e428b2b039567b9bbbc702b552870c79cedcb8a7fb68ff580c5bd6f110d8a99e

| Segment / Quarter                  | Q4 2022  **[0000026172-23-000002_cmi2022q48-kex99.htm:5]**  | Q1 2023  **[0000026172-23-000016_cmi-20230331.htm:38]** **[0000026172-23-000016_cmi-20230331.htm:7]** **[0000026172-23-000013_cmi2023q18-kex99.htm:17]** **[CMI_3248557_5]**  | Q2 2023  **[CMI_3306742_5]** **[0000026172-23-000032_cmi2023q28-kex99.htm:2]** **[CMI_3383309_5]**  | Q3 2023  **[0000026172-23-000042_cmi2023q38-kex99.htm:2]** **[0000026172-23-000045_cmi-20230930.htm:8]** **[0000026172-23-000042_cmi2023q38-kex99.htm:24]** **[0000026172-23-000042_cmi2023q38-kex99.htm:25]**  | Q4 2023  **[0000026172-24-000003_cmi2023q48-kex99.htm:26]** **[0000026172-24-000003_cmi2023q48-kex99.htm:27]** **[0000026172-24-000003_cmi2023q48-kex99.htm:6]**  | Q1 2024  **[0000026172-24-000019_cmi2024q18-kex99.htm:1]** **[0000026172-24-000019_cmi2024q18-kex99.htm:2]** **[0000026172-24-000019_cmi2024q18-kex99.htm:0]**  | Q2 2024  **[0000026172-24-000033_cmi2024q28-kex99.htm:1]** **[CMI_3395686_6]**  | Q3 2024  **[0000026172-24-000043_cmi2024q38-kex99.htm:1]**  |
|------------------------------------|--------------|-------------------------------|------------------------|-------------------------------|--------------------------|------------------------|-------------------|--------------|
| **Components Segment** ($ billion) | 3.1          | 3.557                         | 3.4                    | 3.2                           | 3.191                    | 3.3                    | 3.0               | 2.7          |
| **Engine Segment** ($ billion)     | 2.6          | 2.252                         | 3.0                    | 2.9                           | 2.779                    | 2.9                    | 3.2               | 2.9          |
| **Distribution Segment** ($ billion)| 2.3         | 2.399                         | 2.6                    | 2.5                           | 2.713                    | 2.5                    | 2.8               | 3.0          |
| **Power Systems Segment** ($ billion)| 1.3        | 1.343                         | 1.5                    | 1.4                           | 1.429                    | 1.4                    | 1.6               | 1.7          |
| **Accelera Segment** ($ million)   | 75           | 85                            | 85                     | 81                            | 81                       | 93                     | 111               | 110          |

fb817a7286ccf87980f47d1183dec616140c7015ff8c9613620842c578363da3

| Geographical Segment | Q4 2022 | Q1 2023 | Q2 2023 | Q3 2023 | Q4 2023 | Q1 2024 | Q2 2024 | Q3 2024 |
|----------------------|---------|---------|---------|---------|---------|---------|---------|---------|
| United States        | N/A     | **$4,802 million**  **[0000026172-23-000016_cmi-20230331.htm:6]**  | **$4,937 million**  **[0000026172-23-000035_cmi-20230630.htm:8]**  | **$4,886 million**  **[0000026172-23-000045_cmi-20230930.htm:8]**  | N/A     | **$4,785 million**  **[0000026172-24-000023_cmi-20240331.htm:6]**  | **$5,501 million**  **[0000026172-24-000037_cmi-20240630.htm:38]**  | **$4,825 million**  **[0000026172-24-000046_cmi-20240930.htm:8]**  |
| China                | N/A     | **$790 million**  **[0000026172-23-000016_cmi-20230331.htm:6]**   | **$762 million**  **[0000026172-23-000035_cmi-20230630.htm:8]**   | **$721 million**  **[0000026172-23-000045_cmi-20230930.htm:8]**   | N/A     | **$723 million**  **[0000026172-24-000023_cmi-20240331.htm:6]**   | N/A     | **$727 million**  **[0000026172-24-000046_cmi-20240930.htm:8]**  |
| India                | N/A     | **$411 million**  **[0000026172-23-000016_cmi-20230331.htm:6]**   | **$413 million**  **[0000026172-23-000035_cmi-20230630.htm:8]**   | **$374 million**  **[0000026172-23-000045_cmi-20230930.htm:8]**   | N/A     | **$444 million**  **[0000026172-24-000023_cmi-20240331.htm:6]**   | N/A     | **$416 million**  **[0000026172-24-000046_cmi-20240930.htm:8]**  |
| Other International  | N/A     | **$2,450 million**  **[0000026172-23-000016_cmi-20230331.htm:6]**  | **$2,526 million**  **[0000026172-23-000035_cmi-20230630.htm:8]**  | **$2,450 million**  **[0000026172-23-000045_cmi-20230930.htm:8]**  | N/A     | **$2,451 million**  **[0000026172-24-000023_cmi-20240331.htm:6]**  | N/A     | **$2,488 million**  **[0000026172-24-000046_cmi-20240930.htm:8]**  |
| Total Net Sales      | N/A     | **$8,453 million**  **[0000026172-23-000016_cmi-20230331.htm:6]**  | **$8,638 million**  **[0000026172-23-000035_cmi-20230630.htm:8]**  | **$8,431 million**  **[0000026172-23-000045_cmi-20230930.htm:8]**  | N/A     | **$8,403 million**  **[0000026172-24-000023_cmi-20240331.htm:6]**  | **$8,796 million**  **[0000026172-24-000037_cmi-20240630.htm:38]**  | **$8,456 million**  **[0000026172-24-000046_cmi-20240930.htm:8]**  |

c40805a2f3bbbc26bd701a7bfed00f57f6940d521a2c5cd525249fef8c16ac53

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 **[0000026172-24-000023_cmi-20240331.htm:29]** **[0000026172-24-000046_cmi-20240930.htm:37]** **[0000026172-24-000037_cmi-20240630.htm:35]**. The company operates through five main business segments: Components, Engine, Distribution, Power Systems, and Accelera, serving a diverse range of markets globally **[0000026172-24-000023_cmi-20240331.htm:29]** **[0000026172-24-000046_cmi-20240930.htm:37]** **[0000026172-24-000037_cmi-20240630.htm:35]**. Cummins' extensive network of service locations spans approximately 190 countries and territories, catering to OEMs, distributors, and dealers **[0000026172-24-000023_cmi-20240331.htm:29]** **[0000026172-24-000046_cmi-20240930.htm:37]** **[0000026172-24-000037_cmi-20240630.htm:35]**.

1. **Components** - Designs and manufactures powertrain-related components such as axles, drivelines, brakes, suspension systems, filtration, aftertreatment, turbochargers, and fuel systems **[0000026172-24-000012_cmi-20231231.htm:6]**.
2. **Engine** - Produces engines for both on-highway and off-highway markets, offering a variety of power solutions **[0000026172-24-000012_cmi-20231231.htm:56]**.
3. **Distribution** - Manages the wholesaling of engines, generator sets, and service parts, ensuring a broad reach across various markets **[0000026172-24-000012_cmi-20231231.htm:56]**.
4. **Power Systems** - Focuses on larger engines for industrial applications and power generation, providing robust solutions for heavy-duty needs **[0000026172-24-000012_cmi-20231231.htm:56]**.
5. **Accelera** - Engages in hydrogen production technologies and electrified power systems, advancing sustainable energy solutions **[0000026172-24-000012_cmi-20231231.htm:56]**.

b6106b3eecdc825e5d19a26284796a65a15e033ee6a43561ecfac2a082b0d1e6

| Metric / Quarter                                      | Q4 2022 | Q1 2023 | Q2 2023 | Q3 2023 | Q4 2023 | Q1 2024 | Q2 2024 | Q3 2024 |
|-------------------------------------------------------|---------|---------|---------|---------|---------|---------|---------|---------|
| **Heavy-duty Unit Shipments**                         | 31,000  **[0000026172-23-000002_cmi2022q48-kex99.htm:24]**  | 34,700  **[0000026172-23-000013_cmi2023q18-kex99.htm:17]**  | 36,400  **[0000026172-23-000032_cmi2023q28-kex99.htm:22]**  | 36,300  **[0000026172-23-000045_cmi-20230930.htm:55]**  | 34,500  **[0000026172-24-000003_cmi2023q48-kex99.htm:27]**  | 33,600  **[0000026172-24-000019_cmi2024q18-kex99.htm:17]**  | 37,500  **[0000026172-24-000033_cmi2024q28-kex99.htm:23]**  | 32,400  **[0000026172-24-000043_cmi2024q38-kex99.htm:21]**  |
| **Medium-duty Unit Shipments**                        | 72,400  **[0000026172-23-000002_cmi2022q48-kex99.htm:24]**  | 78,900  **[0000026172-23-000013_cmi2023q18-kex99.htm:17]**  | 76,000  **[0000026172-23-000032_cmi2023q28-kex99.htm:22]**  | 71,300  **[0000026172-23-000045_cmi-20230930.htm:55]**  | 67,900  **[0000026172-24-000003_cmi2023q48-kex99.htm:27]**  | 75,800  **[0000026172-24-000019_cmi2024q18-kex99.htm:17]**  | 79,600  **[0000026172-24-000033_cmi2024q28-kex99.htm:23]**  | 79,200  **[0000026172-24-000043_cmi2024q38-kex99.htm:21]**  |
| **Light-duty Unit Shipments**                         | 42,400  **[0000026172-23-000002_cmi2022q48-kex99.htm:24]**  | 55,000  **[0000026172-23-000013_cmi2023q18-kex99.htm:17]**  | 53,600  **[0000026172-23-000032_cmi2023q28-kex99.htm:22]**  | 53,300  **[0000026172-23-000045_cmi-20230930.htm:55]**  | 49,600  **[0000026172-24-000003_cmi2023q48-kex99.htm:27]**  | 54,800  **[0000026172-24-000019_cmi2024q18-kex99.htm:17]**  | 57,200  **[0000026172-24-000033_cmi2024q28-kex99.htm:23]**  | 41,400  **[0000026172-24-000043_cmi2024q38-kex99.htm:21]**  |
| **Total Unit Shipments**                              | 145,800  **[0000026172-23-000002_cmi2022q48-kex99.htm:24]**  | 168,600  **[0000026172-23-000013_cmi2023q18-kex99.htm:17]**  | 166,000  **[0000026172-23-000032_cmi2023q28-kex99.htm:22]**  | 160,900  **[0000026172-23-000045_cmi-20230930.htm:55]**  | 152,000  **[0000026172-24-000003_cmi2023q48-kex99.htm:27]**  | 164,200  **[0000026172-24-000019_cmi2024q18-kex99.htm:17]**  | 174,300  **[0000026172-24-000033_cmi2024q28-kex99.htm:23]**  | 153,000  **[0000026172-24-000043_cmi2024q38-kex99.htm:21]**  |
| **Engine Segment On-Highway Sales**                   | N/A | 82%  **[0000026172-23-000016_cmi-20230331.htm:40]**  | 84%  **[0000026172-23-000035_cmi-20230630.htm:54]**  | 85%  **[0000026172-23-000045_cmi-20230930.htm:55]**  | 84%  **[0000026172-24-000012_cmi-20231231.htm:67]**  | 85%  **[0000026172-24-000023_cmi-20240331.htm:39]**  | 86%  **[0000026172-24-000037_cmi-20240630.htm:48]**  | 85%  **[0000026172-24-000046_cmi-20240930.htm:51]**  |

800eaaa8d1b18484f56eb94cc906d03dfb560ae532be53c5fef68d080436ae50

bd9bd12cfc73aefef8ead7d197217e0a15f071b240bf38c19a27d9571ae34d62

1. 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?  **[CMI_3405748_13]** 
2. 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?  **[CMI_3405748_7]** 
3. 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?  **[CMI_3405748_12]** 
4. 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?  **[CMI_3405748_24]** 
5. 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?  **[CMI_3405748_1]** 

02efe4e3cb5cd2e3f22030f22184ca6fade69f81d94676c305765390d0523b78

Adjustments for Non-Cash Items [USD, Millions]

Stock-Based Compensation [USD, Millions]

Changes in Working Capital [USD, Millions]

Capital Expenditures (CapEx) [USD, Millions]

Proceeds from / Repayments of Debt [USD, Millions]

Share Repurchases [USD, Millions]

Dividend Payments [USD, Millions]

Net Change in Cash [USD, Millions]

dc9abd26840224c848f2a81f2fbf07cd7bcd48722b5880beac3837d2a46fed44

- Weichai Power Co. Ltd. - Independent engine manufacturer  **[0000026172-24-000012_cmi-20231231.htm:8]** 
- Deutz AG - Independent engine manufacturer  **[0000026172-24-000012_cmi-20231231.htm:8]** 
- Daimler - Truck OEM that produces some or all of their own engines  **[0000026172-24-000012_cmi-20231231.htm:8]** 
- PACCAR - Truck OEM that produces some or all of their own engines  **[0000026172-24-000012_cmi-20231231.htm:8]** 
- Traton - Truck OEM that produces some or all of their own engines  **[0000026172-24-000012_cmi-20231231.htm:8]** 
- Volvo Powertrain - Truck OEM that produces some or all of their own engines  **[0000026172-24-000012_cmi-20231231.htm:8]** 
- Ford Motor Company - Truck OEM that produces some or all of their own engines  **[0000026172-24-000012_cmi-20231231.htm:8]** 
- China First Auto Works - Truck OEM that produces some or all of their own engines  **[0000026172-24-000012_cmi-20231231.htm:8]** 
- Dongfeng Motor Corporation - Truck OEM that produces some or all of their own engines  **[0000026172-24-000012_cmi-20231231.htm:8]** 
- CNH Industrial - Truck OEM that produces some or all of their own engines  **[0000026172-24-000012_cmi-20231231.htm:8]** 
- Isuzu - Truck OEM that produces some or all of their own engines  **[0000026172-24-000012_cmi-20231231.htm:8]** 

1332cd767c4be1d289a443434d14176a0f5a0b3519d7fc9a247337c7de8fff0f

23794d91c53ae875c8e247d72561e35d9d06ee07c70c9e0dbcc977a6d161504a

b4762813240101106424cf1e5fda961827f41bc6a2b6856b13e69bb16a5571cb

155f837396a1a3b41a4f3f51f476df3bea8eff66a2cdbacf3efcf82dcda8748b

**Heavy-duty Unit Shipments**

**Medium-duty Unit Shipments**

**Light-duty Unit Shipments**

**Engine Segment On-Highway Sales**

0b9362e80c33795caefbc842b071ece0a085011eeea6e2c35805011b0b2a71db

### Q3 2024 Earnings Call
- **Issued Period**: Q3 2024
- **Guided Period**: FY 2024
- **Guidance**:
  1. **Revenue**: Down 3% to flat.
  2. **EBITDA Margin**: Approximately 15.5%.
  3. **North America Medium-Duty Truck Market**: 150,000 to 160,000 units.
  4. **Engine Shipments for Pickup Trucks in North America**: 135,000 to 145,000 units.
  5. **China Revenue**: Decrease 4%.
  6. **India Revenue**: Increase 1%.
  7. **Global Construction**: Down 10% to flat.
  8. **Global Power Generation Markets**: Up 15% to 20%.
  9. **Sales of Mining Engines**: Down 5% to up 5%.
  10. **Aftermarket**: Flat to up 5%.
  11. **North America Heavy-Duty Truck Market**: 255,000 to 275,000 units.
  12. **Components Segment**: Revenue decrease 12% to 15%, EBITDA margins 13.3% to 13.8%.
  13. **Engine Segment**: Revenue down 2% to 1%, EBITDA 13.7% to 14.2%.
  14. **Distribution Segment**: Revenue up 8% to 11%, EBITDA margins 11.5% to 12%.
  15. **Power Systems Segment**: Revenue up 8% to 11%, EBITDA margins 18.3% to 18.8%.
  16. **Accelera Segment**: Revenue $400 million to $450 million, net losses $400 million to $430 million.
  17. **Effective Tax Rate**: Approximately 23.5%.
  18. **Capital Investments**: $1.2 billion to $1.3 billion  **[CMI_3405748_3]** **[CMI_3405748_2]** **[CMI_3405748_5]** .

### Q2 2024 Earnings Call
- **Issued Period**: Q2 2024
- **Guided Period**: FY 2024
- **Guidance**:
  1. **Revenue Guidance**: Down 3% to flat.
  2. **EBITDA Guidance**: 15% to 15.5%.
  3. **Tax Rate**: Approximately 24%.
  4. **Capital Investments**: $1.2 billion to $1.3 billion.
  5. **Market-Specific Guidance**:
     - North America Medium-Duty Truck Market: 150,000 to 160,000 units.
     - North America Heavy-Duty Truck Market: 255,000 to 275,000 units.
     - China Revenue: Increase 3%.
     - India Revenue: Increase 8%.
     - Global Power Generation Market: Up 15% to 20%.
     - Sales of Mining Engines: Down 5% to up 5%.
     - Aftermarket: Flat to up 5%.
  6. **Dividend**: Increase from $1.68 to $1.82 per share  **[CMI_3395686_5]** **[CMI_3395686_3]** **[CMI_3395686_4]** **[CMI_3395686_6]** .

### Q1 2024 Earnings Call
- **Issued Period**: Q1 2024
- **Guided Period**: FY 2024
- **Guidance**:
  1. **Consolidated Company Revenues**: Down 2% to 5%.
  2. **EBITDA Margins**: 14.5% to 15.5%.
  3. **Effective Tax Rate**: 24%.
  4. **Capital Investments**: $1.2 billion to $1.3 billion.
  5. **Engine Segment**: Revenue down 5% to flat, EBITDA 12.7% to 13.7%.
  6. **Distribution Segment**: Revenue flat to up 5%, EBITDA 11.5% to 12.5%.
  7. **Power Systems Segment**: Revenue flat to up 5%, EBITDA 16% to 17%.
  8. **Accelera Segment**: Revenue $450 million to $500 million, net losses $400 million to $433 million.
  9. **Components Segment**: Revenue decrease 9% to 14%, EBITDA 13.5% to 14.5%.
  10. **Industry Demand**: Truck demand flat to up 5%, global construction down 10% to flat, power generation up 10% to 15%, mining engines down 5% to up 5%, oil and gas engines down 40% to 50%.
  11. **North America Truck Market**: Heavy-duty 255,000 to 275,000 units, medium-duty 140,000 to 150,000 units, engine shipments for pickup trucks 135,000 to 145,000.
  12. **China Market**: Revenue increase 3%, heavy- and medium-duty truck demand down 5% to up 10%, light-duty truck market down 5% to up 5%.
  13. **India Market**: Revenue increase 9%  **[CMI_3382087_7]** **[CMI_3382087_4]** **[CMI_3382087_3]** .

### Q4 2023 Earnings Call
- **Issued Period**: Q4 2023
- **Guided Period**: FY 2024
- **Guidance**:
  1. **Total Company Revenue**: Decrease 2% to 5%.
  2. **EBITDA Margin**: 14.4% to 15.4%.
  3. **North America Heavy-Duty Truck Market**: 245,000 to 265,000 units.
  4. **North America Medium-Duty Truck Market**: 140,000 to 150,000 units.
  5. **Engine Shipments for Pickup Trucks**: 135,000 to 145,000 units.
  6. **China Revenue**: Increase 3%.
  7. **India Revenue**: Increase 9%.
  8. **Global Construction Market**: Decline 5% to 15%.
  9. **Global Power Generation Market**: Increase 5% to 10%.
  10. **Sales of Mining Engines**: Down 5% to up 5%.
  11. **Oil and Gas Engines Demand**: Decrease 40% to 50%.
  12. **Aftermarket Sales**: Flat to up 5%.
  13. **Accelera Sales**: $450 million to $500 million.
  14. **Components Business Revenue**: Decrease 2% to 7%, EBITDA 13.9% to 14.9%.
  15. **Engine Business Revenue**: Decrease 2% to 7%, EBITDA 12.5% to 13.5%.
  16. **Distribution Business Revenue**: Down 3% to up 2%, EBITDA 11.4% to 12.4%.
  17. **Power Systems Revenue**: Down 3% to up 2%, EBITDA 15.2% to 16.2%.
  18. **Effective Tax Rate**: Approximately 24%.
  19. **Capital Investments**: $1.2 billion to $1.3 billion  **[CMI_3371996_3]** **[CMI_3371996_7]** **[CMI_3371996_8]** .

2a3980cb8d6b821e708891fde6182e1f64e029641a3da79a1399ebe7493cafbe

| Program Details          | Program 1       |
|--------------------------|-----------------|
| Approval Date            | December 2021  **[0000026172-24-000046_cmi-20240930.htm:59]** **[0000026172-24-000046_cmi-20240930.htm:68]**  |
| End Date/Duration        | N/A             |
| Total additional amount  | **$2.0 billion**  **[0000026172-24-000046_cmi-20240930.htm:59]** **[0000026172-24-000046_cmi-20240930.htm:68]**  |
| Remaining authorization amount | **$218 million**  **[0000026172-24-000046_cmi-20240930.htm:59]** **[0000026172-24-000046_cmi-20240930.htm:68]**  |
| Details                  | Enhance shareholder value  **[0000026172-23-000005_cmi-20221231.htm:72]** **[0000026172-23-000005_cmi-20221231.htm:152]**  |

92190089a0b13d5a1d8b2bae7309e8d6dfab8d62b6a8a6fe58d6764fca409b4c

| Name                     | Position                                             | Start Date | Short Bio                                                                                                                                                                                                 |
|--------------------------|------------------------------------------------------|------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| Jennifer Rumsey          | Chair and Chief Executive Officer                    | 2022       | Jennifer Rumsey became the President and CEO on **August 1, 2022**, and was elected as Chair of the Board effective **August 1, 2023**. She previously served as President and COO from 2021 to 2022  **[0000026172-24-000012_cmi-20231231.htm:25]** **[0001104659-24-041821_tm2327733d3_def14a.htm:31]** . |
| Sharon R. Barner         | Vice President—Chief Administrative Officer          | 2021       | Sharon R. Barner has been serving as Vice President—Chief Administrative Officer since 2021. She was previously Vice President—General Counsel and Corporate Secretary from 2020 to 2021  **[0000026172-24-000012_cmi-20231231.htm:25]** **[0000026172-23-000005_cmi-20221231.htm:22]** .            |
| Marvin Boakye            | Vice President—Chief Human Resources Officer         | 2022       | Marvin Boakye was appointed as Vice President—Chief Human Resources Officer in 2022. He was previously Chief People and Diversity Officer at Papa John's International from 2019 to 2022  **[0000026172-24-000012_cmi-20231231.htm:25]** **[0000026172-23-000005_cmi-20221231.htm:22]** .            |
| Jenny M. Bush            | Vice President and President—Power Systems           | 2022       | Jenny M. Bush has held the position of Vice President and President—Power Systems since 2022. She was Vice President—Cummins Sales & Service North America from 2017 to 2022  **[0000026172-24-000012_cmi-20231231.htm:25]** .                           |
| Amy R. Davis             | Vice President and President—Accelera and Components | 2023       | Amy R. Davis was appointed to her current position in 2023. She served as Vice President and President—Accelera from 2020 to 2023  **[0000026172-24-000012_cmi-20231231.htm:25]** .                                                                     |
| Bonnie Fetch             | Vice President and President—Distribution Business   | 2024       | Bonnie Fetch assumed her role in 2024. She was Vice President—Global Supply Chain and Manufacturing from 2022 to 2023  **[0000026172-24-000012_cmi-20231231.htm:25]** .                                                                                |
| Nicole Y. Lamb-Hale      | Vice President—Chief Legal Officer and Corporate Secretary | 2022       | Nicole Y. Lamb-Hale became Chief Legal Officer in 2022 and Corporate Secretary in 2023. She was Vice President—General Counsel from 2021 to 2022  **[0000026172-24-000012_cmi-20231231.htm:25]** .                                                      |
| Brett Merritt            | Vice President and President—Engine Business         | 2024       | Brett Merritt assumed his position in 2024. He was Vice President of the On-Highway Engine Business from 2017 to 2023  **[0000026172-24-000012_cmi-20231231.htm:25]** .                                                                                |
| Srikanth Padmanabhan     | Executive Vice President and President—Operations    | 2024       | Srikanth Padmanabhan was appointed to his current position in 2024. He was Vice President and President of the Engine Business from 2016 to 2023  **[0000026172-24-000012_cmi-20231231.htm:25]** .                                                      |
| Livingston L. Satterthwaite | Senior Vice President                              | 2022       | Livingston L. Satterthwaite has been Senior Vice President since 2022. He was Vice Chairman from 2021 to 2022  **[0000026172-24-000012_cmi-20231231.htm:25]** **[0000026172-23-000005_cmi-20221231.htm:22]** .                                                                                     |
| Mark A. Smith            | Vice President—Chief Financial Officer               | 2019       | Mark A. Smith has served as Vice President—Chief Financial Officer since 2019. He was Vice President—Financial Operations from 2016 to 2019  **[0001104659-24-041821_tm2327733d3_def14a.htm:56]** **[0000026172-24-000012_cmi-20231231.htm:25]** .                                                       |
| Nathan R. Stoner         | Vice President—China ABO                             | 2020       | Nathan R. Stoner has been Vice President—China ABO since 2020. He was General Manager—Partnerships and EBU China Joint Venture Business from 2018 to 2020  **[0000026172-23-000005_cmi-20221231.htm:22]** .                                            |
| Jeffrey T. Wiltrout      | Vice President—Corporate Strategy                    | 2022       | Jeffrey T. Wiltrout has held the position of Vice President—Corporate Strategy since 2022. He was Executive Director—Corporate Development from 2021 to 2022  **[0000026172-24-000012_cmi-20231231.htm:25]** .                                         |
| Jonathan Wood            | Vice President—Chief Technical Officer               | 2023       | Jonathan Wood was appointed as Vice President and Chief Technical Officer in 2023. He was Vice President of New Power Engineering from 2021 to 2023  **[0000026172-24-000012_cmi-20231231.htm:25]** .                                                  |
| Tony Satterthwaite       | Senior Vice President (retiring September 2024)      | 2022       | Tony Satterthwaite has been with Cummins since 1988 and was appointed Senior Vice President in August 2022. He is set to retire in September 2024  **[0001104659-23-037109_tm231795d2_def14a.htm:63]** **[0001104659-24-066634_tm2416001d1_ex99.htm:1]** **[0001104659-24-066634_tm2416001d1_8k.htm:1]** .                                              |
| John H. Stone            | Board of Directors Member                            | 2024       | John H. Stone joined the Board of Directors in 2024. He is also the President and CEO of Allegion plc and previously served as president of Deere & Company’s Worldwide Construction, Forestry and Power Systems  **[0001104659-24-041821_tm2327733d3_def14a.htm:36]** **[0001104659-24-078543_tm2418988d1_s8.htm:3]** . |

1d579d063f6a7953c73c8c664b272715d05c345bdd54d711994148724bd7725b

5d971993ad22a4cc37a93901b2a6c34ca16878cae60a1d6f8155dc4cb185a542

**Annual guidance for FY 2024:**
- **Revenue**: Down 3% to flat  **[CMI_3405748_3]** **[CMI_3405748_2]** **[CMI_3405748_5]**  (no change from prior guidance Down 3% to flat  **[CMI_3395686_5]** **[CMI_3395686_3]** **[CMI_3395686_4]** **[CMI_3395686_6]** )  
- **EBITDA Margin**: Approximately 15.5%  **[CMI_3405748_3]** **[CMI_3405748_2]** **[CMI_3405748_5]**  (raised from 15%-15.5%  **[CMI_3395686_5]** **[CMI_3395686_3]** **[CMI_3395686_4]** **[CMI_3395686_6]** )  
- **Effective Tax Rate**: Approximately 23.5%  **[CMI_3405748_3]** **[CMI_3405748_2]** **[CMI_3405748_5]**  (lowered from approximately 24%  **[CMI_3395686_5]** **[CMI_3395686_3]** **[CMI_3395686_4]** **[CMI_3395686_6]** )  
- **Capital Investments**: $1.2 billion to $1.3 billion  **[CMI_3405748_3]** **[CMI_3405748_2]** **[CMI_3405748_5]**  (no change from prior guidance $1.2 billion to $1.3 billion  **[CMI_3395686_5]** **[CMI_3395686_3]** **[CMI_3395686_4]** **[CMI_3395686_6]** )  
- **North America Medium-Duty Truck Market**: 150,000 to 160,000 units  **[CMI_3405748_3]** **[CMI_3405748_2]** **[CMI_3405748_5]**  (no change from prior guidance 150,000 to 160,000 units  **[CMI_3395686_5]** **[CMI_3395686_3]** **[CMI_3395686_4]** **[CMI_3395686_6]** )  
- **North America Heavy-Duty Truck Market**: 255,000 to 275,000 units  **[CMI_3405748_3]** **[CMI_3405748_2]** **[CMI_3405748_5]**  (no change from prior guidance 255,000 to 275,000 units  **[CMI_3395686_5]** **[CMI_3395686_3]** **[CMI_3395686_4]** **[CMI_3395686_6]** )  
- **China Revenue**: Decrease 4%  **[CMI_3405748_3]** **[CMI_3405748_2]** **[CMI_3405748_5]**  (lowered from increase 3%  **[CMI_3395686_5]** **[CMI_3395686_3]** **[CMI_3395686_4]** **[CMI_3395686_6]** )  
- **India Revenue**: Increase 1%  **[CMI_3405748_3]** **[CMI_3405748_2]** **[CMI_3405748_5]**  (lowered from increase 8%  **[CMI_3395686_5]** **[CMI_3395686_3]** **[CMI_3395686_4]** **[CMI_3395686_6]** )  
- **Global Power Generation Markets**: Up 15% to 20%  **[CMI_3405748_3]** **[CMI_3405748_2]** **[CMI_3405748_5]**  (no change from prior guidance up 15% to 20%  **[CMI_3395686_5]** **[CMI_3395686_3]** **[CMI_3395686_4]** **[CMI_3395686_6]** )  
- **Sales of Mining Engines**: Down 5% to up 5%  **[CMI_3405748_3]** **[CMI_3405748_2]** **[CMI_3405748_5]**  (no change from prior guidance down 5% to up 5%  **[CMI_3395686_5]** **[CMI_3395686_3]** **[CMI_3395686_4]** **[CMI_3395686_6]** )  
- **Aftermarket**: Flat to up 5%  **[CMI_3405748_3]** **[CMI_3405748_2]** **[CMI_3405748_5]**  (no change from prior guidance flat to up 5%  **[CMI_3395686_5]** **[CMI_3395686_3]** **[CMI_3395686_4]** **[CMI_3395686_6]** )  

- **Global Construction**: Down 10% to flat  **[CMI_3405748_3]** **[CMI_3405748_2]** **[CMI_3405748_5]**  (no prior guidance)  
- **Engine Shipments for Pickup Trucks in North America**: 135,000 to 145,000 units  **[CMI_3405748_3]** **[CMI_3405748_2]** **[CMI_3405748_5]**  (no prior guidance)  
- **Components Segment**: Revenue decrease 12% to 15%, EBITDA margins 13.3% to 13.8%  **[CMI_3405748_3]** **[CMI_3405748_2]** **[CMI_3405748_5]**  (no prior guidance)  
- **Engine Segment**: Revenue down 2% to up 1%, EBITDA 13.7% to 14.2%  **[CMI_3405748_3]** **[CMI_3405748_2]** **[CMI_3405748_5]**  (no prior guidance)  
- **Distribution Segment**: Revenue up 8% to 11%, EBITDA margins 11.5% to 12%  **[CMI_3405748_3]** **[CMI_3405748_2]** **[CMI_3405748_5]**  (no prior guidance)  
- **Power Systems Segment**: Revenue up 8% to 11%, EBITDA margins 18.3% to 18.8%  **[CMI_3405748_3]** **[CMI_3405748_2]** **[CMI_3405748_5]**  (no prior guidance)  
- **Accelera Segment**: Revenue $400 million to $450 million, net losses $400 million to $430 million  **[CMI_3405748_3]** **[CMI_3405748_2]** **[CMI_3405748_5]**  (no prior guidance)  

e2ee2c0cfe65395230b99dc40292c937aa9119d5b9195fffdf78f12b9ff0851f

| Name                          | Start Date | End Date | Reason for Change |
|-------------------------------|------------|----------|-------------------|
| PricewaterhouseCoopers LLP    | 2002  **[0000026172-24-000012_cmi-20231231.htm:95]**    | Present  | Current auditor   |

24c38fb48561561378faaf42944bc78e7bb0ed23e4820509faf9fe8caa462dd8

fc66c5d267f7e218d930589928340d8b22fdf2bc1ab827db74a0d6c167a95778

- Total Revenue: $8,456 vs. $8,431 in Q3 2023 (+0.3% YoY)  **[0000026172-24-000046_cmi-20240930.htm:29]** **[0000026172-23-000045_cmi-20230930.htm:30]** **[0000026172-23-000045_cmi-20230930.htm:1]** **[0000026172-23-000045_cmi-20230930.htm:8]**   
- Components Segment: $2,724 vs. $3,236 in Q3 2023 (−16% YoY)  **[0000026172-24-000046_cmi-20240930.htm:29]** **[0000026172-23-000045_cmi-20230930.htm:30]** **[0000026172-23-000045_cmi-20230930.htm:1]** **[0000026172-23-000045_cmi-20230930.htm:8]**   
- Distribution Segment: $2,952 vs. $2,535 in Q3 2023 (+16% YoY)  **[0000026172-24-000046_cmi-20240930.htm:29]** **[0000026172-23-000045_cmi-20230930.htm:30]** **[0000026172-23-000045_cmi-20230930.htm:1]** **[0000026172-23-000045_cmi-20230930.htm:8]**   
- Power Systems Segment: $1,687 vs. $1,444 in Q3 2023 (+17% YoY)  **[0000026172-24-000046_cmi-20240930.htm:29]** **[0000026172-23-000045_cmi-20230930.htm:30]** **[0000026172-23-000045_cmi-20230930.htm:1]** **[0000026172-23-000045_cmi-20230930.htm:8]**   
- Accelera: $110 vs. $103 in Q3 2023 (+7% YoY)  **[0000026172-24-000046_cmi-20240930.htm:29]** **[0000026172-23-000045_cmi-20230930.htm:30]** **[0000026172-23-000045_cmi-20230930.htm:1]** **[0000026172-23-000045_cmi-20230930.htm:8]**   
- Europe Region: $310 vs. $200 in Q3 2023 (**+55% YoY**)  **[0000026172-24-000046_cmi-20240930.htm:52]** **[0000026172-23-000045_cmi-20230930.htm:8]**   
- Operating Income (EBIT): $1,050 vs. $95 in Q3 2023 (**+1,005% YoY**)  **[0000026172-24-000046_cmi-20240930.htm:29]** **[0000026172-24-000046_cmi-20240930.htm:1]** **[0000026172-24-000046_cmi-20240930.htm:44]** **[0000026172-23-000045_cmi-20230930.htm:1]** **[0000026172-23-000045_cmi-20230930.htm:46]**   
- Net Income: $809 vs. $656 in Q3 2023 (+23% YoY)  **[0000026172-24-000046_cmi-20240930.htm:29]** **[0000026172-24-000046_cmi-20240930.htm:1]** **[0000026172-24-000046_cmi-20240930.htm:44]** **[0000026172-23-000045_cmi-20230930.htm:1]** **[0000026172-23-000045_cmi-20230930.htm:46]** **[0000026172-23-000045_cmi-20230930.htm:41]**   

e99114b6a1c6a0e509f961e57be8a07918f565b08dfdbb9b246bb550e3491b0d

Number of heavy-duty engines shipped (units)

Number of medium-duty engines shipped (units)

Number of light-duty engines shipped (units)

Number of total engines shipped (units)

a3914d702ff493cdf771e9350950651f72cf28671f5317e44552ce1c64c8ec18

557f00c3ee37007c1d48929dab0bf7f1a99d687ad8793f56d6036c9b8b7de4c8

75a9fd156033dd9134031fcee6939889520343e877c0acb620c8d646ef554f41

| Year  | Amount Due (in millions) | Debt Type                     | Interest Rate (%) | % of Total Debt                                                                 |
|-------|---------------------------|-------------------------------|-------------------|---------------------------------------------------------------------------------|
| 2024  | 160                       | Hydrogenics promissory notes  | 0                 | 2.1% = (160 / 7,587) * 100 **[0000026172-24-000046_cmi-20240930.htm:15]** **[0000026172-24-000046_cmi-20240930.htm:55]**                                     |
| 2025  | 500                       | Senior notes                 | 0.75              | 6.6% = (500 / 7,587) * 100 **[0000026172-24-000046_cmi-20240930.htm:15]** **[0000026172-24-000046_cmi-20240930.htm:55]**                                     |
| 2027  | 58                        | Debentures                   | 6.75              | 0.8% = (58 / 7,587) * 100 **[0000026172-24-000046_cmi-20240930.htm:15]** **[0000026172-24-000046_cmi-20240930.htm:55]**                                      |
| 2028  | 250                       | Debentures                   | 7.125             | 3.3% = (250 / 7,587) * 100 **[0000026172-24-000046_cmi-20240930.htm:15]** **[0000026172-24-000046_cmi-20240930.htm:55]**                                     |
| 2029  | 500                       | Senior notes                 | 4.90              | 6.6% = (500 / 7,587) * 100 **[0000026172-24-000046_cmi-20240930.htm:15]** **[0000026172-24-000046_cmi-20240930.htm:55]**                                     |
| 2030  | 850                       | Senior notes                 | 1.50              | 11.2% = (850 / 7,587) * 100 **[0000026172-24-000046_cmi-20240930.htm:15]** **[0000026172-24-000046_cmi-20240930.htm:55]**                                    |
| 2034  | 750                       | Senior notes                 | 5.15              | 9.9% = (750 / 7,587) * 100 **[0000026172-24-000046_cmi-20240930.htm:15]** **[0000026172-24-000046_cmi-20240930.htm:55]**                                     |
| 2043  | 500                       | Senior notes                 | 4.875             | 6.6% = (500 / 7,587) * 100 **[0000026172-24-000046_cmi-20240930.htm:15]** **[0000026172-24-000046_cmi-20240930.htm:55]**                                     |
| 2050  | 650                       | Senior notes                 | 2.60              | 8.6% = (650 / 7,587) * 100 **[0000026172-24-000046_cmi-20240930.htm:15]** **[0000026172-24-000046_cmi-20240930.htm:55]**                                     |
| 2054  | 1,000                     | Senior notes                 | 5.45              | 13.2% = (1,000 / 7,587) * 100 **[0000026172-24-000046_cmi-20240930.htm:15]** **[0000026172-24-000046_cmi-20240930.htm:55]**                                  |
| 2098  | 165                       | Debentures                   | 5.65 (effective: 7.48) | 2.2% = (165 / 7,587) * 100 **[0000026172-24-000046_cmi-20240930.htm:15]** **[0000026172-24-000046_cmi-20240930.htm:55]**                                  |

a1fa0c49fb2f79810bd002c9c3362d0272464d8ab2ffbdd5f76b407b9c9bafa9

1. **Margin Outlook**  
   **Q:** What's driving the improved margin expectation?  
   **A:** Improved margins are driven by higher volumes and some cost reduction activities. Despite the Atmus separation being a bit dilutive to margins, volume increases and cost reductions are the primary drivers of the improved margin outlook.  **[CMI_3382087_16]** 

2. **2027 EPA Regulations Impact**  
   **Q:** How will 2027 EPA regulations affect Cummins' market position?  
   **A:** Cummins is investing in new HELM engine platforms to meet future regulations, expecting an advantage due to their scale. They foresee dynamics in **2025** and **2026** as customers prepare for the regulations but believe they are well-positioned with new products like the next-gen **15-liter natural gas engine** and high-efficiency **15-liter and 10-liter platforms**.  **[CMI_3382087_17]** 

3. **Heavy-Duty Truck Market Outlook**  
   **Q:** Is the anticipated downturn in heavy-duty engines less severe?  
   **A:** The expected downturn in **2024** may not be as severe as feared. Production rates have held up better and longer due to supply chain dynamics. Cummins anticipates some softening in the second half but notes the cycle is different this time.  **[CMI_3382087_21]** 

4. **Power Generation Business Strength**  
   **Q:** What's driving the strong outlook for Power Generation?  
   **A:** Strong demand from data center customers is propelling growth, with the Power Generation business projected to be up **10% to 15%** for the year. Cummins is sold out of their **95-liter engines through 2025** and is launching new products like the CentumTM to meet demand. They have concrete plans to increase capacity to support the growing market.  **[CMI_3382087_8]** ,  **[CMI_3382087_20]** 

5. **JV Income Guidance Down**  
   **Q:** Why is JV income guidance down despite Q1 being up?  
   **A:** JV income is expected to decline due to lower tech fees from joint ventures as new product launches slow compared to last year. The previous year had significant tech fees from strong product launches, particularly in the Engine business, which won't repeat at the same level this year.  **[CMI_3382087_13]** 

6. **R&D Investments**  
   **Q:** How should we think about R&D intensity medium-term?  
   **A:** Cummins has elevated R&D investments, especially in new fuel-agnostic engine platforms launching through **2026** and **2027**. They're also investing in the Accelera business to launch new products and ramp up revenue, impacting medium-term R&D intensity.  **[CMI_3382087_21]** 

7. **Gigafactory JV Spending**  
   **Q:** What's the plan for gigafactory JV spending?  
   **A:** With regulatory approval obtained, Cummins and partners are preparing the site in Mississippi and starting supply chain and construction work. They plan phased investments towards production starting in **2027**, sharing the investment in a **21-gigawatt-hour** plant designed to scale up based on industry development.  **[CMI_3382087_19]** 

8. **Visibility into Backlog**  
   **Q:** What's the visibility across your portfolio, especially Engines and Power Systems?  
   **A:** There's solid demand in the heavy-duty market due to high backlogs and strength in the vocational market. Cummins is sold out of **95-liter engines through 2025** in Power Generation. However, they anticipate some weakening in the second half, particularly among truckload fleet customers in the heavy-duty market.  **[CMI_3382087_20]** 

9. **Upcoming Analyst Day Expectations**  
   **Q:** What can we expect at the May 16 Analyst Day, especially around margins?  
   **A:** Cummins plans to discuss overall strategy, progress towards **2030 goals**, revenue and margin expectations, and their drivers at the Analyst Day. Details on operating leverage and incremental margins will be explicitly addressed.  **[CMI_3382087_12]** ,  **[CMI_3382087_20]** 

10. **Impact of Atmus Separation**  
    **Q:** How does the Atmus separation affect margins?  
    **A:** The separation of Atmus is somewhat dilutive to margins, but overall, the margin outlook is improving due to volume increases and cost reductions, offsetting the impact.  **[CMI_3382087_16]** 

11. **Accelera Business Investments**  
    **Q:** Is investment in Accelera affecting margins?  
    **A:** Cummins is investing in Accelera to launch new products and ramp up revenue. This period of investment is impacting margins, but more details will be discussed at the upcoming Analyst Day.  **[CMI_3382087_20]** ,  **[CMI_3382087_14]** 

c1c160d480daf794874bd9558b4de3b3be7be17cd10071b8581c21456fa22d60

- Cummins anticipates a **softening in the heavy-duty truck market in the second half of the year**, primarily affecting their engine business, due to challenges faced by freight carriers over the past **18 months**. This potential decline is expected to impact production and sales in **Q3 and possibly Q4**.  **[CMI_3382087_20]** ,  **[CMI_3382087_9]** ,  **[CMI_3382087_21]**
- The company's **distribution business margins are lower than last year**, currently at the **bottom end of the range in Q1**, due to a **pullback on parts sales**, particularly in **industrial off-highway applications**. This issue has persisted for the last **two quarters**, indicating ongoing challenges in this segment.  **[CMI_3382087_9]**
- **Joint venture income is expected to decrease for the full year**, despite an increase in Q1, primarily due to **lower technology fees** from joint ventures as new product launches were higher in the prior year. Additionally, the upcoming **battery joint venture** is expected to contribute **losses in the second half**. Uncertainties in the **China market**, which is a significant driver of joint venture earnings, add to the potential downside.  **[CMI_3382087_13]**

f7a32ce7d1273be3dc5f519edf2b50df751c93612ae4de6de94cf30cda37d14f

1. **Data Center Market Growth and Capacity**  
   **Q:** Can you update us on the data center and large engine market dynamics?  
   **A:** The data center market continues to show **strong demand**, driven by cloud storage and AI investments.  **[CMI_3371996_17]**  We expect **10–15% growth** in this sector, with a **very strong backlog**.  **[CMI_3371996_17]**  We're confident in our capacity to meet this demand and are evaluating our capacity to support growth into **2025 and 2026**.  **[CMI_3371996_18]** 

2. **Cost Outlook and Margin Improvement Plans**  
   **Q:** Do you foresee costs receding or consider significant cost-out programs?  
   **A:** We are in a period of **peak investment**, particularly in **fuel-agnostic engine platforms**.  **[CMI_3371996_13]**  We expect these investments to position us for **profitable growth** when launched in **'26–'27**.  **[CMI_3371996_13]**  We're also focusing on improving operating performance and have taken **voluntary reduction actions** to manage costs as revenue declines.  **[CMI_3371996_13]** 

3. **Accelera Backlog and Profitability Outlook**  
   **Q:** What's the outlook for Accelera's backlog and profitability as you deliver electrolyzers?  
   **A:** Accelera is experiencing **record backlog** for electrolyzers.  **[CMI_3371996_16]**  As production ramps up, we expect revenue growth to improve **margin performance** in this business.  **[CMI_3371996_16]**  We're also investing in a **battery cell joint venture** to ensure leading solutions and domestic supply.  **[CMI_3371996_16]** 

4. **Engine Segment Margin Outlook and Warranty Costs**  
   **Q:** What factors affect the Engine segment's margins in '24?  
   **A:** We anticipate slightly higher **product coverage or warranty costs** as a percentage of sales in the Engine business.  **[CMI_3371996_12]**  Parts headwinds were pronounced in '23, and while we're not expecting significant changes, these factors are included in our **margin guidance**.  **[CMI_3371996_12]** 

5. **China Truck Market Outlook**  
   **Q:** Can you walk us through your wide China truck market guidance?  
   **A:** The outlook is **cloudy**, with low visibility.  **[CMI_3371996_23]**  We're coming off a very weak base, and while we don't foresee a significant drop, the **pace of the economy is sluggish**.  **[CMI_3371996_23]**  Upside would depend on unexpected **stimulus**, but we remain poised to **outperform** the market.  **[CMI_3371996_23]** 

6. **Capital Allocation Priorities and Atmus Spin-Off**  
   **Q:** What are your capital allocation priorities in 2024, especially regarding Atmus?  
   **A:** We're focusing on **investing in the business**, maintaining dividends, and further **deleveraging**.  **[CMI_3371996_24]**  With the Atmus separation, we expect our **share count to decrease** as we exchange Cummins shares for Atmus shares.  **[CMI_3371996_24]** 

7. **North America Engine Shipment Forecast**  
   **Q:** Is the engine shipment decline relative to heavy or medium-duty market?  
   **A:** For medium-duty, we forecast **down 5% to flat**, totaling **140,000 to 150,000 units**.  **[CMI_3371996_11]**  In heavy-duty, we project a **10–15% decline**.  **[CMI_3371996_11]**  The market has been unusual, with strong demand and supply constraints easing.  **[CMI_3371996_11]** 

8. **Medium-Duty Market Outlook**  
   **Q:** Does medium-duty have inherent demand beyond constrained production?  
   **A:** We expect the medium-duty market to remain **flat and strong**.  **[CMI_3371996_19]**  Despite prior supply chain constraints, there's **continued demand** and **pent-up demand** from customers.  **[CMI_3371996_19]** 

9. **Aftermarket Outlook and Second Half Slowdown**  
   **Q:** What gives you confidence in the second-half slowdown amid aftermarket trends?  
   **A:** We saw a pronounced **drop in parts demand** in Q4, attributed to customer cash flow management.  **[CMI_3371996_15]**  We expect parts demand to **recover** and be steady throughout the year.  **[CMI_3371996_15]**  Concerns about **freight activity** and **spot rates** contribute to our cautious outlook.  **[CMI_3371996_15]** 

10. **Accelera Revenue Targets and Adoption Scenarios**  
    **Q:** Which adoption scenario for Accelera seems more likely now?  
    **A:** Current trends lean towards the **lower end** of our adoption scenarios.  **[CMI_3371996_20]**  Regulations and incentives are driving adoption, but we continue to **pace our investments** accordingly.  **[CMI_3371996_20]** 

11. **Meritor Performance and Components Segment Outlook**  
    **Q:** How will Meritor's 2023 performance trend in 2024 within Components?  
    **A:** Meritor achieved its goals for 2023, with **further improvement** expected in 2024.  **[CMI_3371996_25]**  It's contributing positively to the Components segment, and we're excited about its future performance.  **[CMI_3371996_25]** 

12. **Cash Flow Dynamics and Deleveraging**  
    **Q:** How should we think about cash flow and leverage going forward?  
    **A:** We'll start the year focusing on **investing in the business**, dividends, and **deleveraging**.  **[CMI_3371996_22]**  We expect to **delever** by the end of the year while evaluating opportunities for returns to investors.  **[CMI_3371996_22]** 

13. **New Engine Regulations and Margin Impact**  
    **Q:** How will new engine regulations affect margins compared to prior cycles?  
    **A:** As we launch new products for upcoming emissions regulations, we typically see **content increases** and **opportunities to price accordingly**.  **[CMI_3371996_9]**  However, we also expect a **bump up in warranty costs** until we demonstrate the capability of new platforms.  **[CMI_3371996_9]** 

14. **Labor Efficiency and Cost Outlook**  
    **Q:** Are high logistics costs affecting labor efficiency and offering upside?  
    **A:** We're driving **more efficiency** as supply chain hiccups iron out.  **[CMI_3371996_10]**  Costs per labor hour are improving, and overall labor costs have **leveled out**.  **[CMI_3371996_10]**  However, near-term concerns like **shipping delays** due to events in the Middle East may impact logistics costs.  **[CMI_3371996_10]** 

15. **North America Truck Market Decline Cadence**  
    **Q:** Can you detail the cadence of the North America truck market decline?  
    **A:** We expect current levels to hold steady in the **first part of the year**, with **softening** anticipated in the second half.  **[CMI_3371996_14]**  Our engine build rates slightly **lead** truck build rates, and we're forecasting a **shallow cycle**.  **[CMI_3371996_14]** 

f3ca466c75c1df6c60dca32e7cd613b041f95d22d8a2974ebce5027b2e395491

1. **EBITDA Outlook Amid Heavy-Duty Downturn**  
   **Q:** Can EBITDA grow next year despite heavy-duty truck downturn?  
   **A:** Management expects **EBITDA growth** next year, offsetting heavy-duty truck market softening with strength in areas like **Power Generation**, which continues to perform strongly.  **[CMI_3405748_7]**  They plan to focus on profitability and cost efficiencies to maintain margins.  **[CMI_3405748_7]** 

2. **Emissions Regulations and Prebuy Impact**  
   **Q:** Will emissions regulations lead to prebuy and affect demand?  
   **A:** Management anticipates a **prebuy** ahead of the **2027 emissions regulations**, possibly starting in **2025**, depending on economic conditions.  **[CMI_3405748_9]**  Some states may delay enforcement of the California low NOx regulation, but overall regulatory impact remains  **[CMI_3405748_9]** ,.  **[CMI_3405748_19]**  Cummins plans to launch a **2027-compliant diesel engine** in **2026**, which may influence prebuy behavior.  **[CMI_3405748_20]** 

3. **Power Generation Momentum and Capacity**  
   **Q:** Will Power Generation growth continue next year?  
   **A:** Demand for **Power Generation** remains strong, with no end in sight.  **[CMI_3405748_8]**  The company increased capacity by about **30%** on the **95-liter** product this year and is investing to **double capacity** by late next year.  **[CMI_3405748_8]**  They expect growth to persist into next year, leveraging both pricing and volume increases  **[CMI_3405748_8]** ,.  **[CMI_3405748_10]** 

4. **Engine Segment Margins and Cost Efficiencies**  
   **Q:** Can Engine margins stay high despite lower sales?  
   **A:** Strong margin performance in the **Engine segment** was driven by operational efficiencies, but management sees room for further improvement as they are not yet back to **pre-COVID levels**.  **[CMI_3405748_13]**  They anticipate cost and efficiency focus will help maintain margins into next year, even with expected softening in heavy-duty truck production.  **[CMI_3405748_13]** 

5. **Large Engine Capacity and 2025 Impact**  
   **Q:** Any changes to large engine capacity plans for 2025?  
   **A:** Cummins increased capacity on the **95-liter** engine by **30%** this year and plans to **double capacity** by late next year.  **[CMI_3405748_15]**  They are exploring opportunities to expand capacity further where market conditions are strong.  **[CMI_3405748_15]** 

6. **Natural Gas Engine Demand and Market Share**  
   **Q:** What is the outlook for natural gas engine demand?  
   **A:** Cummins anticipates the **natural gas engine** could achieve up to an **8% market share**.  **[CMI_3405748_14]**  The **15-liter natural gas engine** is now in production, with strong interest from major fleets, offering both **CO₂ reduction** and lower operating costs due to fuel price differentials.  **[CMI_3405748_14]** 

7. **R&D Spending Direction Post-Peak Investments**  
   **Q:** Will R&D spending decrease after peak investments?  
   **A:** Management expects R&D spending to **normalize** after the peak investments for new platforms and **2027 product launches**.  **[CMI_3405748_22]**  The exact trajectory depends on regulatory developments and technology transitions, but they anticipate R&D spend to decrease from current high levels.  **[CMI_3405748_22]** 

8. **Incremental Margin Targets**  
   **Q:** Will you revisit long-term incremental margin targets?  
   **A:** Despite strong incremental margins of nearly **50%** in the third quarter, management is not currently revising long-term incremental EBITDA margin targets.  **[CMI_3405748_16]**  They plan to provide specific updates and are focused on maintaining cost and efficiency discipline.  **[CMI_3405748_16]** 

5a95276ebfb0f8203975ed491ce2bbba3a14c0ef3c746c51de97f8d2709ff3d6

- **Cummins anticipates further softening in the heavy-duty truck market**, which may lead to decreased revenues in this key segment  **[CMI_3405748_7]** **[CMI_3405748_9]** .
- **Reduction in pickup truck engine production due to product changeover with Stellantis** is expected to result in lower volumes and negatively impact earnings in the short term  **[CMI_3405748_7]** **[CMI_3405748_13]** .
- **Increased sales of whole goods (power generation equipment) in the Distribution segment negatively impact margins** due to unfavorable mix, as whole goods have lower margins compared to aftermarket parts  **[CMI_3405748_24]** .

1d10cb7166d45779ac75a94bae26dd5bd55200cb86096af5313bc824cf40a4de

- **Cummins is confident in its Power Systems business, demonstrating positive momentum and raising guidance for the segment**.  **[CMI_3382087_11]**  The company expects continuous improvements over time due to stronger pricing leverage and efficiency in manufacturing and supply chain.  **[CMI_3382087_14]**
- **Investment in new HELM engine platforms positions Cummins well for future EPA 2027 regulations**, expecting to gain advantages and potentially increase market share.  **[CMI_3382087_17]**  Their unique scale allows continued investment in market-leading engine solutions meeting future regulations.  **[CMI_3382087_17]**
- **EPA 2027 regulations requiring longer emissions warranties will drive customers to genuine parts over a longer period, providing additional benefits to Cummins**.  **[CMI_3382087_10]**

3f12a6a6099e215b7e07d92ef2d517a5f4ef83c543a4f91b11d0fb6473f5803d

- **Strong Growth in Data Center Market:** Cummins is experiencing robust demand in the data center and large engine market, with a **very strong backlog** and expectations that this **trend will continue** into 2025 and 2026. The company is evaluating capacity expansion to meet this demand and sees the data center market as one of the **clearest secular trends** over the next couple of years.  **[CMI_3371996_17]** **[CMI_3371996_18]**
- **Successful Integration and Improvement of Meritor Acquisition:** The Meritor acquisition has **achieved its goals** for 2023, with Cummins reporting **further improvement** going into 2024. The company is **pleased with the performance** and anticipates continued margin enhancement and global expansion in this business.  **[CMI_3371996_25]**
- **Investments in Future Technologies Positioning for Growth:** Cummins is heavily investing in future technologies, including **fuel-agnostic engine platforms** and zero-emission solutions through **Accelera**. These investments aim to position the company well for the **energy transition**, drive profitable growth, and improve operational performance while managing costs.  **[CMI_3371996_13]**

5c9691178dc3c889fe0f4d1979fc70b0b50c1526656abd78abc197e08f23a301

- Cummins anticipates a **significant decline in heavy-duty truck build rates**, projecting a **10% decrease in the third quarter and a 20% overall decline in the second half of the year**, which could negatively impact revenues.  **[CMI_3395686_8]**
- The company's **new X15N engine is expected to take time to gain market share**, with projections of up to **8% market penetration** but acknowledgment that it will **"take some time"** to reach that level, indicating slower adoption of new products.  **[CMI_3395686_15]**
- **Weakness in the China market persists**, and Cummins does not anticipate any **meaningful change** in the near term despite government incentives, affecting international revenues and growth prospects.  **[CMI_3395686_7]**

c7296bfa5c5ca1326c4c9a648bb4548c6dd05210e8cc60452c200622ad6719b1

1. **Power Systems Margins**  
   **Q:** What is driving strong margins in Power Systems, and can they improve further?  
   **A:** Power Systems margins are strong, reaching close to **18%** this year.  **[CMI_3395686_8]**  This is driven by cost reductions, reprioritizing investments, strong pricing, and operational efficiencies.  **[CMI_3395686_8]**  Management believes there's **still more to come**, expecting further margin improvements in the future.  **[CMI_3395686_8]** 

2. **Medium-Duty Engine Growth**  
   **Q:** How is medium-duty engine demand, and what are growth expectations?  
   **A:** Demand for medium-duty engines is **growing**, bolstered by new partnerships with Daimler and Isuzu.  **[CMI_3395686_10]**  Cummins is increasing its market position globally and anticipates **steady year-over-year growth** as regulations change and new models launch  **[CMI_3395686_10]** **[CMI_3395686_16]** .

3. **Heavy-Duty Truck Outlook**  
   **Q:** What is the outlook for heavy-duty trucks and potential prebuy?  
   **A:** Heavy-duty build rates are expected to decline by **10%** in Q3 and **20%** in the second half of the year.  **[CMI_3395686_8]**  Recovery timing next year is uncertain and depends on economic conditions.  **[CMI_3395686_16]**  A prebuy ahead of 2027 emissions changes is anticipated, but capacity constraints may limit its size.  **[CMI_3395686_8]** 

4. **Pricing Power**  
   **Q:** How much pricing are you seeing, and how will it trend?  
   **A:** Pricing averages **2.5%** for the year across the company, varying by segment.  **[CMI_3395686_9]**  Strong pricing is a key driver in Power Systems, and year-over-year increases should hold steady.  **[CMI_3395686_9]**  Raw material cost headwinds of about **50 basis points** are expected.  **[CMI_3395686_13]** 

5. **Power Systems Capacity Constraints**  
   **Q:** How are you addressing capacity constraints in Power Systems, especially for data centers?  
   **A:** Strong demand in the data center market is causing capacity constraints on some platforms.  **[CMI_3395686_17]**  Cummins is making **modest investments** to increase capacity over the next couple of years, utilizing supply chain improvements and new product launches.  **[CMI_3395686_17]** 

6. **Engine Segment Margins**  
   **Q:** How will Engine segment margins hold up amid revenue declines?  
   **A:** Despite expected revenue declines, margins are supported by cost reductions, an improved parts outlook, and stronger medium-duty truck demand  **[CMI_3395686_11]** **[CMI_3395686_12]** . Margins are projected to decrease only by **30 basis points** sequentially on lower revenues.  **[CMI_3395686_12]** 

7. **Parts Business Improvement**  
   **Q:** How is the Parts business performing after inventory destocking?  
   **A:** The Parts business outlook has improved, with steady demand in on- and off-highway markets.  **[CMI_3395686_14]**  Previous inventory destocking has stabilized, leading to **fairly solid demand** now.  **[CMI_3395686_14]** 

8. **X15N Engine Demand**  
   **Q:** What is the status of demand for the X15N engine?  
   **A:** The X15N is launching this month with PACCAR, with early demand from fleet customers focused on sustainability.  **[CMI_3395686_15]**  Cummins projects market share could reach up to **8%**, though it will take time for the market to develop.  **[CMI_3395686_15]** 

9. **Regulatory and Election Impact**  
   **Q:** How might the election impact the outlook for Engines or New Power?  
   **A:** Cummins works across party lines to ensure industry opportunities and challenges are understood.  **[CMI_3395686_16]**  While the election outcome is uncertain, the company is positioned to navigate regulatory changes, focusing on stability and advancing its **Destination Zero** strategy.  **[CMI_3395686_16]** 

10. **Distribution Segment Margins**  
    **Q:** Why were Distribution segment margins lower despite strong sales?  
    **A:** Margins were impacted by mix headwinds from Power Gen, which is dilutive in Distribution but accretive in Power Systems.  **[CMI_3395686_13]**  Additionally, modest individual charges in the first two quarters slightly trimmed margins.  **[CMI_3395686_13]** 

df67e71e627f53a07582f9c491d449faca2f58554c9a44d25fd8155457040d38

- **Uncertainty in the China truck market may impact future revenues, as the company has low visibility and anticipates sluggish economic conditions.**  **[CMI_3371996_23]**
- **Projected decline in the North American heavy-duty truck market by 10% to 15% in 2024, which could lead to decreased revenues in their Engine segment.**  **[CMI_3371996_11]**
- **Anticipated increase in warranty costs in the Engine business, with higher product coverage or warranty expenses as a percent of sales, potentially affecting profit margins.**  **[CMI_3371996_12]**

49afbc1bd645d04926f0e2d924ee22d78dd4a64a01cf0c8841890b850574343f

- Cummins' **Power Systems segment** is demonstrating remarkable margins, reaching close to **18%** this year, with expectations for further improvement due to cost reduction initiatives, strong pricing environment, and operational efficiencies.  **[CMI_3395686_8]**
- There is continued **strong demand and high backlog** in the **Power Generation market**, particularly in the **data center and mission-critical markets**, leading Cummins to make **capacity investments** to capitalize on this growth.  **[CMI_3395686_8]**
- **Medium-duty truck demand** in North America remains **strong**, with Cummins experiencing a **strong backlog and demand**. The company is **investing to raise capacity** due to the market's strength and new business wins, expecting **less volatility and sustained high demand** in this segment.  **[CMI_3395686_8]** ,  **[CMI_3395686_16]**

55625073657a34e5fd49cd27ec2d109dca683d25d324c2102adf5144bb01580b

- **Strong Demand and Capacity Expansion in Power Generation:** Cummins is experiencing robust demand in their power generation markets, particularly for the **95-liter engine**. They have increased capacity by about **30%** and plan to **double capacity by late next year**, indicating confidence in sustained demand.  **[CMI_3405748_8]**
- **Advancement in Low-Emission Engines with Positive Market Reception:** The company started full production of the **X15N natural gas engine**, which helps fleets reduce their carbon footprint. Major fleets like **UPS have purchased 250 Kenworth X15N powered trucks**, showcasing strong market acceptance of their **Destination Zero** strategy.  **[CMI_3405748_1]**
- **Strategic Early Launch of Advanced Diesel Engines Ahead of Regulations:** Cummins intends to launch the diesel version of the **15-liter helm platform in 2026**, a year ahead of the **2027 emissions regulation**. This engine will offer **lower NOx emissions** and significant fuel efficiency improvements, strengthening their market position and delivering value to customers.  **[CMI_3405748_20]**

65201aa83c3670ef5504bfd4b77f72ef8b3e11bcba7d4f5181ce811be89d4a59

Cummins Inc (CMI)

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