Financial Performance - For the three months ended September 30, 2025, net sales were $8.3 billion, a decrease from $8.5 billion in the same period of 2024[122] - Net income attributable to Cummins Inc. for the three months ended September 30, 2025, was $536 million, down from $809 million in the prior year[122] - Earnings per diluted share for the three months ended September 30, 2025, were $3.86, compared to $5.86 in the same period of 2024[122] - For the nine months ended September 30, 2025, net sales were $25.1 billion, a decrease from $25.7 billion in the same period of 2024[124] - Net income attributable to Cummins Inc. for the nine months ended September 30, 2025, was $2.3 billion, down from $3.5 billion in the prior year[124] - The decrease in net income for the nine months was attributed to the absence of a $1.3 billion gain from the divestiture of Atmus in 2024 and lower demand in on-highway commercial truck markets[124] - Total net sales decreased by 2% to $8.317 billion for the three months ended September 30, 2025, compared to $8.456 billion in the same period of 2024[125] - EBITDA for the three months ended September 30, 2025, was $1.166 billion, a decrease of 14% compared to $1.389 billion in 2024[129] Sales and Market Trends - Net sales in the U.S. and Canada declined by 4% to $4.972 billion, primarily due to lower demand in medium-duty and heavy-duty truck markets[125] - International sales increased by 2% to $3.345 billion, driven by higher sales in China and Europe, partially offset by lower sales in Latin America and Asia Pacific[125] - Components segment sales decreased by 15% primarily due to lower demand in North American heavy-duty and medium-duty truck markets and the divestiture of Atmus[142] - Engine segment sales decreased by 11% largely due to lower demand in North American medium-duty and heavy-duty truck markets[143] - Heavy-duty truck sales for the three months ended September 30, 2025, decreased by $249 million (24%) due to weaker demand, with shipments down 36% in North America[174] - Light-duty automotive sales increased by $188 million (48%) for the three months ended September 30, 2025, driven by higher pick-up demand and non-tariff pricing[174] - Distribution segment external sales for Q3 2025 increased by $228 million (8%) compared to Q3 2024, totaling $3,170 million[179] - Power generation sales in the Power Systems segment rose by $225 million (21%) in Q3 2025, driven by higher demand in North America, India, and China[184] Expenses and Charges - The Accelera segment experienced a goodwill impairment charge and inventory write-down, impacting overall performance[122] - The company recorded $240 million in non-cash charges in its electrolyzer business for the Accelera segment in September 2025[132] - Other operating expense, net increased significantly to $(247) million for the three months and $(321) million for the nine months ended September 30, 2025, primarily due to goodwill impairment[157] - Interest expense remained flat at $83 million for the three months but decreased by $34 million (12%) to $247 million for the nine months ended September 30, 2025[158] - Selling, general and administrative expenses decreased by $18 million (2%) for the three months and $135 million (5%) for the nine months ended September 30, 2025[149][150] - Research, development and engineering expenses decreased by $14 million (4%) for the three months and $61 million (6%) for the nine months ended September 30, 2025[151][153] Cash Flow and Capital Management - Cash generated from operations for the nine months ended September 30, 2025, was $2.1 billion, a significant increase from $65 million in the same period of 2024[130] - The company's working capital as of September 30, 2025, was $7,266 million, significantly up from $3,518 million at December 31, 2024[194] - Net cash provided by operating activities for the nine months ended September 30, 2025, increased by $2,022 million compared to the same period in 2024, primarily due to lower working capital requirements[195] - The company had $353 million of commercial paper outstanding as of September 30, 2025, which reduced the available capacity under revolving credit facilities to $3.6 billion[206] - Capital expenditures for the nine months ended September 30, 2025, were $691 million, an increase from $668 million in the same period in 2024, with plans to spend $1.2 billion to $1.3 billion in 2025[211] Dividends and Shareholder Returns - The company authorized a 10% increase in its quarterly dividend from $1.82 to $2.00 per share in July 2025[133] - The company paid dividends of $778 million during the nine months ended September 30, 2025, with a quarterly dividend increase of approximately 10% from $1.82 to $2.00 per share authorized in July 2025[210] Debt and Liquidity - The debt to capital ratio improved to 36.8% as of September 30, 2025, down from 38.4% at December 31, 2024[131] - The company entered into a new 3-year credit agreement allowing it to borrow up to $2.0 billion of unsecured funds prior to June 2, 2028[136] - The company maintains strong credit ratings, with a long-term rating of A from Standard and Poor's and A2 from Moody's, both with a stable outlook[217] - The company assesses its liquidity as strong, with adequate cash flow to fund operating, investing, and financing activities through 2025 and beyond[218] Segment Performance - Engine segment external sales for the three months ended September 30, 2025, decreased by $293 million (13%) to $1,922 million, while total sales decreased by $308 million (11%) to $2,605 million[171] - Engine segment EBITDA for the three months ended September 30, 2025, decreased by $166 million (39%) to $261 million, primarily due to lower volumes and higher material costs[171] - The nine months ended September 30, 2025, saw a decrease in Engine segment sales by $717 million (8%) compared to the same period in 2024[173] - Components segment external sales for Q3 2025 decreased by $301 million (13%) compared to Q3 2024, totaling $1,986 million[175] - Total sales for the Components segment for the nine months ended September 30, 2025, decreased by $1.3 billion (15%) compared to the same period in 2024, totaling $7,704 million[176] - Distribution segment EBITDA for Q3 2025 increased by $122 million (33%) compared to Q3 2024, totaling $492 million[181] - Distribution segment EBITDA for the nine months ended September 30, 2025, increased by $335 million (34%) compared to the same period in 2024, totaling $1,313 million[182] - Power Systems segment external sales for Q3 2025 increased by $214 million (23%) to $1,126 million compared to Q3 2024[183] - Accelera segment total sales for Q3 2025 increased by $11 million (10%) to $121 million, mainly due to higher sales for electrified powertrains[187] - Accelera segment sales for the nine months ended September 30, 2025, increased by $15 million (5%) to $329 million, primarily due to improved sales of electrified powertrains[188] Taxation - Income tax expense increased by $36 million in the third quarter of 2025 due to changes in U.S. federal income tax rules[160] - The effective tax rate for 2025 is expected to be approximately 26.5%, a 2% increase from prior estimates due to The Act and non-deductible goodwill impairment[161] - For the three months ended September 30, 2025, the effective tax rate was 32.7%, compared to 19.2% for the same period in 2024[162] Foreign Currency and Other Adjustments - The foreign currency translation adjustment resulted in a net loss of $67 million for the three months ended September 30, 2025, compared to a net gain of $165 million for the same period in 2024[168]

Financial Data and Key Metrics Changes - Sales for Q3 2025 were $8.3 billion, a decrease of 2% compared to Q3 2024, primarily due to weaker North America heavy and medium-duty truck demand, with unit volumes declining 40% year-over-year [8][19] - EBITDA was $1.2 billion, or 14.3% of sales, compared to $1.4 billion, or 16.4% a year ago; excluding non-cash charges, EBITDA was $1.4 billion, or 17.2% of sales, an increase of 80 basis points from the previous year [9][20] - Operating cash flow was strong at $1.3 billion, compared to $640 million a year ago, indicating improved credit metrics and capital allocation flexibility [23] Business Line Data and Key Metrics Changes - Engine segment revenues were $2.6 billion, a decrease of 11% from a year ago, with EBITDA at 10%, down from 14.7% due to weaker North American truck volumes [24] - Component segment revenue decreased 15% to $2.3 billion, with EBITDA at 12.5%, down from 12.9% [24] - Distribution segment revenues increased 7% to a record $3.2 billion, with EBITDA also reaching a record 15.5% [24] - Power systems segment revenues were a record $2 billion, an increase of 18% from a year ago, with EBITDA dollars also at a record $457 million, increasing as a percent of sales from 19.4% to 22.9% [25] Market Data and Key Metrics Changes - North America revenues decreased 4% compared to 2024, while international revenues increased by 2% [19] - Revenues in China, including joint ventures, were $1.7 billion, up 16% from a weak quarter last year, driven by stronger unit demand [11] - Revenues in India, including joint ventures, were $713 million, an increase of 3% from a year ago, with power generation revenues increasing 41% [12] Company Strategy and Development Direction - The company announced a collaboration with Komatsu to develop hybrid powertrains for heavy mining equipment, aiming to support customers' sustainability efforts [5][6] - The company is undergoing a strategic review of its electrolyzer business due to significantly lower demand expectations, with potential further charges anticipated [16][50] - The company expects near-term weakness in North America on-highway truck markets to persist, with a projected 15% decline in unit shipments from Q3 levels [14] Management's Comments on Operating Environment and Future Outlook - Management noted that the global trade and policy landscapes remain dynamic, presenting ongoing challenges, but they are well-positioned to support customers [15][27] - The company anticipates that demand for power generation equipment will remain strong beyond this year, despite challenges in shorter-cycle markets [14][27] - Management expressed cautious optimism about the North American on-highway markets nearing a bottom, with hopes to reinstate guidance in February 2026 [28] Other Important Information - The company faced $240 million in non-cash charges related to its electrolyzer business, reflecting lower demand expectations due to reduced U.S. government incentives [9][20] - The effective tax rate for the quarter was 32.7%, impacted by increased tax expenses related to recent U.S. tax legislation [22] Q&A Session Summary Question: Engine margins and tariff costs in Q4 - Management indicated that engine business margins are under pressure due to product changeovers and additional costs, but they are managing costs effectively [32][33] Question: Power systems production ramp-up and margin targets - Management confirmed strong performance in power systems and distribution, with ongoing investments for profitable growth, but cautioned against expecting continued margin improvement at the same rate [34][36] Question: Capacity investments for data centers - Management is actively assessing the need for additional capacity investments in response to strong demand for data center power generation [40][42] Question: Accelera segment performance and losses - Management acknowledged that the losses in the electrolyzer business are significant and are under review, while e-mobility is showing growth [58][61] Question: International data center opportunities - Management noted strong demand in both the U.S. and China for data centers, with local competition being more prevalent in China [78][80]

Financial Data and Key Metrics Changes - Sales for Q3 2025 were $8.3 billion, a decrease of 2% compared to Q3 2024, primarily due to weaker North America heavy and medium-duty truck demand, with unit volumes declining 40% year-over-year [8][19] - EBITDA was $1.2 billion, or 14.3% of sales, compared to $1.4 billion, or 16.4% a year ago; excluding non-cash charges, EBITDA was $1.4 billion, or 17.2% of sales, an increase of 80 basis points from the previous year [9][20] - Operating cash flow was strong at $1.3 billion, compared to $640 million a year ago [23] Business Line Data and Key Metrics Changes - Engine segment revenues were $2.6 billion, a decrease of 11% from a year ago, with EBITDA at 10%, down from 14.7% [24] - Component segment revenue was $2.3 billion, a decrease of 15% from a year ago, with EBITDA at 12.5% compared to 12.9% [24] - Distribution segment revenues increased 7% to a record $3.2 billion, with EBITDA at a record 15.5% [24] - Power systems segment revenues were a record $2 billion, an increase of 18% from a year ago, with EBITDA increasing from 19.4% to 22.9% [25] Market Data and Key Metrics Changes - North America revenues decreased 4% compared to 2024, while international revenues increased by 2% [19] - Revenues in China were $1.7 billion, up 16% from last year, driven by stronger unit demand [11] - Revenues in India were $713 million, an increase of 3% from a year ago, with power generation revenues increasing 41% [12] Company Strategy and Development Direction - The company announced a collaboration with Komatsu to develop hybrid powertrains for heavy mining equipment, aiming to support customers' sustainability efforts [5][6] - The company is undergoing a strategic review of its electrolyzer business due to significantly lower demand expectations [16][50] - The company expects near-term weakness in North America on-highway truck markets to persist, anticipating a 15% decline in unit shipments from Q3 levels [14] Management's Comments on Operating Environment and Future Outlook - Management noted that the global trade and policy landscapes remain dynamic, presenting ongoing challenges [14] - The company is hopeful for stabilization in global trade policy and clarity on EPA regulations, which will support plans to reinstate guidance for 2026 [17][28] - Management expressed cautious optimism about demand in North America on-highway markets nearing a bottom [28] Other Important Information - The company faced $240 million in non-cash charges related to its electrolyzer business, reflecting lower demand expectations [9][20] - Tariff costs increased in Q3, but the company managed to recover a greater proportion of these costs through pricing [19][26] Q&A Session Summary Question: Engine margins in the fourth quarter and power systems margin targets - Management indicated that engine business faces complexities with product changeover and additional costs, but they are managing costs effectively [32] - Power systems have shown strong performance, and management is committed to investing for profitable growth [36] Question: Capacity additions and future investments - Management confirmed that they are reaching the end of capacity expansion for large engines and are actively exploring additional capacity investments in response to strong demand [40][42] Question: Impact of Section 232 tariffs - Management stated that they need more details to quantify the headwind from tariffs and emphasized their strong manufacturing position in the U.S. [44][46] Question: Performance of Accelera segment - Management noted that most losses in the Accelera segment are from electrolyzers, and they are looking at actions to reduce these losses [48][50] Question: Natural gas engines and data center opportunities - Management highlighted their capability in natural gas engine development and the importance of high reliability for data centers [54]

Core Insights - Cummins reported revenue of $8.32 billion for the quarter ended September 2025, a decrease of 1.6% year-over-year, but exceeded the Zacks Consensus Estimate by 3.24% [1] - The earnings per share (EPS) was $5.59, slightly down from $5.60 in the same quarter last year, but surpassed the consensus estimate of $4.73 by 18.18% [1] Financial Performance Metrics - Unit shipments for light-duty engines were 49,600, significantly higher than the average estimate of 32,719 [4] - Heavy-duty engine unit shipments were 22,400, below the average estimate of 28,236 [4] - Medium-duty engine unit shipments totaled 63,100, slightly below the average estimate of 66,038 [4] - Total engine unit shipments reached 135,100, exceeding the average estimate of 126,992 [4] - Net sales for Power Systems were $2 billion, surpassing the estimate of $1.9 billion and reflecting an 18.3% increase year-over-year [4] - Net sales for Engine were $2.61 billion, slightly above the estimate of $2.5 billion, but represented a 10.6% decrease year-over-year [4] - Net sales for Components were $2.33 billion, in line with the estimate of $2.32 billion, showing a 14.5% decline year-over-year [4] - Distribution net sales were $3.17 billion, exceeding the estimate of $3.06 billion, with a year-over-year increase of 7.5% [4] - Accelera net sales were $121 million, above the estimate of $115.38 million, marking a 10% year-over-year increase [4] - Off-highway engine net sales were $466 million, surpassing the estimate of $418.45 million, with a 9.9% year-over-year increase [4] - Medium-duty truck and bus engine net sales were $784 million, below the estimate of $905.6 million, reflecting a 26.9% year-over-year decline [4] Stock Performance - Cummins shares returned +0.7% over the past month, compared to the Zacks S&P 500 composite's +1.3% change [3] - The stock currently holds a Zacks Rank 3 (Hold), indicating expected performance in line with the broader market [3]

Financial Data and Key Metrics Changes - Sales for Q3 2025 were $8.3 billion, a decrease of 2% compared to Q3 2024, primarily due to weaker North America heavy and medium-duty truck demand, with unit volumes declining 40% year-over-year [6][12] - EBITDA was $1.2 billion, or 14.3% of sales, compared to $1.4 billion, or 16.4% a year ago; excluding non-cash charges, EBITDA was $1.4 billion, or 17.2% of sales, an increase of 80 basis points from the previous year [7][8][19] - Operating cash flow was strong at $1.3 billion, compared to $640 million a year ago, indicating improved credit metrics and capital allocation flexibility [23] Business Line Data and Key Metrics Changes - Engine segment revenues were $2.6 billion, a decrease of 11% from a year ago, with EBITDA at 10%, down from 14.7% due to weaker North American truck volumes [23] - Component segment revenue decreased 15% to $2.3 billion, with EBITDA at 12.5% compared to 12.9% a year ago, impacted by weaker on-highway demand [24] - Distribution segment revenues increased 7% to a record $3.2 billion, with EBITDA at a record 15.5% driven by higher power generation demand [24] - Power systems segment revenues reached a record $2 billion, an increase of 18% from a year ago, with EBITDA increasing from 19.4% to 22.9% [25] Market Data and Key Metrics Changes - North America revenues decreased 4% compared to 2024, with heavy-duty truck industry production down 34% and medium-duty truck production down 51% [9][12] - In China, revenues were $1.7 billion, up 16% from a weak quarter last year, driven by stronger unit demand, with industry demand for medium and heavy-duty trucks increasing by 50% [10] - India revenues were $713 million, an increase of 3% from a year ago, with power generation revenues increasing 41% due to strong data-centered demand [11] Company Strategy and Development Direction - The company announced a collaboration with Komatsu to develop hybrid powertrains for mining equipment, aiming to support customers' sustainability efforts [4][5] - The company is undergoing a strategic review of its electrolyzer business due to significantly lower demand expectations, with potential further charges anticipated [15][49] - The company expects near-term weakness in North America on-highway truck markets to persist, with a projected 15% decline in unit shipments from Q3 levels [12][27] Management's Comments on Operating Environment and Future Outlook - Management noted that the global trade and policy landscapes remain dynamic, presenting ongoing challenges, particularly with tariff costs increasing [13][15] - There is cautious optimism regarding the bottoming of North American on-highway markets, with expectations for demand recovery in the future [27] - Management emphasized the importance of clarity in trade and regulatory policies for reinstating guidance for 2026 [16][27] Other Important Information - The company faced $240 million in non-cash charges related to its electrolyzer business, reflecting lower demand expectations due to reduced U.S. government incentives [8][19] - The effective tax rate for the quarter was 32.7%, impacted by increased tax expenses related to recent U.S. tax legislation [21] Q&A Session Summary Question: Engine margins outlook for Q4 and power systems margin targets - Management indicated that engine margins are expected to remain under pressure due to product changeovers and additional costs, but efforts are being made to manage costs effectively [32][34] - For power systems, strong performance is anticipated, with continued investment for profitable growth, although incremental margin improvements may not continue at the same rate [34][35] Question: Capacity additions and future investments in data centers - Management confirmed that capacity investments for large engines are nearing completion, with expectations for a 30-35% revenue increase in the data center market for 2025 [39][40] Question: Impact of Section 232 tariffs - Management acknowledged the uncertainty surrounding tariffs and their impact on profitability, emphasizing the need for more clarity to predict future financial implications [43][45] Question: Performance of Accelera segment and e-mobility growth - Management noted that e-mobility is growing, particularly in bus applications, while the electrolyzer segment has faced significant challenges, leading to strategic reviews [60][61]

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Financial Performance - Revenue for the third quarter of 2025 was $8,317 million[9], a decrease of 2% compared to $8,456 million in the same period of 2024[12] - Net income for the third quarter of 2025 was $536 million[9], compared to $809 million in the same period of 2024[67] - Adjusted EBITDA for the third quarter of 2025 was $1,427 million[9], representing 17.2% of sales[12] - Diluted EPS for the third quarter of 2025 was $3.86, and adjusted diluted EPS was $5.59[9] - EBITDA for the twelve months ended September 30, 2025, was $6,326 million[68] Segment Performance (Q3 2025) - Engine segment net sales were $2,605 million, a decrease of 11% compared to 2024[12] - Components segment net sales were $2,329 million, a decrease of 15% compared to 2024[12] - Distribution segment net sales were $3,172 million, an increase of 7% compared to 2024[12] - Power Systems segment net sales were $1,996 million, an increase of 18% compared to 2024[12] - Accelera segment net sales were $121 million, an increase of 10% compared to 2024[12] Return on Invested Capital (ROIC) - Adjusted ROIC for the last twelve months ended September 30, 2025, was 17%[74]

Market Overview - U.S. stocks showed mixed trading, with the Nasdaq Composite falling over 50 points, while the Dow increased by 0.03% to 47,327.39 and the S&P 500 decreased by 0.09% to 6,790.33 [1] - Energy shares rose by 1.1%, while consumer staples stocks fell by 0.7% [1] Company Earnings - Cummins Inc (NYSE:CMI) reported third-quarter earnings of $5.59 per share, exceeding market expectations of $4.81 per share, with quarterly sales of $8.317 billion compared to expectations of $7.971 billion [2] Commodity Prices - Oil prices increased by 0.1% to $59.63, gold rose by 0.6% to $4,016.60, silver gained 0.6% to $48.300, and copper saw a slight increase of 0.1% to $4.9905 [5] European Market Performance - European shares were predominantly lower, with the eurozone's STOXX 600 declining by 0.3%, while Spain's IBEX 35 Index rose by 0.2% [6] Asian Market Performance - Asian markets closed mostly higher, with Japan's Nikkei 225 surging by 1.34% and Hong Kong's Hang Seng gaining 2.12% [7] Job Cuts Announcement - U.S.-based employers announced 153,074 job cuts in October, a significant increase from 54,064 in the previous month [8] Stock Movements - Baiya International Group Inc. (NASDAQ:BIYA) shares surged by 121% to $0.6032, while Forge Global Holdings, Inc. (NYSE:FRGE) increased by 68% to $43.83 following an acquisition agreement with Charles Schwab [9] - MingZhu Logistics Holdings Limited (NASDAQ:YGMZ) shares rose by 43% to $0.1801, while DIH Holding US, Inc. (NASDAQ:DHAI) shares dropped by 64% to $0.6608 [9] - ACV Auctions Inc. (NYSE:ACVA) shares fell by 37% to $5.13 after cutting its full-year sales guidance, and Aspen Aerogels, Inc. (NYSE:ASPN) decreased by 36% to $4.74 after lowering its full-year earnings and sales guidance [9]

Core Insights - Cummins reported quarterly earnings of $5.59 per share, exceeding the Zacks Consensus Estimate of $4.73 per share, and showing a slight decrease from $5.6 per share a year ago, resulting in an earnings surprise of +18.18% [1] - The company achieved revenues of $8.32 billion for the quarter ended September 2025, surpassing the Zacks Consensus Estimate by 3.24%, although this represents a decline from year-ago revenues of $8.46 billion [2] - Cummins has consistently outperformed consensus EPS and revenue estimates over the last four quarters [2] Earnings Outlook - The future performance of Cummins' stock will largely depend on management's commentary during the earnings call and the revisions of earnings estimates [3][4] - The current consensus EPS estimate for the upcoming quarter is $4.72 on revenues of $8.2 billion, while for the current fiscal year, the estimate is $21.59 on revenues of $33.07 billion [7] Industry Context - Cummins operates within the Zacks Automotive - Internal Combustion Engines industry, which is currently ranked in the top 41% of over 250 Zacks industries, indicating a favorable industry outlook [8] - Historical data suggests that stocks in the top 50% of Zacks-ranked industries outperform those in the bottom 50% by more than 2 to 1 [8]

EXHIBIT 99 November 6, 2025 Cummins Reports Strong Third Quarter Operating Results, Records Non-Cash Charges Related to its Electrolyzer Business COLUMBUS, IND. - Cummins Inc. (NYSE: CMI) today reported results for the third quarter of 2025. "Cummins delivered strong operating results in the third quarter, driven by profitable growth in our Power Systems and Distribution segments, due in part to continued rising demand for backup power for datacenters. Effective cost management across the company helped nav ...