Cummins Inc Reports Strong Q3 Results

(Reuters) – Cummins Inc (NYSE:CMI) beat third-quarter profit estimates on Tuesday, driven by robust demand for its power generation products from data centers. This led to a more than 4% increase in the company's shares in pre-market trading.

Rising demand from the energy-intensive AI data centers in the technology industry has positively impacted power solution providers in recent quarters.

The Indiana-based company experienced double-digit revenue growth in its Distribution segment, which wholesales power generation products and provides repair services, as well as in its Power Systems segment, which designs and sells engines for industrial applications.

This strong performance helped offset declines in the Components and Engine segments due to weakness in the North American heavy-duty truck market, where Cummins supplies engines and parts.

The company anticipates this trend will continue into the fourth quarter.

Cummins reported third-quarter revenue of $8.45 billion, exceeding analysts' estimates of $8.30 billion, according to data compiled by LSEG. The company's third-quarter earnings per share were $5.86, surpassing analysts' average estimates of $4.80 per share. Core earnings, or EBITDA, amounted to $1.4 billion, or 16.4% of sales, compared to $1.2 billion, or 14.6% of sales, from the previous year.