Cummins Inc. (NYSE: CMI): Corporate Profile & Financials
Source: Cummins Inc. Form 10-K 2025
Cummins Inc. is a global power leader that engineers, manufactures, distributes, and services a broad portfolio of power solutions. Founded in Columbus, Indiana, the enterprise designs advanced diesel, natural gas, electric, and hybrid powertrains, integrated power generation systems, and powertrain-related critical components.
- Engine Division Contraction: Total sales declined by $837 million due to lower North American heavy-duty and medium-duty truck build rates.
- Power Systems Expansion: Segment revenue grew 16% to $7,463 million, driving a 44% increase in EBITDA to $1,694 million on demand from hyperscale data center standby power installations.
- Distribution Outperformance: Division EBITDA increased 31% to $1,808 million, driven by power generation system sales in North America and higher parts volumes.
- Accelera Restructuring Burden: The zero-emissions segment incurred EBITDA losses of $896 million in 2025, heavily impacted by $458 million of asset impairments, goodwill write-offs, and restructuring charges.
📋 Quick Facts / Company Snapshot: Cummins Inc.
| Corporate Metric | Disclosed Detail |
|---|---|
| Official Company Name | Cummins Inc. |
| Ticker Symbol | CMI |
| Primary Exchange | New York Stock Exchange (NYSE) |
| Commission File Number | 1-4949 |
| State of Incorporation | Indiana |
| IRS Employer Identification No. | 35-0257090 |
| Principal Executive Offices | 500 Jackson Street, Box 3005, Columbus, Indiana 47202-3005 |
| Corporate Contact Telephone | (812) 377-5000 |
| Year Founded | 1919 (as Cummins Engine Company) |
| Industry / Sector | Industrial Machinery & Commercial Equipment / Power Solutions |
| Total Global Workforce | Approximately 67,400 employees (at December 31, 2025) |
| Unionized Workforce Scale | Approximately 20,000 employees under collective bargaining agreements expiring between 2026 and 2030 |
| Chair & Chief Executive Officer | Jennifer Rumsey |
| Vice President & Chief Financial Officer | Mark A. Smith |
| Global Distribution Reach | Approximately 640 distributor locations and over 13,000 certified dealer locations across 190 countries and territories |
| Common Shares Outstanding | 138,165,463 shares of $2.50 par value common stock (at January 31, 2026) |
| Institutional / Commercial Partner Entities | Eaton Cummins Automated Transmission Technologies, Amplify Cell Technologies LLC, Chongqing Cummins Engine Co., Ltd., Dongfeng Cummins Engine Co., Ltd., Beijing Foton Cummins Engine Co., Ltd., Tata Cummins, Ltd., Komatsu Cummins Chile, Ltda. |
| Patents & Trademarks | Extensive portfolio owned or controlled across propulsion, filtration, electronic controls, emissions, and powertrain architectures |
| Largest Commercial Customer | PACCAR Inc. (accounted for 13% of consolidated net sales in 2025) |
| External Digital Portal | www.cummins.com |
1. Corporate Identity: Cummins Inc. Overview & History
The Big Picture
Cummins Inc. is a global power leader that engineers, manufactures, distributes, and services a broad portfolio of power solutions. Founded in Columbus, Indiana, the enterprise designs advanced diesel, natural gas, electric, and hybrid powertrains, integrated power generation systems, and powertrain-related critical components. These components include filtration, aftertreatment, turbochargers, fuel systems, valvetrain systems, electronic control modules, transmissions, axles, and brakes. Additionally, through its Accelera division, the corporation develops zero-emissions technologies such as battery and electric powertrain architectures.
The company deploys an integrated global supply chain and distribution network that reaches original equipment manufacturers (OEMs), distributors, and retail end-users across approximately 190 countries and territories. Customers depend on the company’s hardware and digital solutions across heavy-duty trucking, transit, light commercial transport, agriculture, defense, construction, marine, rail, mining, and critical standby power infrastructure, such as modern hyperscale data centers.
The strategic deployment of the enterprise centers on its corporate roadmap:
- Destination Zero: The overarching company framework focused on lowering greenhouse gas and air quality impacts of its products while progressing toward zero emissions.
- Omni-Channel Global Network: Managing approximately 640 wholly-owned, joint venture, and independent distribution hubs and more than 13,000 certified dealer points.
- Global Joint Ventures: Strategic equity alliances with global OEMs and component builders to localise production and defend market penetration across North America, China, India, Latin America, and Europe.
The Founders & Their Legacy
The company was originally founded in 1919 in Columbus, Indiana, as Cummins Engine Company by mechanic and inventor Clessie Lyle Cummins, backed by local banker and investor W.G. Irwin. Established to capitalize on Rudolf Diesel’s compression-ignition engine technology, the business focused on engineering dependable, fuel-efficient engines adapted for mobile commercial applications and automotive duty cycles.
During the early 1970s, former Chairman J. Irwin Miller established an enduring corporate culture centered on workplace inclusivity, civil rights, ethical governance, and merit-based talent management. His philosophy emphasized that intelligence and operational capability are distributed evenly regardless of gender, race, or socio-economic background, establishing inclusion as an operational advantage for navigating complex global industrial markets.
The Journey: History & Evolution
From its origins in diesel engine production, the enterprise modernized its corporate brand in 2001, officially changing its corporate name from Cummins Engine Company to Cummins Inc. to reflect an expanding identity beyond internal combustion engines into holistic power systems, filtration, exhaust aftertreatment, and electrical power generation.
In May 2023, Cummins launched the initial public offering (IPO) of its filtration subsidiary, Atmus Filtration Technologies Inc. (Atmus), listing its common stock on the New York Stock Exchange under the ticker ATMU. By March 18, 2024, Cummins executed the full, tax-free split-off divestiture of its remaining 80.5% ownership in Atmus, exchanging all 67 million Atmus shares for 5.6 million shares of Cummins common stock, which were retired into treasury stock and generated a non-taxable gain of approximately $1.3 billion.
During 2025, Cummins navigated shifts in the zero-emissions equipment landscape. Due to a steep market slowdown in hydrogen demand and the scale-back of government incentive funding, Cummins recorded $458 million of non-cash impairment and restructuring charges in its Accelera segment across the third and fourth quarters of 2025, terminating new commercial operations in electrolyzer manufacturing while honoring existing customer delivery commitments.
The Corporate Umbrella
The parent corporation oversees five reportable operating segments:
- Engine Segment: Manufactures diesel, natural gas, and gasoline engines (up to 15 liters displacement) and parts for on-highway trucks, buses, RVs, and light/off-highway equipment.
- Components Segment: Supplies drivetrain and braking systems, exhaust aftertreatment systems, turbochargers, fuel injection systems, electronic control modules, valvetrain hardware, and automated transmissions.
- Distribution Segment: Operates wholesale, retail, maintenance, and service networks across seven geographic regional operating entities.
- Power Systems Segment: Provides integrated prime, standby, and distributed power generation units, alternators, and high-horsepower engines (16 liters and above) for marine, rail, defense, and data centers.
- Accelera Segment: Develops zero-emissions propulsion solutions, including commercial battery architectures, electric powertrain components, and subsystems.
2. The Business Engine: Cummins Inc. Business Model & Revenue Segments
The Core Divisions
Cummins measures financial performance across its five reportable divisions on an EBITDA basis (earnings before interest, income taxes, depreciation and amortization, and noncontrolling interests). The segment breakdowns for net sales and profitability before intersegment eliminations highlight the revenue contribution of each operating engine within the consolidated group.
| Segment Division (in $ millions) | 2025 Net Sales | 2025 Segment EBITDA | 2024 Net Sales | 2024 Segment EBITDA | Latest YoY (%) |
|---|---|---|---|---|---|
| Engine | 10875 | 1382 | 11712 | 1653 | -7.15% |
| Components | 10149 | 1398 | 11679 | 1591 | -13.10% |
| Distribution | 12405 | 1808 | 11384 | 1378 | +8.97% |
| Power Systems | 7463 | 1694 | 6408 | 1180 | +16.46% |
| Accelera | 460 | -896 | 414 | -764 | +11.11% |
| Total Segments | 41352 | 5386 | 41597 | 5038 | -0.59% |
| Intersegment Eliminations | -7682 | -1 | -7495 | 1288 | +2.49% |
| Consolidated Total | 33670 | 5385 | 34102 | 6326 | -1.27% |
The segment data illustrates changing cyclical demands across commercial transportation versus infrastructure power generation:
- Engine Division Contraction: Total sales declined by $837 million due to lower North American heavy-duty and medium-duty truck build rates.
- Power Systems Expansion: Segment revenue grew 16% to $7,463 million, driving a 44% increase in EBITDA to $1,694 million on demand from hyperscale data center standby power installations.
- Distribution Outperformance: Division EBITDA increased 31% to $1,808 million, driven by power generation system sales in North America and higher parts volumes.
- Accelera Restructuring Burden: The zero-emissions segment incurred EBITDA losses of $896 million in 2025, heavily impacted by $458 million of asset impairments, goodwill write-offs, and restructuring charges.
The Global Product Catalog
The Engine segment produces internal combustion engines ranging from 2.8 to 15 liters displacement and 48 to 715 horsepower. The portfolio supplies heavy-duty Class 8 trucks, regional haulers, school buses, municipal transit vehicles, motor homes, pick-up trucks (notably Ram trucks for Stellantis N.V.), and off-highway machinery utilized in agriculture, construction, and mining.
The Components division designs exhaust aftertreatment systems, turbochargers, electronic controllers, valvetrain assemblies, fuel systems, automated manual transmissions (via the Eaton Cummins joint venture), and complete axle, brake, and driveline assemblies (including Meritor assets). These technologies help commercial fleets meet global exhaust emissions standards.
Within Power Systems, high-horsepower reciprocating engines (up to 4,400 horsepower) drive prime and emergency generators, industrial rail locomotives, marine propulsion platforms, and distributed microgrids. Generator Technologies engineers alternators under the Stamford and AVK brands, providing capacities from 7.5 kVA up to 11,200 kVA.
The Accelera portfolio includes zero-emissions architectures, containing commercial vehicle battery systems, high-voltage battery management systems, and electric powertrain solutions tailored for buses, medium-duty chassis, and terminal tractors.
The Names You Know
Cummins products are marketed globally under several well-known corporate and product brand names:
- Cummins: The flagship mark deployed on heavy-duty, medium-duty, and industrial engines, generator sets, and remanufactured assemblies.
- Stamford & AVK: Internationally certified A/C generator and alternator brands supplying independent generator assemblers and internal power systems.
- Meritor: Integrated commercial drivetrain, heavy-duty braking, axle, and suspension product lines.
- Accelera by Cummins: The operational brand encompassing commercial vehicle battery systems and electric powertrain technologies.
Mapping the Global Reach
Consolidated revenues are disaggregated based on the geographic location of the purchasing customer:
| Geographic Market (in $ millions) | 2025 Net Sales | 2024 Net Sales | 2023 Net Sales | Latest YoY (%) |
|---|---|---|---|---|
| United States | 18974 | 19422 | 19302 | -2.31% |
| China | 3298 | 2948 | 3115 | +11.87% |
| India | 1721 | 1779 | 1678 | -3.26% |
| Other International | 9677 | 9953 | 9970 | -2.77% |
| Total Net Sales | 33670 | 34102 | 34065 | -1.27% |
Geographic performance highlights varied regional economic conditions:
- United States & Canada Demand: Combined sales across the United States and Canada reached $20,165 million in 2025 compared to $20,820 million in 2024, down 3% due to lower on-highway truck factory production.
- International Expansion: Total sales outside the U.S. and Canada rose 2% to $13,505 million, led by data center power generation deployments in China and Europe.
- Customer Concentration: PACCAR Inc. remained the company’s single largest customer, generating $4.4 billion in sales, or 13% of total group turnover in 2025.
The Brick & Mortar Footprint
Cummins operates extensive manufacturing, technical, and logistics complexes around the globe. Core operational locations include:
- Engine Production: Columbus, Indiana; Lakewood, New York; Whitakers, North Carolina; Sao Paulo, Brazil; Phaltan, India; San Luis Potosi, Mexico; and Darlington, United Kingdom.
- Components Plants: Columbus, Indiana; Fletcher and Laurinburg, North Carolina; Charleston and York, South Carolina; Mineral Point, Wisconsin; Wuxi, China; Cameri, Italy; Ciudad Juarez and Monterrey, Mexico; Roermond, Netherlands; Lindesberg, Sweden; and Huddersfield, United Kingdom.
- Power Systems Facilities: Elkhart and Seymour, Indiana; Fridley, Minnesota; Clovis, New Mexico; Kenosha, Wisconsin; Wuhan and Wuxi, China; Ahmednagar, Pune, and Ranjangaon, India; Craiova, Romania; and Daventry, United Kingdom.
- Accelera Footprint: Columbus, Indiana; Fridley, Minnesota; Fletcher and Forest City, North Carolina; Oevel, Belgium; Mississauga, Canada; Tianjin, China; Herten, Germany; and Guadalajara, Spain.
- Supply Chain Logistics Hubs: Central logistics hubs are maintained in Atlanta, Indianapolis, Las Vegas, Memphis, Dallas, Rumst (Belgium), Guarulhos (Brazil), Shanghai, and Singapore.
3. The Financial Health: Cummins Inc. (FY 2025) Audited Financial Statements
Earnings, Expenses & Profits: Cummins Inc. Income Statement
The consolidated statement of operations details revenue streams, manufacturing production costs, operating overheads, discrete tax adjustments, and final consolidated net earnings.
| Consolidated Statement of Net Income (in $ millions, except per share) | 2025 | 2024 | 2023 | Latest YoY (%) |
|---|---|---|---|---|
| NET SALES | 33670 | 34102 | 34065 | -1.27% |
| Cost of sales | 25154 | 25663 | 25816 | -1.98% |
| GROSS MARGIN | 8516 | 8439 | 8249 | +0.91% |
| Selling, general and administrative expenses | 3125 | 3275 | 3333 | -4.58% |
| Research, development and engineering expenses | 1396 | 1463 | 1500 | -4.58% |
| Equity, royalty and interest income from investees | 469 | 395 | 483 | +18.73% |
| Other operating expense, net | 439 | 346 | 2138 | +26.88% |
| OPERATING INCOME | 4025 | 3750 | 1761 | +7.33% |
| Interest expense | 329 | 370 | 375 | -11.08% |
| Other income, net | 267 | 1523 | 240 | -82.47% |
| INCOME BEFORE INCOME TAXES | 3963 | 4903 | 1626 | -19.17% |
| Income tax expense | 1006 | 835 | 786 | +20.48% |
| CONSOLIDATED NET INCOME | 2957 | 4068 | 840 | -27.31% |
| Less: Net income attributable to noncontrolling interests | 114 | 122 | 105 | -6.56% |
| NET INCOME ATTRIBUTABLE TO CUMMINS INC. | 2843 | 3946 | 735 | -27.95% |
| Basic Earnings Per Common Share Attributable to Cummins Inc. | 20.62 | 28.55 | 5.19 | -27.78% |
| Diluted Earnings Per Common Share Attributable to Cummins Inc. | 20.50 | 28.37 | 5.15 | -27.74% |
Key financial insights from the income statement include:
- Gross Margin Resilience: Despite a 1% decline in consolidated top-line sales, group gross margin increased to $8,516 million, benefiting from pricing realization in updated light-duty engine platforms and product mix in data centers.
- Overhead Reductions: Combined SG&A and R&D outlays decreased by $217 million year-over-year, reflecting lower variable compensation expenses.
- Prior Year Split-Off Comparison: The year-over-year decrease in net income attributable to Cummins Inc. from $3,946 million to $2,843 million reflects the absence of the $1,333 million non-taxable split-off gain recognized upon divesting Atmus in March 2024.
- Effective Tax Rate Shifts: The effective tax rate climbed to 25.4% in 2025 compared to 17.0% in 2024, impacted by the expiration of favorable discrete split-off items, provisions under The Act, and non-deductible charges related to Accelera.
Assets, Debts & Equity: Cummins Inc. Balance Sheet
The consolidated balance sheet details the company’s capitalized asset base, working capital position, lease obligations, long-term debt, and shareholders’ equity.
| Consolidated Balance Sheets (in $ millions) | December 31, 2025 | December 31, 2024 | Latest YoY (%) |
|---|---|---|---|
| Cash and cash equivalents | 2845 | 1671 | +70.26% |
| Marketable securities | 764 | 593 | +28.84% |
| Total cash, cash equivalents and marketable securities | 3609 | 2264 | +59.41% |
| Accounts and notes receivable, net | 5818 | 5181 | +12.29% |
| Inventories | 5822 | 5742 | +1.39% |
| Prepaid expenses and other current assets | 1676 | 1565 | +7.09% |
| Total current assets | 16925 | 14752 | +14.73% |
| Property, plant and equipment, net | 6958 | 6356 | +9.47% |
| Investments and advances related to equity method investees | 2133 | 1889 | +12.92% |
| Goodwill | 2224 | 2370 | -6.16% |
| Other intangible assets, net | 2167 | 2351 | -7.83% |
| Pension assets | 1033 | 1189 | -13.12% |
| Other assets | 2552 | 2633 | -3.08% |
| Total assets | 33992 | 31540 | +7.77% |
| Accounts payable (principally trade) | 3800 | 3951 | -3.82% |
| Loans payable | 313 | 356 | -12.08% |
| Commercial paper | 353 | 1259 | -71.96% |
| Current maturities of long-term debt | 94 | 660 | -85.76% |
| Accrued compensation, benefits and retirement costs | 825 | 1084 | -23.89% |
| Current portion of accrued product warranty | 693 | 679 | +2.06% |
| Current portion of deferred revenue | 1606 | 1347 | +19.23% |
| Other accrued expenses | 1926 | 1898 | +1.48% |
| Total current liabilities | 9610 | 11234 | -14.46% |
| Long-term debt | 6792 | 4784 | +41.97% |
| Deferred revenue | 1054 | 1065 | -1.03% |
| Other liabilities | 3128 | 3149 | -0.67% |
| Total liabilities | 20584 | 20232 | +1.74% |
| Common stock, $2.50 par value | 2673 | 2636 | +1.40% |
| Retained earnings | 22616 | 20828 | +8.58% |
| Treasury stock, at cost | -10662 | -10748 | -0.80% |
| Accumulated other comprehensive loss | -2278 | -2445 | -6.83% |
| Total Cummins Inc. shareholders’ equity | 12349 | 10271 | +20.23% |
| Noncontrolling interests | 1059 | 1037 | +2.12% |
| Total equity | 13408 | 11308 | +18.57% |
| Total liabilities and equity | 33992 | 31540 | +7.77% |
Balance sheet analysis reveals key asset and liability movements:
- Strengthened Working Capital: Working capital rose to $7,315 million at year-end 2025 from $3,518 million in 2024, driving the current ratio up from 1.31 to 1.76.
- Total Capitalized Debt Position: Aggregate debt (comprising loans payable, commercial paper, current maturities, and long-term notes) stood at $7,552 million, yielding a debt-to-capital ratio of 36.0% compared to 38.4% at the end of 2024.
- Liquidity Buffer: Available cash, cash equivalents, and liquid marketable securities totaled $3,609 million, supplemented by $3,647 million of net committed revolving credit capacity.
Cash Flow & Capital Allocation: Cummins Inc. Cash Flow Statement
The consolidated cash flow statement reflects operational collections, inventory deployment, multi-year property additions, debt issuances, repayments, and equity distributions.
| Consolidated Statement of Cash Flows (in $ millions) | 2025 | 2024 | 2023 | Latest YoY (%) |
|---|---|---|---|---|
| Consolidated net income | 2957 | 4068 | 840 | -27.31% |
| Gain related to divestiture of Atmus | 0 | -1333 | 0 | -100.00% |
| Depreciation and amortization | 1105 | 1065 | 1024 | +3.76% |
| Deferred income taxes | 86 | -209 | -457 | N/M |
| Equity in income of investees, net of dividends | -55 | 13 | -81 | N/M |
| Pension and OPEB expense | 79 | 38 | 8 | +107.89% |
| Pension contributions and OPEB payments | -55 | -90 | -134 | -38.89% |
| Accounts and notes receivable changes | -612 | 298 | -330 | N/M |
| Inventories changes | -39 | -402 | 0 | -90.30% |
| Other current assets changes | -66 | -305 | -120 | -78.36% |
| Accounts payable changes | -148 | -183 | -66 | -19.13% |
| Accrued expenses changes | 4 | -1573 | 2934 | N/M |
| Other, net operating activities | 365 | 100 | 348 | +265.00% |
| Net cash provided by operating activities | 3621 | 1487 | 3966 | +143.51% |
| Capital expenditures | -1235 | -1208 | -1213 | +2.24% |
| Investments in and net advances (to) from equity investees | -196 | -214 | 14 | -8.41% |
| Acquisition of businesses, net of cash acquired | -12 | -58 | -292 | -79.31% |
| Investments in marketable securities—acquisitions | -1627 | -1500 | -1409 | +8.47% |
| Investments in marketable securities—liquidations | 1450 | 1460 | 1334 | -0.68% |
| Cash associated with Atmus divestiture | 0 | -174 | 0 | -100.00% |
| Other, net investing activities | -111 | -88 | -77 | +26.14% |
| Net cash used in investing activities | -1731 | -1782 | -1643 | -2.86% |
| Proceeds from borrowings | 2335 | 2720 | 861 | -14.15% |
| Net payments of commercial paper | -906 | -237 | -779 | +282.28% |
| Payments on borrowings and finance lease obligations | -975 | -1568 | -1136 | -37.82% |
| Dividend payments on common stock | -1055 | -969 | -921 | +8.88% |
| Payments for purchase of redeemable noncontrolling interests | -110 | -50 | -175 | +120.00% |
| Other, net financing activities | -61 | -69 | -27 | -11.59% |
| Net cash used in financing activities | -772 | -173 | -2177 | +346.24% |
| Effect of exchange rate changes on cash and cash equivalents | 56 | -40 | -68 | N/M |
| Net increase (decrease) in cash and cash equivalents | 1174 | -508 | 78 | N/M |
| Cash and cash equivalents at beginning of year | 1671 | 2179 | 2101 | -23.31% |
| Cash and cash equivalents at end of period | 2845 | 1671 | 2179 | +70.26% |
Cash conversion details include:
- Settlement Impact Comparison: Operating cash flows rose to $3,621 million in 2025, up $2,134 million from 2024, which had been reduced by $1.9 billion in regulatory settlement payments.
- Senior Notes Refinancing: Financing activities included the May 2025 issuance of $2.0 billion aggregate senior unsecured notes ($300 million due 2028, $700 million due 2031, and $1.0 billion due 2035), generating $1.99 billion in net proceeds that funded commercial paper maturities and the redemption of $500 million in senior notes due in September 2025.
- Shareholder Dividends: Common cash dividends paid increased by 8.9% to $1,055 million ($7.64 per share paid annually).
Funding the Future: R&D and Expansion Spending
Research, development, and engineering (RD&E) expenditures, net of contract reimbursements, totaled $1,396 million in 2025, compared to $1,463 million in 2024 and $1,500 million in 2023. Customer and agency reimbursements offset $54 million of research costs in 2025, compared to $72 million in 2024 and $81 million in 2023. Internal engineering focus centered on refining internal combustion fuel economy, adapting engines for next-generation worldwide emissions protocols, and commercializing targeted electrified commercial vehicle architectures.
Capital investments in property, manufacturing plant equipment, and assembly capacity additions absorbed $1,235 million in 2025, matching the $1.2 billion run-rate of 2024 and 2023. Management projected full-year 2026 capital expenditures of between $1.35 billion and $1.45 billion, with over 65% targeted for manufacturing modernization and product platforms across North America.
4. The Corporate Family Tree: Cummins Inc. Subsidiaries & Acquisitions
Subsidiaries, Associates, & Shared Ventures
Cummins uses joint ventures, partially owned subsidiaries, and international operating affiliates to expand localized production and distribution access:
- Eaton Cummins Automated Transmission Technologies (ECJV): A consolidated 50/50 joint venture between Cummins Inc. and Eaton Corporation plc. Cummins exercises majority control via a tie-breaking board seat. The entity designs automated manual and automatic heavy-duty commercial truck transmissions in North America and China.
- Cummins India Ltd. (CIL): A publicly traded, consolidated subsidiary on Indian stock exchanges in which Cummins holds a controlling equity stake. CIL manufactures medium-, heavy-, and high-horsepower engines and generator systems.
- Chongqing Cummins Engine Company, Ltd. (CCEC): A 50/50 manufacturing equity investee in China with Chongqing Machinery and Electric Co. Ltd., building high-horsepower diesel engines for industrial and power generation applications.
- Dongfeng Cummins Engine Company, Ltd. (DCEC): A 50/50 joint venture with Dongfeng Automotive Co. Ltd. manufacturing 2.5- to 14.5-liter diesel and natural gas powerplants in China.
- Beijing Foton Cummins Engine Co., Ltd. (BFCEC): A 50/50 venture with Beiqi Foton Motor Co., Ltd. producing light-duty ISF engines and heavy-duty 7.0- to 14.5-liter platforms in Beijing.
- Tata Cummins, Ltd. (TCL): A 50/50 manufacturing joint venture in India with Tata Motors Ltd., producing 3.8- to 8.9-liter automotive and industrial engines.
- Komatsu Cummins Chile, Ltda.: A nonconsolidated distribution partnership with Komatsu America Corporation distributing engines, power systems, and replacement parts across Chile and Peru.
Strategic Investments & Minority Stakes
Cummins entered into a clean-technology joint venture, Amplify Cell Technologies LLC (Amplify), formed in May 2024 with Daimler Truck, US Holding LLC, and PACCAR, Inc. (each owning 30%), alongside EVE Energy (holding a 10% stake). Amplify is accounted for as an equity method investment and plans to manufacture localized lithium-iron-phosphate (LFP) battery cells for commercial trucks and industrial applications in the United States, targeting factory production in 2028.
As of December 31, 2025, Cummins had contributed $412 million in cash equity to Amplify, with a maximum remaining capital contribution obligation of $418 million. The net carrying value of the investment stood at $359 million at December 31, 2025.
5. Power & Control: Cummins Inc. Executive Leadership & Ownership
The Brain Trust: Board of Directors & Executive Leadership
Executive management directs corporate operations and technology commercialization programs. The executive leadership team as of January 31, 2026, comprises:
- Jennifer Rumsey (Chair and Chief Executive Officer): Appointed CEO in 2022 and Board Chair in 2023; previously served as President and Chief Operating Officer (2021–2022), Vice President and President of Components (2019–2020), and Chief Technical Officer.
- Mark A. Smith (Vice President—Chief Financial Officer): Appointed Chief Financial Officer in 2019; oversees global financial reporting, capital structure, investor relations, internal audit, and treasury functions.
- Marvin Boakye (Vice President—Chief Human Resources Officer): Appointed in 2022; previously served as Chief People and Diversity Officer at Papa John’s International from 2019 to 2022.
- Jenny M. Bush (Vice President and President—Power Systems): Appointed in 2022; previously served as Vice President of Cummins Sales & Service North America (2017–2022).
- Amy R. Davis (Vice President and President—Accelera by Cummins and Components): Appointed in 2023; served as President of Accelera (2020–2023) and Vice President of Cummins Filtration (2018–2020).
- Bonnie Fetch (Executive Vice President and President—Operations): Appointed in 2025; served as President of the Distribution Business (2024), Vice President of Global Supply Chain and Manufacturing (2022–2023), and Vice President of DBU Supply Chain Services (2020–2022).
- John Gaidoo (Vice President—Chief Legal Officer): Appointed in 2025; previously served as Vice President – Senior Deputy Counsel (2023–2025), Deputy General Counsel (2021–2023), and Lead Lawyer for Employment and Labor Relations (2018–2021).
- Nicole Y. Lamb-Hale (Vice President—Chief Administrative Officer and Corporate Secretary): Appointed in 2025; served as Vice President – Chief Legal Officer and Corporate Secretary (2023–2025), General Counsel (2021–2022), and Managing Director at Kroll (2020–2021).
- Brett Merritt (Vice President and President—Engine Business): Appointed in 2024; previously served as Vice President of On-Highway Engine Business and Strategic Customer Relations (2023) and Vice President of On-Highway Engine Business (2017–2023).
- Nathan R. Stoner (Vice President—China ABO): Appointed in 2020; served as General Manager of Partnerships and EBU China Joint Venture Business (2018–2020).
- Jeffrey T. Wiltrout (Vice President—Corporate Strategy): Appointed in 2022; served as Executive Director of Corporate Development (2021–2022) and Strategy Director for Power Systems (2018–2021).
- Jonathan Wood (Vice President—Chief Technical Officer): Appointed in 2023; served as Vice President of New Power Engineering (2021–2023) and Vice President of Components Engineering (2018–2021).
- Shon Wright (Vice President and President—Distribution Business): Appointed in 2025; previously served as Vice President of Cummins Engine Components (2022–2024) and President of Cummins Turbo Technologies (2017–2022).
Who Owns the Stock?
Cummins Inc. common stock trades under ticker CMI on the NYSE. As of January 31, 2026, 138,165,463 shares of $2.50 par value common stock were outstanding. The aggregate market value of voting stock held by non-affiliates as of June 30, 2025, was approximately $45.1 billion, excluding treasury shares.
The company administers equity incentive compensation via shareholder-approved programs, issuing restricted stock, performance share units, and stock options to key personnel:
| Plan Category | Securities to Be Issued Upon Exercise (Options & Shares) | Weighted-Average Exercise Price of Options | Securities Remaining Available for Future Issuance |
|---|---|---|---|
| Equity Compensation Plans Approved by Security Holders | 1224220 | 158.39 | 2632435 |
The 1,224,220 total securities subject to issuance include 395,727 stock options with a weighted-average remaining contractual life of 3.3 years, 407,557 performance shares, and 420,936 restricted stock units. No equity compensation plans exist without prior security holder approval.
6. Strategic Outlook: Cummins Inc. Growth Catalysts & Key Risks
Competitive Advantages & Economic Moats
The competitive position of Cummins is supported by engineering depth, brand equity, proprietary component integration, and global field support infrastructure. The company packages high-efficiency base engines with captive turbocharging, high-pressure fuel systems, automated manual transmissions, and advanced exhaust aftertreatment, helping global OEMs navigate emissions mandates without designing dedicated internal combustion architectures from scratch.
The scale of the aftermarket distribution network—encompassing roughly 640 distributor facilities and over 13,000 certified dealership locations—provides an operational barrier to entry. This service footprint delivers parts, factory-certified maintenance, and rapid engine overhaul capabilities to mission-critical transport, marine shipping, and data center operators worldwide.
What Could Go Wrong? Key Challenges & Business Risks
The business faces operational, regulatory, and market risks across its global business units:
- Emissions Compliance and Regulatory Settlement Oversight: In April 2024, the enterprise finalized consent decrees with the EPA, CARB, and the U.S. Department of Justice to settle emissions certification claims on approximately one million pick-up truck engines, following a $2.0 billion charge recorded in 2023. Compliance requires warranty obligations, vehicle software recalls, and mitigation projects. Any operational failures risk stipulated monetary penalties.
- Regulatory Rulemaking Volatility: In mid-2025, NHTSA questioned the validity of emission credit trading systems, while the EPA proposed rescinding greenhouse gas (GHG) reporting mandates. If enacted, Cummins could be required to write off up to $127 million in capitalized environmental credits held on its balance sheet.
- Zero-Emissions Adoption Delays: Slower market adoption of hydrogen infrastructure forced the write-down and exit of new electrolyzer commercial operations in 2025, generating $458 million in pre-tax segment impairment and restructuring charges.
- Trade Barriers and Tariffs: Cross-border trade disputes, tariffs on imported raw materials, and changes in trade rules could increase component manufacturing costs and disrupt industrial supply lines.
- Cyclical Truck Production Volumes: North American Class 8 heavy-duty truck build rates remain subject to freight cycle downshifts, directly impacting production runs within the Engine and Components divisions.
The Next Chapter: Growth & Expansion Initiatives
To navigate the long-term energy transition, Cummins is deploying its Destination Zero framework. This involves optimizing internal combustion architectures for low-carbon fuels (such as renewable natural gas and biofuels) while selectively scaling battery-electric commercial platforms.
Through its 30% equity stake in the Amplify joint venture alongside PACCAR and Daimler Truck, Cummins is establishing localized cell manufacturing capacity in the United States, targeting 2028 production of lithium-iron-phosphate battery cells tailored specifically for heavy transport fleets. Concurrently, the Power Systems division is expanding output of high-horsepower generator sets to support the power demands of expanding computing and artificial intelligence data center hubs globally.
The Verdict: Strategic Outlook & Conclusion
Cummins enters 2026 with a strong balance sheet, an expanded cash position of $2.8 billion, and high-margin momentum in global power generation markets. While the North American on-highway freight equipment market works through cyclical softness, the company’s aftermarket service network, combined with disciplined operational restructurings in its Accelera segment, supports its position across traditional and emerging powertrain markets.
❓ Frequently Asked Questions: Cummins Inc.
What was Cummins Inc.’s revenue and net income in FY 2025?
In FY 2025, Cummins Inc. reported total revenue of $33.67 B (▼ 1.3% compared to $34.10 B in the prior fiscal year). Gross profit stood at $8.52 B (gross margin of 25.29 %). Operating profit was $4.03 B and bottom-line net income was $2.96 B.
Is Cummins Inc. profitable and generating positive cash flow in FY 2025?
Yes, Cummins Inc. was profitable in FY 2025, recording net profit of $2.96 B (PAT margin: 8.78 %). On a cash basis, the company generated $3.62 B in cash flow from operating activities and invested $1.24 B in capital expenditures, resulting in free cash flow of $2.39 B. Return on Equity (ROE) was 22.05 % and Cash ROE was 27.01 %.
How much debt, assets, and equity does Cummins Inc. hold?
As of FY 2025, Cummins Inc. held $33.99 B in total assets, $20.58 B in total liabilities, and $13.41 B in total stockholders’ equity. Total debt stood at $7.55 B (debt-to-equity ratio of 0.56x). Net working capital was $7.32 B with a current ratio of 1.76x.
Who is the CEO and CFO of Cummins Inc.?
The Chief Executive Officer (CEO) of Cummins Inc. is Jennifer Rumsey. The Chief Financial Officer (CFO) is Mark A. Smith.
Where is Cummins Inc. headquartered and when was it founded?
Cummins Inc. is headquartered in 500 Jackson Street, Box 3005, Columbus, Indiana 47202-3005. The company traces its founding/incorporation to Indiana. Total disclosed workforce/headcount is Approximately 67,400 employees (at December 31, 2025).
Note: Financial ratios, margins, year-over-year (YoY) growth rates, and percentage shares of revenue are calculated by FirmsWorld based on figures reported in the company’s official SEC filing.