Cummins reported record first quarter 2023 revenues of $8.5 billion with record net income of $790 million. EBITDA for the quarter was 16.1% of sales, with record diluted earnings per share of $5.55.
“The company achieved record revenues, EBITDA and EPS in the first quarter of 2023, with demand for our products remaining strong across most of our key markets and regions,” president and CEO Jennifer Rumsey said in a statement. “We are delivering cycle-over-cycle improvement in financial performance despite persistent supply-chain constraints, and we continue to invest in sustainable solutions that will protect our planet for future generations and support the success of our customers.”
Cummins’ first-quarter results included $18 million of costs related to the separation of its filtration business. The company is raising its full year revenue guidance to be up 15% to 20%, an increase from previous guidance of 12% to 17%. EBITDA is expected to be in the range of 15% to 15.7%, an increase from previous guidance of 14.5% to 15.2%.
The first quarter $8.5 billion in revenues were a 32% increase compared with the prior-year quarter. North American sales increased 39%, and international revenues increased 24% due to the addition of Meritor and strong demand across global markets, Cummins said.
Cummins doesn’t separate marine-sourced revenue, but in the engine segment, the company posted sales of $3 billion, an 8% increase compared with last year. EBITDA for the segment was $457 million, or 15.3% of sales, compared with $390 million, or 14.2% of sales, in the previous-year first quarter. This included $32 million in costs related to the indefinite suspension of operations in Russia. Sales increased 9% in North America and 8% in international markets.
In March, the company launched Accelera by Cummins, a new brand in the New Power business unit that’s focused on zero-emissions solutions.
