Cummins raises revenue outlook on robust power generation demand

May 5 - Cummins ‌lifted its ​annual ​revenue growth forecast on Tuesday, supported by resilient demand for its power-generation equipment and ‌expectations from improving North America on-highway vehicles ⁠markets.

Shares of the U.S. truck engine maker were up 4% ‌in premarket trading.

The company ‌now forecasts 2026 revenue to increase 8%-11%, compared with its previous view of a 3%-8% growth.

Demand ​tied to artificial intelligence-driven data-center expansion continued to underpin sales of generators.

"North America truck ⁠markets began to improve from a cyclical low" during the quarter, CEO ​Jennifer Rumsey said.

The Indiana-based company had previously flagged weak demand in the North American ​trucking market, where lower freight ‌volumes and margin pressure have weighed on fleet investments and engine orders.

Cummins' ⁠Power Systems segment, which makes generators, posted a 19% jump in first-quarter sales, while its Distribution segment sales ⁠grew 7% from.

The company reported a profit of $4.71 per share ​for the three months ended March 31, including charges of $1.44 per diluted share related to completing the sale of ‌its low-pressure fuel cell business. It reported a quarterly profit of $5.96 per share ‌a year earlier.

Revenue rose 2.7% from a year ⁠ago to $8.4 billion. Analysts ‌on an average ​expected $8.35 billion, according to LSEG-compiled data.

(Reporting by Apratim Sarkar and Aatreyee Dasgupta; Editing by Joyjeet ‌Das)

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