Cummins (CMI)
NYSEIndustrialsIndustrial - MachinerySnapshot 2026-09-04
$560.75+2.80%
Close 2026-09-04 · 1-day change
NYSEIndustrialsIndustrial - MachinerySnapshot 2026-09-04
QuarterlyIQ Insights · CMI
How strong the business is — where it ranks within its sector on capital efficiency and cash generation, and how well management has been executing.
How this business ranks within industrials on a research-validated quality screen. As of 2026-09-04.
The screen ranks CMI against its sector on four durable signals: share dilution, return on capital, free-cash-flow yield, and FCF margin. Historically the highest-quality names tended toward better typical outcomes and fewer bad years over multi-year holds (strongest at three years, modest at one), and that pattern showed up even before the price moved. It characterizes business quality, not price direction.
Each leg is a sector-relative percentile (higher is better); 4 of 4 legs were available for this name. The composite is built from these four; the raw value follows each percentile for context.
A forward quality tilt, not a price prediction, and context for your own research rather than a recommendation. Not investment advice.
How management runs the business: capital, margins, balance sheet, and how reliably they guide and deliver.
Each factor is a parallel diagnostic with a clear read of what it shows and how names like it have historically fared. Never aggregated into a single score.
Operating income rose in 2 of the last 3 quarter-over-quarter moves. Historically, Industrials names rated strong grew net income 67% of the time over the next year (vs 52% for the rest of the cohort, n=6958).
Not investment advice. Scores describe historical and current data; they are not forecasts of future returns. Consult a licensed advisor before making investment decisions.
A guidance track record builds as the company issues and delivers on guidance.
Priorities management has stated in recent disclosures, with status and evidence drawn from earnings calls, filings, and press releases.
Raise full-year 2026 revenue guidance to growth of 10% to 13%, driven by stronger demand in North America on-highway, China construction, and power generation markets.
Stated as a priority in 3 of last 3 quarters. Management raised full-year 2026 revenue guidance from up 3%-8% in 2025-Q4 to up 10%-13% in 2026-Q2. Second quarter 2026 revenues grew 9% year-over-year to $9.5 billion, supporting the raised guidance. The trajectory is delivering with improving demand in key markets.
“Full-year revenues are expected to range from up 10% to up 13%, an improvement from prior guidance of up 8% to 11%”
“Based on its current forecast, Cummins is raising its full-year 2026 revenue guidance to be up 8% to 11%”
“Based on its current forecast, Cummins projects full-year 2026 revenue to be in the range of up 3% to 8%”
Raise full-year 2026 EBITDA margin guidance to a range of 17.75% to 18.5%, reflecting improved profitability excluding charges related to fuel cell business sale.
Stated as a priority in 3 of last 3 quarters. Management raised full-year 2026 EBITDA margin guidance from 17.0%-18.0% in 2025-Q4 to 18.0%-18.5% in 2026-Q2. Second quarter 2026 EBITDA margin was 17.5%, slightly below guidance midpoint but expected to improve in second half. The trajectory shows progress with raised margin expectations.
“EBITDA is now expected to be in the range of 18.0% to 18.5%, compared to prior guidance of 17.75% to 18.5%”
Commit to pacing and focusing zero-emissions investments on the most promising technologies in Accelera to ensure long-term success and reduce ongoing EBITDA losses.
Stated as a priority in 4 of last 4 quarters. Management consistently emphasizes focusing zero-emissions investments in Accelera on promising technologies to ensure long-term success and reduce EBITDA losses. However, segment EBITDA losses persist, reflecting ongoing investment costs and limited near-term profitability. The trajectory shows persistent focus but limited substantive delivery on profitability.
Maintain commitment to returning half of operating cash flow to shareholders through dividends and share repurchases as part of capital allocation strategy.
Stated as a priority in 4 of last 4 quarters. Management commits to returning 50% of operating cash flow to shareholders. Operating cash flow was $309 million in 2026-Q1 and $1.53 billion in 2026-Q2, with $501 million returned to shareholders in 2026-Q2. The trajectory shows delivery on capital returns consistent with stated goals.
“Committed to our long-term strategic goal of returning 50% of operating cash flow back to shareholders”
Introduce new X10 and X15 engines in North America with a measured production ramp to meet regulatory requirements and customer schedules.
Newly stated in 2026-Q2. Management announced a measured production ramp for new X10 and X15 engines in 2027 to satisfy regulatory and customer needs. No prior quarters mention this specific production ramp. The trajectory is newly initiated.
“Introduce new X10 and X15 engines through a measured production ramp in 2027”
Over the trailing year it converted 0.94x of net income into operating cash flow. Historically, Industrials names rated neutral grew net income 59% of the time over the next year (vs 53% for the rest of the cohort, n=6654).
Most sensitive to the broad stock market.
Not enough signal to read sensitivity to the US dollar, real (inflation-adjusted) rates, Fed net liquidity, long-term interest rates (low R² over the window).
6 material management or governance events in the past 24 months, led by capital-allocation actions. Historically, Industrials names rated stable grew net income 55% of the time over the next year (vs 58% for the rest of the cohort, n=2546).
Not investment advice. As of 2026-09-04.
“EBITDA is now expected to be in the range of 17.75% to 18.50%, an increase from previous guidance of 17.0% to 18.0%”
“EBITDA to be in the range of 17.0% and 18.0% of sales”
“Committed to pacing and focusing zero-emissions investments on the most promising paths to ensure long-term success and reduce EBITDA losses”
“Committed to pacing and focusing zero-emissions investments on the most promising paths to ensure long-term success and reduce EBITDA losses”
“Committed to pacing and focusing zero-emissions investments on the most promising paths to ensure long-term success and reduce EBITDA losses”
“Committed to pacing and focusing zero-emissions investments on the most promising paths to ensure long-term success and reduce EBITDA losses”
“Committed to our long-term strategic goal of returning 50% of operating cash flow back to shareholders”
“Committed to our long-term strategic goal of returning 50% of operating cash flow back to shareholders”
“Committed to our long-term strategic goal of returning 50% of operating cash flow back to shareholders”