NEW YORK – Engine maker Cummins Inc (NYSE:) reported better-than-expected third quarter results on Tuesday, as strong demand in its power systems and distribution businesses offset softness in the North American heavy-duty truck market.
The company maintained its full-year revenue guidance but raised its profitability outlook.
The company’s shares edged up 1% in premarket trading following the earnings release.
Cummins posted Q3 adjusted earnings per share of $5.86, handily beating analyst estimates of $4.82. Revenue came in at $8.5 billion, topping expectations of $8.29 billion and flat compared to the same quarter last year.
“We achieved strong sales and profitability in the third quarter, led by improvement in our Power Systems and Distribution businesses,” said Jennifer Rumsey, Chair and CEO of Cummins.
The company maintained its full-year 2024 revenue guidance of down 3% to flat compared to 2023. However, Cummins now expects full-year EBITDA to be approximately 15.5% of sales, at the top end of its previous 15.0% to 15.5% guidance range.
Cummins noted slowing demand in the North American heavy-duty truck market during Q3, which it expects to persist into Q4. However, this was offset by strength in global medium-duty truck markets and increased demand for power generation products, particularly for data center applications.
“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,” Rumsey added.
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