Cummins(NYSE) CMI

Cummins Inc. makes engines and power systems for large vehicles and equipment. These products help trucks, buses, and construction machines move goods and complete heavy work. The company also builds backup power generators for buildings like data centers.

What Powers the Company?

• Engine Segment: Produces engines 15 liters and smaller for trucks, buses, and various industrial machines; accounted for 26% of total sales in the six months ended June 30, 2026.
• Distribution Segment: Sells engines and parts while providing repair services through a global network; represented 29% of total sales in the six months ended June 30, 2026.
• Components Segment: Sells axles, brakes, turbochargers (power boosters), and aftertreatment (exhaust cleaning) systems; contributed 25% of total sales in the six months ended June 30, 2026.
• Power Systems: Manufactures large engines and generators for data centers, mining, and marine use; made up 19% of total sales in the six months ended June 30, 2026.
• Accelera Segment: Develops zero-emission technologies such as battery electric powertrains and hydrogen-producing electrolyzers (machines that produce hydrogen); accounted for 1% of total sales in the six months ended June 30, 2026.

Moving Toward Zero Emissions

• Sold the low pressure fuel cell business on March 31, 2026, to resolve customer claims and cancel future commitments.
• Repurchased 0.8 million shares of common stock for $468 million during the first half of 2026.
• Authorized a 10% increase to the quarterly dividend in July 2026, raising it to $2.20 per share.
• Invested $438 million in the six months ended June 30, 2026, for new product lines and targeted capacity expansions.
• Entered a series of interest rate swaps to convert $350 million of fixed-rate debt to floating rates.

Building a Worldwide Support Network

Cummins operates an extensive service network with approximately 640 distributor locations and more than 13,000 certified dealer locations in roughly 190 countries. The company leverages its Destination Zero strategy to maintain leadership in traditional diesel markets while developing battery and hydrogen fuel cell technologies.

Performance by the Numbers

• Net sales reached $17.9 billion for the six months ended June 30, 2026, up 6% year over year.
• Net income attributable to Cummins was $1.6 billion for the six months ended June 30, 2026, down 7% year over year.
• Net cash provided by operating activities increased to $1.8 billion in the first half of 2026.
• International sales grew 14% to $7.5 billion during the six months ended June 30, 2026.
• Market cap rose to $98.5 billion in Q2 2026, up 118.4% year over year.

Evolution of a Power Leader

Cummins has transformed from a mechanical engine manufacturer into a diversified provider of traditional and zero-emission power solutions. Its ability to serve global infrastructure while navigating the energy transition remains its central operational focus.