Cummins shares plans to deliver long-term growth and increased profitability
Decarbonization is a growth opportunity for Cummins
Cummins is well-positioned as one of the few global companies capable of providing integrated solutions across a range of combustion and electric powertrains
Cummins has the financial strength to make the sustained investments necessary to bring zero carbon technologies to market, fund growth in its core business and return cash to shareholders
At a meeting with analysts and shareholders today, members of the leadership team of Cummins Inc. (NYSE: CMI), a global power leader, shared the Company’s plans to generate profitable growth driven through leadership in the design, manufacture, and support of powertrain technology across a number of fuel types and power sources.
“The decarbonization of our economy is critical to our way of life and our industry will play a key role in that effort,” Tom Linebarger, Chairman and CEO, said at the meeting. “Fortunately, decarbonization is also a growth opportunity for Cummins. We are confident in our ability to play a leading role in bringing lower carbon technologies to commercial vehicle and industrial markets globally and to generate strong returns, due to the capabilities Cummins has built over many years.”
The Company is uniquely positioned to lead in the transition to zero emissions and outgrow our markets, through our range of advanced combustion powertrains and zero carbon solutions. “Our increasingly broad portfolio of technologies, enhanced by our recently announced plans to acquire Meritor and Jacobs Vehicle Systems, coupled with our industry leading scale and longstanding global relationships make us a compelling powertrain partner for OEMs wherever they operate,” said Jennifer Rumsey, President and Chief Operating Officer. Rumsey explained that the company is investing in differentiated technologies that will meet diverse customer needs and enable business growth as decarbonization occurs including market-leading, fuel agnostic engine platforms and key components for powertrain performance and emissions.
Amy Davis, Vice President & President – New Power, detailed how the company is already preparing for a fully zero emissions future, with investments in a broad array of technologies from electrolyzers for green hydrogen production to mobility technologies such as Battery electric and fuel cell electric systems. “Our New Power business is positioned to capture significant growth both in our core markets, as they transition to zero carbon solutions, and in new spaces presented by the global hydrogen economy,” said Davis. “We will leverage the key capabilities Cummins brings such as deep customer relationships, application knowledge, and a vast sales and service network while also demonstrating the agility of a startup mindset. Through shorter development cycles, vehicle build capability, the infusion of outside talent, and operational autonomy, we will be able to enhance the value we can provide to all of our stakeholders.”
The broad range of clean diesel and lower carbon engine-based solutions and powertrain components in the base business, combined with the broad zero emissions technologies of the New Power business, ensure that Cummins will be well-positioned for growth regardless of the pace of adoption of zero emissions vehicles, while also working toward the company’s aspirational goal of zero carbon emissions by 2050.
Webcast information
A copy of the presentation used in the meeting and a replay of the webcast is available at investor.cummins.com.
Cummins Inc., a global power solutions leader, comprises five business segments – Components, Engine, Distribution, Power Systems and Accelera by Cummins – supported by our global manufacturing and extensive service and support network, skilled workforce and vast technological expertise. Cummins is committed to its Destination Zero strategy, which is grounded in the company’s commitment to sustainability and helping its customers successfully navigate the energy transition with its broad portfolio of products. The products range from advanced diesel, natural gas, electric and hybrid powertrains and powertrain-related components including filtration, aftertreatment, turbochargers, fuel systems, valvetrain technologies, controls systems, air handling systems, automated transmissions, axles, drivelines, brakes, suspension systems, electric power generation systems, batteries, electrified power systems, hydrogen production technologies and fuel cell products. Headquartered in Columbus, Indiana (U.S.), since its founding in 1919, Cummins employs approximately 75,500 people committed to powering a more prosperous world through three global corporate responsibility priorities critical to healthy communities: education, environment and equality of opportunity. Cummins serves its customers online, through a network of company-owned and independent distributor locations, and through thousands of dealer locations worldwide and earned about $735 million on sales of $34.1 billion in 2023.
