The US off-highway engine and linked technology solutions giant's North American sales increased 31%, and international revenues increased 32% due to the addition of Meritor and strong demand across most global markets.
Based on its current forecast, Cummins maintains its full-year 2023 revenue guidance to be up 15 to 20% due to strong demand across most markets, especially North America. EBITDA is still expected to be in the range of 15 to 15.7% of sales.
"Strong demand across most of our key markets and regions resulted in record revenues and solid profitability for the company in the second quarter of 2023," said Jennifer Rumsey, Cummins chair and CEO. "We are committed to delivering cycle-over-cycle improvement in financial performance, returning cash to our shareholders and prioritising investments to continue building our product portfolio to power our customers' success around the world. I want to thank our Cummins employees who continue to work tirelessly to meet customer needs and respond to the strong demand levels by ensuring quality products, strengthening our customer relationships, and navigating continued supply chain constraints."
Progress continues to be made on the separation of the Filtration business. On May 26th, Atmus Filtration Technologies Inc. shares began trading on the New York Stock Exchange (NYSE) under the ticker symbol ATMU in connection with the initial public offering (IPO). Upon completing the IPO, Cummins retained approximately 80.5% of Atmus' outstanding shares. The Atmus IPO generated $299mn of net proceeds, and Atmus added $650mn of debt. Cummins realises the benefits of the IPO proceeds and the debt issuance, as Atmus will hold the debt at full separation.
Cummins announced two significant milestones with the 5 millionth engine produced at its Rocky Mount Engine Plant (RMEP) in North Carolina and the 2.5 millionth engine produced at its Jamestown Engine Plant (JEP) in New York. The 5 millionth milestone engine was a B6.7, received by Daimler, who provided it to Penske. The 2.5 millionth engine at JEP was the new 15-litre natural gas product and was provided to Kenworth.
On April 3rd, United States President Joe Biden visited company facilities in Fridley, Minnesota (USA), to tour Accelera by Cummins' first US manufacturing location for electrolysers, a key technology to produce low- and no-carbon hydrogen. The official ribbon cutting on May 19th marked the start of electrolyser production in the United States. Accelera is initially dedicating 89,000 sq. ft. of the existing Cummins power generation facility in Fridley to electrolyser production.
In the second quarter, Accelera reached a milestone of backlog electrolyser orders totalling over $500 million. The Fridley facility will help address that growing demand along with other capacity being added globally.
Cummins signed a definitive agreement with Tata Motors Limited (TML) to manufacture a range of low- to zero-emissions technology products in India over the next few years. As a part of this agreement, Cummins and TML have set up a new business entity called TCPL Green Energy Solutions Private Limited (GES), a wholly owned subsidiary under the existing joint venture with a focus on the development and manufacturing of sustainable technology products that will include hydrogen-powered internal combustion engines, fuel delivery systems, and battery electric powertrains and fuel cell electric systems through the Accelera by Cummins brand.