Cummins Inc. (CMI) Business Profile

What it does

Cummins makes engines, power-generation equipment and components used in trucks, buses, industrial equipment and stationary power systems. It also sells parts and provides repair and maintenance services. The company was founded in 1919, is headquartered in Columbus, Indiana, and is led by Chair and Chief Executive Officer Jennifer Rumsey.

Its customers include vehicle and equipment manufacturers, distributors, dealers and users of its equipment. A truck manufacturer, for example, can buy a Cummins engine and related emissions-control equipment for installation in a vehicle. Customers in industries such as mining, construction, marine and agriculture use its engines in off-highway equipment.

Cummins also supplies generators and associated controls for applications including data centers, hospitals, commercial facilities and defense. Some generators provide standby power; others provide power for regular use. The company offers systems that combine equipment and energy-management services for distributed power applications.

The business is organized into Engine, Components, Distribution, Power Systems and Accelera. Accelera develops and sells electrified power systems, including battery and electric powertrain technologies. Cummins serves customers through its own and partner distribution locations and through certified dealers, which sell products and parts and provide service.

How it makes money

Cummins earns money by selling engines, components, generators and electrified systems, and by distributing equipment, replacement parts and services. It also receives income from manufacturing and distribution joint ventures. Some components are sold to other Cummins segments or joint ventures as well as to outside customers.

Engine supplies diesel, natural gas and gasoline engines for on-highway vehicles and off-highway applications. It also sells new and remanufactured engines and parts. Components supplies products such as axles, brakes, turbochargers, fuel systems and transmissions. Its aftertreatment systems reduce pollutants in engine exhaust and are sold for both new equipment and retrofits.

Distribution sells engines, power-generation systems and parts, and provides application engineering, custom assemblies and in-shop and field repairs. Sales of replacement parts and repairs give Cummins business after the original equipment sale, although the company does not characterize all of that revenue as contractual or recurring. Power Systems sells generators, larger industrial engines and alternators, as well as controls and other power equipment. Accelera sells electrified power systems and is still in the early stages of commercializing those technologies.

Cummins competes on price as well as performance, fuel economy, delivery, emissions compliance and support. Its long-term customer agreements cover pricing, quality, delivery and engineering support, but its PACCAR agreements do not require a specific volume of engines or aftertreatment systems. In 2025, Power Systems benefited from favorable pricing and higher volumes.

Sales were $33.7 billion in 2025; third-quarter revenues were $9.4 billion in 2026. Cummins attributed the third-quarter increase in profitability in part to higher volumes and favorable pricing, particularly in power generation.

Customers and how it sells

Cummins sells to original equipment manufacturers that install its engines and components in vehicles and equipment, as well as to distributors, dealers and other customers. Its engine customers include truck manufacturers PACCAR, Traton and Daimler, and pickup manufacturer Stellantis. Industrial engine customers include manufacturers of construction and agricultural equipment. Power Systems serves customers with varied requirements, including data centers, commercial sites and industrial operations.

PACCAR was Cummins’ largest customer, accounting for 13.0% of consolidated net sales in 2025. Combined sales to PACCAR, Traton, Daimler and Stellantis were 31 percent of consolidated net sales in 2025. Cummins has long-term supply agreements with these customers, although the PACCAR agreements do not specify purchase volumes.

The company serves customers in approximately 190 countries and territories through approximately 640 wholly owned, joint venture and independent distributor locations and more than 13,000 Cummins certified dealer locations. Its Distribution business operates across North America, Europe, Asia Pacific, China, India, Latin America, and Africa and the Middle East. Manufacturing joint ventures in China and India produce engines for local vehicle and industrial markets. Cummins employed approximately 67,400 people worldwide at December 31, 2025.

Suppliers and costs

Cummins designs or manufactures strategic components used in its engines, generators, drivetrain and braking systems, and Accelera products. For externally purchased items, it uses sourcing strategies to decide which suppliers to consider for long-term agreements. Those agreements seek to secure capacity, delivery and quality while meeting cost requirements. The company also seeks to broaden dual and multiple sourcing where applicable.

Its manufacturing network includes wholly owned facilities and joint ventures. Cummins supplies its engine manufacturing joint ventures with components in the same manner as its own Engine and Power Systems facilities. The Eaton Cummins joint venture develops automated transmissions for heavy-duty commercial vehicles.

Costs include materials, manufacturing, freight, employee compensation and research and development. Research, development and engineering expenses, net of contract reimbursements, were $1.4 billion in 2025. Cummins said higher freight, some material costs and variable compensation partly offset the benefit of higher volumes and pricing in the third quarter of 2026. It also identified a supplier challenge in Power Systems that delayed production and installations. Cummins is investing in capacity alongside suppliers and said supply remains tight in Power Systems and some on-highway markets.

Competitive position

Cummins competes worldwide with manufacturers and distributors of similar products. In engines, independent competitors include Weichai Power, Yuchai and Deutz. Truck manufacturers can also make their own engines: Daimler, PACCAR, Traton, Volvo Powertrain and Ford are among those that produce some or all of their engines. Some are also Cummins customers.

In components, competitors include Robert Bosch, Garrett Motion, Borg-Warner, Allison Transmission and ZF Friedrichshafen. In Power Systems, Cummins names Caterpillar, MTU and Kohler/SDMO as primary competitors, alongside other generator and engine suppliers. Distribution competitors vary by location and application, and may be affiliated with competing equipment manufacturers.

Customers compare products on performance, price, total cost of ownership, fuel economy, emissions compliance, delivery, quality and support. Cummins’ segments share technology, customers, partners, brands and its distribution network.

Our reading: The distribution and service network is a meaningful competitive resource because it supports customers across markets after equipment is sold, although other distributors and dealers compete locally. Our reading: Engineering and emissions-control capabilities also support its position, but customers can choose independent suppliers or manufacture engines themselves. Our reading: Long-term customer relationships help Cummins participate in vehicle platforms, but they do not guarantee purchase volumes.

Growth opportunities

Cummins is investing in power generation, new engine platforms and electrified technologies. Power Systems sales increased in 2025, principally because of higher power-generation sales in North America and China. Cummins serves data centers with standby and prime-power equipment, controls and related systems, and has been expanding capacity to meet demand.

Cummins said third-quarter 2026 orders for larger engine generator sets extended into the second half of 2028. It also said it has contractual commitments with some large data center customers beyond its firm order board. The company was selected to supply battery energy storage systems for a U.S. data center project and is developing a larger natural gas generator set. It said it was not yet taking specific orders for that larger set.

In engines, Cummins is preparing a phased transition to new products for North American truck customers. The company expects limited production of its X10 and X15 engines to begin in January 2027, followed by a transition to full production later in the year. Its research spending also supports fuel-economy improvements and compliance with future emissions standards.

Accelera is developing battery and electric powertrain systems, while the Amplify joint venture plans to manufacture battery cells for commercial vehicles and industrial uses. Cummins intends to stop new commercial activity in electrolyzers, subject to local legal requirements, while fulfilling existing customer commitments.

Structural risks

• Customer and truck-market exposure. PACCAR is Cummins’ largest customer, and its supply agreements do not specify engine volumes. A significant decline in PACCAR vehicle production using Cummins engines would adversely affect results. Cummins also lowered its 2026 revenue outlook because of weaker North American pickup demand.
• Supply and costs. Supply disruptions can prevent Cummins from meeting demand. The company is exposed to raw-material, transportation and labor price fluctuations, as well as shortages. A Power Systems supplier challenge delayed production and installations in the third quarter of 2026.
• Emissions compliance. Products face emissions regulation worldwide, and changes in implementation and enforcement are unpredictable. Cummins’ emissions settlement includes recall, testing and compliance obligations; further noncompliance could lead to penalties and other consequences.
• Technology transition. Uncertain alternative-power markets and reduced government incentives contributed to electrolyzer impairments. Cummins subsidiaries later advised customers to stop using HyLYZER electrolyzers; the potential financial impact remains under evaluation and outside guidance.
• Economic and international conditions. Demand in the markets Cummins serves fluctuates with economic conditions and customer production schedules. Tariffs, trade restrictions, geopolitical uncertainty and currency movements can affect demand, supply and costs.

Bottom line

Our reading

Cummins combines equipment manufacturing with parts, repair and distribution, supported by relationships with vehicle makers and users of industrial power. Its opportunity in data center power sits alongside exposure to truck demand and customers that can make their own engines. Supply constraints and the uncertain economics of newer technologies affect how much of that demand Cummins can convert into sales.