Cummins Inc. (CMI)

In the past six months, Cummins reported strong financial results for 2024, with record revenues, net income, EBITDA, and earnings per share, despite a decline in North American heavy-duty truck demand. In Q4 2024, Cummins recorded charges related to the reorganization of its Accelera by Cummins segment. For Q1 2025, net sales were $8.17 billion, surpassing estimates, with increased gross margin and operating income, though net income dropped due to the absence of a one-time gain. The market has revised downward its revenue expectations for FY2025, but analysts forecast CMI stock price to rise over the next 12 months. Other events include a $39 million payment from the Department of Defense, insider buying exceeding insider selling, and an upgrade from Goldman Sachs. Cummins declared a quarterly common stock dividend on May 13, 2025, and appointed new executives. As of June 27, 2025, the stock price was $325.99 per share, a 16.22% increase from June 27, 2024.

While some Cummins product lines may experience modest seasonal variations, there is generally no material effect on the demand for the majority of its products on a quarterly basis. Historically, China has seen record demand, but some seasonal declines are anticipated in the fourth quarter. Recent trends indicate weaker demand in domestic bus markets and a decline in parts sales for Engine and Power Systems businesses. In 2024, lower demand in China and Europe contributed to a decrease in international revenues, and North American heavy-duty truck demand also declined. In Q1 2025, the Engine segment experienced a sales decline due to weaker on-highway demand in the United States and Latin America.

Cummins, Inc. operates in the Industrials sector, designing, manufacturing, distributing, and servicing a comprehensive range of power solutions, including diesel and natural gas engines, electric vehicle components, and power generation products. The company also offers powertrain components like filtration systems, turbochargers, and aftertreatment systems. Cummins is investing in hydrogen production technologies and electrified power systems through its Accelera™ by Cummins brand.

Cummins has a significant global presence, operating in over 190 countries and territories, serving customers through a network of over 600 company-owned and independent distributor locations and more than 7,200 dealer locations worldwide. Approximately 60% of its sales are in the US and Canada, with the remaining 40% from international markets, including Europe, Asia Pacific, Latin America, Africa, China, India, and the Middle East. The company's primary operational and sales regions are the United States, China, India, and other international areas.

Cummins Inc. maintains a strong brand reputation synonymous with quality and reliability, supported by its extensive service network and commitment to sustainability through initiatives like PLANET 2050 and Destination Zero. The company invests in new technologies, such as hydrogen production and fuel cell products, and has made strategic acquisitions to bolster its market position. Cummins plans to invest $1.2 billion in research and development for alternative powertrain technologies and has begun producing electrolyzers in the U.S. to support the green hydrogen initiative. The company's financial resilience and effective cost management further contribute to its positive brand perception, with no significant negative events impacting its reputation in the past year.

Cummins, Inc. is primarily owned by institutional shareholders, who hold approximately 83.48% of the company's stock, while retail investors own about 14.71%, and Cummins insiders hold approximately 1.80%. The largest institutional owners include Vanguard Group Inc, BlackRock, Inc., and State Street Corp. Vanguard Group Inc is the largest individual Cummins shareholder, holding 17.28 million shares, which represents 12.55% of the company.