Cummins Posts Record Profitability in Power Systems and Distribution Segments
Cummins posted second quarter 2024 revenues of $8.6 billion, a 2-percent decrease compared to the same quarter in 2024. Still, the company posted record profitability in its Power Systems and Distribution segments. Sales in North America declined 6 percent and international revenues increased 5 percent because of higher demand in Europe and China.
Net income attributable to Cummins in the second quarter was $890 million, compared to $726 million in 2024. Earnings before interest, taxes, depreciation and amortization (EBITDA) in the second quarter were $1.6 billion or 18.4 percent of sales, compared to $1.3 billiokn, or 15.3 percent of sales in the year-ago quarter.
“We delivered strong second quarter results, driven by record profitability in our Power Systems and Distribution segments,” said Jennifer Rumsey, chair and CEO. “Our employees’ resilience and commitment continue to power our success in a dynamic environment. We see a contrast across our markets with robust demand for power generation equipment supported by clear secular drivers, and our more economically sensitive markets, such as truck, where end-user confidence has declined. This contrast will become even more pronounced in the second half of the year as North America truck build rates decline sharply, starting in the third quarter. Aftermarket demand for parts and service remains stable.”
Cummins launched the new 17-liter engine platform generator, expanding on the success of the Centum Series generator sets. Producing up to 1 megawatt of power, the S17 Centum genset was developed to produce a large power output within a compact footprint to meet the growing demands of power in urban environments. The new genset is designed to support a wide range of critical market segments such as commercial properties, healthcare facilities and water treatment plants.
Cummins CEO Jennifer Rumsey was named one of Barron’s Top CEOs of 2025. Rumsey was recognized for her visionary leadership and commitment to innovation and sustainability. The annual list features 26 leaders whose deft guidance has put their companies in a stronger competitive position.
Power Systems Segment Jumps 19 Percent
Cummins Power Systems segment posted $1.9 billion in sales, a 19-percent increase. Revenues in North America increased 23 percent and international sales jumped 16 percent driven primarily by increased power generation demand, particularly for the data center and mission critical markets.
Cummins’ Engine Segment reported $2.9 billion, an 8-percent decrease. Revenues dropped 8 percent in North America and 7 percent in international markets because of lower on-highway demand in the United States and Mexico. The Components Segment posted $2.7 billion, a 9 percent dip. Revenues in North America decreased by 15 percent and international sales were flat because of lower on-highway demand in the U.S.
The Distribution Segment, on the other hand, jumped 7 percent to $3 billion, with a 9 percent hike in North America and 4 percent jump in international sales. Increased demand for power generation in the U.S. drove the increase.
The Accelera Segment decreased by 5 percent to $105 million because of lower electrolyzer installations. Also the company continued its investments in zero emissions technology.
About the Author
Michael Roth
Editor
Michael Roth has covered the equipment rental industry full time for RER since 1989 and has served as the magazine’s editor in chief since 1994. He has nearly 30 years experience as a professional journalist. Roth has visited hundreds of rental centers and industry manufacturers, written hundreds of feature stories for RER and thousands of news stories for the magazine and its electronic newsletter RER Reports. Roth has interviewed leading executives for most of the industry’s largest rental companies and manufacturers as well as hundreds of smaller independent companies. He has visited with and reported on rental companies and manufacturers in Europe, Central America and Asia as well as Mexico, Canada and the United States. Roth was co-founder of RER Reports, the industry’s first weekly newsletter, which began as a fax newsletter in 1996, and later became an online newsletter. Roth has spoken at conventions sponsored by the American Rental Association, Associated Equipment Distributors, California Rental Association and other industry events and has spoken before industry groups in several countries. He lives and works in Los Angeles when he’s not traveling to cover industry events.