CMI · 8-K · 20260804PR000026
Operating Margin Drivers
CUMMINS INC · 2026-08-04 · Importance 42 · Surprise 14 · No source text
Second-quarter EBITDA increased to $1.653 billion from $1.587 billion, but EBITDA margin declined to 17.5% from 18.4% year over year. The company attributed the margin decline primarily to higher incentive compensation tied to expected record full-year results. Engine EBITDA fell to $386 million and margin declined to 12.5% from 13.8%, while Components EBITDA fell to $381 million and margin declined to 13.2% from 14.7%. Power Systems EBITDA rose to $552 million and margin improved to 24.5% from 22.8%, offsetting weaker margins in Engine, Components and Distribution.
Key facts
- EBITDA in the second quarter was $1.7 billion, or 17.5% of sales, compared to $1.6 billion, or 18.4% of sales, a year ago source
- EBITDA in the second quarter was 17.5% of sales source
- Power Systems segment Segment EBITDA: $552 million, or 24.5% of sales (second quarter 2026) source
- Engine segment Segment EBITDA: $386 million, or 12.5% of sales (second quarter 2026) source
- Components segment Segment EBITDA: $381 million, or 13.2% of sales (second quarter 2026) source
- Distribution segment Segment EBITDA: $451 million, or 13.6% of sales (second quarter 2026) source
- EBITDA percentage for the company and some individual segments declined year-over-year primarily due to higher incentive compensation tied to expected record full year results source
Impact estimates
| metric | direction | stage | expected | basis |
|---|---|---|---|---|
| operating_income | positive | realized | +1.1% | EBITDA in the second quarter was $1.7 billion, or 17.5% of sales, compared to $1.6 billion, or 18.4% of sales, a year ago |
| margin | negative | realized | -0.9% | EBITDA in the second quarter was $1.7 billion, or 17.5% of sales, compared to $1.6 billion, or 18.4% of sales, a year ago |