“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,” said Jennifer Rumsey, president and CEO. “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.”
Net income attributable to Cummins in the first quarter was $790 million, or $5.55/diluted share, compared to $418 million, or $2.92/diluted share, in 2022, which included $158 million, or $1.03/diluted share, of costs related to the indefinite suspension of operations in Russia. Results included costs associated with separating the Filtration business of $18 million, or $0.10/diluted share, in the first quarter of 2023 and $17 million, or $0.09/diluted share, in the first quarter of 2022. The tax rate in the first quarter was 21.7%, including $3 million, or $0.02/diluted share, of favourable discrete tax items.
In the first quarter, earnings before interest, taxes, depreciation and amortisation (EBITDA) were $1.4 billion, or 16.1% of sales, compared to $755 million, or 11.8% of sales, a year ago. EBITDA for the first quarter of 2023 included the costs of separating the Filtration business. The first quarter of 2022 EBITDA included the costs related to the indefinite suspension of operations in Russia and costs associated with separating the Filtration business, as noted above.
The company plans to continue to generate strong operating cash flow and returns for shareholders. It is committed to our long-term strategic goal of returning 50% of the operating cash flow to shareholders. In the near term, we will focus on reinvesting for profitable growth, dividends and reducing debt.
“We have raised our guidance on revenue and profitability for 2023 due to continued demand for Cummins’ products and services. We will continue monitoring global economic indicators closely to ensure we are prepared should economic momentum slow,” said Rumsey. “Cummins is in a strong position to keep investing in future growth, bringing new technologies to customers and returning cash to shareholders.”
Based on its current forecast, Cummins is raising its full-year 2023 revenue guidance to be up 15-20%, an increase from prior projections of up 12-17%, due to stronger demand across most markets. Meanwhile, EBITDA is expected to be 15-15.7%, an increase from the prior range of 14.5-15.2% of sales.