Cummins Inc 2026 Analyst Day Recap

研报英文原文证据摘录

Cummins Inc 2026 Analyst Day Recap

y estimates that EPA 2027 could add about $10K to the cost

of a truck, with the majority in powertrain systems where CMI expects to capture

incremental content across Engines and Components, and it highlighted product

examples including the X10 transition from the L9 with +70HP, +400 ft-lb torque, and

25K mile oil drain intervals while expanding addressable applications across CL 5-7

and into parts of CL 8 vocational. CMI stated it produced roughly 1.3MM engines

globally last year and highlighted JVs in India and China that generated about $4.6B

of unconsolidated revenue in 2025 for the Engines business, reinforcing a local-for-

local manufacturing model. Management also set expectations that launch

economics typically include elevated quality accruals and that full margin realization

is more visible about 18 months post-launch, implying a more normalized

profitability profile by late 2028, while noting ongoing uncertainty in the final

medium-duty rules and confirming a 7L launch on Jan 1, 2028 alongside other 2027

introductions.

• Aftermarket and Distribution continue to provide durability, utilization

leverage, and an annuity-like tail. CMI reiterated that a growing installed base

supports resilient aftermarket revenue through cycles, citing at least 2.2MM active

on-highway engines in North America and a parts intensity peak around 7-11 years

that extends well beyond that window, including $250MM of parts sold last year for

engines and components built before 2000. Management described Distribution as a

central life cycle enabler, noting CMI has more than 640 distributors and over 13K

certified dealers globally, and it identified Distribution as the largest segment by

FY25 revenue at $12.4B.