Cummins Earnings: Power Generation Still Healthy, but Heavy Duty Truck Industry Headwinds Persist

Cummins' fourth-quarter consolidated sales were down 1% year over year to $8.5 billion, slightly ahead of our expectations despite continued headwinds from the US trucking industry pullback and resulting normalization in new heavy-duty truck orders. Net sales were up 13% for the distribution segment and 22% for the power systems segment, driven by soaring demand in power generation, specifically for data center applications. Net sales fell 2% for the engine segment (soft heavy-duty truck market) and 17% for components, which was largely affected by the separation of Atmus.