Cummins Inc. (CMI) is listed on NYSE and operates in the Industrial - Machinery industry (Industrials sector).
Cummins Inc. designs, manufactures, distributes, and services diesel and natural gas engines, electric and hybrid powertrains, and related components worldwide. It operates through five segments: Engine, Distribution, Components, Power Systems, and New Power. The company offers diesel and natural gas-powered engines under the Cummins and other customer brands for the heavy and medium-duty truck, bus, recreational vehicle, light-duty automotive, construction, mining, marine, rail, oil and gas, defense, and agricultural markets; and offers new parts and services, as well as remanufactured parts and engines. It also provides power generation systems, high-horsepower engines, heavy and medium duty engines, application engineering services, custom-designed assemblies, retail and wholesale aftermarket parts, and in-shop and field-based repair services. In addition, the company offers emission solutions; turbochargers; air and fuel filters, fuel water separators, lube and hydraulic filters, coolants, fuel additives, and other filtration systems; and electronic control modules, sensors, and supporting software, as well as new, replacement, and remanufactured fuel systems. Further, it provides automated transmissions; standby and prime power generators, controls, paralleling systems, and transfer switches, as well as A/C generator/alternator products under the Stamford and AVK brands; and electrified power systems with components and subsystems, including battery, fuel cell, and hy...
| Rating | Analysts |
|---|---|
| Strong Buy | 0 |
| Buy | 26 |
| Hold | 24 |
| Sell | 1 |
| Strong Sell | 0 |
Cummins Inc., founded in 1919 and headquartered in Columbus, Indiana, operates in the industrial machinery sector. The company designs, manufactures, distributes, and services diesel and natural gas engines, electric and hybrid powertrains, and related components globally. It operates through five segments: Engine, Distribution, Components, Power Systems, and New Power. Cummins provides engines for various markets, including heavy and medium-duty trucks, buses, recreational vehicles, light-duty automotive, construction, mining, marine, rail, oil and gas, defense, and agriculture. The company also offers power generation systems, high-horsepower engines, and application engineering services. Its product range includes emission solutions, turbochargers, filtration systems, electronic control modules, and automated transmissions. Cummins supplies electrified power systems, incorporating battery, fuel cell, and hydrogen production technologies. Additionally, it provides aftermarket parts and repair services. The company's products are sold to original equipment manufacturers, distributors, dealers, and other customers. Cummins Inc. was formerly known as Cummins Engine Company until it adopted its current name in 2001.
Over the past three fiscal years, the company has demonstrated a mixed performance across various financial metrics. Revenue showed an inconsistent trend, slightly declining from $34.1 billion in 2023 to $33.7 billion in 2025, reflecting a marginal CAGR of -0.6%. Despite this, the company achieved significant profitability improvements, with operating margins consistently increasing by 6.7 percentage points from 5.2% to 11.9%, and net margins rising by 6.3 percentage points to 8.4% by 2025. This margin expansion was likely driven by improved operational efficiencies, as evidenced by the consistent increase in gross margins from 24.2% to 25.3%. Earnings per share (EPS) saw a dramatic rise, with a CAGR of 99.5%, climbing from $5.15 to $20.5, indicating strong per-share value creation, further amplified by a slight reduction in share count. However, cash generation experienced volatility, with operating cash flow decreasing from $3.97 billion in 2023 to $3.62 billion in 2025, and free cash flow following a similar inconsistent pattern, ending at $2.39 billion. The company's net debt increased from $5.03 billion to $5.27 billion, suggesting a rise in leverage, though the interest coverage ratio remained robust at 13.0x, indicating manageable debt levels. Overall, while revenue growth was stagnant, the company successfully enhanced profitability and per-share earnings, albeit with some challenges in cash flow stability.
Recent news for Cummins Inc. centers around its strategic initiatives and insider trading activity. On April 14, Cummins announced its sponsorship of America250, supporting the nation's 250th anniversary commemoration, highlighting the company's engagement in significant national events. In terms of insider and institutional trading, Assetmark Inc. decreased its stock position in Cummins by 9% during the fourth quarter, as disclosed in their recent SEC filing. Additionally, new stakes were acquired by Holos Integrated Wealth LLC and other investors, each worth approximately $26,000 to $33,000. These transactions reflect routine portfolio adjustments and do not necessarily indicate changes in the company's outlook. Meanwhile, Cummins has been making headlines with its stock performance, hitting a new 1-year high with a trading peak at $622, following increased price objectives from Raymond James Financial and Citigroup. Furthermore, a class action settlement related to Cummins' publicly-traded common stock is pending, with a hearing scheduled for May 21, 2026. These developments collectively underscore Cummins' active engagement in strategic partnerships and market activities, alongside ongoing legal and financial adjustments.