en.Wedoany.com Reported - Cummins raised its full-year industry demand forecast for North American heavy-duty and medium-duty trucks during its second-quarter 2026 earnings call held on August 4. The engine maker's top management said improved replacement demand and a rebound in the freight market were the main factors supporting the upward demand outlook.

Cummins executive Jennifer Rumsey said carrier interest in over-the-road trucks has exceeded and will continue to exceed the impact of emissions regulations. She noted that a significant portion of the current situation reflects improving underlying and replacement demand, and while some pre-buying exists, fundamental improvements are driving underlying demand higher; before last month, uncertainty surrounding the regulations and their details had made the industry cautious about pre-buying.

Order activity prompted Cummins to raise its 2026 North American heavy-duty truck industry demand forecast from 230,000-250,000 units to 240,000-250,000 units; the medium-duty truck forecast was raised from 125,000-135,000 units to 130,000-140,000 units. Beyond the demand forecast, the Columbus, Ind.-based company raised its full-year revenue guidance for the engine business from growth of 7%-12% to growth of 9%-14%. The company also said truck makers are unlikely to increase production.

In the second quarter, North American heavy-duty truck industry production totaled 60,000 units, down 4% year over year; Cummins sold 23,000 heavy-duty engines in that market, up 2% year over year. Medium-duty truck industry production totaled 32,000 units, up 8% year over year; Cummins medium-duty engine sales reached 29,000 units, up 19% year over year.

Globally, Cummins sold 30,100 heavy-duty engines in the second quarter, up 1.7% from 29,600 units in the same period last year; medium-duty engine sales totaled 86,100 units, up 17.3% from 73,400 units in the prior-year period. The engine segment posted quarterly sales of $3.08 billion, up 6% year over year; North American revenue rose 1%, international sales grew 23%, with stronger construction demand in China being a key driver.

Cummins reported total quarterly revenue of $9.46 billion, up 9.4% from $8.64 billion in the same period last year; profit was $932 million, up 4.7% from $890 million in the prior-year period. Based on improved North American on-highway market conditions and Chinese demand, the company raised its full-year revenue guidance from growth of 8%-11% to growth of 10%-13%.

Regarding the nitrogen oxide emissions regulation draft recently released by the U.S. Environmental Protection Agency (EPA), Rumsey and Chief Financial Officer Mark Smith assessed that the new rules would impact demand but to a limited extent. Rumsey said the ultimate goal has not changed, and with the launch of new platforms, the company's growth opportunities in engines and components remain unchanged, with a smoother transition; they expect some demand softening next year, but because existing products will continue to be available for part of next year, the slowdown will not be as abrupt as previously anticipated. Smith noted that the phased transition allows manufacturers to test products for a longer period.

After reviewing the regulation draft on July 9, Cummins plans to phase in 2027-model X15 and X10 engines that meet stricter emissions standards while continuing production of existing versions. The X15 engine will begin limited production in January 2027, with full production expected in the fourth quarter of that year; the X10 engine will also begin limited production in January 2027, with full production expected in the third quarter, depending on truck makers' launch schedules. During the transition, existing X12 and L9 engines for trucks and transit buses will continue to be available.

The regulation draft retains Biden-era requirements, cutting heavy-duty truck nitrogen oxide emissions from 200 mg/hp-hr to 35 mg/hp-hr, but gives manufacturers greater flexibility in implementation, non-compliance determinations, and nitrogen oxide credits. Rumsey attended the draft unveiling ceremony at the National Mall on July 9.