Cummins Backs FY22 Revenue View; Cuts EBITDA Margin Forecast - Update

(RTTNews) - Power solutions provider Cummins Inc. (CMI) Thursday said it continues to expect fiscal 2022 revenue to be up 8 percent.

The forecast excludes the Meritor business.

Full- year 2022 EBITDA is now expected to be approximately 15.0 percent of sales, excluding the Meritor business. This is below the company's previous guidance of approximately 15.5 percent of sales and reflects an improvement from the third quarter to the fourth quarter.

The company continues to expect to return approximately 50 percent of Operating Cash Flow to shareholders in 2022 in the form of dividends and share repurchases.

Further, Cummins said it expects revenues of the Meritor business from the August 3 completion of the acquisition through the end of 2022 will be between $1.7 billion to $1.9 billion. During the same period, EBITDA from the Meritor business is expected to be approximately 4.5 percent of sales.