Aug 4(Reuters) – U.S. truck engine maker Cummins reported second-quarter profit below market expectations on Tuesday, despite benefiting from strong demand for generators and improving conditions in the North American truck market, sending its shares down as much as 8% in premarket trading.
The weaker-than-expected profit underscored challenges in converting robust demand for power-generation equipment into stronger earnings, even as Cummins benefited from AI-driven data-center investments and improving truck-market conditions.
• “North American truck markets continue to improve, while demand for data center power generation remains robust,” CEO Jennifer Rumsey said.
• The company now forecasts 2026 revenue to increase 10-13%, compared with its previous view of a 8-11% growth.
• Cummins’ Power Systems segment, which makes generators, increased 19% to $2.3 billion from a year earlier, while its Distribution segment rose 9% to $3.3 billion.
• Revenue at Accelera climbed 38% from a year earlier, reflecting higher sales of zero-emissions technologies.
• Profit for the quarter ended June 30 came in at $6.73 per share, compared with $6.43 per share from a year earlier. Analysts’ on average expected $7.23 per share, according to data compiled by LSEG.
• Quarterly net sales rose 9.4% to $9.46 billion, beating estimates of $9.33 billion.
(Reporting by Apratim Sarkar in Bengaluru)
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