1) Strategic Developments and Leadership Insights
- Cummins launched the world's first Commercial Hybrid Electric Ultra-class Mining Truck at the Caserones mine in Chile, showcasing its commitment to reducing CO2 emissions.
- The integration of the Cummins X10 engine into Mack Trucks' Granite Chassis highlights collaboration and innovation in the vocational truck segment.
- The sale of the Low-pressure Fuel Cell business is expected to improve the financial trajectory of the Accelera segment.

2) Financial Performance and Segment Results
- Q1 2026 sales reached $8.4 billion, a 3% YoY increase, driven by higher power generation demand, particularly from data centers.
- EBITDA was $1.3 billion (15.4% margin), impacted by a $199 million charge from the fuel cell business sale; adjusted EBITDA was $1.5 billion (17.7% margin), slightly down from 17.9% YoY.
- North American revenues decreased by 6%, while international revenues increased by 16%, with China seeing a 19% revenue increase driven by data center demand.
- Engine segment revenues fell 4% to $2.7 billion, while Power Systems revenues grew 19% to $2 billion, reflecting strong demand and improved margins.

3) Market Challenges and Headwinds
- North America experienced a 20% decline in heavy and medium-duty truck demand, with unit sales down 16% for heavy-duty and 19% for medium-duty trucks YoY.
- The overall North American truck market remains weak, with production levels down 23% for heavy-duty trucks and 20% for medium-duty trucks compared to the previous year.
- Tariffs have had an immaterial impact on EBITDA, but ongoing supply chain challenges and uncertainties remain a concern.

4) Operational Plans and Product Outlook
- Cummins raised its 2026 revenue guidance to 8%-11% growth, up from 3%-8%, reflecting improved expectations across multiple segments.
- The North America heavy-duty truck forecast was increased to 230,000-250,000 units, while medium-duty truck forecasts rose to 125,000-135,000 units.
- Power generation revenues are projected to grow 15%-25%, driven by data center demand and capacity additions.
- The Accelera segment aims for revenues between $300 million to $350 million, with expected EBITDA losses improving to $270 million to $300 million.

5) Guidance and Future Outlook
- Cummins expects strong performance in Q2 and Q3, with a potential peak in builds and margins in the Engine segment.
- The company plans to maintain a focus on cash generation, returning approximately 50% of operating cash flow to shareholders, with $519 million returned in Q1 2026.
- Upcoming Analyst Day on May 21 will provide further insights into long-term strategy and financial targets.

Bottom line: Cummins is positioned for growth in 2026, with improved revenue and EBITDA forecasts driven by strong demand in power generation and strategic operational adjustments, despite challenges in the North American truck market. The company remains committed to shareholder returns and advancing sustainable solutions.