Cummins (CMI) Gains on Data Center Power Demand Despite Weak Truck Market

Company Performance - The London Company's Income Equity Portfolio declined 1.4% gross (-1.6% net) in Q4 2025, underperforming the Russell 1000 Value Index, which gained 3.8% [1] - For the full year, the portfolio delivered +14.4% gross (+13.5% net) versus +15.9% for the benchmark, aligning with long-term upside capture objectives despite a challenging environment for Quality, Yield, and Low Volatility factors [1] Market Context - U.S. equities continued to rally, with the Russell 3000 Index rising 2.4% and the S&P 500 posting similar gains, supported by strong earnings growth, additional Federal Reserve rate cuts, and easing trade tensions [1] - The market faced challenges from softening labor markets, scrutiny of AI investments, and a prolonged government shutdown [1] Stock Highlight: Cummins Inc. (NYSE:CMI) - Cummins Inc. reported strong results driven by Power Systems strength linked to data center demand, while the on-highway truck market remains weak [3] - The one-month return of Cummins Inc. was -7.30%, with shares trading between $260.02 and $617.98 over the last 52 weeks [2] - As of March 11, 2026, Cummins Inc. stock closed at approximately $556.14 per share, with a market capitalization of about $76.84 billion [2] - Cummins Inc. is one of the few global suppliers capable of supporting large-scale data center backup power requirements, with a diversified business mix and strong competitive positions across its portfolio [3]