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]

Financial Performance - Cummins Inc reported Q2 2025 revenue of $8643 million, a decrease of 2% compared to Q2 2024[9, 13] - The company's EBITDA for Q2 2025 was $1587 million, representing 184% of sales[9, 13] - Net income for Q2 2025 reached $890 million, with a diluted EPS of $643[9] Segment Performance - Engine segment revenue decreased by 8% to $2899 million due to lower On-Highway demand in North America[13, 22] - Components segment sales declined by 9% to $2705 million, also driven by lower On-Highway demand in North America[13, 25] - Distribution segment experienced a 7% increase in sales, reaching $3041 million, fueled by higher demand for power generation products in North America[13, 28] - Power Systems segment saw a significant 19% revenue increase to $1889 million, primarily due to increased power generation demand[13, 31] - Accelera segment reported sales of $105 million, a decrease of 5%, with an EBITDA loss of $100 million[13, 34] Additional Information - Operating cash flow for Q2 2025 was $785 million[39]