0000026172false00000261722024-11-052024-11-05

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:  November 5, 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 November 5, 2024, Cummins Inc. (“Cummins,” “the Company,” “the registrant,” “we,” “our,” or “us”) issued the attached press release reporting its financial results for the third 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: November 5, 2024

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




EXHIBIT 99

earningsreleasea06a.jpg
November 5, 2024

Cummins Reports Strong Third Quarter 2024 Results

•Third quarter revenues of $8.5 billion; GAAP1 Net Income of $809 million, or 9.6% of sales
•EBITDA in the third quarter was 16.4% of sales; Diluted EPS of $5.86
•The company is maintaining its full year 2024 revenue guidance of down 3% to flat.
•EBITDA is now expected to be approximately 15.5% compared to previous guidance of 15.0% to 15.5%.

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

“We achieved strong sales and profitability in the third quarter, led by improvement in our Power Systems and Distribution businesses, and have adjusted our full year projection for EBITDA percentage to be at the top end of the prior range,” said Jennifer Rumsey, Chair and CEO of Cummins. “We continue to advance our Destination Zero strategy as we deliver innovative technologies for our customers, strengthen our position in key markets and drive improvement in our financial performance.”

Third quarter revenues of $8.5 billion were flat to the same quarter in 2023. Sales in North America decreased 1% while international revenues increased 2%.

Net income attributable to Cummins in the third quarter was $809 million, or $5.86 per diluted share, compared to $656 million, or $4.59 per diluted share, in 2023. The tax rate in the third quarter was 19.2% including $36 million, or $0.26 per diluted share, of favorable discrete tax items. The third quarter of 2023 included costs related to the separation of Atmus of $26 million, or $0.14 per diluted share.

Earnings before interest, taxes, depreciation and amortization (EBITDA) in the third quarter were $1.4 billion, or 16.4% of sales, compared to $1.2 billion, or 14.6% of sales, a year ago. EBITDA for the third quarter of 2023 included the costs related to the separation of Atmus noted above.

2024 Outlook:

Based on its current forecast, Cummins is maintaining its full-year 2024 revenue guidance to be in the range of down 3% to flat. EBITDA is expected to be approximately 15.5%; at the top end of the previous guidance of 15.0% 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.

“We solidified our expectations on profitability for 2024 to the top end of our prior range thanks to continued improvements in Power Systems and Distribution segments. Although we faced slowing demand in the North American heavy-duty truck market during the third quarter and anticipate this trend to persist into the fourth quarter, Cummins remains well-positioned to deliver strong financial performance, invest in future growth and
1

return cash to shareholders,” said Rumsey.

Third Quarter 2024 Highlights:

•Cummins increased its 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.

•Cummins started full production of the X15N™ natural gas engine at its Jamestown Engine Plant, which celebrated its 50th anniversary in the third quarter. The Cummins X15N is part of the X-series Cummins’ HELM™ lineup, a global engine platform that is derived from a common base and offers multiple fuel types including natural gas, advanced diesel and hydrogen.

•Cummins attended IAA Transportation 2024 in Hannover, Germany, to showcase a diverse portfolio of powertrain and component technologies as part of the company’s Destination Zero strategy to progress industry decarbonization. Highlighted products at the booth included Euro-7 ready X10 and the X15H hydrogen internal combustion engines, a hydrogen fuel cell engine, next-generation lithium iron phosphate battery solutions, eAxles, eTurbocharger, eCompressor and hydrogen fuel storage solutions, as well as fully integrated powertrains.

•Accelera™ by Cummins celebrated the opening of its new electrolyzer manufacturing plant in Guadalajara, Castilla-La Mancha, Spain. The plant has the capacity to produce 500 megawatts (MW) of electrolyzers per year, scalable to more than 1 gigawatt (GW) per year in the future.

•Cummins was recognized as one of the 2024 100 Best Companies by Seramount, an organization focused on empowering inclusive workplaces; named a Veteran Friendly Employer by U.S. Veterans Magazine; and ranked #55 on Glassdoor’s Best Places to Work in 2024.

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

Components Segment

•Sales - $2.7 billion, down 16%
•Segment EBITDA - $351 million, or 12.9% of sales compared to $441 million, or 13.6% of sales, which included the operating results of the Atmus business and $20 million of costs related to its separation
•Revenues in North America decreased by 14% and international sales decreased by 18% primarily due to the separation of Atmus and lower demand in heavy-duty truck.

Engine Segment

•Sales - $2.9 billion, down 1%
•Segment EBITDA - $427 million, or 14.7% of sales, compared to $395 million, or 13.5% of sales
•Revenues decreased 2% in North America and increased 4% in international markets due to softening demand in the North American heavy-duty truck market and strength in global medium-duty truck markets.

Distribution Segment

•Sales - $3.0 billion, up 16%
•Segment EBITDA - $370 million, or 12.5% of sales, compared to $306 million, or 12.1% of sales
•Revenues in North America increased 13% and international sales increased by 25% driven by increased demand for power generation products, particularly for data center applications, and pricing actions.

2

Power Systems Segment

•Sales - $1.7 billion, up 17%
•Segment EBITDA - $328 million, or 19.4% of sales, compared to $234 million, or 16.2% of sales
•Power generation revenues increased 24% driven by increased global demand, particularly for the data center market. Industrial revenues increased 7% primarily due to strong mining demand more than offsetting weaker oil and gas markets.

Accelera Segment

•Sales - $110 million, up 7%
•Segment EBITDA loss - $115 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 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
3

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.

4

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

Three months ended
 September 30,
In millions, except per share amounts20242023
NET SALES$8,456 $8,431 
Cost of sales6,285 6,360 
GROSS MARGIN 2,171 2,071 
OPERATING EXPENSES AND INCOME   
Selling, general and administrative expenses 807 831 
Research, development and engineering expenses359 376 
Equity, royalty and interest income from investees99 118 
Other operating expense, net54 32 
OPERATING INCOME 1,050 950 
Interest expense83 97 
Other income, net76 25 
INCOME BEFORE INCOME TAXES 1,043 878 
Income tax expense200 188 
CONSOLIDATED NET INCOME 843 690 
Less: Net income attributable to noncontrolling interests34 34 
NET INCOME ATTRIBUTABLE TO CUMMINS INC. $809 $656 
EARNINGS PER COMMON SHARE ATTRIBUTABLE TO CUMMINS INC. 
Basic $5.90 $4.63 
Diluted $5.86 $4.59 
WEIGHTED-AVERAGE COMMON SHARES OUTSTANDING   
Basic 137.2 141.8 
Diluted 138.1 142.8 
(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)

Nine months ended
September 30,
In millions, except per share amounts20242023
NET SALES$25,655 $25,522 
Cost of sales19,250 19,274 
GROSS MARGIN 6,405 6,248 
OPERATING EXPENSES AND INCOME   
Selling, general and administrative expenses2,474 2,457 
Research, development and engineering expenses1,107 1,110 
Equity, royalty and interest income from investees325 370 
Other operating expense, net131 78 
OPERATING INCOME 3,018 2,973 
Interest expense281 283 
Other income, net1,504 166 
INCOME BEFORE INCOME TAXES 4,241 2,856 
Income tax expense618 623 
CONSOLIDATED NET INCOME 3,623 2,233 
Less: Net income attributable to noncontrolling interests95 67 
NET INCOME ATTRIBUTABLE TO CUMMINS INC. $3,528 $2,166 
 
EARNINGS PER COMMON SHARE ATTRIBUTABLE TO CUMMINS INC.  
Basic $25.47 $15.29 
Diluted $25.31 $15.19 
 
WEIGHTED-AVERAGE COMMON SHARES OUTSTANDING
Basic 138.5 141.7 
Diluted 139.4 142.6 
(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 valueSeptember 30,
2024		December 31,
2023
ASSETS  
Current assets   
Cash and cash equivalents $1,733 $2,179 
Marketable securities518 562 
Total cash, cash equivalents and marketable securities 2,251 2,741 
Accounts and notes receivable, net5,387 5,583 
Inventories6,134 5,677 
Prepaid expenses and other current assets 1,544 1,197 
Total current assets 15,316 15,198 
Long-term assets   
Property, plant and equipment, net6,176 6,249 
Investments and advances related to equity method investees1,922 1,800 
Goodwill2,412 2,499 
Other intangible assets, net2,462 2,519 
Pension assets1,208 1,197 
Other assets2,556 2,543 
Total assets $32,052 $32,005 
LIABILITIES  
Current liabilities   
Accounts payable (principally trade)$4,206 $4,260 
Loans payable441 280 
Commercial paper1,636 1,496 
Current maturities of long-term debt654 118 
Accrued compensation, benefits and retirement costs 1,011 1,108 
Current portion of accrued product warranty685 667 
Current portion of deferred revenue1,225 1,220 
Other accrued expenses1,745 3,754 
Total current liabilities 11,603 12,903 
Long-term liabilities   
Long-term debt4,856 4,802 
Deferred revenue1,090 966 
Other liabilities3,162 3,430 
Total liabilities $20,711 $22,101 
EQUITY
Cummins Inc. shareholders’ equity  
Common stock, $2.50 par value, 500 shares authorized, 222.5 and 222.5 shares issued $2,612 $2,564 
Retained earnings 20,660 17,851 
Treasury stock, at cost, 85.4 and 80.7 shares
(10,783)(9,359)
Accumulated other comprehensive loss(2,174)(2,206)
Total Cummins Inc. shareholders’ equity 10,315 8,850 
Noncontrolling interests1,026 1,054 
Total equity $11,341 $9,904 
Total liabilities and equity $32,052 $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
September 30,
In millions20242023
CASH FLOWS FROM OPERATING ACTIVITIES
Consolidated net income $843 $690 
Adjustments to reconcile consolidated net income to net cash provided by operating activities
Depreciation and amortization266 257 
Deferred income taxes(7)(106)
Equity in income of investees, net of dividends12 13 
Pension and OPEB expense9 1 
Pension contributions and OPEB payments(13)(12)
Changes in current assets and liabilities, net of acquisitions
Accounts and notes receivable270 188 
Inventories(257)85 
Other current assets(219)(54)
Accounts payable(236)(22)
Accrued expenses(67)282 
Other, net39 207 
Net cash provided by operating activities 640 1,529 
CASH FLOWS FROM INVESTING ACTIVITIES  
Capital expenditures(259)(280)
Acquisition of businesses, net of cash acquired— 7 
Investments in marketable securities—acquisitions(349)(328)
Investments in marketable securities—liquidations428 382 
Other, net(83)(35)
Net cash used in investing activities(263)(254)
CASH FLOWS FROM FINANCING ACTIVITIES  
Proceeds from borrowings141 42 
Net borrowings of commercial paper55 92 
Payments on borrowings and finance lease obligations(163)(163)
Dividend payments on common stock(250)(238)
Payments for purchase of redeemable noncontrolling interests— (175)
Other, net(26)(24)
Net cash used in financing activities(243)(466)
EFFECT OF EXCHANGE RATE CHANGES ON CASH AND CASH EQUIVALENTS 9 1 
Net increase in cash and cash equivalents143 810 
Cash and cash equivalents at beginning of period1,590 1,802 
CASH AND CASH EQUIVALENTS AT END OF PERIOD $1,733 $2,612 
(a)  Prepared on an unaudited basis in accordance with accounting principles generally accepted in the United States of America.
8

CUMMINS INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited) (a)

 Nine months ended
September 30,
In millions20242023
CASH FLOWS FROM OPERATING ACTIVITIES
Consolidated net income $3,623 $2,233 
Adjustments to reconcile consolidated net income to net cash provided by operating activities  
Gain related to divestiture of Atmus(1,333)— 
Depreciation and amortization794 760 
Deferred income taxes(106)(238)
Equity in income of investees, net of dividends(74)(100)
Pension and OPEB expense28 4 
Pension contributions and OPEB payments(72)(115)
Changes in current assets and liabilities, net of acquisitions and divestiture
Accounts and notes receivable109 (447)
Inventories(726)(318)
Other current assets(370)(191)
Accounts payable27 43 
Accrued expenses(2,000)543 
Other, net165 333 
Net cash provided by operating activities 65 2,507 
CASH FLOWS FROM INVESTING ACTIVITIES   
Capital expenditures(668)(694)
Acquisition of businesses, net of cash acquired(58)(127)
Investments in marketable securities—acquisitions(1,062)(976)
Investments in marketable securities—liquidations1,113 1,002 
Cash associated with Atmus divestiture (174)— 
Other, net(220)(65)
Net cash used in investing activities(1,069)(860)
CASH FLOWS FROM FINANCING ACTIVITIES   
Proceeds from borrowings2,623 779 
Net borrowings (payments) of commercial paper140 (566)
Payments on borrowings and finance lease obligations(1,386)(391)
Dividend payments on common stock(719)(683)
Payments for purchase of redeemable noncontrolling interests— (175)
Other, net(94)(33)
Net cash provided by (used in) financing activities564 (1,069)
EFFECT OF EXCHANGE RATE CHANGES ON CASH AND CASH EQUIVALENTS (6)(67)
Net (decrease) increase in cash and cash equivalents(446)511 
Cash and cash equivalents at beginning of year 2,179 2,101 
CASH AND CASH EQUIVALENTS AT END OF PERIOD $1,733 $2,612 
(a)  Prepared on an unaudited basis in accordance with accounting principles generally accepted in the United States of America.
9

CUMMINS INC. AND SUBSIDIARIES
SEGMENT INFORMATION
(Unaudited)
In millionsComponentsEngineDistributionPower SystemsAcceleraTotal Segments
Intersegment Eliminations (1)
Total
Three months ended September 30, 2024    
External sales$2,287$2,215$2,942$912$100 $8,456$— $8,456
Intersegment sales4376981077510 1,930(1,930)—
Total sales2,7242,9132,9521,687110 10,386(1,930)8,456
Research, development and engineering expenses85147135757 359— 359
Equity, royalty and interest income (loss) from investees12532520(11)99— 99
Interest income4271— 14— 14
EBITDA (2)
351427370328(115)1,36128 1,389
Depreciation and amortization (3)
12162313316 263— 263
EBITDA as a percentage of segment sales12.9 %14.7 %12.5 %19.4 %NM13.1 %16.4 %
Three months ended September 30, 2023
External sales$2,780$2,236$2,519$798$98 $8,431$— $8,431
Intersegment sales456695166465 1,818(1,818)—
Total sales3,2362,9312,5351,444103 10,249(1,818)8,431
Research, development and engineering expenses93159146050 376— 376
Equity, royalty and interest income (loss) from investees26622211(3)118— 118
Interest income8493— 24— 24
EBITDA (2)
441
(4)
395306234(114)1,262(32)1,230
Depreciation and amortization (3)
12059283018 255— 255
EBITDA as a percentage of segment sales13.6 %13.5 %12.1 %16.2 %NM12.3 %14.6 %
"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 September 30, 2024 and 2023, except for $6 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 $20 million of costs associated with the divestiture of Atmus.
10
CUMMINS INC. AND SUBSIDIARIES
SEGMENT INFORMATION
(Unaudited)
In millionsComponentsEngineDistributionPower SystemsAcceleraTotal Segments
Intersegment Eliminations (1)
Total
Nine months ended September 30, 2024
External sales$7,647$6,923$8,292$2,508$285 $25,655$— $25,655
Intersegment sales1,3912,069242,15729 5,670(5,670)—
Total sales9,0388,9928,3164,665314 31,325(5,670)25,655
Research, development and engineering expenses25046841180166 1,1052 1,107
Equity, royalty and interest income (loss) from investees511587365(22)325— 325
Interest income2116297— 73— 73
EBITDA (2)
1,230
(3)
1,286978866(333)4,0271,279 5,306
Depreciation and amortization (4)
367181929945 784— 784
EBITDA as a percentage of total sales13.6%14.3%11.8 %18.6 %NM12.9 %20.7 %
Nine months ended September 30, 2023
External sales$8,747$6,751$7,494$2,271$259 $25,522$— $25,522
Intersegment sales1,4712,154421,97314 5,654(5,654)—
Total sales10,2188,9057,5364,244273 31,176(5,654)25,522
Research, development and engineering expenses28744143189150 1,110— 1,110
Equity, royalty and interest income (loss) from investees711987042(11)370— 370
Interest income21142471 67— 67
EBITDA (2)
1,434
(3)
1,277940654(322)3,983(88)3,895
Depreciation and amortization (4)
368166849147 756— 756
EBITDA as a percentage of total sales14.0 %14.3 %12.5 %15.4 %NM12.8 %15.3 %
"NM" - not meaningful information
(1) Included intersegment sales, intersegment profit in inventory and unallocated corporate expenses. The nine months ended September 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 nine months ended September 30, 2023, included $17 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 $50 million of costs associated with the divestiture of Atmus for the nine months ended September 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 $10 million and $4 million for the nine months ended September 30, 2024 and 2023, respectively. A portion of depreciation expense is included in research, development and engineering expenses.
11

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
Nine months ended
 September 30,September 30,
In millions2024202320242023
Manufacturing entities
Chongqing Cummins Engine Company, Ltd.$15 $7 $51 $29 
Dongfeng Cummins Engine Company, Ltd.14 15 51 52 
Beijing Foton Cummins Engine Co., Ltd.6 8 29 33 
Tata Cummins, Ltd.6 

6 22 

21 
All other manufacturers7 18 41 69 
Distribution entities
Komatsu Cummins Chile, Ltda.15 13 42 40 
All other distributors3 3 10 10 
Cummins share of net income66 70 246 254 
Royalty and interest income33 48 79 116 
Equity, royalty and interest income from investees$99 $118 $325 $370 
INCOME TAXES
Our effective tax rate for 2024, excluding discrete items, is expected to approximate 23.5 percent.
Our effective tax rates for the three and nine month periods ended September 30, 2024, were 19.2 percent and 14.6 percent, respectively. Our effective tax rates for the three and nine months ended September 30, 2023, were 21.4 percent and 21.8 percent, respectively.
The three months ended September 30, 2024, contained net favorable discrete tax items of $36 million, or $0.26 per share, primarily due to $20 million of favorable adjustments from tax return amendments, $15 million of favorable return to provision adjustments and $2 million of favorable share-based compensation tax benefits, partially offset by $1 million of other unfavorable adjustments.
The nine months ended September 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 net favorable by $66 million, or $0.47 per share, primarily due to $21 million of favorable adjustments related to audit settlements, $20 million of favorable adjustments from tax return amendments, $18 million of favorable return to provision adjustments and $17 million of favorable share-based compensation tax benefits, partially offset by $7 million of unfavorable adjustments for uncertain tax positions and $3 million of other unfavorable adjustments.
The three months ended September 30, 2023, contained net favorable discrete tax items of $5 million, or $0.03 per share, primarily due to $13 million of favorable return to provision adjustments and $1 million of favorable share-based compensation tax benefits, partially offset by $9 million of unfavorable adjustments for uncertain tax positions.
The nine months ended September 30, 2023, contained net favorable discrete tax items of $5 million, or $0.03 per share, primarily due to $15 million of favorable return to provision adjustments and $5 million of favorable share-based compensation tax benefits, partially offset by $11 million of unfavorable adjustments for uncertain tax positions and $4 million of other unfavorable adjustments.
12

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
Nine months ended
 September 30,September 30,
In millions2024202320242023
Net income attributable to Cummins Inc.$809 $656 $3,528 $2,166 
Net income attributable to Cummins Inc. as a percentage of net sales9.6 %7.8 %13.8 %8.5 %
Add:
Net income attributable to noncontrolling interests34 34 95 67 
Consolidated net income843 690 3,623 2,233 
Add:
Interest expense83 97 281 283 
Income tax expense200 188 618 623 
Depreciation and amortization263 255 784 756 
EBITDA$1,389 $1,230 $5,306 $3,895 
EBITDA as a percentage of net sales16.4 %14.6 %20.7 %15.3 %
Less:
Gain related to the divestiture of Atmus— — 1,333 — 
Add:
Atmus divestiture costs— 26 35 67 
Restructuring actions— — 29 — 
EBITDA, excluding the impact of gain recognized and costs associated with the divestiture of Atmus and restructuring actions$1,389 $1,256 $4,037 $3,962 
EBITDA, excluding the impact of gain recognized and costs associated with the divestiture of Atmus and restructuring actions, as a percentage of net sales16.4 %14.9 %15.7 %15.5 %
13

CUMMINS INC. AND SUBSIDIARIES
SEGMENT SALES DATA
(Unaudited)
Components Segment Sales by Business
Sales for our Components segment by business were as follows:
2024     
In millionsQ1Q2Q3Q4YTD
Drivetrain and braking systems$1,232 $1,256 $1,131 $— $3,619 
Emission solutions971 941 864 — 2,776 
Components and software611 623 581 — 1,815 
Atmus (1)
353 — — — 353 
Automated transmissions165 162 148 — 475 
Total sales$3,332 $2,982 $2,724 $— $9,038 
 (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 
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 $1,021 $— $3,264 
Medium-duty truck and bus995 1,074 1,073 — 3,142 
Light-duty automotive438 461 395 — 1,294 
Off-highway436 432 424 — 1,292 
Total sales$2,928 $3,151 $2,913 $— $8,992 
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 
14



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 32,400 — 103,500 
Medium-duty75,800 79,600 79,200 — 234,600 
Light-duty54,800 57,200 41,400 — 153,400 
Total units164,200 174,300 153,000 — 491,500 
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 $1,004 $— $2,995 
Power generation707 954 1,091 — 2,752 
Engines421 437 402 — 1,260 
Service406 448 455 — 1,309 
Total sales$2,535 $2,829 $2,952 $— $8,316 
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 
15



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 $1,055 $— $2,895 
Industrial420 478 508 — 1,406 
Generator technologies116 124 124 — 364 
Total sales$1,389 $1,589 $1,687 $— $4,665 
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 2,900 — 9,600 
Industrial1,300 1,500 1,700 — 4,500 
Total units4,300 5,200 4,600 — 14,100 
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 

16
v3.24.3
DOCUMENT COVER Document
Nov. 05, 2024
Cover [Abstract]  
Document Type 8-K
Document Period End Date Nov. 05, 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
Grafico Azioni Cummins (NYSE:CMI)
Storico
Da Nov 2024 a Dic 2024 Clicca qui per i Grafici di Cummins
Grafico Azioni Cummins (NYSE:CMI)
Storico
Da Dic 2023 a Dic 2024 Clicca qui per i Grafici di Cummins