Cummins Inc.

What they do

Cummins designs and builds diesel, natural gas and gasoline engines (2.8 to 15 liters in the Engine segment; 16 liters and larger in Power Systems), plus aftertreatment, turbochargers, fuel systems, transmissions, axles, brakes and electrified powertrains across five segments: Engine, Components, Distribution, Power Systems and Accelera. It sells to OEMs, distributors, dealers and other customers through roughly 640 distributor locations and more than 13,000 certified dealer locations in about 190 countries. Long-standing OEM customers include PACCAR, Traton Group, Daimler Trucks and Stellantis.

Revenue drivers

• Engine segment — Manufactures diesel, natural gas and gasoline engines (2.8 to 15 liters, 48 to 715 horsepower) and remanufactured parts for heavy-duty truck, medium-duty truck and bus, light-duty automotive and off-highway markets; it was 26% of consolidated net sales and 26% of consolidated EBITDA in 2025 (28% of sales in 2024).
• Power Systems segment — An integrated power provider selling standby and prime power generators, engines 16 liters and larger for generator sets and industrial applications (mining, oil and gas, marine, rail, defense), and alternators; the latest quarter's results were supported by robust standby power demand for data centers.
• Components and Distribution segments — Components sells aftertreatment systems, turbochargers, fuel systems, valvetrain technologies, automated transmissions, electronics, axles, drivelines, brakes and suspension for commercial diesel and natural gas applications; Distribution wholesales engines, generator sets and service parts and performs service and repair through wholly-owned and partially-owned distributorships.
• Accelera segment — Designs, manufactures and supports electrified power systems including battery and electric powertrain technologies; it is described as in the early stages of commercializing these technologies, with efforts focused on development of electrified power systems and related components.

Recent performance

Second-quarter 2026 revenue was a record $9.5 billion, up 9% from the same quarter in 2025, with North America sales up 8% and international revenue up 12% led by China. Net income attributable to Cummins was $932 million, or $6.73 per diluted share, versus $890 million, or $6.43 per diluted share, a year earlier; the quarter's tax rate was 25.1% and included $29 million, or $0.21 per diluted share, of unfavorable discrete tax items. EBITDA was $1.7 billion, or 17.5% of sales, compared with $1.6 billion, or 18.4% of sales, a year ago. Full-year 2025 revenue was $33.67 billion with net income of $2.96 billion and diluted EPS of $20.50, and the company returned $501 million to shareholders in the second quarter of 2026 through dividends and share repurchases.

Strategy

Cummins is pursuing its Destination Zero strategy, spanning advanced diesel, natural gas, electric and hybrid powertrains and zero-emissions technologies through the Accelera segment. In May 2026 it hosted an Analyst Day and raised its 2030 financial targets, and announced capacity and product investments in mining and power generation. In June 2026 it announced an agreement with Circe Energy to supply natural gas generator sets (HSK78 and QSK60 platforms) for a behind-the-meter prime power microgrid at a Texas high-performance computing data center, with deliveries scheduled from 2026 through 2030. Following the EPA's proposed emissions regulation changes, it updated Model Year 2027 North American on-highway launch plans to introduce new X10 and X15 engines on a measured production ramp while maintaining select legacy product availability in 2027. The company states a long-term goal of returning 50% of operating cash flow to shareholders.

Risks

• Emissions settlement exposure — Cummins recorded a $2.0 billion charge in the fourth quarter of 2023 to resolve certain regulatory civil claims with the EPA, CARB, the DOJ and the California Attorney General's Office regarding emissions certification for certain pick-up truck engines, and it says it has incurred and likely will incur additional claims, costs and collateral litigation related to these matters.
• Internal combustion regulation and demand — The company cites emissions deregulation, evolving environmental and climate legislation, and future bans or limitations on diesel-powered products as factors that could reduce demand for current products.
• Tariffs and trade disruptions — Cummins lists changes in tariffs, other trade disruptions, and changes in international, national and regional trade laws as risks to its global operations.
• Technology transition and new product acceptance — It identifies the risk of new technologies reducing demand for current products, failure to successfully develop new technologies to address the energy transition, and lower-than-expected acceptance of new or existing products or services.

Outlook

Cummins raised its full-year 2026 revenue guidance to up 10% to 13% from prior guidance of up 8% to 11%, citing stronger demand particularly in North America on-highway, China construction and power generation. It now expects EBITDA of 18.0% to 18.5% of sales, compared with prior guidance of 17.75% to 18.5% excluding first-quarter charges related to the sale of the fuel cell business. Management expects the second half of 2026 to be stronger than the first half and says demand for data center power generation remains robust while North American truck markets continue to improve.