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. 1
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. 2
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. 3
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. 4
