Power Systems Sales Jump 18 Percent for Cummins in Third Quarter
The Power Systems Segment led the way for Cummins Inc. during the third quarter, with $2 billion in sales, an 18-percent year-over-year increase. Revenues in North America increased 20 percent and international sales hiked 17 percent because of increased power generation demand, particularly for data center markets in North America, China and India.
Power Systems segment EBITDA totaled $457 million or 22.9 percent of sales, compared to $328 million or 19.4 percent of sales a year ago.
“Cummins delivered strong operating results in the third quarter, driven by profitable growth in our Power Systems and Distribution segments, due in part to continued rising demand for backup power for data centers,” said Jennifer Rumsey, chair and CEO. “Effective cost management across the company helped navigate through the anticipated sharp decline in the North American truck market. During the quarter, we recorded non-cash charges related to our electrolyzer business within the Accelera segment, reflecting policy-driven shifts in hydrogen adoption expectations. Due to the significantly weaker prospects for demand, we are undertaking a strategic review of the electrolyzer business.”
Third quarter revenues of $8.3 billion decreased 2 percent from the same quarter in 2024. Sales in North America declined 4 percent, and international revenues increased 2 percent because of higher demand in China and Europe.
In other third quarter highlights, Cummins and Komatsu signed a memorandum of understanding to collaborate on the development of hybrid powertrains for surface haulage heavy mining equipment. Building on a strong legacy of diesel engine supply across a wide variety of mining and construction equipment, Cummins and Komatsu will add hybrids to their product roadmaps of power technology solutions for progressive decarbonization in large mining haul truck applications.
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.