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Aug 5, 11:06 AM
Cummins Beats Estimates as Data-Center Power Demand Lifts Q2 Results
Company Earnings
Stocks
Business

Cummins Beats Estimates as Data-Center Power Demand Lifts Q2 Results

Authors
  • Open Outcrier
  • Markets Today
  • Markets News
5

Cummins Inc. reported second-quarter revenue of $8.6 billion and earnings of $6.43 a share, topping analyst estimates as robust demand for power-generation equipment offset weakness in the North American truck market. Net income rose to $890 million from $726 million a year earlier, sending the stock up roughly 4% in pre-market trading. Sales in the Power Systems division climbed 19% to $1.89 billion, driven by orders from data-center and other mission-critical customers. While overall revenue slipped 2% from the prior year, international sales increased 5%, cushioning a 6% decline in North America. EBITDA expanded to $1.6 billion, and the company cited record profitability in the Power Systems and Distribution segments. Cummins said it is not reinstating its full-year revenue and profit forecast, which was withdrawn last quarter, pointing to persistent economic uncertainty and uneven demand across key end markets. Management highlighted continued momentum in power systems but noted softer conditions in trucking and other cyclical businesses.

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