COLUMBUS, Ind. — At a meeting with analysts and shareholders Thursday, members of the leadership team of Cummins Inc. (NYSE: CMI), shared the company’s plans to raise its long-term financial expectations, relative to its prior Analyst Day, and deliver increasing returns to shareholders.
“Two years ago, we introduced Destination Zero as our winning growth strategy. This is proving to be the right strategy for our customers, for the environment and for the continued growth of Cummins,” Jennifer Rumsey, chair and CEO, said at the meeting. “Since our last Analyst Day, we have continued to strengthen our position and execute on both our strategy and financial commitments. As a result, I’m excited to share we are raising our long-term financial expectations as we lead the transition.”
The company is uniquely positioned to lead the transition to zero emissions and outgrow its markets, through its multi-solution approach that leverages advancements and product portfolios from both its base business and Accelera. “Cummins is able to win with our strategy because of our integrated suite of innovative technologies and capabilities, strong customer partnerships, financial strength that allows us to invest in our future, and our skilled global workforce. All of this positions us to succeed.”
Jenny Bush, president, Power Systems Business, summarized the key factors that have transformed the profitability of this business over the past two years and highlighted opportunities for growth in revenue and profitability through 2030. “We are excited about the future of Power Systems with a clear focus on investment priorities and opportunities to deliver top-line growth, especially in the datacenter market, and further expand margins.”
Amy Davis, president of Accelera and Cummins’ components business, updated on the progress made in the Accelera business and highlighted how Cummins’ position has advanced over the last two years. “Our thesis still holds true. Accelera is best positioned because of our broad portfolio of technologies, our knowledge and experience in global industrial markets and our strong relationships with OEMs and end customers.” Davis also explained how the business is committed to driving improvements in financial performance as the business scales up and moves to breakeven in 2027.
Lastly, Mark Smith, chief financial officer, summarized the company’s plans for growth, margin expansion and capital allocation. “We will continue to drive further improvement in our business as we expand margins in our base business and successfully scale our Accelera business. Cummins has a strong track record of raising performance cycle over cycle. As we drive further profitability, we aim to deliver higher operating cash flow, allowing us to continue to invest to further strengthen our leadership position in core markets and return excess cash to shareholders.”
This story will be updated.
