Summary
Cummins Inc. reported a solid financial performance for the second quarter and first half of 2024. Net sales saw a modest increase of 2% for the quarter and 1% for the year-to-date, reaching $8.8 billion and $17.2 billion, respectively. This growth was primarily driven by strong demand in power generation markets and robust performance in North American on-highway truck sectors, partially offset by the divestiture of Atmus Filtration Technologies. Profitability remained strong, with net income attributable to Cummins Inc. increasing by 1% to $726 million for the quarter and a significant 80% to $2.7 billion for the year-to-date. This year-over-year improvement was substantially boosted by a large gain recognized from the Atmus divestiture in the first half of the year, alongside favorable pricing and improved gross margins. Diluted EPS also saw a notable increase, reflecting these positive trends. The company's liquidity remains strong with substantial cash and marketable securities and access to significant credit facilities. Notably, Cummins made a substantial $1.9 billion payment towards the Settlement Agreements related to emissions compliance in the second quarter.
Financial Highlights
54 data points| Revenue | $8.80B |
| Cost of Revenue | $6.60B |
| Gross Profit | $2.19B |
| R&D Expenses | $379.00M |
| SG&A Expenses | $828.00M |
| Operating Income | $1.04B |
| Interest Expense | $109.00M |
| Net Income | $726.00M |
| EPS (Basic) | $5.30 |
| EPS (Diluted) | $5.26 |
| Shares Outstanding (Basic) | 137.10M |
| Shares Outstanding (Diluted) | 137.90M |
Key Highlights
- 1Net sales increased 2% year-over-year to $8.8 billion for Q2 2024 and 1% to $17.2 billion for the first half of 2024.
- 2Net income attributable to Cummins Inc. rose 1% to $726 million for Q2 2024 and a significant 80% to $2.7 billion for the first half, largely due to the Atmus divestiture gain.
- 3Diluted EPS increased to $5.26 for Q2 2024 and $19.42 for the first half, up from $5.05 and $10.60 in the prior year periods.
- 4The company made a substantial $1.9 billion payment in Q2 2024 related to the emissions-related Settlement Agreements.
- 5Total debt as a percentage of total capital increased slightly to 41.5% from 40.3% at year-end 2023.
- 6The company declared an 8% increase in its quarterly dividend, from $1.68 to $1.82 per share.
- 7Cash flow from operations was negative $575 million for the first half of 2024, a decrease from positive $978 million in the prior year, impacted by working capital requirements and the Settlement Agreement payments.