Cummins (CMI) investor relations material

Strategic positioning, portfolio evolution, and investment

• Enhanced global presence in over 190 countries, diversified portfolio, and strong OEM and technology partnerships drive resilience and growth opportunities.

• Nearly 68,000 employees globally, with ongoing investment in leadership, technical skills, and AI tools to drive innovation and operational excellence.

• Disciplined investment and execution have led to record performance and a stronger outlook, with expansion in Power Systems and Accelera supporting long-term demand.

• Distribution network includes 640 distributors and 13,000 certified dealers, supporting a growing installed base and driving revenue.

• Continued investment in HELM engine platforms, digital/AI-enabled solutions, and zero-emissions technologies, focusing on scalable, high-return applications.

Financial guidance, targets, and performance

• 2030 revenue target raised to $45–$50 billion and EBITDA margin to exceed 20%, up from previous $43–$48 billion and 17–18% margin.

• 2025 revenue projected at $33.7 billion, with Power Systems segment EBITDA at $1.7 billion (29% of total EBITDA).

• Achieved prior 2030 margin target early, even during a North America truck down cycle, driven by diversified performance and operational discipline.

• Adjusted ROIC targeted at 18% for 2025, reflecting improved profitability and capital efficiency.

• Capital allocation remains disciplined, with CapEx at 3–4% of revenue and a commitment to return at least 50% of free cash flow to shareholders.

Business segment developments and growth drivers

• Engine Business leverages global platforms, local manufacturing, and strong OEM partnerships, with aftermarket growth driven by a large, aging installed base.

• Power Systems Business doubled high-horsepower engine/genset capacity since 2022, with $450 million investment to expand capacity to 55 GW by 2030.

• Data center power generation revenue targeted to grow from $5 billion in 2024/2026 to over $9 billion by 2030, with U.S. as the largest market.

• Expansion into prime power and hybrid solutions, including battery energy storage and natural gas generators, with new large natural gas engine for prime power launching in 2028.

• Accelera segment narrowed focus to batteries, e-axles, and traction, reducing losses and prioritizing positive gross margin businesses.