New York, February 5, 2026, 09:04 EST — Premarket
- Shares gained roughly 0.5% in premarket trading following the company’s quarterly earnings report
- Following a strategic review, Cummins will halt new commercial ventures in electrolyzers
- Revenue for 2026 is projected to rise between 3% and 8%, driven by steady demand for data-center backup power, which should help sustain margins
Cummins Inc (CMI) announced it will halt new commercial efforts in its electrolyzer division, taking a $218 million charge in the fourth quarter related to that segment. The engine and generator manufacturer also shared its outlook for 2026 on Thursday. Shares edged up roughly 0.5% to $605.63 in premarket action. (SEC)
Accelera, Cummins’ zero-emissions unit focused on electrolyzers for hydrogen production, is making a sudden pivot. The company cited weakening electrolyzer markets and unclear prospects following cuts in government incentives. Still, its power generation business has gained some support from growing demand for data-center backup power.
Cummins projects full-year 2026 revenue growth between 3% and 8%, with EBITDA margins forecasted at 17% to 18% of sales. CEO Jennifer Rumsey noted that demand for North American on-highway trucks is expected to be “slightly better” in the second half, alongside ongoing strength in data-center power generation.
Cummins posted $8.5 billion in revenue for the fourth quarter, edging up 1% from the previous year. Net income attributable to Cummins came in at $593 million, or $4.27 per share. For the full year 2025, revenue dipped 1% to $33.7 billion, while net income dropped to $2.8 billion, weighed down by the absence of last year’s Atmus separation-related gain, the company said. (Cummins Inc.)
Rumsey noted the company’s Distribution and Power Systems segments hit “record full-year sales and profitability” thanks to “robust demand for data center backup power,” despite ongoing weakness in North America truck markets.
Engine segment sales slipped 4% to $2.6 billion, the company reported. Components sales took a bigger hit, down 7% to $2.4 billion. Distribution sales, however, gained 7%, reaching $3.3 billion. Power Systems sales jumped 11% to $1.9 billion. Accelera recorded an EBITDA loss of $374 million.
A securities filing revealed Cummins will continue supporting current electrolyzer customers but halt pursuing new commercial deals while it completes its strategic review. The company noted that most of the $458 million in full-year electrolyzer charges were non-cash, with the majority of remaining cash expenses expected to hit in 2026.
Cummins shares have pushed up ahead of earnings, hitting a new 52-week peak earlier this week, according to market data. That raises the bar, with traders watching closely to see if strong demand for data-center power can make up for softer truck and components sales. (MarketWatch)
Cummins finds itself caught between the North American truck cycle and broader industrial spending, aligning it with suppliers and peers linked to heavy-duty demand. Looking ahead to 2026, the company’s outlook hinges on the durability of power-generation growth amid weaker engine demand.
A slowdown in data-center construction or an extended drop in truck output could tighten margins, forcing the company to rely more heavily on cost-cutting measures. The pause in electrolyzer production also raises execution risks, especially if Cummins faces further write-downs while scaling back that segment.
At 10 a.m. EST, management will break down the results and outlook during their earnings call. (Choruscall)
