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Call sheet · Q2'26

Cummins (CMI)

Q2'26 earnings call · held August 4, 2026 · compared with the Q1'26 call · management-credibility review
10/12
Disclosure score
2 medium flags
Financial quality
Bottom line
Cummins raised its group revenue and EBITDA-margin outlook, while three segment margin ranges moved lower. Distribution and Power Systems revenue-growth guidance was unchanged, so a blanket revenue-up/margins-down story is inaccurate. The useful follow-ups are compensation, parts mix, product investment and capacity execution. Compare group and segment results on consistent bases before extrapolating incremental profitability.

The 30-second version

  • Higher group outlook, mixed segment margin outlooks
  • Distribution revenue guidance was unchanged
  • Power generation demand needs a capacity bridge

What changed this quarter

MetricQ1'26Q2'26Change
Total Revenue$8.4B, +3% YoY$9.5B, +9% YoYYoY growth rose from 3% in Q1 to 9% in Q2; not 3x sequential revenue
EBITDA Margin15.4% (17.7% ex-charge) vs 17.9% PY17.5% vs 18.4% PYStill down 90bps YoY on comp accrual
Diluted EPS$4.71 reported$6.73$0.30 higher than prior-year Q2, not a consensus beat
Net Earnings$654M ($853M ex-charge)$932MHigher than Q1 and prior-year Q2; no all-time record claim
Operating Cash Flow$309M inflow (vs -$3M PY)$1.5B, record for Q2 (vs $785M PY)Nearly 5x sequential jump
Capital Returned to Shareholders$519M total, $243M buybacks$501M total, $225M buybacks$18M lower sequentially
Engine Segment Revenue/EBITDA%$2.7B, -4% YoY; EBITDA 10.4% vs 16.5% PY$3.1B, +6% YoY; EBITDA 12.5% vs 13.8% PYSwing to growth but margin guide trimmed
Distribution Revenue/EBITDA%$3.1B, +7%; EBITDA 14.2% vs 12.9% PY$3.3B record, +9%; EBITDA 13.6% vs 14.6% PYRecord revenue, margin compressing
Power Systems Revenue/EBITDA%$2.0B, +19%; EBITDA 23.6%->29.5%$2.3B record, +19%; EBITDA 22.8%->24.5%Q2 margin increased YoY but was below Q1; bridge required
China Revenue (incl. JVs)$2.1B, +19% YoY$2.3B, +30% YoYAcceleration driven by data center +88%

Accountability tracked

7 new promises made4 narrative shifts flagged4 prior promises scored
Inside the full report
The complete write-up covers the full promise ledger with kept/missed calls, disclosure-quality scoring, the metrics-vanished check, verification items, and the questions to ask next quarter.
Read the full CMI Q2'26 report Subscribe
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Scores, kept-promise rates, and flags on this site reflect the author's opinion, applying a stated methodology to statements management made on public earnings calls. Informational and educational purposes only - not investment advice, a recommendation, or an offer to buy or sell any security. Sources believed reliable but not guaranteed; the author may hold positions in the securities discussed.

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