Cummins Inc.

Overview

• Founded in 1919 as Cummins Engine Company; renamed Cummins Inc. in 2001.
• Global power leader delivering diesel, natural gas, gasoline, electric and hybrid powertrains, integrated power generation systems and related components.
• Destination Zero strategy guides sustainability and energy-transition efforts.
• Five reportable segments: Engine, Components, Distribution, Power Systems, and Accelera.
• Global footprint includes approximately 640 wholly-owned, joint venture and independent distributor locations and more than 13,000 Cummins-certified dealer locations in about 190 countries and territories.

Key corporate events

• Atmus divestiture: On March 18, 2024, completed the divestiture of the remaining 80.5% ownership of Atmus Filtration Technologies Inc.; reduced common shares by 5.6 million and recorded a gain of approximately $1.3 billion.
• Amplify Cell Technologies: Amplify joint venture formed in May 2024 (Accelera, Daimler Truck, US Holding LLC and PACCAR each own 30%; EVE Energy 10%). Not consolidated; manufacturing battery cells for electric commercial vehicles. As of 12/31/2025, Cummins contributed $412 million; maximum additional contributions could be up to $418 million; Cummins’ investment balance (net of operating losses) was $359 million.
• Environmental/regulatory: Settlement agreements with EPA, CARB, DOJ and the California Attorney General finalized in 2024; $1.9 billion paid in Q2 2024 related to these matters; further regulatory review and potential penalties discussed in company filings.

Segments and offerings

• Engine

  • Products: diesel, natural gas and gasoline engines (2.8–15 L; 48–715 hp); new and remanufactured parts and engines.
  • End markets: heavy-duty, medium-duty, light-duty automotive, and off-highway.
  • Key markets: heavy-duty and medium-duty trucks, buses, construction, power generation, and other industrial uses.
  • Major truck OEM customers include PACCAR, Traton and Daimler; light-duty customers include Stellantis, Anhui Jianghuai, Volkswagen Caminhões and China NH.
  • Provides aftertreatment, turbochargers, fuel systems, controls, transmissions, axles and brakes through related segments.
  • Segment financial note: 2025 represented 26% of consolidated net sales and 26% of consolidated EBITDA (2024: 28% net sales, 33% EBITDA; 2023: 28% net sales, 32% EBITDA).

• Components

  • Products: drivetrain and braking systems (axles, drivelines, brakes, suspension); aftertreatment (catalysts, particulate filters, SCR systems); turbochargers; fuel systems; valvetrain technologies; electronics and software (ECMs, sensors); automated transmissions (includes ECJV joint venture with Eaton); and Atmus (divested).
  • Customers: OEMs across Engine, Distribution and Power Systems; joint ventures with Tata Cummins, Dongfeng Cummins, Beijing Foton Cummins and others.
  • Segment financial note: 2025 represented 25% of consolidated net sales and 26% of EBITDA (2024: 28% net sales, 32% EBITDA; 2023: 32% net sales, 36% EBITDA).

• Distribution

  • Role: primary sales, service and support channel with a global network of wholly-owned, joint venture and independent distributors.
  • Structure: seven geographic regions (North America, Europe, Asia Pacific, China, India, Latin America, Africa and Middle East); distribution and aftermarket support for engines, power generation and related services; supports Accelera products as needed.
  • Segment financial note: 2025 represented 30% of consolidated net sales and 34% of EBITDA (2024: 27% net sales, 27% EBITDA; 2023: 25% net sales, 24% EBITDA).

• Power Systems

  • Product lines: power generation (standby/prime 2 kW to 3.5 MW; controls, paralleling systems, transfer switches); distributed generation and energy-management solutions using diesel, natural gas, battery storage and alternative fuels; industrial engines up to 4,400 hp; generator/alternator products (Stamford, AVK).
  • Markets: global, with large non-U.S. concentrations in China, Europe, India and other regions.
  • Competitors: Caterpillar, MTU, Kohler/SDMO, INNIO, Generac and Mitsubishi Heavy Industries.
  • Segment financial note: 2025 represented 18% of consolidated net sales and 31% of EBITDA (2024: 16% net sales, 23% EBITDA; 2023: 14% net sales, 16% EBITDA).

• Accelera

  • Focus: electrified power systems including battery and electric powertrain components and subsystems.
  • Current status: early commercialization stage; ongoing evaluation due to market dynamics; impairment of all goodwill for electrolyzer business in 2025; plan to stop new electrolyzer activity while fulfilling existing commitments.
  • Competitors: Daimler, PACCAR, Traton, BYD, Dana and BorgWarner.
  • Activities are being pursued with broad market diversification and continued development of electrified solutions.

Equity income from investees and joint ventures

• Total equity income from manufacturing investees (2025): $364 million (2024: $296 million; 2023: $339 million).
• Key manufacturing equity investees:
  • Chongqing Cummins Engine Company, Ltd.: $89 million (2025) [24% ownership]; $60 million (2024) [20%]; $36 million (2023) [11%].
  • Dongfeng Cummins Engine Company, Ltd. (DCEC): $70 million (2025) [19%]; $66 million (2024) [22%]; $65 million (2023) [19%].
  • Beijing Foton Cummins Engine Co., Ltd.: $64 million (2025) [18%]; $42 million (2024) [14%]; $47 million (2023) [14%].
  • Tata Cummins, Ltd.: $33 million (2025) [9%]; $31 million (2024) [10%]; $29 million (2023) [9%].
  • All other manufacturers: $29 million (2025) [8%]; $25 million (2024); $9 million (2023).
• Distribution investees:
  • Komatsu Cummins Chile, Ltda.: $54 million (2025) [15%]; $55 million (2024) [19%]; $55 million (2023) [16%].
  • All other distributors: $25 million (2025) [7%]; $17 million (2024) [6%]; $16 million (2023) [4%].
• Ownership summary: Cummins holds 50% or less in several joint ventures (accounted for under the equity method); ECJV (Eaton Cummins Automated Transmission Technologies) is consolidated due to majority voting interest. The Amplify joint venture is not consolidated and is treated as a variable interest entity.

Investments and liquidity

• Amplify: Cummins contributed $412 million; maximum future contributions could be up to $418 million (subject to incentives); 12/31/2025 investment balance (net of losses) was $359 million.

Financial and operational highlights

• Employees: approximately 67,400 worldwide (as of December 31, 2025); about 20,000 represented by unions (collective bargaining agreements expiring 2026–2030).
• Largest customers: PACCAR was the largest customer, accounting for 13% of consolidated net sales in 2025 (16% in 2024 and 2023). Collectively, four customers accounted for 31% of consolidated net sales in 2025 (36% in 2024; 37% in 2023). Excluding PACCAR, no single customer accounted for more than 7% of net sales in 2025.
• Net sales composition by segment (2025):
  • Engine: 26%
  • Components: 25%
  • Distribution: 30%
  • Power Systems: 18%
• Research, development and engineering: RD&E expenditures were $1.4 billion in 2025, 2024 and 2023; contract reimbursements were $54 million (2025), $72 million (2024) and $81 million (2023).
• Environmental sustainability: Destination Zero goals with 2030 targets (reduce absolute facility GHG by 50%, reduce scope 3 GHG from newly sold products by 25%, zero waste growth, among others); mid-point progress reviewed in 2025.
• Backlog: described as open purchase orders and market demand for data center products.
• 2023 settlement charge and 2024 payment: $2.0 billion charge in Q4 2023 related to emissions settlements; $1.9 billion paid in Q2 2024; further immaterial penalties recorded later.

Corporate leadership

• Jennifer Rumsey — President and CEO (Chair since 2023).
• Other named executive officers and their roles are listed in company governance materials.

Summary Cummins Inc. is a diversified global engine and power solutions company operating five reportable segments: Engine, Components, Distribution, Power Systems and Accelera. The company maintains a wide distribution and service network, participates in numerous joint ventures and equity investments worldwide, and generates revenue from engines, parts, aftertreatment, driveline systems and power generation products while expanding its electrified power portfolio. Recent strategic actions include the Atmus divestiture, the formation and investment in Amplify, and settlement payments related to regulatory matters. The company is pursuing its Destination Zero sustainability goals through 2030.