Updated

Updated · investor.cummins.com · Aug 4

Cummins Posts Record $9.5 Billion Q2 Revenue, Raises 2026 Sales Growth Outlook to 10%-13%

Updated

Updated · investor.cummins.com · Aug 4

Cummins Posts Record $9.5 Billion Q2 Revenue, Raises 2026 Sales Growth Outlook to 10%-13%

Q: Despite record profits from traditional segments, when will Cummins' rapidly growing but loss-making Accelera division finally achieve profitability?

Cummins has not given a firm date for Accelera to turn profitable, and the latest disclosures suggest it is still a medium-term goal rather than something expected in 2026. The clearest signal from management is that Accelera is being reshaped to reduce losses, not yet to deliver near-term profit. In the first quarter, Cummins said it sold its low-pressure fuel cell business because hydrogen adoption is slower than previously expected, and it described the move as part of a plan to “focus investments and reduce losses” in Accelera. In the second quarter, Accelera revenue rose 38% to $145 million, but the segment remained in loss. That implies the business is improving operationally, but it is still in investment mode. Cummins is prioritizing battery-electric powertrains, electrolyzers and selected zero-emission technologies while trimming weaker or slower-maturing hydrogen bets. Analysts following the company have likewise framed 2026 as a year of cost reduction and strategic repositioning for Accelera, with profitability still ahead rather than imminent. Based on the current evidence, the most defensible answer is that Accelera is unlikely to become profitable in 2026 and may not do so until later in the decade, depending on adoption rates for hydrogen and electric commercial-vehicle technologies. Cummins has pointed to reduced losses as the near-term milestone; it has not publicly committed to a specific breakeven year.

3 articles · Updated · investor.cummins.com · Aug 4

$9.5 billion in second-quarter revenue marked a 9% year-over-year increase for Cummins, while net income rose to $932 million and diluted EPS to $6.73.
10%-13% full-year revenue growth is now forecast, up from 8%-11%, with EBITDA guidance lifted to 18.0%-18.5% as demand outpaced expectations in North American trucks, China construction and power generation.
Data center power was a major driver: Power Systems sales jumped 19% to $2.3 billion and Distribution revenue climbed 9% to $3.3 billion, both helped by strong power-generation demand in the U.S., China and Asia Pacific.
17.5% second-quarter EBITDA margin trailed 18.4% a year earlier, largely because higher incentive compensation was tied to expected record full-year results; Cummins said margins should improve in the second half.
$501 million was returned to shareholders through dividends and buybacks in the quarter, and the company raised its quarterly dividend to $2.20 a share from $2.00.