CMI: Wells Fargo Industrials & Materials Conference Takeaways

Research evidence excerpt

CMI: Wells Fargo Industrials & Materials Conference Takeaways

Equity Research

Company Update — June 9, 2026

Machinery, Industrials & Environmental Services

Cummins Inc.

Wells Fargo Industrials & Materials Conference Takeaways Overweight

Price Target: $794.00

Our Call Ticker CMI

Upside/(Downside) to Target 18.6%

Today we hosted CMI management for a fireside chat at the Wells Fargo Industrials &

Materials Conference. Key takeaways follow. Price (06/09/2026) $669.23

52 Week Range $307.91 - 718.08

Market Cap (MM) $92,889

(i) CMI's newly announced 4MW natural gas prime power engine shares ~80% of its Enterprise Value (MM) $97,393

architecture with the company's existing 95L standby product. Leveraging that common Average Daily Value (MM) $586

platform accelerates the development time line, with a key development milestone in Dividend Yield 1.1%

2H27, pilot launch in 2H28, and production ramping through 2029 and 2030.

$ (Dec) Q1 Q2 Q3 Q4 FY

(ii) Management noted the announced expansion will sit within the existing walls of CMI's EPS

facilities—enabling a fast payback—at a cost of roughly ~$20M per GW, consistent with 2026E 6.15 A 7.39 E 8.12 E 8.54 E 30.18 E

the prior expansion. The added capacity is expected to ramp fairly linearly from 2027 to 2027E 7.69 E 8.47 E 9.07 E 9.49 E 36.87 E

2030, with a step-up in 2028, and supports the 60L, 78L, and 95L engine platforms.

Source: Company Data, Wells Fargo Securities estimates, and Factset.

NA = Not Available, NC = No Change, NE = No Estimate

(iii) Management noted it is seeing strong demand and is booking orders through 2028

for the incremental announced capacity expansion. There has been no significant shift in Jerry Revich, CFA

the backlog and no wave of customer cancellations. Cancellations carry penalties.