CMI · 8-K · 20261105PR000035
Operating Margin Drivers
CUMMINS INC · 2026-11-05 · Importance 63 · Surprise 64 · No source text
Third-quarter gross margin rose to $2.615 billion from $2.129 billion, while operating income increased to $1.444 billion from $852 million. EBITDA was $1.786 billion, or 18.9% of sales, versus $1.187 billion, or 14.3%, a year earlier; the 2025 comparison included $210 million of Accelera goodwill impairment and a $30 million inventory write-down. Power Systems EBITDA margin increased to 25.4% from 22.9%, while Distribution margin fell to 13.9% from 15.5%; Engine and Components margins improved to 13.5% and 14.3%, respectively.
Key facts
- Cummins third-quarter 2026 EBITDA was a record $1.8 billion, or 18.9% of sales, compared with $1.2 billion, or 14.3% of sales, a year earlier. source
- Cummins third-quarter 2025 results included $240 million, or $1.73 per diluted share, of Accelera non-cash charges. source
- The sale of Cummins' low-pressure fuel cell business and settlement of current and future customer obligations resulted in a net charge of $199 million, reflected in other operating expense in the income statement. source
Impact estimates
| metric | direction | stage | expected | basis |
|---|---|---|---|---|
| operating_income | positive | realized | +6.3% | Cummins third-quarter 2026 EBITDA was a record $1.8 billion, or 18.9% of sales, compared with $1.2 billion, or 14.3% of sales, a year… |
| margin | positive | realized | +4.6% | Cummins third-quarter 2026 EBITDA was a record $1.8 billion, or 18.9% of sales, compared with $1.2 billion, or 14.3% of sales, a year… |