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Cummins Inc. is a global leader in power solutions, specializing in the design, manufacture, distribution, and servicing of a wide range of power solutions, including diesel, natural gas, electric, and hybrid powertrains, as well as powertrain-related components . The company operates through five main business segments: Components, Engine, Distribution, Power Systems, and Accelera, serving a diverse range of markets globally . Cummins' extensive network of service locations spans approximately 190 countries and territories, catering to OEMs, distributors, and dealers .
- Components - Designs and manufactures powertrain-related components such as axles, drivelines, brakes, suspension systems, filtration, aftertreatment, turbochargers, and fuel systems .
- Engine - Produces engines for both on-highway and off-highway markets, offering a variety of power solutions .
- Distribution - Manages the wholesaling of engines, generator sets, and service parts, ensuring a broad reach across various markets .
- Power Systems - Focuses on larger engines for industrial applications and power generation, providing robust solutions for heavy-duty needs .
- Accelera - Engages in hydrogen production technologies and electrified power systems, advancing sustainable energy solutions .
- Given the significant margin expansion in the Engine segment this quarter, how sustainable are these operational efficiencies, and what specific steps are you taking to maintain margins if demand softens in the heavy-duty truck market?
- With the expected softening in the heavy-duty truck market and further volume reductions in your pickup truck business, how confident are you in maintaining EBITDA growth over the next year, and what are the key risks that could impact your outlook?
- Considering the strong demand in Power Systems leading to high incremental margins this year, what factors could cause weaker incremental margins in 2025, and how are you planning to address potential margin pressures in this segment?
- Given that the mix in your Distribution business is shifting towards whole goods, which are margin negative compared to aftermarket, how do you plan to manage the impact on overall margins, and can you sustain operational efficiencies to offset the negative mix effect?
- With your ongoing investments in alternative power solutions like the X15N natural gas engine and the new electrolyzer plant in Spain, what is the expected timeline for these investments to significantly contribute to revenue and profitability, and what challenges do you anticipate in scaling up these technologies?
Competitors mentioned in the company's latest 10K filing.
- Weichai Power Co. Ltd. - Independent engine manufacturer
- Deutz AG - Independent engine manufacturer
- Daimler - Truck OEM that produces some or all of their own engines
- PACCAR - Truck OEM that produces some or all of their own engines
- Traton - Truck OEM that produces some or all of their own engines
- Volvo Powertrain - Truck OEM that produces some or all of their own engines
- Ford Motor Company - Truck OEM that produces some or all of their own engines
- China First Auto Works - Truck OEM that produces some or all of their own engines
- Dongfeng Motor Corporation - Truck OEM that produces some or all of their own engines
- CNH Industrial - Truck OEM that produces some or all of their own engines
- Isuzu - Truck OEM that produces some or all of their own engines
| Customer | Relationship | Segment | Details |
|---|---|---|---|
PACCAR Inc | Long-term supply agreements for heavy-duty and medium-duty engines, as well as aftertreatment systems. | Heavy & Medium-Duty On-highway | $5.5 billion in 2023 (*16%* of net sales), $4.5 billion in 2022 (*16%* of net sales), $3.6 billion in 2021 (*15%* of net sales). |