Cummins posts 8% revenue growth in Q2 and reiterates FY22 outlook

Cummins posts 8% revenue growth in Q2 and reiterates FY22 outlook


  • Cummins Inc. CMI reported Second quarter revenue grew 7.8% year over year to $6.59 billionwhich beats the consensus of $6.48 billion.
  • Earnings per share were $4.94 versus $4.10 a year ago.
  • North America sales were up 15%, while international sales were down 2% year over year, primarily due to a slowdown in China and the indefinite suspension of operations in Russia.
  • Revenue by Segment: Engine $2.8B (+11% Y/Y), Distribution $2.3B (+17% Y/Y), Components $2B (-2% Y/Y), Power Systems $1.2 billion (+5% Y/Y) and New Power $42 million (+75% Y/Y).
  • Gross margin increased 202 basis points to 26.2%. Operating income was $897 million (+22% Y/Y) and margin increased 160 basis points to 13.6%.
  • Cummins generated year-to-date operating cash flow of $763 million, compared to $955 million a year ago.
  • EBITDA was $1.06 billion compared to $974 million in Q2 21 and margin increased 10 basis points to 16%.
  • “High inflation and rising interest rates around the world have increased uncertainty about the pace of global economic growth. Demand for Cummins products and services remains strong and as a result we have maintained our full year sales and profitability guidance from three months ago. We are monitoring economic conditions remain accurate and will adjust our operating plans should the outlook for our core markets weaken,” commented Jennifer Rumsey, President and CEO.
  • also read: Cummins gets its first female CEO – Read more for details
  • Outlook for FY22, confirmed: Cummins expects revenue to increase by 8% and EBITDA to be ~15.5%.
  • The company plans to return ~50% of operating cash flow to shareholders in the form of dividends and share buybacks.
  • Price promotion: CMI shares are trading up 1.91% at $222.01 on the latest check Tuesday.


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