Cummins Inc. (CMI): History, Ownership, Mission, How It Works & Makes Money

With a market capitalization near $63.86 billion in late 2025, do you defintely know how Cummins Inc. (CMI) is managing the massive, complex shift from traditional diesel engines to zero-emissions power? The company's Q3 2025 revenue of $8.32 billion actually hides a critical internal battle: a steep 40% plunge in North American heavy-duty truck demand is being offset by a strong 18% surge in Power Systems sales, largely driven by data center demand. This split performance is the real story of their mission-making people's lives better by powering a more prosperous world-so let's break down the history, ownership, and how this 100-year-old power leader actually makes money today.

Cummins Inc. (CMI) History

You're looking for the foundational story of Cummins Inc., the global power leader, and honestly, the early years were a brutal fight for survival, not a smooth corporate launch. The company's evolution from a tiny machine shop to a multinational powerhouse is a masterclass in relentless innovation and strategic pivots, especially now with its focus on decarbonization.

Cummins Inc.'s Founding Timeline

Year established

The Cummins Engine Company was officially founded on February 3, 1919.

Original location

The company started in a small machine shop in Columbus, Indiana, which remains its global headquarters today.

Founding team members

• Clessie Lyle Cummins: A self-taught mechanic and inventor who championed the commercial viability of the diesel engine in North America.
• William Glanton Irwin: A wealthy banker and industrialist who provided the critical financial backing.

Initial capital/funding

Banker William G. Irwin supplied the initial capital to start the company. Following the failure of an early contract with Sears, Roebuck & Co., Irwin continued to back Clessie Cummins, eventually pouring over $2.5 million into the fledgling company to keep it afloat and fund essential research.

Cummins Inc.'s Evolution Milestones

Cummins Inc.'s Transformative Moments

The company's history is defintely a story of transformation, pivoting from near-failure to global leadership through two critical periods: the early diesel revolution and the modern energy transition.

The first major shift was surviving the 1920s. The company faced bankruptcy not once, but twice by 1924. Clessie Cummins realized he had to prove the technology, so he used dramatic endurance trials, like the 1931 Indianapolis 500 entry, to generate market awareness and drive sales. This was pure hustle.

The second, and perhaps most enduring, transformation came under the four-decade leadership of J. Irwin Miller, who became general manager in 1934. He pushed the company to prioritize quality (offering the industry's first 100,000-mile warranty) and global reach, expanding to 98 countries by the late 1960s.

Today, the company is undergoing its most profound transformation with the 'Destination Zero' strategy, which is a business strategy, not just an environmental one. This strategy commits the company to decarbonization through a portfolio of power solutions, including advanced diesel, natural gas, hydrogen, and electric. To see the scale of this pivot, consider the first quarter of 2025 alone: the company reported revenues of $8.2 billion and a GAAP Net Income of $824 million. That's a massive financial engine powering the transition.

• Fuel-Agnostic Platform: The company is investing $452 million into facilities like the Jamestown plant to produce the industry's first fuel-agnostic internal combustion engine platform.
• Electrification Focus: The 2022 acquisition of Meritor was a clear signal, adding electric powertrain and drivetrain solutions to the portfolio.
• Hydrogen Scale: Accelera by Cummins, the zero-emissions business segment, announced in Q1 2025 the supply of a 100-megawatt proton exchange membrane (PEM) electrolyzer system for a major green hydrogen project in Germany.

If you want to dive deeper into how this history impacts current market positioning, you should read Exploring Cummins Inc. (CMI) Investor Profile: Who's Buying and Why?

Cummins Inc. (CMI) Ownership Structure

Cummins Inc. (CMI) is a publicly traded company on the New York Stock Exchange (NYSE), but don't let the public status fool you; its ownership is heavily concentrated among institutional investors. This means the company is primarily driven by the interests of large funds like Vanguard Group Inc and BlackRock, Inc., not a widely dispersed retail base.

Cummins Inc.'s Current Status

Cummins Inc. operates as a publicly held corporation, trading under the ticker CMI. Its market capitalization stands at approximately $63.71 billion as of November 2025, reflecting its position as a mature, major industrial player.

The core of its governance structure is a classic shareholder model, where the board of directors and executive leadership manage the business, but major strategic decisions are often influenced by the dominant institutional holders. For instance, the stock's price hit $476.03 per share on November 11, 2025, a significant 34.06% increase from the prior year, showing that institutional confidence remains high despite mixed signals like recent insider sales.

If you want to dig deeper into who is actually moving the stock, you should check out Exploring Cummins Inc. (CMI) Investor Profile: Who's Buying and Why?

Cummins Inc.'s Ownership Breakdown

The company's ownership structure, as of late 2025, is a clear example of a 'widely held' public company where the vast majority of shares are controlled by professional money managers. This kind of structure usually means management is focused on capital allocation decisions-like dividends and share buybacks-that appeal to these large, long-term funds.

To be fair, the influence of institutional capital is huge. When institutional ownership is this high, their collective buying and selling can defintely dictate short-term stock movements, plus they hold the voting power on key board and proxy matters.

Cummins Inc.'s Leadership

The company is steered by a seasoned executive team, with an average management tenure of nearly three years, which provides stability during the ongoing energy transition. The current leadership is focused on their 'Destination Zero' strategy, which is a big pivot toward electrification and alternative power.

Leading the charge is Jennifer Rumsey, who has served as Chair and Chief Executive Officer since August 2023. Her total yearly compensation was reported at $21.86 million, reflecting the scale of her responsibility in navigating the company's future.

Here are the core members of the leadership team as of November 2025:

• Jennifer Rumsey: Chair and Chief Executive Officer (CEO)
• Mark Smith: Chief Financial Officer (CFO) and Vice President
• Amy Davis: Vice President and President of Accelera by Cummins and Components
• Bonnie Fetch: Executive Vice President and President of Operations
• Jennifer Bush: Vice President and President of Power Systems Business
• Nicole Lamb-Hale: Chief Administrative Officer and Corporate Secretary

Honesty, the fact that executives like CFO Mark Smith sold shares worth over $6.17 million in November 2025 is a point to watch, as it can signal internal skepticism, even as the overall institutional backing remains strong.

Cummins Inc. (CMI) Mission and Values

Cummins Inc. defines its existence beyond manufacturing engines; its core purpose centers on improving lives and driving global economic health through its power solutions. The company's cultural DNA is built on five core values-Integrity, Diversity and Inclusion, Caring, Excellence, and Teamwork-which guide everything from product innovation to community engagement.

You can see the full breakdown of their guiding principles here: Mission Statement, Vision, & Core Values of Cummins Inc. (CMI).

Cummins Inc.'s Core Purpose

The company's mission and values map directly to its 'Destination Zero' strategy, which is their commitment to a net-zero future. This isn't just talk; it's backed by significant investment in their Accelera business, which focuses on zero-emissions solutions like batteries and fuel cells. Their Q2 2025 revenue was a strong $8.6 billion, showing their core business is funding this future-focused transition.

Here's the quick math: the company projects its full-year 2025 EBITDA to land between 16.2% and 17.2% of sales, proving they can manage profitability while investing heavily in clean power.

Official mission statement

The formal mission statement is concise and focuses on a broad, positive societal impact, linking their products to human well-being and global prosperity.

• Making people's lives better by powering a more prosperous world.

Vision statement

The vision statement is customer-centric, emphasizing innovation as the primary mechanism for achieving their goal. It's about being a partner, not just a supplier.

• Innovating for our customers to power their success.

This commitment to innovation is defintely clear in their ESG goals, where they expect to achieve a cumulative carbon reduction of 1.4 gigatons through lower-emissions engine innovations alone. That's a massive, measurable impact.

Cummins Inc. slogan/tagline

Cummins Inc. refreshed its brand platform recently, adopting a tagline that speaks to their legacy of reliability while signaling their forward-looking strategy in the energy transition.

• Power Onward.

The company's values are visibly integrated into their operations; for instance, their commitment to Diversity and Inclusion is reflected in the fact that women make up 46% of the Cummins leadership team. Also, their environmental initiatives across facilities are already projected to save over 34,000 metric tons of carbon dioxide equivalent annually. That's how you translate values into actionable metrics.

Cummins Inc. (CMI) How It Works

Cummins Inc. works by providing a diversified, multi-solution portfolio of power technologies-from advanced internal combustion engines and components to cutting-edge zero-emissions systems-to keep the world's commercial and industrial machinery running. This model generated second-quarter 2025 revenues of $8.6 billion, driven by strong demand in power generation even as the traditional truck market softened.

Honestly, the company acts as a vital, yet often unseen, backbone for global commerce, powering everything from a massive data center's backup system to the heavy-duty truck hauling freight across the US. You see a clear split, a 'tale of two economies,' where the Power Systems segment is booming, while the Engine and Components segments face headwinds from lower on-highway demand.

Given Company's Product/Service Portfolio

Given Company's Operational Framework

The core operational framework is the 'Destination Zero' strategy, which commits to a phased, multi-solution approach to decarbonization, meaning they offer the best product for a customer's current needs while actively developing the next-generation clean technology. This is a pragmatic, realist approach to the energy transition because it acknowledges that not everyone can switch to electric tomorrow.

Their value creation is built on five distinct but interconnected segments: Engine, Components, Power Systems, Distribution, and Accelera. The Distribution segment, which reported $3.0 billion in Q2 2025 sales, is defintely crucial; it provides the global aftermarket support, parts, and service that keeps their vast installed base operational, which is a high-margin, stable revenue stream.

• Global Manufacturing and Supply Chain: Operates a vast, vertically integrated network to control quality and cost from raw material to finished product.
• Digital Integration: Collaborating with companies like Microsoft to develop the Open Telematics Framework, making it easier to deploy containerized software and over-the-air updates to commercial vehicles.
• R&D Investment: Continues to invest heavily in both traditional and new power, with a significant focus on hydrogen and battery-powered systems through the Accelera segment.

For more on how these segments perform, you should check out Breaking Down Cummins Inc. (CMI) Financial Health: Key Insights for Investors.

Given Company's Strategic Advantages

Cummins's primary strategic advantage is its unparalleled portfolio diversification, which acts as a powerful hedge against market volatility, as seen in 2025. When the North American truck market slows, the Power Systems segment-with Q2 2025 sales up 19% to $1.9 billion, largely due to data center demand-picks up the slack.

Also, their technology leadership is not just in diesel, but in the transition itself. The HELM platform is a brilliant strategic move, letting customers adopt cleaner fuels like hydrogen or natural gas without having to completely redesign their equipment. This flexibility is a major competitive moat.

• Established Global Footprint: Operates in nearly 190 countries, giving them a competitive edge in emerging markets, especially across Asia.
• Aftermarket Strength: The Distribution segment's focus on parts and service provides stable, high-margin revenue, which is less sensitive to new vehicle sales cycles.
• Multi-Fuel Technology: The ability to offer advanced diesel, natural gas, and hydrogen solutions simultaneously reduces customer friction during the energy transition.

You need to remember that while the core Engine and Components segments faced Q2 2025 revenue declines of 8% and 9% respectively, the overall company structure absorbed this shock well.

Cummins Inc. (CMI) How It Makes Money

Cummins Inc. makes money by designing, manufacturing, and servicing a diverse portfolio of power solutions-primarily diesel and natural gas engines, but increasingly power generation systems and new power technologies. The business model is a two-part engine: selling original equipment (engines and components) to manufacturers like truck makers, and then generating high-margin, recurring revenue from the aftermarket (parts and service) through its global distribution network.

You're looking at a company that is navigating a major transition, so its revenue mix is shifting fast. The traditional engine business is facing cyclical headwinds, but the Power Systems segment, driven by the data center boom, is providing a powerful offset.

Cummins Inc.'s Revenue Breakdown

For the third quarter of 2025, Cummins Inc. reported total revenue of $\mathbf{\$8.3}$ billion, a slight year-over-year decline that masked significant shifts between segments. The table below shows the relative size of the core business segments, which together represent the vast majority of sales before inter-segment eliminations and other charges.

The Distribution segment, which includes high-margin parts and service, is now the largest and most stable revenue stream, posting a record $\mathbf{\$3.2}$ billion in Q3 2025 sales. The Engine and Components segments are facing a sharp downturn, primarily from a $\mathbf{40\%}$ plunge in North American heavy and medium-duty truck demand. Still, the Power Systems segment is the clear growth leader, with sales hitting a record $\mathbf{\$2.0}$ billion, fueled by the insatiable demand for power from data centers.

Business Economics

Cummins' profitability hinges on two key levers: managing the cyclicality of its Engine and Components sales and maximizing the high-margin, recurring revenue from its Distribution segment. This is an industrial business, so margin protection is defintely a constant battle.

• Pricing Power from Regulation: The company benefits from tightening global emissions regulations. When new standards, like the upcoming EPA27-compliant engines, force fleets to upgrade, it creates an opportunity for Cummins to charge a premium for new, technologically advanced products, supporting premium product margins.
• Aftermarket Dominance: The Distribution segment's strength comes from its captive customer base. Once a Cummins engine is in a truck or a piece of equipment, the owner needs genuine Cummins parts and service over the asset's lifespan, ensuring stable aftermarket demand for parts and service, even when new truck sales are down.
• Data Center Secular Tailwinds: The massive, non-cyclical demand for data center power generation is a huge economic driver. This market is driving Power Systems segment revenue growth, with management expecting data center-related revenues to rise $\mathbf{30-35\%}$ in 2025.

The core economic challenge is the high fixed cost base of manufacturing, which means lower production volumes in the Engine and Components segments can quickly erode profitability if not offset by disciplined cost management and stronger pricing. For a deeper look at the company's long-term strategy, you can read about the Mission Statement, Vision, & Core Values of Cummins Inc. (CMI).

Cummins Inc.'s Financial Performance

The company's financial performance in 2025 reflects a successful effort to improve operating efficiency despite a mixed market environment. This is where you see the impact of their 'disciplined cost management.'

• Profitability Margins: The Trailing Twelve Months (TTM) Operating Margin as of November 2025 stood at $\mathbf{12.00\%}$, indicating solid control over operating expenses relative to sales. The Gross Margin for the latest twelve months (LTM) ending June 2025 was $\mathbf{26.0\%}$, demonstrating an ability to maintain pricing power over the cost of goods sold.
• Net Income Impact: Q3 2025 Net Income was $\mathbf{\$536}$ million, but this figure was significantly impacted by a $\mathbf{\$240}$ million non-cash charge related to the Accelera (new power) electrolyzer business. Excluding this charge, the underlying profitability was much stronger, with adjusted EBITDA margin reaching $\mathbf{17.2\%}$ of sales for the quarter.
• Cash Flow Strength: Cummins maintains strong cash flow generation. The latest reported Free Cash Flow (FCF) stands at $\mathbf{\$1.67}$ billion, a key metric that supports its ability to fund new power investments and continue its 16-year streak of consecutive dividend increases.

Cummins Inc. (CMI) Market Position & Future Outlook

Cummins Inc. is navigating a bifurcated market in late 2025, with record-breaking performance in its Power Systems segment offsetting a sharp decline in its traditional North American heavy-duty truck engine business. The company's strategic shift toward its Destination Zero portfolio-a mix of advanced diesel, natural gas, and zero-emissions power-positions it to capture growth in the secular trend of data center expansion and the eventual transition to clean energy.

Competitive Landscape

Cummins remains a dominant force, particularly in the North American heavy-duty truck engine market, but it faces increasing pressure from Original Equipment Manufacturers (OEMs) that are vertically integrating by building their own captive engines.

Opportunities & Challenges

The near-term outlook is clouded by macroeconomic factors, but Cummins is defintely poised to capitalize on key secular growth areas. Here's the quick map of where the money is and where the risks lie:

Industry Position

Cummins maintains a strong, diversified position in the global power solutions market, despite the cyclical downturn in its core engine business. The company's long-standing relationships with major truck manufacturers like PACCAR Inc and Daimler Trucks AG reinforce its competitive edge. [cite: 7, 1st search]

• Power Systems Strength: The Power Systems segment, which includes power generation for data centers, delivered record profitability in Q1 and Q2 2025, with Q1 revenue reaching $1.6 billion, up 19% year-over-year.
• Technology Breadth: Cummins is unique in its 'portfolio of power' approach, offering advanced diesel, natural gas, and the new X10 and B7.2 diesel engine platforms alongside its zero-emissions Accelera products. [cite: 15, 1st search]
• Financial Foundation: Despite challenging market conditions, the company's total equity increased to $13.098 billion in 2025, up from $11.341 billion in 2024, demonstrating a robust financial foundation. [cite: 7, 1st search]

To understand the balance sheet behind this stability, you should read Breaking Down Cummins Inc. (CMI) Financial Health: Key Insights for Investors.