近日，康明斯中国全球分拨中心新址在上海浦东新区正式落成。作为康明斯为用户提供全生命周期支持的重要支撑，分拨中心新址占地面积由12000平方米 扩展至30000平方米。与此同时，主机厂出海零部件支持中心与供应链解决方案设计中心（包括供应商出海，数智化）同步落成。 上述三大中心均隶属于康明斯智慧供应链（上海）有限公司。新址落成也标志着康明斯在华深耕50年之际，再次按下"扎根中国、链接全球"的加速键。 运营规模翻番，新中心为新市场需求而生 康明斯智慧供应链（上海）有限公司原名为康明斯发动机贸易公司，2024年正式更名，名称的改变也预示着公司业务的重大转型——公司的注册经营范围从 国内国际贸易为主，拓展至工业4.0智能化供应链解决方案的设计和提供，数字化人工智能软件的设计和开发，搭建供应链生态系统，从而带动产业链共同 转型升级。 智慧供应链：新的核心竞争优势 此次康明斯中国三大中心落成的两个市场需求驱动关键字是"供应链"和"出海"。 当前中国商用车及其发动机市场的竞争非常激烈，正处在转型与调整的关键时期。陈华表示，在当下竞争日趋白热化的市场环境下，依赖产品来打造差异化 竞争优势难度非常大，在此基础上，康明斯中国已经发 ...

Core Viewpoint - Cummins Inc. has experienced a nearly 12% increase in stock price in August following a strong second-quarter earnings report, driven by growth in the AI infrastructure market and demand for data centers [3][4][6]. Financial Performance - The company reported a beat on both top and bottom lines in its earnings, which reassured investors about its core business of supplying diesel and natural gas engines [3]. - Cummins' stock is currently trading at $398.43 with a P/E ratio of 18.73 and a dividend yield of 2.01% [3]. Growth Drivers - The primary growth driver for Cummins is its role as a supplier of power systems essential for the rapid buildout of data centers, indicating a shift in its business model towards energy infrastructure for the digital economy [4][6]. - CEO Jennifer Rumsey noted strong momentum in data center demand as a significant tailwind for the business [6]. Market Risks - The company faces cyclical risks and global tariffs, particularly from its operations in China and India, which could add "tens of millions" of dollars in annual costs [7][8]. - Despite these tariff risks, management characterized the costs as "immaterial" to its full-year guidance, suggesting that the company's global scale and supply chain diversification can mitigate these impacts [8]. Technical Analysis - Cummins stock has formed a golden cross pattern, indicating a potential bullish trend, but technical indicators suggest that the stock may be overbought, with the Relative Strength Index (RSI) hovering around 65 [11]. - There is a possibility of a near-term correction, with potential pullback levels identified around the $295–$300 zone [12]. Long-Term Outlook - For long-term investors, Cummins' exposure to data centers could serve as a structural catalyst for growth, although the company remains tied to cyclical industrial markets [13]. - Investors should consider the near-term risks against the potential for Cummins to evolve into a key infrastructure player in the AI economy [14].

Summary of Key Points from the Conference Call Industry Overview - The global data center investment is booming, creating significant opportunities for internal combustion engine (ICE) manufacturers such as Weichai, Cummins (CMI), Caterpillar (CAT), and Rolls-Royce [2][12] - The diesel generator market for data centers in China is rapidly expanding, driven by increasing demand from large-scale data centers and the influence of AI computing power [2][9] Market Dynamics - The global diesel generator market for data centers is projected to reach $3 billion in 2024, with a growth rate of 15-25% [12] - The total addressable market (TAM) for backup generators is estimated at approximately $23 billion, and for turbines for prime power generation, it is around $39 billion between 2023 and 2028 [2][12] - A compound annual growth rate (CAGR) of approximately 17% for data center power demand is forecasted during this period [12] Key Insights from Experts - High-power diesel generators are essential to meet carbon emission efficiency standards, with domestic brands like Weichai and Yuchai playing a crucial role in the competitive landscape [2][9] - The demand for diesel generators is driven by AI computing power and policy changes aimed at improving carbon emission efficiency [9] - The Chinese government plans to invest RMB 500 billion in AIDC construction over the next three years, necessitating the expansion of diesel generators as essential backup power sources [9] Growth Projections - The Chinese data center diesel generator market is expected to grow significantly, with a projected size of RMB 8.3 billion in 2025, up from RMB 5.5 billion in 2024, representing a 49% year-over-year growth [3] - The CAGR from 2024 to 2028 for the diesel generator market in China is projected to be 27% [3] Competitive Landscape - Currently, foreign brands dominate China's AIDC generator market, holding approximately 65% market share in 2024, with key players including Cummins, Caterpillar, and MTU [9] - Domestic brands are expected to increase their market share from 20% in 2024 to 30% in 2025, with Weichai aiming to sell 1,000-1,200 AIDC units in 2025 [9][10] - Weichai's proactive expansion of its annual capacity to 2,000 units positions it to capitalize on growing demand [9] Investment Ratings - J.P. Morgan maintains an Overweight (OW) rating on Weichai Power and Caterpillar, while Cummins is rated Neutral due to balanced risk-reward [3] - The stock of Weichai Power is included in the Positive Catalyst Watch (PCW) list [3] Conclusion - The data center power generation market is poised for robust growth, driven by technological advancements and increasing demand for reliable power solutions, particularly in China [2][12] - Domestic brands are expected to gain market share as they capitalize on supply shortages from foreign manufacturers and government investments in infrastructure [9][10]

Summary of Key Points from the Conference Call Industry Overview - **Industry**: U.S. Machinery and Electricals - **Focus**: Impact of recent policy changes by the Trump Administration on various sub-sectors including electricals, construction, agriculture, and trucks [1][11] Core Insights and Arguments 1. Policy Impact on Renewables - The Trump Administration's policies are de-prioritizing renewables, negatively impacting companies like Quanta (PWR) which derives 30% of sales from this sector [2][49] - The OBBBA cuts tax credits for renewables, shortening the eligibility timeframe from 2032 to 2027, leading to a projected slowdown in construction activity post-2025 [16][54] - Construction costs are rising due to stricter domestic content requirements and tariffs, which could drive renewables to ex-growth from 2025-2030 [2][18] 2. Construction Sector Stimulus - The reinstatement of 100% bonus depreciation for qualified property under the OBBBA is expected to stimulate construction activity, unlocking nearly $90 billion in additional non-residential construction spending, a 7% increase compared to 2024 levels [3][67] - This change is anticipated to benefit construction OEMs such as OSK, URI, ETN, CAT, TRMB, HUBB, DE, and J [3][12] 3. Agriculture Equipment Demand - Changes in biofuels policy, including a 75% increase in biomass-based diesel production mandated by the EPA, could lead to a 10% increase in agricultural equipment demand [4][84] - The extension of clean fuel tax credits from 2027 to 2029 and increased subsidies for biofuels are expected to positively impact companies like Deere, AGCO, and CNH [4][101] 4. Truck OEM Competitive Landscape - The Section 232 investigation into commercial vehicle manufacturing is likely to favor U.S.-based manufacturers like PACCAR (PCAR) by reversing the current tariff structure that disadvantages U.S. manufacturers [5][104] - Current tariffs create a cost disadvantage for U.S. truck manufacturers, as they face higher costs due to imported components [107][110] Additional Important Insights - The overall economic reorientation towards investment rather than consumption is expected to benefit the machinery and electrical sectors [13] - The anticipated slowdown in renewable energy construction does not imply a complete decline, as electricity demand continues to grow at a CAGR of 1.5-2% [28][40] - Historical context indicates that previous cuts to renewable tax credits led to significant underperformance in the sector, suggesting potential risks ahead [46] - The bonus depreciation changes are expected to lead to mid-single-digit earnings growth for companies like Oshkosh, Eaton, and United Rentals [79][82] Company Ratings and Price Targets - **Outperform Ratings**: Trimble (TP $99), Jacobs (TP $163), PACCAR (TP $118), Eaton (TP $410), Hubbell (TP $511) [7][8] - **Market-Perform Ratings**: AGCO (TP $118), Caterpillar (TP $447), Deere (TP $548), Cummins (TP $385), United Rentals (TP $885), Titan America (TP $15), Oshkosh (TP $132), Quanta (TP $410) [7][8] This summary encapsulates the key points discussed in the conference call, highlighting the implications of policy changes on various sectors and companies within the U.S. Machinery and Electricals industry.

Core Viewpoint - Bragar Eagel & Squire, P.C. is investigating potential claims against Cummins Inc. due to a class action lawsuit alleging breaches of fiduciary duties by the company's board of directors during the specified class period [1][2]. Group 1: Legal Investigation - The investigation is focused on whether Cummins' board of directors has breached their fiduciary duties to the company [1]. - A class action complaint was filed against Cummins on March 15, 2024, covering a class period from April 30, 2019, to December 21, 2023 [1]. Group 2: Allegations in the Lawsuit - The lawsuit claims that Cummins made materially false and misleading statements regarding its compliance with environmental regulations [2]. - It is alleged that Cummins continued to produce engines with unlawful emission defeating devices from 2019 to 2023, contradicting their assurances made post-April 2019 [2]. - The company is accused of understating its legal and regulatory risks while overstating its commitment to environmental protection [2].

Core Insights - Cummins Inc. reported Q2 2025 earnings of $6.43 per share, exceeding the Zacks Consensus Estimate of $4.99 and increasing from $5.26 in Q2 2024, driven by strong sales in Distribution and Power Systems segments [1][9] - Total revenues for Cummins reached $8.64 billion, surpassing the Zacks Consensus Estimate of $8.47 billion but declining from $8.8 billion in the same quarter last year [1][9] Segment Performance - Engine segment sales decreased by 8% year over year to $2.90 billion, missing the estimate of $2.91 billion, with EBITDA falling to $400 million from $445 million in the prior year [2] - Distribution segment sales rose by 7% year over year to $3 billion, exceeding the projection of $2.83 billion, with EBITDA increasing to $445 million from $314 million in the previous year [3] - Components segment sales totaled $2.7 billion, down 9% from the prior year and missing the estimate of $2.74 billion, with EBITDA at $397 million, slightly lower than the previous year's $406 million [4] - Power Systems segment sales surged by 19% year over year to $1.9 billion, beating the estimate of $1.64 billion, with EBITDA rising to $430 million from $301 million [5] - Accelera segment sales were $105 million, down 5% year over year and below the estimate of $112.5 million, with a pretax loss of $100 million [6] Financial Position - As of June 30, 2025, Cummins had cash and cash equivalents of $2.32 billion, up from $1.67 billion at the end of 2024, while long-term debt increased to $6.81 billion from $4.78 billion [7]

Core Viewpoint - Cummins Inc. held its Q2 2025 earnings call, discussing financial results and future expectations, with key executives participating in the call [1][4]. Group 1: Company Overview - Cummins Inc. is represented by Jennifer Rumsey as CEO and Chairman, and Mark Smith as CFO during the earnings call [4]. - The call is part of a regular update to investors regarding the company's performance in the second quarter of 2025 [2][4]. Group 2: Financial Performance - The earnings call is focused on discussing the financial results for Q2 2025, although specific financial metrics and outcomes are not detailed in the provided text [4]. Group 3: Forward-Looking Statements - The company indicates that some information shared during the call will include forward-looking statements, which may differ from actual future results [5].

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION (Exact name of registrant as specified in its charter) Indiana 35-0257090 (State of Incorporation) (IRS Employer Identification No.) Washington, D.C. 20549 FORM 10-Q QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the Quarterly Period Ended June 30, 2025 Commission File Number 1-4949 CUMMINS INC. 500 Jackson Street Box 3005 Columbus, Indiana 47202-3005 (Address of principal executive offices) Telep ...

Financial Data and Key Metrics Changes - Revenues for the second quarter were $8.6 billion, a decrease of 2% compared to 2024 [9] - EBITDA was $1.6 billion or 18.4% of sales, compared to $1.3 billion or 15.3% a year ago, indicating an increase in profitability [18] - Gross margin improved by 150 basis points year over year, reaching 26.4% of sales [19] Business Line Data and Key Metrics Changes - Engine segment revenues were $2.9 billion, down 8% from a year ago, with EBITDA at 13.8% [22] - Components revenue decreased by 9% to $2.7 billion, but EBITDA improved to 14.7% [22] - Distribution segment revenues increased by 7% to $3 billion, with record EBITDA of $445 million, improving to 14.6% of sales [23] - Power Systems segment revenues rose by 19% to $1.9 billion, with record EBITDA of $433 million, increasing to 22.8% of sales [24] Market Data and Key Metrics Changes - North America revenues decreased by 6% compared to 2024, with heavy-duty truck industry production down 27% [10] - International revenues increased by 5%, with China revenues at $1.8 billion, up 9% due to strong domestic demand [11] - In China, industry demand for medium and heavy-duty trucks increased by 13%, with unit sales up 31% [12] Company Strategy and Development Direction - The company is focused on its Destination Zero strategy, introducing new products in the Power Systems segment to meet growing power demands [8] - A 10% increase in quarterly dividends was announced, marking the sixteenth consecutive year of dividend increases [8] - The company aims to maintain operational efficiency and invest in capacity expansion to support future growth [32] Management's Comments on Operating Environment and Future Outlook - Management anticipates a continued decline in North America heavy and medium-duty truck volumes by 25% to 30% in the third quarter [14] - The company is navigating uncertainties related to tariffs and trade policies, which are impacting freight activity and costs [15] - Despite challenges, management remains confident in the strength of the power generation market and the company's diversified global business [17] Other Important Information - The company returned $251 million to shareholders in dividends, consistent with its long-term plan to return approximately 50% of operating cash flow [9] - Joint venture income increased to $118 million, driven by higher volumes in China [20] - Operating cash flow was an inflow of $785 million, compared to an outflow of $851 million a year ago [21] Q&A Session Summary Question: Comments on Power Systems margins sustainability - Management expressed satisfaction with Power Systems performance, indicating ongoing operational improvements and strong demand [30][31] Question: Backlog and pricing flexibility in Power Systems - The company confirmed a backlog extending out two years and ongoing negotiations for tariff recovery with customers [35] Question: Data center market growth and sales expectations - Management reaffirmed expectations for $2 billion in sales from data centers by 2026, maintaining a strong market position [39][41] Question: Distribution margins and component side performance - Management noted that distribution margins benefited from strong parts demand and pricing, while component margins improved despite sales declines [44][46] Question: North America truck market cycle outlook - Management highlighted uncertainty in the truck market due to low orders and regulatory factors, making future predictions challenging [50][52] Question: Capital allocation and share buybacks - The company plans to maintain a long-term benchmark of returning at least 50% of operating cash flow to shareholders, with a focus on effective capital allocation [87][88] Question: Tariff impacts and recovery timeline - Management indicated that tariffs negatively impacted profitability in the second quarter, but they expect to approach price-cost neutrality by the fourth quarter [95][97]

Second Quarter 2025 Earnings Teleconference August 5th, 2025 CONTENTS Q2 2025 Summary Q2 2025 Supplemental Information Appendix 2 Disclosure Regarding Forward-Looking Statements Selected Financial Data - Quarter All values in $ millions (except where noted) Please refer to the appendix for adjustment reconciliations Information provided in this presentation that is not purely historical are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, including state ...