On November 2, 2023, Cummins Inc (CMI, Financial) released its third quarter earnings report for 2023. The company reported a 15% increase in revenues to $8.4 billion, compared to the same quarter in 2022. The GAAP Net Income was $656 million, a significant increase from $400 million in Q3 2022. The company also reported a record $1.5 billion in net cash provided by operating activities.
Financial Performance and Highlights
Cummins Inc (CMI, Financial) reported robust profitability and record operating cash flow in the third quarter. The company's net income attributable to Cummins in the third quarter was $656 million, or $4.59 per diluted share, compared to $400 million, or $2.82 per diluted share in 2022. The results included costs associated with the separation of Atmus of $26 million, or $0.14 per diluted share, in the third quarter of 2023, and $16 million in the third quarter of 2022.
The company's EBITDA in the third quarter was $1.2 billion, or 14.6% of sales, compared to $884 million, or 12.1% of sales, a year ago. The operating cash flow for the third quarter of 2023 was a record inflow of $1.5 billion, compared to $382 million in the third quarter of 2022.
2023 Outlook and Guidance
Based on its current forecast, Cummins is raising its full year 2023 revenue guidance to be up 18 to 21 percent due to strong demand across most markets, especially North America. EBITDA is expected to be in the range of 15.2 to 15.4 percent of sales, narrowing the range of the previous guidance of 15.0 to 15.7 percent of sales.
Recent Highlights and Future Plans
Cummins Inc (CMI, Financial) has announced several major partnerships this quarter as part of its Destination Zero strategy. The company plans to continue to generate strong operating cash flow and returns for shareholders and is committed to its long-term strategic goal of returning 50 percent of operating cash flow back to shareholders. In the near term, the focus will be on reinvesting for profitable growth, increasing dividends, and reducing debt.
Financial Tables Summary
The company's condensed consolidated statements of net income showed a significant increase in net sales to $8.4 billion in Q3 2023, up from $7.3 billion in Q3 2022. Net income attributable to Cummins Inc was $656 million, compared to $400 million in the same period last year.
The condensed consolidated balance sheets showed total assets of $32.1 billion as of September 30, 2023, compared to $30.3 billion as of December 31, 2022. Total liabilities were $20.4 billion, compared to $20.1 billion at the end of 2022.
Explore the complete 8-K earnings release (here) from Cummins Inc for further details.
