Cummins Inc
Cummins Inc. is a U.S.-based industrial company founded in 1919 in Columbus, Indiana, originally as one of the first diesel engine manufacturers. Today it operates as a global power solutions business with five reportable segments: Engine, Components, Distribution, Power Systems and Accelera. Its portfolio spans diesel, natural gas, electric and hybrid powertrains, power generation systems, and zero-emissions technologies such as battery, fuel cell and electric power systems. The company sells through OEMs, distributors, dealers and direct customers, supported by a large global service network across roughly 190 countries and territories. Cummins is also actively repositioning its product mix toward electrification and lower-emissions solutions through its Destination Zero strategy.
Fiscal year 2025 · change from previous year
Development 2020–2025
Business
Share of revenueMedium-duty, heavy-duty and high-horsepower engines for on-highway, off-highway and power applications.
Aftertreatment, turbochargers, fuel systems, controls, transmissions, axles and related software.
Sales, service, parts and repair through Cummins-owned, joint venture and independent locations.
Power generation systems, high-horsepower engines and related integrated power solutions.
Zero-emissions and electrified power technologies including batteries, fuel cells and electrolyzers.
Products
Reported · share of revenue- Onhighway20.9 %
- DBU Power Generation Domain14.6 %
- Drivetrain and Braking Systems11.8 %
- Emissionsolutions9.0 %
- Mediumdutytruckandbus7.6 %
- Other36.0 %
Source: 10-K FY2025, revenue the company reports per product line (SEC XBRL). Shares are of the lines shown and add up to 100 %.
Customers
Cummins sells primarily to OEMs, distributors, dealers and end customers that need propulsion, power generation or powertrain components. Its engine and components businesses serve truck makers and other industrial OEMs, including customers in North America, China, Europe and India, where product requirements differ by emissions rules, duty cycle and application. The Distribution segment is the company’s main customer-facing channel and supports fleets, contractors, industrial users and dealers with parts, service and application engineering. Power Systems serves commercial and industrial users that need backup or prime power, including data centers and other commercial markets that have recently been strong. Accelera serves customers adopting electrified or zero-emissions solutions, especially where regulatory pressure and decarbonization goals are accelerating demand.
Buy engines, components and transmissions for integration into truck and industrial platforms, because Cummins products are designed into their vehicle and equipment architectures.
Buy replacement parts, repair services and support through Cummins' global distributor and dealer network to keep installed equipment running.
Buy generator sets, integrated power systems and related service for commercial, industrial and backup power needs, including data centers.
Buy battery, fuel cell, electric powertrain and electrolyzer solutions as they transition toward lower-emissions operations.
Buy localized products through joint ventures such as Cummins India and Komatsu Cummins Chile to match local market requirements.
Strategy
Cummins' strategy centers on balancing its traditional diesel and power generation franchise with a transition toward electrified and zero-emissions technologies. The company is investing in updated engine products, electrified powertrains, batteries, fuel cells and electrolyzers while continuing to support its installed base through parts and service. It is also using its distribution network to deepen customer relationships and capture aftermarket demand, which tends to be more resilient than original equipment sales. Management is actively working to mitigate tariff and trade disruption impacts through supply-chain actions and customer price pass-throughs. Capital spending is being directed toward new product lines and targeted capacity expansions, supporting both near-term execution and longer-term technology shifts.
Cummins needs to preserve relevance as customers and regulators shift away from conventional diesel toward lower-emissions solutions.
Parts, repair and support help stabilize demand and deepen customer relationships across the installed base.
Trade barriers can raise costs, disrupt sourcing and weaken demand for capital goods, so mitigation protects competitiveness.
New products and capacity support pricing, market share and the ability to serve growth areas such as power generation.
Geography
Q1/2026Cummins has a broad global footprint and serves customers in approximately 190 countries and territories. The company specifically highlights North America, China, Europe and India as important markets for components and powertrain technologies, while its distribution network also reaches South America, Southeast Asia, the Middle East and India through joint ventures and independent locations. Manufacturing and operating presence is global, with local distribution and service infrastructure used to support installed equipment and aftermarket demand. The company also has notable local entities such as Cummins India Ltd. and Komatsu Cummins Chile, which help tailor products and service to regional requirements. Geography matters because emissions rules, tariffs, trade disruptions and local duty cycles affect demand, product mix and supply-chain execution.
Share of the revenue the company reports by geography.
Risks
Cummins faces cyclical demand risk because its products are tied to commercial vehicle, industrial and power generation capital spending, which can weaken when freight, construction or customer budgets soften. The company specifically notes tariff and trade disruption risk, which can affect both demand and its competitive position by raising costs and complicating global sourcing. It also faces regulatory and litigation exposure from emissions certification and compliance matters, which can create direct costs, reputational damage and potential restrictions on product sales. As a technology-heavy industrial company, Cummins is exposed to cybersecurity and AI-related risks that could disrupt operations, compromise sensitive data or affect connected products. In addition, the Accelera transition introduces execution risk because new electrification and hydrogen businesses may require investment before they scale profitably, and the company has already disclosed goodwill impairment and inventory write-downs in that segment.
- Emissions certification and compliance claimsImpact: HighLikelihood: High
Regulatory settlements and related litigation can create material costs, penalties and reputational damage.
Exposure - Tariffs and trade disruptionsImpact: HighLikelihood: Medium
Higher tariffs can raise input costs, disrupt supply chains and weaken customer demand for capital goods.
Exposure: Global manufacturing and sourcing footprint
- Cybersecurity and IT disruptionImpact: HighLikelihood: Medium
Connected products and sensitive operational data increase the impact of breaches, malware or ransomware.
Exposure - Demand downturn in on-highway truck marketsImpact: HighLikelihood: Medium
A large portion of engine and component demand depends on truck production and freight cycles.
Exposure: North America and global commercial vehicle markets
- Execution risk in AcceleraImpact: Medium
Electrification and hydrogen businesses may require continued investment and can suffer impairment if adoption is slower than expected.
Exposure
Accounting
Judgemental itemsEngine and power systems products carry future service obligations that require estimates of repair costs and claim frequency.
Impact: Can materially affect operating expenses and liabilities
The company disclosed a goodwill impairment in the Accelera electrolyzer reporting unit, showing sensitivity to adoption assumptions.
Impact: Can create large non-cash charges and reduce earnings
One-time items such as the Atmus divestiture gain and tax law changes can distort comparability across periods.
Impact: Affects net income and effective tax rate
Discount rates, asset returns and actuarial assumptions influence expense and funded status.
Impact: Affects operating costs and balance sheet obligations
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Last updated: 24/09/2026