Cummins Beats Quarterly Estimates on Strong Power Generation Demand

Cummins Inc. (NYSE: CMI), a leading provider of diesel and natural gas engines, as well as power generation solutions, has reported strong third quarter 2024 results, driven by robust demand for power generation products. The company's power generation revenues increased by 24 percent compared to the same quarter in 2023, primarily due to increased global demand, particularly for the data center market. This growth has contributed to Cummins' overall financial performance, with the company reporting strong sales and profitability.

Cummins' power generation segment, which includes the manufacturing of diesel and gas engines, has seen a significant increase in demand due to the data center boom. The company's diverse portfolio of powertrain and component technologies, such as Euro-7 ready X10 and X15H hydrogen internal combustion engines, as well as next-generation lithium iron phosphate battery solutions, eAxles, eTurbocharger, eCompressor, and hydrogen fuel storage solutions, has positioned it well to meet the energy demands of data centers and other industries.

The company's strategic focus on diversifying its product offerings, including the expansion into natural gas and hydrogen-powered engines, has played a crucial role in driving its growth and resilience in the face of changing market dynamics. By investing in and developing alternative fuel solutions, Cummins has been able to adapt to evolving customer preferences and regulatory requirements, ultimately contributing to its strong financial performance.

Cummins' expansion into the hydrogen sector is further evident in the opening of its new electrolyzer manufacturing plant in Guadalajara, Castilla-La Mancha, Spain, under the Accelera™ by Cummins brand. The plant has the capacity to produce 500 megawatts (MW) of electrolyzers per year, scalable to more than 1 gigawatt (GW) per year in the future. This investment demonstrates Cummins' commitment to the growing hydrogen market and its ability to capitalize on new opportunities.

In the third quarter of 2024, Cummins reported strong sales and profitability, led by improvement in its Power Systems and Distribution businesses. The company adjusted its full-year projection for EBITDA percentage to be at the top end of the prior range, reflecting the success of its diversification strategy.



In conclusion, Cummins' strong third quarter 2024 results, driven by robust demand for power generation products, demonstrate the company's ability to capitalize on market trends and adapt to changing customer preferences. By diversifying its product offerings and investing in alternative fuel solutions, Cummins has positioned itself as a leader in the power generation market, with a strong outlook for future growth.