The Gemini Brief – Investment Deep Dives

Cummins Inc. (CMI) Investment Research Analysis

All investment deep dives on this site have been written by Google Gemini with light human editing. Nothing on this site constitutes investment advise. All materials on this site are for informational purposes only.

The Gemini Brief - Investment Deep Dives
The Gemini Brief – Investment Deep Dives
Cummins Inc. (CMI) Investment Research Analysis
Loading
/

1. Company Overview & Business Model

1.1. Introduction to Cummins Inc.

Cummins Inc. stands as a global power technology leader, engaged in the design, manufacture, distribution, and service of a comprehensive portfolio of power solutions.1 Established in 1919, the company has built a century-long reputation, evolving from a specialist in diesel engine manufacturing to a diversified industrial enterprise at the forefront of a significant technological transition toward cleaner energy.2 The company’s operations are guided by its mission of “Making people’s lives better by powering a more prosperous world” and a vision centered on “Innovating for our customers to power their success”.2 This corporate philosophy is integral to its public messaging and strategic framework, particularly as it navigates the global shift towards decarbonization.

The company’s business model is multifaceted, leveraging a vast global footprint to serve a diverse array of end markets. It operates through a complementary set of business segments that share technology, customer relationships, and a powerful distribution network, creating significant synergies. This structure has historically allowed Cummins to weather the cyclicality inherent in its core markets while investing in next-generation technologies. The company is currently executing a complex strategic pivot, balancing the continued optimization and cash generation of its legacy internal combustion engine (ICE) businesses with substantial investment in zero-emission solutions, a dynamic that defines its present operational and financial reality.

1.2. Breakdown of Business Segments

Cummins’ operations are organized into five distinct yet complementary segments. The financial performance of these segments for Fiscal Year 2024 underscores the company’s current structure, where mature businesses provide the foundation for investment in emerging technologies.

Engine Segment: This is the company’s foundational business. It manufactures and markets a broad range of diesel and natural gas-powered engines, with displacements ranging from 2.8 to 15 liters.4 The segment serves a wide variety of on-highway end markets, including heavy-duty trucks, medium-duty trucks, and buses, as well as numerous off-highway markets. It also provides new and remanufactured parts and engines, primarily serviced through the company’s extensive distribution network.4 For fiscal year 2024, the Engine segment generated revenues of $11.71 billion.5

Components Segment: This segment supplies a wide array of products that are critical to the performance and compliance of modern powertrains, complementing the Engine and Power Systems businesses. Its portfolio includes aftertreatment systems, turbochargers, fuel systems, automated transmissions, electronics, and filtration products.1 Following the landmark acquisition of Meritor, Inc. in 2022, the segment’s offerings were significantly expanded to include axles, drivelines, and brakes, positioning Cummins as a more integrated powertrain supplier.4 In fiscal year 2024, the Components segment was the company’s largest by revenue, generating $11.68 billion.5

Distribution Segment: The Distribution segment is the primary sales, service, and support channel for Cummins, representing a critical interface with the end customer. It operates through a global network of company-owned and independent locations, providing sales and support for a wide range of products, including engines and power generation systems.1 A crucial element of this segment is its high-margin aftermarket business, which provides parts and repair services, creating a resilient and recurring revenue stream that is less susceptible to economic cycles than new equipment sales.4 For fiscal year 2024, the Distribution segment generated revenues of $11.38 billion.5

Power Systems Segment: This segment focuses on high-horsepower engines (above 15 liters) and power generation systems. It designs, manufactures, and services generator sets for both standby and prime power applications, along with related components and services.7 Key end markets are those requiring reliable, uninterrupted power, such as data centers, healthcare facilities, commercial and industrial sites, and other mission-critical applications.8 In fiscal year 2024, the Power Systems segment generated revenues of $6.41 billion.5

Accelera by Cummins: Launched as the company’s fifth segment, Accelera is the primary vehicle for Cummins’ zero-emissions technology strategy. This segment is focused on designing, manufacturing, selling, and supporting hydrogen production technologies, most notably electrolyzers, as well as a portfolio of electrified power systems, including battery, fuel cell, and electric powertrain technologies.1 It represents the company’s principal investment in a decarbonized future. In fiscal year 2024, the Accelera segment generated revenues of $414 million, highlighting its nascent stage relative to the legacy businesses.5

The financial contributions of these segments reveal a company in transition. The legacy Engine, Components, and Distribution segments, along with the high-performing Power Systems business, form a highly profitable core that generates substantial cash flow. This core, however, faces the long-term secular challenge of decarbonization. In contrast, the Accelera segment is a high-growth, capital-intensive venture that is currently unprofitable but represents the company’s future. This internal dichotomy is central to understanding Cummins’ strategy and valuation. For instance, in the second quarter of 2025, while the Engine and Components segments contracted by 8% and 9% respectively amid a cyclical truck market downturn, the Power Systems segment grew by 19% with a record 22.8% EBITDA margin, driven by secular data center demand.8 During the same period, Accelera posted a $100 million EBITDA loss, reflecting the heavy investment required to scale the business.9 The company’s long-term success hinges on its ability to manage this divergence, using the cash from its profitable segments to fund Accelera’s path to viability before the decline in the legacy businesses becomes unmanageable.

SegmentFY 2024 Revenue ($B)FY 2024 Revenue (% of Total)
Engine11.7134.3%
Components11.6834.2%
Distribution11.3833.4%
Power Systems6.4118.8%
Accelera0.411.2%

Note: Segment revenues are before intersegment eliminations. Data sourced from.5

1.3. Geographic Revenue Distribution

Cummins operates a truly global business, but its revenue is heavily concentrated in North America. For fiscal year 2024, the company’s geographic revenue breakdown was as follows 5:

  • United States: 57.0%
  • China: 8.6%
  • India: 5.2%
  • Other International: 29.2%

This distribution highlights a significant reliance on the economic health, industrial activity, and regulatory environment of the United States. While China and India represent key growth markets and are home to significant joint venture operations, they also expose the company to greater geopolitical risk and competition from local manufacturers.3 The performance in international markets is often counter-cyclical to North America, providing some diversification, but the company’s overall financial results remain highly sensitive to trends in its home market.

1.4. The “Destination Zero” Transition Strategy

“Destination Zero” is the formal name for Cummins’ comprehensive strategy to navigate the global energy transition and achieve net-zero emissions by 2050.7 It is not a singular bet on one technology but a “dual-path” approach designed to provide flexibility and resilience regardless of the pace of decarbonization.10

The first path involves advancing internal combustion engine (ICE) technology. This strategy acknowledges that diesel and natural gas engines will remain a critical power source for many applications for decades to come. The focus is on making these engines cleaner and more efficient, primarily by enabling them to operate on a range of low-carbon fuels. A key innovation here is the development of fuel-agnostic engine platforms, such as the Cummins HELM™ series.7 These platforms share common base engine components, with cylinder heads and fuel systems specifically designed for different fuels, including natural gas, hydrogen (H2-ICE), and advanced diesel.11 This approach is intended to reduce complexity for OEM partners, create manufacturing economies of scale, and provide customers with a practical, lower-carbon bridge to a zero-emission future, all while continuing to generate the cash flow necessary to fund the second path.12

The second path is a focused investment in zero-emission solutions, executed primarily through the Accelera by Cummins brand.1 Accelera serves as the company’s innovation hub for new power technologies, concentrating on three core areas: battery electric systems, fuel cell electric systems, and the production of green hydrogen via electrolyzers.10 This segment represents a significant long-term growth opportunity and is the recipient of substantial R&D and capital investment. Management has set a critical target for Accelera to achieve breakeven profitability by 2027, a key milestone that will signal the viability of this long-term strategy.10

A crucial element of this transition strategy is leveraging the company’s existing competitive advantages. The Distribution segment, in particular, is a key strategic asset. Its global network of over 7,800 service locations provides a significant moat that new, pure-play zero-emission competitors cannot easily replicate.1 This network ensures that as Cummins introduces new technologies like H2-ICE, there is already a trusted and capable service infrastructure in place to support customers. This reduces adoption risk for customers and provides a stable, high-margin aftermarket revenue stream that helps fund the transition. The resilience of this segment was demonstrated in Q2 2025, when it posted 7% revenue growth even as new truck production plummeted, highlighting the stability provided by its parts and service business.9

2. Industry Dynamics & Market Analysis

2.1. Analysis of Key End Markets

Cummins’ performance is inextricably linked to the health of several large, cyclical, and evolving industrial markets. The current environment presents a stark contrast between a secularly booming power generation market and cyclically weak on-highway and off-highway markets.

Heavy-Duty & Medium-Duty Truck: This is Cummins’ most significant end market and is currently experiencing a sharp cyclical downturn. Following a period of strong demand, the North American truck market has softened considerably. In the second quarter of 2025, industry production for Class 8 heavy-duty trucks fell 27% year-over-year, while medium-duty truck production declined by 36%.15 Industry forecasting firm ACT Research anticipates this trend will continue, with lower Class 8 production in 2026 as manufacturers adjust to soft order levels and work through excess inventories.17 This downturn is driven by a confluence of factors, including moderating freight volumes, high interest rates that increase the cost of capital for fleets, and significant uncertainty surrounding upcoming emissions regulations, which has caused customers to pause purchasing decisions.19

Construction & Mining (Off-Highway): These markets are also highly cyclical and are influenced by global GDP growth, infrastructure spending, and commodity prices. The global construction equipment market is forecast to see modest growth, with a projected compound annual growth rate (CAGR) of 3.9% through 2030.21 The mining equipment market, after a strong 2024, showed a slight 2% increase in shipments in the first quarter of 2025.22 However, this headline number conceals significant regional variations, with shipments to North America and Africa declining by 24% and 17% respectively, while Latin America and Australasia saw increases.23 This regional divergence highlights the global and complex nature of demand drivers in the off-highway sector.

Power Generation: In stark contrast to the cyclical headwinds in other segments, the power generation market is in the midst of a secular boom. This growth is being driven by the exponential increase in global electricity demand from data centers needed to power cloud computing and artificial intelligence (AI).9 The International Energy Agency (IEA) projects that global electricity demand will grow by an average of 3.4% annually through 2026, and that electricity consumption from data centers, AI, and cryptocurrency could double in that same period.24 This trend provides a powerful and sustained tailwind for Cummins’ Power Systems segment, which specializes in the large generator sets required by these facilities. The broader global power generation market is projected to grow at a robust 8.38% CAGR through 2032, underscoring the long-term nature of this opportunity.25

2.2. Regulatory Trends and Impact

The regulatory landscape is one of the most significant forces shaping the industry, acting as both a driver of technological innovation and a source of market uncertainty. The U.S. Environmental Protection Agency (EPA) has finalized its “Clean Trucks Plan,” which includes highly stringent emissions standards for heavy-duty engines, set to take effect for Model Year 2027.26

These new rules represent a substantial technological hurdle for the entire industry. The standard for nitrogen oxides (NOx), a key pollutant, will be reduced by over 80%, from the current 200 milligrams per horsepower-hour (mg/hp−hr) to just 35 mg/hp−hr.11 Compliance requires significant advancements in engine and aftertreatment technology. For example, to control emissions during low-load conditions like idling or stop-and-go traffic, new aftertreatment systems will likely require electric heating elements powered by a separate 48-volt system to keep catalysts at their optimal operating temperature.11

In response, Cummins is making substantial investments, including over $1 billion across its U.S. manufacturing facilities in New York, North Carolina, and Indiana, to upgrade its plants to produce the new fuel-agnostic engine platforms (such as the HELM™ X15) designed to meet these 2027 standards.12

However, the implementation of these regulations is not guaranteed. The EPA’s rules are facing significant legal and political challenges, creating a high degree of uncertainty for both manufacturers and their fleet customers.17 This regulatory ambiguity has had a chilling effect on the market, stalling the typical “pre-buy” cycle where fleets purchase a large number of trucks ahead of new, more expensive, and potentially less proven technology. Many customers are now delaying purchasing decisions, waiting for clarity on whether the rules will be implemented, delayed, or repealed.20 This dynamic is a primary contributor to the current softness in the North American truck market.

2.3. Competitive Landscape

Cummins operates in a highly competitive environment, facing pressure from both vertically integrated original equipment manufacturers (OEMs) and other independent industrial giants.

  • Key Competitors: The primary competitors are large, global truck and equipment manufacturers that produce their own engines and powertrains. These include Daimler Truck (which owns Detroit Diesel), Volvo Group (which owns Volvo Trucks and Mack Trucks), and PACCAR (which owns Kenworth and Peterbilt and produces the PACCAR MX engine).30 In the off-highway and power generation markets,
    Caterpillar is a formidable global competitor.33
  • Trend of Vertical Integration: A major strategic trend in the commercial vehicle industry is vertical integration. Large OEMs like Daimler and Volvo are increasingly focused on designing and marketing fully integrated powertrains, where the engine, transmission, and axles are engineered to work together as a single system.30 This strategy allows them to optimize for fuel efficiency and performance while capturing a greater share of the vehicle’s value, which poses a direct competitive threat to Cummins’ role as an independent supplier of engines and components.
  • Co-opetition and Strategic Partnerships: Despite the intense competition, the industry is also characterized by strategic collaboration, often referred to as “co-opetition.” The immense cost and technical challenges of decarbonization are forcing even the largest players to partner in specific areas. For example, Daimler Truck and Volvo Group have established joint ventures for fuel cell development (cellcentric) and electric vehicle charging infrastructure (Milence).34

Of particular significance is Daimler Truck’s strategic partnership with Cummins for medium-duty engines. Under this agreement, Daimler will cease its own investment in developing medium-duty engines to meet future Euro VII emissions standards and will instead source these engines from Cummins, which will establish production within a Daimler facility in Germany.30 This decision by one of the world’s largest and most technologically advanced OEMs to outsource a core powertrain component is a powerful validation of Cummins’ technological leadership in advanced ICE technology. It effectively neutralizes a major competitor in this segment and converts them into a large, long-term customer, securing a significant future revenue stream and allowing Cummins to leverage its R&D investments across a broader customer base.

2.4. Impact of Electrification

The long-term, secular shift toward electrification is the most profound disruptive force facing the traditional diesel engine market.37 While still in its early stages, the adoption of battery-electric and hydrogen fuel cell powertrains is accelerating, driven by tightening global emissions regulations, improving technology, and decreasing total cost of ownership.

In the heavy-duty truck segment, adoption remains nascent. In 2023, zero-emission trucks accounted for just 0.28% of new heavy-duty registrations in the United States.39 However, the trend is clear, and all major OEMs, including Daimler, Volvo, and PACCAR, are actively developing, marketing, and selling electric truck models.39 This transition is fundamentally altering the competitive landscape, pitting established incumbents against each other and against new entrants like Tesla. The high cost of battery technology, the lack of widespread public charging infrastructure for heavy-duty vehicles, and concerns about vehicle range and payload capacity remain significant barriers to widespread adoption, particularly in the long-haul trucking segment. However, for certain applications, such as regional haul and port drayage, electric trucks are becoming increasingly viable.

3. Competitive Position & Market Share

3.1. Competitive Advantages (Moats)

Cummins possesses several durable competitive advantages, or “moats,” that have allowed it to maintain a leadership position in its core markets for decades. These advantages are particularly relevant as the company navigates the current technological and regulatory shifts.

  • Technology and Scale: Cummins’ singular focus on powertrain technology for over a century has created a deep reservoir of engineering expertise. The company’s ability to consistently meet increasingly stringent emissions regulations is a key differentiator.14 This technological leadership is underpinned by significant and sustained investment in research and development. Its scale as the leading independent engine manufacturer allows it to amortize these massive R&D costs over a much larger and more diverse customer base than vertically integrated competitors, who primarily develop engines for their own vehicle brands. This creates a powerful economic advantage, especially when facing the high costs of developing next-generation platforms. The technical complexity and capital intensity of meeting the EPA 2027 standards serve to reinforce this moat, raising the barrier to entry for smaller competitors and strengthening Cummins’ value proposition to OEMs who cannot afford the R&D investment to develop their own compliant engines.12
  • Global Distribution and Service Network: The company’s global service network is arguably its most formidable competitive advantage. With a presence in approximately 190 countries through more than 600 company-owned and independent distributor locations and approximately 7,400 dealer locations, the network is unparalleled in its reach.14 For commercial customers, vehicle uptime is paramount. The ability to quickly access parts and expert service anywhere in the world is a critical factor in purchasing decisions.41 This network not only supports new equipment sales but also generates a stream of high-margin, resilient aftermarket revenue that provides a crucial financial cushion during cyclical downturns.3
  • Brand Reputation and OEM Relationships: The Cummins brand is globally recognized and synonymous with power, reliability, and durability.31 This strong brand equity has been cultivated through decades of performance in demanding applications. Furthermore, Cummins has established deep, long-standing relationships with a broad portfolio of OEMs across the truck, bus, construction, and industrial markets. As the leading independent engine supplier, it is a key partner for OEMs that do not have the scale or desire to produce their own engines, such as PACCAR (parent of Kenworth and Peterbilt) and Navistar.32 The recent strategic partnership with Daimler for medium-duty engines further cements its status as the technology partner of choice even for the largest, most integrated OEMs.35

3.2. Market Share Analysis

While precise, up-to-the-minute market share data is proprietary and subject to fluctuation, available information and company disclosures provide a clear picture of Cummins’ strong market position.

  • North American Heavy-Duty (Class 8) Truck Market: Cummins has long been a market leader in this segment. According to Wards Intelligence data for the first half of 2022, Cummins was the leading overall supplier of Class 8 diesel engines in North America, providing 35.5% of the total units used.32 This leadership position, however, is nuanced. Cummins’ share is dominant in the vocational segment (engines under 10 liters), where it held an 86% share. In the larger, more competitive long-haul segment (engines 10 liters and over), Daimler’s Detroit Diesel held a slight lead over Cummins in that period.32 The company’s largest customers in this market are PACCAR’s Kenworth and Peterbilt brands.32
  • North American Medium-Duty Truck Market: The medium-duty market is more fragmented than the heavy-duty market. A 2024 industry report indicated that Cummins, PACCAR, and Volvo collectively held a market share of over 16%.43 Cummins is a significant player with its widely used B-series and L-series engine platforms. The strategic partnership to supply Daimler with next-generation medium-duty engines is expected to significantly bolster Cummins’ market share in this segment in the latter half of the decade.35
  • Market Share Uncertainty: It is important to note that specific market share figures for 2023 and 2024 are not available in the provided documentation. The market is dynamic, and shares can shift based on OEM production schedules, product launch cycles, and customer preferences. Management’s outlook for 2024 anticipated a slowdown in the North American heavy-duty truck market, which has materialized and is likely impacting market share dynamics.44

3.3. R&D and Technological Capabilities

Cummins’ competitive strength is built on a foundation of sustained and substantial investment in technology. The company’s research and development expenditures are significant, totaling $1.50 billion in 2023 and $1.46 billion in 2024.46 This level of spending, which represented approximately 4.4% of sales in 2023, is directed toward the company’s dual-path “Destination Zero” strategy.6

A large portion of this investment is focused on advancing the core ICE platforms to meet stringent new emissions standards like the EPA 2027 regulations. This includes the development of the HELM™ fuel-agnostic engine platforms, which are designed to operate on a variety of low-carbon fuels.11 Concurrently, a significant and growing portion of R&D spending is allocated to the Accelera segment to advance zero-emission technologies, including the development of more efficient and cost-effective electrolyzers for green hydrogen production, next-generation fuel cells, and advanced battery systems.12

3.4. Positioning in Emerging Technologies

Cummins is strategically positioning itself to be a leader across multiple decarbonization pathways, rather than betting on a single technology.

  • Hydrogen Ecosystem: The company is pursuing a comprehensive hydrogen strategy that encompasses the entire value chain. This includes production, through its Accelera business which is a leading developer and manufacturer of electrolyzers; storage and management, through its joint venture with NPROXX, a specialist in high-pressure hydrogen storage tanks; and application, through two distinct powertrain technologies.13 The first application is the
    hydrogen internal combustion engine (H2-ICE), a zero-carbon solution that leverages Cummins’ core engine expertise and offers a more familiar technology for customers to adopt.48 The second is
    hydrogen fuel cells, which offer higher efficiency and are suitable for heavy-duty vehicles with high energy demands.47 This integrated approach, from production to application, is a key differentiator. The development of H2-ICE in particular represents a pragmatic and potentially lucrative bridge technology. It leverages the company’s existing manufacturing infrastructure and vast service network, offering customers a path to zero carbon emissions without the disruptive operational changes and infrastructure challenges associated with battery-electric or fuel cell vehicles. This could allow Cummins to capture significant market share during the multi-decade transition period as the hydrogen refueling network is built out.13
  • Electric Powertrains: The $3.7 billion acquisition of Meritor in 2022 was a transformative event that fundamentally reshaped Cummins’ competitive position in electrification.49 Before the acquisition, Cummins was primarily a supplier of electric power sources like batteries and motors. By integrating Meritor’s industry-leading eAxle technology, which combines the motor, gearbox, and axle into a single unit, Cummins can now offer a complete, fully integrated ePowertrain.50 This vertical integration is critical for optimizing the performance and efficiency of electric vehicles and allows Cummins to compete directly with the integrated electric drivetrain offerings from major OEMs like Daimler and Volvo. The acquisition was both a defensive necessity to avoid being marginalized as a simple component supplier and an offensive move to capture a larger share of the value in the electric vehicle market.

4. Financial Performance & Growth Analysis

4.1. Long-Term Revenue and Profitability Trends

An analysis of Cummins’ financial performance over the past decade reveals a company capable of significant growth, though subject to the pronounced cyclicality of its primary end markets. The company has successfully navigated multiple industry cycles while expanding its top line and demonstrating an ability to manage profitability.

Revenue Growth: Cummins’ net sales have grown from $19.1 billion in 2015 to $34.1 billion in 2024, a compound annual growth rate of approximately 6.6%.5 This growth has not been linear, with periods of contraction corresponding to industrial downturns (e.g., 2016, 2020) followed by strong recoveries. The substantial revenue increase from 2021 to 2023 was significantly influenced by the acquisition of Meritor, which added several billion dollars in annual sales to the Components segment, and by strong post-pandemic demand in key markets.52 The subsequent divestiture of the Atmus filtration business in March 2024 will impact year-over-year comparisons going forward.7

Profitability Metrics: The company’s profitability has also followed cyclical patterns but has shown underlying resilience. Operating margins have fluctuated, reaching a low of 10.9% (excluding impairments) in the 2015 downturn and peaking more recently.51 For 2025, the company has guided for EBITDA margins to be in the range of 16.2% to 17.2%, indicating a structurally higher level of profitability compared to previous cycles, even with anticipated weakness in the North American truck market.53 This improvement can be attributed to a combination of pricing discipline, cost control, a richer product mix driven by the high-margin Power Systems segment, and synergies from the Meritor acquisition. The company’s ability to generate strong returns on capital is a key strength; for fiscal year 2024, Return on Invested Capital (ROIC) was a robust 24%.7

Metric2015201620172018201920202021202220232024
Revenue ($M)19,11017,50920,42823,77123,57119,81124,02128,07434,06534,102
Gross Margin (%)25.9%25.4%24.9%24.1%25.4%24.7%23.7%23.9%24.2%24.8%
Operating Income ($M)2,0571,9282,3652,7862,7002,2692,7062,9291,7613,750
Operating Margin (%)10.8%11.0%11.6%11.7%11.5%11.5%11.3%10.4%5.2%11.0%
Net Income ($M)1,3991,3949992,1412,2601,8112,1312,1517353,946
Diluted EPS ($)7.848.235.9713.1514.4812.0114.6115.125.1528.37
Operating Cash Flow ($M)2,0591,9352,2772,3783,1812,7222,2561,9623,9661,487

Note: Data sourced from company 10-K filings.5 2023 Net Income, Operating Income, and EPS were significantly impacted by a $2.04 billion regulatory charge. 2024 Net Income, EPS, and Operating Cash Flow were impacted by a $1.3 billion gain on the Atmus separation.

4.2. Cash Flow Generation and Balance Sheet

Cummins has a demonstrated history of robust cash flow generation through various economic cycles. In fiscal year 2023, the company generated a record $4.0 billion in operating cash flow, a substantial increase from $2.0 billion in 2022.6 This impressive performance was not driven by higher net income, which was significantly depressed by the one-time regulatory charge. Instead, it was almost entirely the result of disciplined working capital management, which generated a cash inflow of $2.4 billion in 2023 compared to a cash outflow of $1.0 billion in 2022.6 This highlights a core operational strength: the ability to unlock cash from the balance sheet to fund strategic priorities even when headline profitability is challenged. This cash generation is critical to funding the company’s capital-intensive transition strategy, shareholder returns, and debt reduction.

The company maintains a solid balance sheet. As of the end of the second quarter of 2025, Cummins held $3.07 billion in cash and marketable securities.60 Total debt stood at $6.7 billion at the end of fiscal year 2023.6 Debt levels increased significantly in 2022 to finance the Meritor acquisition, and management has since prioritized debt reduction as a key component of its capital allocation strategy.44

4.3. Segment Performance Deep Dive

A closer examination of segment-level performance reveals the diverging trends that define the company’s current state. The data from the second quarter of 2025 provides a clear illustration 9:

  • Power Systems: This segment is the standout performer, delivering a record EBITDA margin of 22.8% on strong revenue growth of 19%. This performance is fueled by the secular demand from the data center market and is providing a powerful offset to weakness elsewhere.
  • Distribution: This segment continues to demonstrate its resilience, with revenue growing 7% and EBITDA margins expanding significantly to 14.6% from 11.1% in the prior year. The growth was driven by demand for power generation products and the stable, high-margin aftermarket parts and service business.
  • Engine: As the segment most exposed to the on-highway truck cycle, its revenue declined by 8%, and its EBITDA margin compressed slightly to 13.8% from 14.1% a year ago, reflecting the sharp downturn in North American truck production.
  • Components: Despite a 9% decline in sales, also due to the truck market downturn, the Components segment managed to expand its EBITDA margin to 14.7% from 13.6%, suggesting effective cost control and benefits from the integrated Meritor business.
  • Accelera: The investment phase of this segment is evident in its financial results. On sales of $105 million, it recorded an EBITDA loss of $100 million, as the company continues to invest heavily in R&D and manufacturing capacity for future growth.

This segment-level analysis clearly shows the Power Systems and Distribution businesses acting as the company’s primary profit and cash flow engines, providing the financial stability needed to manage the cyclical downturn in the core Engine and Components segments while simultaneously funding the strategic, long-term investments in the Accelera business.

5. Recent Developments & Challenges (2022-2024)

The period from 2022 through 2024 has been transformative for Cummins, marked by significant strategic portfolio changes, major regulatory actions, and a challenging macroeconomic environment.

5.1. Navigating Macroeconomic Headwinds

  • Supply Chain Disruptions: The company has navigated persistent and significant global supply chain constraints. These challenges have been particularly acute for semiconductors and other electronic components, which have limited production capacity and constrained growth, especially in 2022.61 While conditions have improved from their peak disruption, management has indicated that the global electronics supply chain remains a challenge.62
  • Inflationary Pressures: Cummins has faced elevated costs for manufacturing, logistics, and raw materials.59 In response, the company has proactively implemented pricing actions and material cost surcharges across its businesses to mitigate the impact on margins. While there is often a time lag before these price increases fully offset cumulative cost inflation, this strategy has been crucial in preserving profitability.61
  • Geopolitical Tensions: The conflict in Ukraine prompted Cummins to indefinitely suspend its operations in Russia in early 2022, resulting in a pre-tax charge of $158 million in the first quarter of that year.61 A more persistent headwind has been the economic slowdown in China, which was exacerbated by prolonged COVID-19 lockdowns and a weaker property market, leading to significantly lower demand for trucks and construction equipment.61

5.2. Strategic Portfolio Reshaping

This period was defined by two major, complementary portfolio actions that have reshaped the company’s strategic focus and financial structure.

  • Meritor Acquisition (Completed August 2022): In a landmark transaction, Cummins acquired Meritor, Inc. for approximately $3.7 billion.50 This was a pivotal strategic move designed to significantly bolster the Components segment by adding Meritor’s industry-leading portfolio of axles, brakes, and, most importantly, electric powertrain (ePowertrain) solutions.66 The primary rationale was to position Cummins as one of the few suppliers capable of offering fully integrated powertrain solutions across both traditional combustion and emerging electric applications, thereby accelerating the “Destination Zero” strategy.50 Cummins expects to realize approximately
    $130 million in annual pre-tax run-rate synergies by the third year after closing.50
  • Atmus Divestiture (Completed March 2024): Complementing the Meritor acquisition, Cummins completed the full separation of its filtration business, which now operates as the independent public company Atmus Filtration Technologies.7 Management framed this move as a way to allow both Cummins and Atmus to have greater strategic focus on their respective core businesses.59 The divestiture was also a significant financial event. It generated a one-time pre-tax gain of
    $1.3 billion for Cummins in the first quarter of 2024 and was executed in a way that reduced the company’s shares outstanding by approximately 5.6 million, or 4%.7

These two moves should be viewed in concert. The Atmus spin-off was a strategic necessity to provide the financial flexibility to absorb the large Meritor acquisition and fund the heavy, ongoing investments in the Accelera business. By taking on significant debt for Meritor while simultaneously committing to massive R&D and CapEx for Accelera, the company’s balance sheet was stretched. The separation of Atmus unlocked capital from a mature, non-core business, allowing management to deleverage, reduce the share count, and reallocate financial and strategic resources to the higher-priority areas of powertrain integration and zero-emissions technology.

5.3. Regulatory Settlement

In December 2023, Cummins announced that it had reached an agreement in principle with the U.S. Environmental Protection Agency (EPA), the California Air Resources Board (CARB), and other regulatory bodies to resolve claims related to emissions certification and compliance on certain engine systems used in pickup trucks.44 This agreement resulted in the company recording a pre-tax charge of

$2.04 billion in the fourth quarter of 2023.44 This is a material, one-time financial event that significantly impacted the company’s reported net income and earnings per share for fiscal year 2023.

6. Capital Allocation Strategy

Cummins employs a disciplined and consistent capital allocation strategy focused on balancing shareholder returns with reinvestment in the business to drive long-term profitable growth. This strategy is currently facing a significant test as the company navigates the capital-intensive demands of the energy transition.

6.1. Shareholder Returns

Returning cash to shareholders is a stated priority for the company. The long-term strategic goal is to return approximately 50% of operating cash flow to shareholders through dividends and share repurchases.16

  • Dividends: The company has a strong track record of dividend growth. In July 2025, Cummins announced a 10% increase in its quarterly cash dividend, marking the 16th consecutive year of dividend increases.8 The declared dividend per share for fiscal year 2024 was $7.00, up from $6.50 in 2023.1 This consistent growth underscores the board’s confidence in the company’s long-term cash-generating capabilities.
  • Share Repurchases: Cummins regularly uses share buybacks as a tool to return capital. The final separation of the Atmus business was structured as an exchange offer that resulted in a reduction of Cummins’ shares outstanding by approximately 4%.7
Allocation ($M)202220232024
Operating Cash Flow1,9623,9661,487
Capital Expenditures(916)(1,213)(1,208)
R&D Expenses(1,278)(1,500)(1,463)
Dividends Paid(923)(940)(969)
Share Repurchases(1,570)(301)(1,105)
M&A Spending (Net)(3,595)(21)(11)

Note: Data sourced from company 10-K filings.6 R&D Expenses are from the income statement. M&A spending is from the cash flow statement (Acquisitions of businesses, net of cash acquired).

6.2. Reinvestment in the Business

The company is currently in a period of heightened investment to position itself for future growth and to meet new regulatory requirements.

  • Research & Development (R&D): R&D spending is a top priority and has been elevated to support the dual-path strategy. Annual R&D expenses were $1.50 billion in 2023 and $1.46 billion in 2024.46
  • Capital Expenditures (CapEx): CapEx has also increased significantly to support the launch of new product platforms and to expand manufacturing capacity. CapEx was $1.21 billion in both 2023 and 2024.6 A significant portion of this spending is dedicated to retooling U.S. manufacturing facilities to produce the new engines required to meet the 2027 emissions standards.12
  • Mergers & Acquisitions (M&A): The $3.7 billion acquisition of Meritor in 2022 represents the company’s most significant recent use of capital for M&A and was a strategic deployment of capital to accelerate its electrification strategy.50

The company’s long-standing policy of returning 50% of operating cash flow to shareholders is facing a significant strategic test. The immense and non-discretionary capital requirements of the energy transition—including funding Accelera’s operating losses, which amounted to a $100 million EBITDA loss in Q2 2025 alone, record-level CapEx near $1.2 billion annually, and R&D spending of around $1.5 billion annually—are in direct competition for capital with shareholder returns.7 This creates a fundamental tension for every dollar of cash generated. Management’s ability to maintain its shareholder return commitment while successfully funding this transition will be a key measure of the company’s operational efficiency and the underlying cash-generating power of its legacy and Power Systems businesses. The current near-term focus is on paying the dividend and reducing the debt incurred from the Meritor acquisition.44

7. Growth Opportunities & Strategic Initiatives

Despite the cyclical downturn in its largest market, Cummins is pursuing several distinct and significant growth opportunities, driven by both secular trends and strategic initiatives.

7.1. The Hydrogen Ecosystem

Cummins is positioning itself as a leader across the entire hydrogen value chain, a key differentiator from competitors who may be focused on only one aspect of the technology.

  • Green Hydrogen Production (Electrolyzers): Through its Accelera brand, Cummins is a major global player in the market for electrolyzers, the technology used to produce green hydrogen from renewable electricity and water. The company is aggressively expanding its manufacturing capacity, with new or expanded facilities in Spain, Minnesota, Belgium, and Canada.13 This positions Cummins to capitalize on the expected global build-out of hydrogen infrastructure. A recent major project win includes a contract to supply a 100-megawatt PEM electrolyzer system for bp’s green hydrogen project in Germany, which will be the largest system of its kind assembled by Accelera to date.68
  • Hydrogen Internal Combustion Engines (H2-ICE): This represents a significant near- to medium-term growth opportunity. By developing engines that burn hydrogen directly, Cummins can offer a zero-carbon solution that leverages its core manufacturing competencies and existing global service network.48 This technology is far less disruptive for OEMs and end-users to adopt compared to fuel cells, as it integrates with existing vehicle platforms and service practices. The company is actively validating its 15-liter hydrogen engine with major fleet partners like Werner Enterprises, paving the way for commercialization.48

7.2. Electric Powertrains

The Accelera segment is the focal point of Cummins’ battery-electric strategy. The acquisition of Meritor was a critical step, providing Cummins with a complete, integrated ePowertrain solution, including the crucial eAxle technology.50 This allows the company to compete as a full system provider in the growing market for electric commercial vehicles. Accelera is actively forming partnerships to scale its business, such as its collaboration with Blue Bird to increase the production of electric school buses.69

7.3. Power Systems Growth (Data Centers)

This is currently the company’s most powerful and profitable growth driver. The Power Systems segment is benefiting directly from the secular boom in demand for data centers to support AI and cloud computing. The segment’s revenue grew by a robust 19% in the second quarter of 2025, with record profitability.9 This demand is expected to be sustained as global data consumption continues to grow. To meet this demand, Cummins is investing $200 million to expand its manufacturing capacity for large generator sets in the U.S., England, and India.7

7.4. Aftermarket and Services Resilience

The vast global population of Cummins engines—totaling millions of units in operation—creates a large and resilient aftermarket revenue stream. This business, managed through the Distribution segment, includes the sale of replacement parts and repair services.3 This revenue is less cyclical than new equipment sales and carries higher margins, providing a crucial source of financial stability that helps the company navigate industry downturns and fund long-term investments.

8. Risk Factors

As a large, global industrial company, Cummins is exposed to a wide range of risks that could materially affect its business, financial condition, and results of operations. These risks, as disclosed in the company’s 2024 10-K filing, can be categorized into several key areas.4

8.1. Cyclical & Economic Risks

  • End Market Cyclicality: The company has significant exposure to the highly cyclical heavy-duty truck, construction, and mining markets. These industries are sensitive to changes in economic conditions, interest rates, and freight and commodity demand. A prolonged economic downturn would have a material adverse effect on revenue and profitability in the core Engine and Components segments.6
  • Customer Concentration: Cummins relies on a few large OEM customers for a significant portion of its on-highway sales. PACCAR, for example, has historically accounted for more than 10% of total net sales.72 The loss of a major customer, or a decision by one of them to further vertically integrate and in-source engine production, would have a significant negative impact.71

8.2. Regulatory & Technological Risks

  • Energy Transition Risk: The primary long-term risk is the global transition away from internal combustion engines toward zero-emission technologies. If Cummins fails to develop and commercialize competitive and economically viable electric or hydrogen solutions in a timely manner, it could face a significant and permanent loss of market share.6
  • Emissions Regulation: The company’s products are subject to extensive and increasingly stringent emissions standards worldwide. The unpredictability in the adoption, implementation, and enforcement of these standards, such as the EPA 2027 rules, creates significant business uncertainty and can lead to demand volatility.17 Furthermore, compliance failures can result in substantial financial penalties, recall costs, and reputational damage, as evidenced by the recent $2.04 billion regulatory settlement.44
  • Product Recalls and Liability: As a manufacturer of complex machinery, Cummins is exposed to the risk of product recalls and liability claims, which can be costly and damage the company’s brand reputation.6

8.3. Competitive & Geopolitical Risks

  • Intense Competition: Cummins faces intense competition from large, vertically integrated OEMs (Daimler, Volvo) that produce their own powertrains, as well as from other diversified industrial companies like Caterpillar. In emerging markets, competition from local manufacturers is also increasing.6
  • China Exposure: With 8.6% of its 2024 revenue derived from China, the company has significant exposure to that market’s economic and political risks. These include the potential for economic slowdowns, changes in trade policy and tariffs, and rising competition from domestic Chinese companies.5
  • Supply Chain Vulnerabilities: The company is susceptible to disruptions in its global supply chain, including raw material and component shortages (particularly semiconductors), transportation delays, and labor price fluctuations. These disruptions can halt production and increase costs.6

8.4. Execution & Operational Risks

  • M&A Integration: A key near-term risk is the successful integration of the large and complex Meritor acquisition. Failure to achieve the projected cost synergies of $130 million annually or to effectively combine the two companies’ technological and operational capabilities could impair the long-term value of the transaction.6
  • Funding the Transition: The company faces the significant operational and financial challenge of funding the heavily loss-making Accelera segment until it reaches its targeted breakeven point in 2027. A failure to manage this cash burn or a delay in achieving profitability could strain the company’s financial resources.9

9. Valuation Analysis

The valuation of Cummins Inc. reflects a complex interplay between its mature, cyclical legacy businesses and its high-growth, but currently unprofitable, new energy ventures. An analysis of its valuation multiples relative to its own history and its industry peers provides context for how the market is pricing these divergent characteristics.

9.1. Historical Valuation Multiples

An examination of Cummins’ historical valuation multiples reveals the impact of its cyclicality. As of early September 2025, the stock’s trailing twelve-month (TTM) Price-to-Earnings (P/E) ratio stood at 18.54x.73 This is moderately above its 10-year historical average P/E ratio of

16.75x, suggesting a slight premium relative to its past valuation.73

The company’s P/E ratio has exhibited significant volatility, which is typical for a cyclical company. It peaked at over 46x in December 2023, a figure that was distorted by the significant one-time regulatory charge that sharply depressed reported earnings per share (EPS). Conversely, it has troughed at under 10x during periods of economic pessimism, such as in March 2020.73 On other metrics, the company’s 3-year average Price-to-Sales (P/S) ratio is 1.2x and its 3-year average Price-to-Book (P/B) ratio is 4.0x.74

It is critical to recognize that the headline P/E ratio can be a misleading metric for Cummins at present due to the impact of significant one-time items. The reported TTM EPS for fiscal year 2023 of $5.15 was artificially lowered by the $2.04 billion regulatory charge, which amounted to $13.78 per share.6 Adjusting for this non-recurring charge, the normalized EPS for 2023 would be approximately $18.93. Based on the year-end 2023 stock price, this would imply a normalized P/E ratio of approximately 12.7x, which is substantially below the historical average and suggests that, on an underlying operational basis, the company was trading at a discount.

9.2. Peer Group Comparison

Benchmarking Cummins’ valuation against its closest competitors provides further context. The company’s valuation is generally in line with or at a discount to its peers, depending on the metric used.

MetricCMI (Current)CMI (5-Yr Avg)Caterpillar (CAT)PACCAR (PCAR)Daimler Truck (DTG.DE)Volvo Group (VOLV B)
P/E (TTM)~18.5x16.9x~21.1x~16.7x~13.1x~14.8x
P/S (TTM)~1.6x1.3x~3.2x~1.7x~0.6x~1.1x
EV/EBITDA (TTM)~8.5xN/A~16.2xN/AN/AN/A
Dividend Yield (%)~2.0%N/A~1.4%N/AN/A~6.7%

Note: Data as of early September 2025. CMI data from.5 CAT data from.75 PCAR data from.73 DTG.DE data from.77 VOLV B data from.78 Peer data is approximate and subject to market fluctuations. EV/EBITDA for peers is not consistently available in the provided sources.

Cummins’ P/E ratio of ~18.5x is lower than that of the more diversified industrial giant Caterpillar (~21.1x) but higher than its truck OEM peers PACCAR, Daimler, and Volvo.73 On a Price-to-Sales basis, Cummins (1.6x) trades at a significant discount to Caterpillar (3.2x), reflecting Caterpillar’s higher margins and different end-market mix.74

9.3. Market Interpretation and Sum-of-the-Parts

The current valuation appears to reflect the market’s attempt to balance several competing narratives: the cyclical downturn in the company’s largest market (trucking), the secular growth story in its Power Systems segment, and the long-term, high-risk, high-reward potential of its Accelera new energy business.

A sum-of-the-parts (SOTP) valuation framework can be a useful way to analyze a company with such distinct business units. Such an analysis would assign different valuation multiples to each segment based on its growth profile and profitability:

  • Engine, Components, and Distribution: These mature, cyclical segments would likely be valued on an EV/EBITDA multiple typical for industrial manufacturers, perhaps in the 8-10x range.
  • Power Systems: This segment, with its strong secular growth driven by data centers and superior profitability, would command a higher multiple, potentially in the 12-15x EV/EBITDA range, more akin to a high-quality industrial growth company.
  • Accelera: As a pre-profitability, high-growth technology business, Accelera would be valued on a revenue multiple (EV/Sales). This multiple would be highly speculative and dependent on assumptions about the future growth of the hydrogen and electric vehicle markets.

The central question for investors is whether the current blended valuation fully appreciates the cash-generating power and resilience of the legacy businesses and the secular growth of Power Systems, or if it is assigning an overly optimistic or pessimistic value to the long-term potential of Accelera.

10. Key Questions to Address

Synthesizing the comprehensive analysis of Cummins’ business, industry, and financials provides answers to several key strategic questions facing the company and its investors.

10.1. How well-positioned is Cummins for the energy transition while maintaining current cash flows?

Cummins is strategically well-positioned, but faces a significant execution challenge. Its “dual-path” strategy is a pragmatic approach that leverages its core strengths. The company is using the substantial and resilient cash flows from its legacy ICE businesses and, critically, its booming Power Systems segment to fund the capital-intensive transition to zero-emission technologies under the Accelera brand. The key challenge is one of timing and magnitude. The company must successfully scale Accelera to profitability before the secular decline in its core diesel markets accelerates to a point where it can no longer support the necessary investment. The introduction of bridge technologies like natural gas and hydrogen internal combustion engines (H2-ICE) is a crucial element of this strategy, designed to extend the life and profitability of the ICE business while providing customers a smoother path to decarbonization.

10.2. What is the company’s competitive advantage in next-generation technologies?

Cummins’ competitive advantage in next-generation technologies is not solely based on the technologies themselves, but on its ability to manufacture, integrate, and support them at a global scale.

  • In Hydrogen: The advantage lies in its comprehensive, ecosystem-level approach. Cummins is one of the few companies active in green hydrogen production (electrolyzers), storage (NPROXX JV), and application (fuel cells and H2-ICE). The H2-ICE offering is a particularly strong differentiator, as it leverages the company’s existing engine manufacturing footprint and its unparalleled global service network, dramatically lowering adoption barriers for customers.
  • In Electric Powertrains: The 2022 acquisition of Meritor was transformative. It provided Cummins with a critical, in-house eAxle technology, enabling it to offer a complete, integrated ePowertrain. This elevates its position from a component supplier to a full system provider, capable of competing directly with the vertically integrated offerings of major truck OEMs.
    Across all new technologies, the ultimate advantage is the ability to leverage its existing global scale, deep OEM relationships, and trusted brand and distribution network to commercialize and support these solutions in a way that new, pure-play competitors cannot.

10.3. How sustainable are current margin levels given industry pressures?

Margin sustainability is a tale of two opposing forces. In the core Engine and Components segments, margins are under pressure from the cyclical downturn in the North American truck market and persistent input cost inflation. However, the company has demonstrated an ability to protect profitability through pricing actions and cost control. The more significant factor supporting overall corporate margins is the exceptional performance of the Power Systems segment. Driven by secular demand from data centers, this segment is delivering record-high profitability (22.8% EBITDA margin in Q2 2025), which is providing a powerful offset to the weakness in on-highway markets. The long-term sustainability of margins will depend on three factors: a cyclical recovery in the truck market, the continued strength of the Power Systems business, and, most importantly, the company’s ability to transition the currently loss-making Accelera segment to profitability, as targeted for 2027.

10.4. What is the optimal capital allocation strategy given the technology transition?

The optimal strategy is the delicate balance that management is currently attempting to strike, though it is fraught with tension. The company must continue to allocate sufficient capital to maintain its technological leadership in both advanced ICE platforms (to meet 2027 regulations) and zero-emission solutions (to secure its future). This requires sustained, elevated levels of R&D and capital expenditures. Simultaneously, it must maintain its commitment to shareholder returns—specifically its growing dividend and its long-term target of returning 50% of operating cash flow—to maintain investor confidence. The current near-term priority, following the Meritor acquisition, is to use free cash flow to pay the dividend and reduce debt. The ability to continue funding all of these priorities simultaneously will depend entirely on the cash-generating power of the core business and disciplined working capital management.

10.5. How should investors think about the timing and magnitude of diesel market decline?

The decline of the diesel market should be viewed as a gradual, multi-decade transition, not an overnight collapse. The pace will be uneven, varying significantly by region and application. In some markets, like California and Europe, and in certain applications, like urban delivery and buses, the transition to electric will be rapid, driven by stringent regulations. However, for the long-haul heavy-duty trucking segment, which is a core market for Cummins, the transition faces significant hurdles, including the high cost of electric trucks, the lack of adequate charging/refueling infrastructure, and concerns over range and payload. This suggests that advanced diesel, natural gas, and hydrogen internal combustion engines will remain a significant part of the powertrain mix for at least the next decade and likely beyond. The uncertainty surrounding the implementation of the EPA 2027 rules is a key near-term variable, but the long-term trend is a slow but steady erosion of the traditional diesel market, which underscores the critical importance of the success of Cummins’ “Destination Zero” strategy.

Works cited

  1. Investor Relations :: Cummins Inc. (CMI), accessed September 10, 2025, https://investor.cummins.com/
  2. Company Overview | Cummins Inc., accessed September 10, 2025, https://www.cummins.com/company
  3. Extensive SWOT Analysis Of Cummins – 2025 Study – IIDE, accessed September 10, 2025, https://iide.co/case-studies/swot-analysis-of-cummins/
  4. 10-K – 02/11/2025 – Cummins Inc., accessed September 10, 2025, https://investor.cummins.com/sec-filings/annual-reports/content/0000026172-25-000007/0000026172-25-000007.pdf
  5. Cummins Company Profile, Statistics and Facts – Bullfincher.io, accessed September 10, 2025, https://bullfincher.io/companies/cummins/overview
  6. 10-K – 02/12/2024 – Cummins Inc. – Investor Relations :: Cummins …, accessed September 10, 2025, https://investor.cummins.com/sec-filings/annual-reports/content/0000026172-24-000012/0000026172-24-000012.pdf
  7. 2024 ANNUAL REPORT – Investor Relations :: Cummins Inc. (CMI), accessed September 10, 2025, https://investor.cummins.com/sec-filings/annual-reports/content/0001104659-25-029890/tm2510926d1_ars.pdf
  8. Cummins Reports Second Quarter 2025 Results :: Cummins Inc. (CMI), accessed September 10, 2025, https://investor.cummins.com/news/detail/684/cummins-reports-second-quarter-2025-results
  9. Cummins Reports Second Quarter 2025 Results, accessed September 10, 2025, https://www.cummins.com/news/releases/2025/08/05/cummins-reports-second-quarter-2025-results
  10. Analyst Day :: Cummins Inc. (CMI), accessed September 10, 2025, https://investor.cummins.com/AnalystDay
  11. Diesel OEMs Working to Meet 2027 EPA Standards – TT, accessed September 10, 2025, https://www.ttnews.com/articles/diesel-oems-2027-standards
  12. Cummins Announces Investments of more than $1 billion Across U.S. Manufacturing Network, accessed September 10, 2025, https://investor.cummins.com/news/detail/605/cummins-announces-investments-of-more-than-1-billion
  13. Cummins fuels hydrogen commitment at Agritechnica, accessed September 10, 2025, https://www.cummins.com/news/2023/11/13/cummins-fuels-hydrogen-commitment-agritechnica
  14. CUMMINS & SUSTAINABILITY, accessed September 10, 2025, https://www.cummins.com/sites/default/files/files/reports/2016_cummins_sustainability_overview_june_2017.pdf
  15. Cummins Inc. (CMI) Q2 2025 Earnings Conference Call Transcript | Seeking Alpha, accessed September 10, 2025, https://seekingalpha.com/article/4808892-cummins-inc-cmi-q2-2025-earnings-conference-call-transcript
  16. EarningsCall · CMI Q2 2025 – Earnings call app for public companies and stocks., accessed September 10, 2025, https://earningscall.biz/e/nyse/s/cmi/y/2025/q/q2
  17. Trucking Industry Forecast for 2026 – ACT Research, accessed September 10, 2025, https://www.actresearch.net/resources/blog/trucking-industry-forecast-for-2026
  18. Class 8 Truck Sales Forecast for 2026 – ACT Research, accessed September 10, 2025, https://www.actresearch.net/resources/blog/class-8-truck-sales-forecast-2026
  19. Trucking Industry Forecast for 2025 – ACT Research, accessed September 10, 2025, https://www.actresearch.net/resources/blog/trucking-industry-forecast-2025
  20. Drop In Truck Demand Hits Cummins | News, Sports, Jobs – Post Journal, accessed September 10, 2025, https://www.post-journal.com/news/top-stories/2025/08/drop-in-truck-demand-hits-cummins/
  21. Construction Equipment Market Size, Share, Growth, Trends & Analysis Report, 2030, accessed September 10, 2025, https://www.marketsandmarkets.com/Market-Reports/construction-mining-equipment-market-179948937.html
  22. The Parker Bay Company – Market Research for the Mining and Mining Equipment Industries, accessed September 10, 2025, https://parkerbaymining.com/
  23. Surface Mining Equipment Index – The Parker Bay Company, accessed September 10, 2025, https://parkerbaymining.com/industry-information/surface-mining-equipment-index.htm
  24. Executive summary – Electricity 2024 – Analysis – IEA, accessed September 10, 2025, https://www.iea.org/reports/electricity-2024/executive-summary
  25. Power Generation Market Size, Share | Industry Trends [2032] – Fortune Business Insights, accessed September 10, 2025, https://www.fortunebusinessinsights.com/power-generation-market-110449
  26. Regulations for Greenhouse Gas Emissions from Commercial Trucks & Buses | US EPA, accessed September 10, 2025, https://www.epa.gov/regulations-emissions-vehicles-and-engines/regulations-greenhouse-gas-emissions-commercial-trucks
  27. EPA’s Heavy-Duty 2027 Final Rule:, accessed September 10, 2025, https://www.4cleanair.org/wp-content/uploads/2023-03-03_EPA_HD2027_FRM_NACAA.pdf
  28. Cummins CMI Q2 2025 Earnings Call – YouTube, accessed September 10, 2025, https://www.youtube.com/watch?v=K1oTL7jE9Bc
  29. Class 8 Truck Sales Forecast for 2025 – ACT Research, accessed September 10, 2025, https://www.actresearch.net/resources/blog/class-8-truck-sales-forecast-2025
  30. Truck Technology Group | Daimler Truck, accessed September 10, 2025, https://www.daimlertruck.com/en/innovation/powertrain/truck-technology-group
  31. Cummins Engines Are First Choice for the Trucking Industry – Lincoln Tech, accessed September 10, 2025, https://www.lincolntech.edu/news/automotive/diesel-technology/cummins-engines-are-first-choice-trucking-industry
  32. Cummins Supplies Most Class 8 Engines in First Half – TT, accessed September 10, 2025, https://www.ttnews.com/articles/cummins-supplies-most-class-8-engines-first-half
  33. Annual Report to Shareholders on Form 10-K – Caterpillar, accessed September 10, 2025, https://www.caterpillar.com/en/investors/financial-information/proxy-materials/annual-report-to-shareholders.html
  34. Partnerships | Daimler Truck, accessed September 10, 2025, https://www.daimlertruck.com/en/innovation/powertrain/partnerships
  35. Daimler and Cummins Sign Framework Agreement for Medium-Duty Engines, accessed September 10, 2025, https://www.oemoffhighway.com/engines/press-release/21591016/cummins-inc-daimler-and-cummins-sign-framework-agreement-for-mediumduty-engines
  36. Daimler Truck and Cummins to cooperate in medium-duty commercial vehicle engines, accessed September 10, 2025, https://www.powertraininternationalweb.com/automotive/daimler-truck-cummins-commercial-vehicle-engines/
  37. The Future of Road Transport: Electrification of Medium and Heavy-Duty Vehicles – Enerdata, accessed September 10, 2025, https://www.enerdata.net/publications/executive-briefing/transition-electric-mhdv.html
  38. Medium-duty Engine Market | Global Market Analysis Report – 2035 – Future Market Insights, accessed September 10, 2025, https://www.futuremarketinsights.com/reports/medium-duty-engine-market
  39. Zero-emission bus and truck market in the United States: A 2022–2023 update, accessed September 10, 2025, https://theicct.org/publication/zero-emission-bus-and-truck-market-in-the-us-2022-2023-update-june24/
  40. EPA 2027 and Beyond: How Will New Low-NOx Rules Affect Fleets? – Heavy Duty Trucking, accessed September 10, 2025, https://www.truckinginfo.com/10194891/epa-2027-and-beyond-how-will-new-low-nox-rules-affect-fleets
  41. Cummins’s SWOT analysis: engine maker’s stock faces truck market headwinds, accessed September 10, 2025, https://www.investing.com/news/swot-analysis/cumminss-swot-analysis-engine-makers-stock-faces-truck-market-headwinds-93CH-4218610
  42. Integrated Power Technologies | Cummins Inc., accessed September 10, 2025, https://www.cummins.com/engines/resources/integrated-power
  43. Medium-duty Engine Market Size & Share | Forecasts 2025-2034, accessed September 10, 2025, https://www.gminsights.com/industry-analysis/medium-duty-engine-market
  44. Cummins reports fourth quarter and full year 2023 results | Cummins …, accessed September 10, 2025, https://www.cummins.com/news/releases/2024/02/06/cummins-reports-fourth-quarter-and-full-year-2023-results
  45. Cummins Reports Fourth Quarter and Full Year 2023 Results, accessed September 10, 2025, https://investor.cummins.com/news/detail/635/cummins-reports-fourth-quarter-and-full-year-2023-results
  46. Cummins Research and Development Expenses 2010-2025 | CMI – Macrotrends, accessed September 10, 2025, https://www.macrotrends.net/stocks/charts/CMI/cummins/research-development-expenses
  47. Cummins emphasizes hydrogen strategy at Agritechnica; focus on production, supply and use – Green Car Congress, accessed September 10, 2025, https://www.greencarcongress.com/2023/11/20231115-cummins.html
  48. Hydrogen Engines | Zero Carbon Technology by Cummins, Inc., accessed September 10, 2025, https://www.cummins.com/engines/hydrogen
  49. Cummins posts record 2022 results as it integrates Meritor business – FreightWaves, accessed September 10, 2025, https://www.freightwaves.com/news/cummins-posts-record-2022-results-as-it-integrates-meritor-business
  50. Cummins completes acquisition of Meritor, accessed September 10, 2025, https://www.cummins.com/news/releases/2022/08/03/cummins-completes-acquisition-meritor
  51. 10-K – SEC.gov, accessed September 10, 2025, https://www.sec.gov/Archives/edgar/data/26172/000002617216000033/cmi2015final10-kdocument.htm
  52. Cummins Inc. – 10K – Annual Report – February 14, 2023 – Fintel, accessed September 10, 2025, https://fintel.io/doc/sec-cummins-inc-26172-10k-2023-february-14-19402-3114
  53. Cummins Reports Strong Fourth Quarter and Full Year 2024 Results, Incurs Charges Associated with Reorganization of Accelera, accessed September 10, 2025, https://www.cummins.com/sites/default/files/CMI%202024%20Q4_1.pdf
  54. Document – Cummins, accessed September 10, 2025, https://investor.cummins.com/sec-filings/annual-reports/content/0000026172-17-000007/cmi2016final10-kdocument.htm
  55. UNITED STATES SECURITIES AND EXCHANGE COMMISSION …, accessed September 10, 2025, https://www.annualreports.com/HostedData/AnnualReportArchive/c/NYSE_CMI_2017.pdf
  56. UNITED STATES SECURITIES AND EXCHANGE COMMISSION …, accessed September 10, 2025, https://www.annualreports.com/HostedData/AnnualReportArchive/c/NYSE_CMI_2018.pdf
  57. CMI 2019 10-K DOCUMENT – AnnualReports.com, accessed September 10, 2025, https://www.annualreports.com/HostedData/AnnualReportArchive/c/NYSE_CMI_2019.pdf
  58. Cummins Reports Fourth Quarter and Full Year 2020 Results …, accessed September 10, 2025, https://investor.cummins.com/news/detail/498/cummins-reports-fourth-quarter-and-full-year-2020-results
  59. Cummins Reports Fourth Quarter and Full Year 2021 Results …, accessed September 10, 2025, https://investor.cummins.com/news/detail/546/cummins-reports-fourth-quarter-and-full-year-2021-results
  60. Cummins Inc., accessed September 10, 2025, https://investor.cummins.com/sec-filings/annual-reports/content/0000026172-25-000031/0000026172-25-000031.pdf
  61. Cummins’ (CMI) CEO Tom Linebarger on Q1 2022 Results …, accessed September 10, 2025, https://seekingalpha.com/article/4506316-cummins-cmi-ceo-tom-linebarger-on-q1-2022-results-earnings-call-transcript
  62. Ref: STEX/SECT/2023 November 10, 2023 The Relationship …, accessed September 10, 2025, https://www.cummins.com/sites/default/files/india/Legal/Analyst%20Call%20Transcript%20Q2%20FY%202023-24.pdf
  63. Cummins Reports First Quarter 2022 Results, accessed September 10, 2025, https://investor.cummins.com/news/detail/558/cummins-reports-first-quarter-2022-results
  64. Cummins Reports Third Quarter 2022 Results :: Cummins Inc. (CMI), accessed September 10, 2025, https://investor.cummins.com/news/detail/585/cummins-reports-third-quarter-2022-results
  65. The acquisition of Meritor – SEC.gov, accessed September 10, 2025, https://www.sec.gov/Archives/edgar/data/1113256/000120677422000494/meritor36517446-ex991.htm
  66. Cummins to Acquire Meritor, accessed September 10, 2025, https://investor.cummins.com/news/detail/552/cummins-to-acquire-meritor
  67. Cummins Reports First Quarter 2024 Results :: Cummins Inc. (CMI), accessed September 10, 2025, https://investor.cummins.com/news/detail/646/cummins-reports-first-quarter-2024-results
  68. Cummins Reports First Quarter 2025 Results, accessed September 10, 2025, https://investor.cummins.com/news/detail/680/cummins-reports-first-quarter-2025-results
  69. Cummins Inc. (CMI) Q1 2023 Earnings Call Transcript | Seeking Alpha, accessed September 10, 2025, https://seekingalpha.com/article/4598870-cummins-inc-cmi-q1-2023-earnings-call-transcript
  70. CUMMINSIND Investor Relations – Cummins India Ltd – Alpha Spread, accessed September 10, 2025, https://www.alphaspread.com/security/nse/cumminsind/investor-relations
  71. 02/14/2023 – Cummins Inc., accessed September 10, 2025, https://investor.cummins.com/sec-filings/annual-reports/content/0000026172-23-000005/0000026172-23-000005.pdf
  72. 10-K Filing – Document – Cummins, accessed September 10, 2025, https://investor.cummins.com/sec-filings/annual-reports/content/0000026172-19-000009/cmi201810-kdocument.htm
  73. CMI – Cummins PE ratio, current and historical analysis – FullRatio, accessed September 10, 2025, https://fullratio.com/stocks/nyse-cmi/pe-ratio
  74. CMI Fair Value Price Cummins – Market Chameleon, accessed September 10, 2025, https://marketchameleon.com/Overview/CMI/Fair-Value-Price/
  75. Caterpillar (CAT) | Finance information – Stockcircle, accessed September 10, 2025, https://stockcircle.com/stocks/cat
  76. Valuation – Caterpillar Inc CAT – Morningstar, accessed September 10, 2025, https://www.morningstar.com/stocks/xnys/cat/valuation
  77. DTG.DE Stock Price | Analyst Target 44.00 & Moderate Buy Consensus – eToro, accessed September 10, 2025, https://www.etoro.com/markets/dtg.de
  78. Volvo AB Class B (VOLV B) – Morningstar, accessed September 10, 2025, https://www.morningstar.com/stocks/xsto/volv%20b/quote
  79. Volvo AB, VOLV B:STO summary – FT.com – Markets data, accessed September 10, 2025, https://markets.ft.com/data/equities/tearsheet/summary?s=VOLV%20B:STO