Smith & Nephew (NYSE:SNN) 2025 Capital Markets Day December 11, 2025 09:00 AM ET Company ParticipantsCaitlin Roberts - DirectorRohit Kashyap - President of World BusinessHadi El-Heneidi - Senior Director of Global MarketingDeepak Nath - CEOJohn Rogers - CFOIseult McMahon - Equity Research AssociateScott Schaffner - President of Sports MedicineSteven Hass - Orthopedic SurgeonCathy Dalene - SVP of Global Wound CareMayank Shandil - Global Senior VPMike Ast - Director of Asc StrategyAnil Ranawat - Orthopedic Su ...

Company Overview - Cummins Inc. is based in Columbus, Indiana, and specializes in designing, manufacturing, distributing, and servicing diesel and natural gas engines, electric and hybrid powertrains, and related components globally [1] - The company has a market capitalization of $69.2 billion, positioning it as a large-cap stock within the specialty industrial machinery industry [2] Market Position and Performance - CMI is recognized for its quality and reliability, supported by a service network of over 19,000 dealers across 190 countries, enhancing its reputation among original equipment manufacturers (OEMs) [2] - CMI shares reached a 52-week high of $508.37 recently, with a stock price increase of 29.5% over the past three months, significantly outperforming the Industrial Select Sector SPDR Fund (XLI), which gained only 2.9% in the same period [3] Long-term Stock Trends - Over a six-month period, CMI shares rose by 56.5%, and over the past 52 weeks, they increased by 35.2%, again outperforming XLI's six-month gains of 7.3% and 8.6% over the last year [4] - The stock has consistently traded above its 50-day moving average since mid-May and above its 200-day moving average since early July, indicating a bullish trend [4] Recent Financial Results - In Q3, CMI reported earnings per share (EPS) of $3.86, which is a 34.1% decrease year over year, while revenue reached $8.3 billion, exceeding Wall Street's forecast of $8.1 billion [6] - The company's strong performance is attributed to high demand for Power Systems and Distribution, particularly in data centers and generators, along with effective cost management strategies [5]

Core Insights - Cummins Inc. is a global leader in power technology, offering a wide range of power solutions including diesel, natural-gas, hybrid, and electric powertrains, with a market capitalization of approximately $62.9 billion [1] Stock Performance - CMI stock has increased by 26% over the past 52 weeks, significantly outperforming the S&P 500 Index's 13.7% gain [2] - Year-to-date, CMI has risen by 30.8%, compared to the S&P 500's 13.4% increase [2] - The stock has also surpassed the Industrial Select Sector SPDR Fund (XLI), which has grown by 8.2% over the past year and 14.2% year-to-date [3] Business Drivers - The rise in Cummins' shares is attributed to strong demand in its Power Systems business, particularly for data center and mission-critical generators [4] - The company's long-term "Destination Zero" initiative, focusing on green hydrogen and hybrid powertrain investments through its Accelera business, is generating investor interest due to its alignment with the energy transition [4] Financial Outlook - Analysts project a 5% year-over-year growth in CMI's EPS for the fiscal year ending December 2025, reaching $22.44 on a diluted basis [5] - The consensus among 20 analysts is a "Moderate Buy," with ratings including eight "Strong Buy," 11 "Holds," and one "Strong Sell" [5] - Bernstein's Chad Dillard has raised the price target for Cummins to $475 from $385, maintaining a "Market Perform" rating, highlighting strength in the power generation business [6] - The mean price target of $491.94 indicates a 7.9% premium to current price levels, while the highest price target of $600 suggests an upside potential of 31.6% [6]