Cummins Q2: Record $9.5B Revenues, EBITDA 17.5% of Net Sales

Why It Matters

The quarter was the biggest Cummins has reported and its EBITDA share of sales still fell. Revenues set a second-quarter record at $9,457 million, up from $8,643 million, while EBITDA was 17.5% of net sales against 18.4% a year earlier. The release does not leave the reason to the reader. The decline was “primarily due to higher incentive compensation, tied to expected record full year results,” it says. The same paragraph adds that the percentage is expected to be higher in the second half and full year 2026 than in 2025. Profit itself rose, with net income attributable to Cummins Inc. at $932 million against $890 million.

The three-month segment table shows where the compression sits and where it does not. For the quarter ended June 30, Engine’s EBITDA as a percentage of segment sales fell to 12.5% from 13.8%, Components to 13.2% from 14.7% and Distribution to 13.6% from 14.6%. Power Systems moved the other way, to 24.5% from 22.8%. It is the only one of the four segments carrying a stated percentage that widened, and Accelera’s is reported as not meaningful.

Power Systems also carried the segment EBITDA growth. Its EBITDA rose $122 million. Engine and Components together gave back $30 million, Distribution added $6 million and Accelera’s loss narrowed by $31 million, for a net $129 million across the five segments. A $63 million swing in intersegment eliminations then left consolidated EBITDA up $66 million.

Power Systems EBITDA reached 24.5% of segment sales in the June quarter

“Cummins delivered record second-quarter results, reflecting robust customer orders for standby power for data centers and improving North American truck markets,” Chair and Chief Executive Jennifer Rumsey said in the release. Power Systems sales rose 19% to $2,255 million and its EBITDA rose to $552 million from $430 million. Inside the segment, the power generation product line reached $1,536 million against $1,205 million a year earlier, a 27.5% increase and the largest of the six quarters the release prints. Power Systems produced $552 million of the $1,701 million of Total Segments EBITDA, or 32.5% of it, on 19.3% of total segment sales including intersegment sales.

The release credits demand “particularly for data center markets in the United States, China and Asia Pacific” for the segment’s 19% North American and 19% international revenue growth. Distribution is the second segment the release ties to that end market. Its note credits demand for power generation products “particularly for data center applications” for Distribution’s 13% North American revenue growth. That segment’s own power generation line rose to $1,378 million from $1,200 million.

Data center power has been a recurring line in the filings we have covered this fortnight. It ran through Baker Hughes’s gas equipment orders in late July and GE Vernova’s raised 2026 outlook before that. Each of those rests on its own filing. Readers who want the demand side can start with the data center build-out we mapped separately.

One item in the release points past this quarter entirely. Cummins names a June agreement with Circe Energy to supply natural gas generator sets on the HSK78 and QSK60 platforms. They will serve a behind-the-meter, prime power microgrid at a high-performance computing data center in Texas, with deliveries scheduled from 2026 through 2030. The release describes that arrangement as prime power, a different category from the standby power orders quoted above.

Heavy-duty truck sales fell year over year to $968 million

The Engine sales table splits the second half of that quotation. The release prints four product tables, for Engine, Components, Distribution and Power Systems. Fifteen lines moved year over year and exactly one fell: heavy-duty truck, to $968 million from $976 million. Medium-duty truck and bus rose to $1,030 million from $950 million, off-highway to $595 million from $487 million and light-duty automotive to $491 million from $486 million.

Engine as a whole grew 6% to $3,084 million. North American revenue in the segment rose 1% while international sales rose 23%, and the release attributes that international growth to stronger construction demand in China. The release also reports total engine shipments of 30,100 heavy-duty units in the quarter against 29,600, and 86,100 medium-duty units against 73,400, a count that covers on-highway and off-highway engines together.

June-quarter net cash from operations nearly doubled to $1,499 million

Net cash provided by operating activities reached $1,499 million in the quarter against $785 million a year earlier, and $1,808 million for the six months against $782 million. Cash and equivalents ended June at $3,179 million. Cummins returned $501 million to shareholders during the quarter in cash dividends and share repurchases, which the cash flow statement splits as $276 million and $225 million. It raised the quarterly dividend to $2.20 a share from $2.00, the seventeenth consecutive annual increase.

The six-month figures carry a charge the quarter does not. Net income attributable to Cummins Inc. for the half fell to $1,586 million from $1,714 million. The first quarter absorbed a $199 million net charge on the sale of the low pressure fuel cell business, the cancellation of future commitments and the resolution of certain customer claims. No tax benefit was recognized on it. Six-month EBITDA excluding special items is $3,142 million against $3,047 million, and the full-year EBITDA guidance of 18.0% to 18.5% lifts the floor from 17.75% while leaving the ceiling where it was.

What to watch

1. Cummins’ Quarterly Report on Form 10-Q for the quarter ended June 30, 2026. Read the segment note and the management discussion for any expansion of this release’s one-sentence explanation that the EBITDA decline was primarily due to higher incentive compensation. This release ties that statement to no balance sheet line.

2. The next Item 2.02 Current Report on Form 8-K, covering the third quarter. Read the consolidated EBITDA percentage against this release’s statement that it is expected to be higher than in the same period of 2025. That document answers the third quarter alone, so the second-half statement is only fully testable with the fourth-quarter release.

3. The same third-quarter release’s Power Systems product line table. Read the power generation row, which stands at $1,536 million for the June quarter and printed $1,280 million for the September quarter of 2025.