Cummins (CMI) Investor Day 2026 summary

Strategic priorities, positioning, and investment

• Strengthened global presence, diversified portfolio, and deep customer partnerships drive resilience and growth, with operations in over 190 countries and nearly 68,000 employees worldwide.

• Disciplined capital allocation and operational excellence support margin expansion, risk reduction, and record performance, with a strong focus on aftermarket growth and vertical integration.

• Focused investments in core engine platforms, power generation, and digital/AI-enabled solutions, while pacing zero-emissions technology investments to match adoption and economics.

• Long-term partnerships with major OEMs and technology firms, including PACCAR, Komatsu, and XCMG, reinforce market leadership and recurring revenue.

• Expansion in capacity and technology, especially in Power Systems and Accelera, supports long-term demand and innovation.

Financial guidance, targets, and performance

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

• 2025 delivered $33.7 billion in revenue and a record 17.4% EBITDA, achieving prior 2030 margin targets early despite market downcycles.

• Power Systems segment EBITDA projected at $1.7 billion in 2025, representing 29% of total EBITDA, with at least 50% of total earnings from Power Systems and Distribution by 2030.

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

• Commitment to return at least 50% of free cash flow to shareholders via dividends and share repurchases, with CapEx maintained at 3–4% of sales.

Business developments and growth drivers

• Major capacity expansion in power generation: $450 million investment to add 20 GW, targeting 55 GW by 2030, with data center backup power revenue expected to grow from $5 billion in 2026 to over $9 billion by 2030.

• Launching new products: large mining engine for 100-ton trucks, new large megawatt natural gas engine/genset (up to 4 MW), and expanded Tier 4 and battery energy storage solutions.

• Aftermarket and service revenue to increase as installed base grows and engines run longer, with prime power applications offering higher service intensity and recurring rebuilds.

• HELM engine platforms to support global regulatory transitions (EPA 2027, Euro 7, BS7, NS7), enabling multi-fuel flexibility and content expansion per vehicle.

• Accelera segment refocused on batteries, e-axles, and traction, with reduced losses and lower capital draw as hydrogen and electrolyzer investments are scaled back.