,629 
Automated transmissions179 179 187 169 714 
Total sales$3,557 $3,425 $3,236 $3,191 $13,409 
2022
In millionsYTD
Drivetrain and braking systems$1,879 
Emission solutions3,494 
Components and software2,213 
Atmus1,557 
Automated transmissions593 
Total sales$9,736 
Engine Segment Sales by Market and Unit Shipments by Engine Classification
Sales for our Engine segment by market were as follows:
2024     
In millionsQ1Q2Q3Q4YTD
Heavy-duty truck$1,059 $1,184 $— $— $2,243 
Medium-duty truck and bus995 1,074 — — 2,069 
Light-duty automotive438 461 — — 899 
Off-highway436 432 — — 868 
Total sales$2,928 $3,151 $— $— $6,079 
2023     
In millionsQ1Q2Q3Q4YTD
Heavy-duty truck$1,114 $1,117 $1,116 $1,052 $4,399 
Medium-duty truck and bus903 942 931 894 3,670 
Light-duty automotive439 445 455 423 1,762 
Off-highway530 484 429 410 1,853 
Total sales$2,986 $2,988 $2,931 $2,779 $11,684 
15



Unit shipments by engine classification (including unit shipments to Power Systems and off-highway engine units included in their respective classification) were as follows:
2024     
UnitsQ1Q2Q3Q4YTD
Heavy-duty33,600 37,500 — — 71,100 
Medium-duty75,800 79,600 — — 155,400 
Light-duty54,800 57,200 — — 112,000 
Total units164,200 174,300 — — 338,500 
2023     
UnitsQ1Q2Q3Q4YTD
Heavy-duty34,700 36,400 36,300 34,500 141,900 
Medium-duty78,900 76,000 71,300 67,900 294,100 
Light-duty55,000 53,600 53,300 49,600 211,500 
Total units168,600 166,000 160,900 152,000 647,500 
Distribution Segment Sales by Product Line
Sales for our Distribution segment by product line were as follows:
2024     
In millionsQ1Q2Q3Q4YTD
Parts$1,001 $990 $— $— $1,991 
Power generation707 954 — — 1,661 
Engines421 437 — — 858 
Service406 448 — — 854 
Total sales$2,535 $2,829 $— $— $5,364 
2023     
In millionsQ1Q2Q3Q4YTD
Parts$1,057 $1,019 $995 $1,000 $4,071 
Power generation492 614 606 797 2,509 
Engines456 531 511 499 1,997 
Service401 431 423 417 1,672 
Total sales$2,406 $2,595 $2,535 $2,713 $10,249 
16



Power Systems Segment Sales by Product Line and Unit Shipments by Engine Classification
Sales for our Power Systems segment by product line were as follows:
2024     
In millionsQ1Q2Q3Q4YTD
Power generation$853 $987 $— $— $1,840 
Industrial420 478 — — 898 
Generator technologies116 124 — — 240 
Total sales$1,389 $1,589 $— $— $2,978 
2023     
In millionsQ1Q2Q3Q4YTD
Power generation$770 $854 $850 $866 $3,340 
Industrial455 468 475 456 1,854 
Generator technologies118 135 119 107 479 
Total sales$1,343 $1,457 $1,444 $1,429 $5,673 
High-horsepower unit shipments by engine classification were as follows:
2024     
UnitsQ1Q2Q3Q4YTD
Power generation3,000 3,700 — — 6,700 
Industrial1,300 1,500 — — 2,800 
Total units4,300 5,200 — — 9,500 
2023     
UnitsQ1Q2Q3Q4YTD
Power generation2,900 3,300 2,800 3,300 12,300 
Industrial1,500 1,600 1,800 1,800 6,700 
Total units4,400 4,900 4,600 5,100 19,000 

17
v3.24.2.u1
DOCUMENT COVER Document
Aug. 01, 2024
Cover [Abstract]  
Document Type 8-K
Document Period End Date Aug. 01, 2024
Entity Registrant Name CUMMINS INC.
Entity Incorporation, State or Country Code IN
Entity File Number 1-4949
Entity Tax Identification Number 35-0257090
Entity Address, Address Line One 500 Jackson Street
Entity Address, Address Line Two P. O. Box 3005
Entity Address, City or Town Columbus
Entity Address, State or Province IN
Entity Address, Postal Zip Code 47202-3005
City Area Code 812
Local Phone Number 377-5000
Written Communications false
Soliciting Material false
Pre-commencement Tender Offer false
Pre-commencement Issuer Tender Offer false
Title of 12(b) Security Common stock, $2.50 par value
Trading Symbol CMI
Security Exchange Name NYSE
Entity Emerging Growth Company false
Entity Central Index Key 0000026172
Amendment Flag false
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