What is Cummins's gross profit margin?

What does Cummins do and what are its main business segments?

What were the key takeaways from Cummins’s earnings call?

What were the key takeaways from Cummins's earnings call?

Did Cummins beat or miss consensus estimates last quarter?

What is the revenue and EPS growth rate for Cummins year over year?

What is the market's earnings forecast for Cummins next quarter?

What factors drove the changes in Cummins's revenue and profit?

- **Hybrid Power Collaboration**: Komatsu partnership to develop low-carbon solutions for mining.
- **Engine Efficiency**: X15N natural gas engine outperformed in fuel economy, driving 10% EBITDA margin.
- **Tariff Mitigation**: 80% of tariff costs recovered, with Q4 nearing price/cost neutrality.
- **China Growth**: 35% truck sales increase, driven by NS4 incentives and rural infrastructure.
- **Power Systems Strength**: 22.9% margin in Power Systems, supported by data center demand.
- **Electrolyzer Review**: Strategic assessment due to reduced U.S. incentives and slower international adoption.

**【CEO Summary Section】**
- Announced collaboration with Komatsu to develop hybrid powertrains for mining equipment, aiming to reduce operational costs and emissions.
- X15N natural gas engine showcased superior fuel efficiency during the Run on Less event, highlighting customer value.
- Global power generation demand drove 27% revenue growth in North America and 26% in China, supported by data center expansion.
- North America truck demand declined 40%, offset by 44% growth in light-duty truck engines for Ram pickups.
- China truck sales increased 35% due to NS4 scrapping incentives and rural infrastructure projects.
- Tariffs negatively impacted profitability, but 80% of costs were recovered through pricing.

**【CFO Financial Commentary】**
- Q3 EBITDA was $1.4 billion (17.2% of sales), excluding $240M noncash charges, driven by Power Systems and Distribution growth.
- Engine segment EBITDA margin improved to 10%, despite 38% decline in North America truck volumes.
- Power Systems segment EBITDA reached $457M (22.9% margin), supported by data center demand.
- Distribution segment set records with 15.5% margin, up from 12.5% YoY.
- Operating cash flow was $1.3B, up 108% YoY, reflecting cost containment and tariff recovery.

**【Q&A Highlights】**
- Engine margins expected to stabilize at 10% in Q4, with 15% sequential decline in on-highway shipments.
- Power Systems to invest in natural gas engines for prime power applications, targeting data center growth.
- Tariffs remain headwind, but 80% of costs recovered through pricing.
- China e-mobility sales grew, while electrolyzer business faces strategic review due to weak demand.
- 2027 EPA rule uncertainty delays product launches, but 2026 R&D spend expected to flatten post-regulatory clarity.


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