TacticScaleWhat Cummins Does & How It Makes Money (CMI)
Updated October 2026 · reflects Cummins's latest reported financials
Global maker of engines, power generation systems, and powertrain components. Cummins earns most of its money selling engines, components, and power generation systems to vehicle and equipment makers, distributors, and dealers.
How Cummins makes money
Cummins earns most of its money selling engines, components, and power generation systems to vehicle and equipment makers, distributors, and dealers. It also makes recurring revenue from aftermarket parts, repair services, and engineering support through its distribution network.
What Cummins does
Cummins Inc., founded in 1919 and based in Columbus, Indiana, is one of the best-known makers of engines and power equipment in the world. It reports five segments: Engine, Components, Power Systems, Distribution, and Accelera. Its main products are diesel and natural gas engines for on- and off-highway use, parts such as turbochargers, fuel systems, aftertreatment systems, controls, and transmissions, and drivetrain systems including axles and brakes. The Power Systems segment makes high-horsepower engines, standby and prime power generators, alternators, and paralleling and transfer equipment. Cummins sells mainly to original equipment manufacturers and through distributors and dealers. Its Distribution segment adds aftermarket parts, repair, and engineering services. Through Accelera, the company is expanding into batteries, fuel cells, and electric powertrains. It also offers distributed generation and energy management solutions that use battery storage and alternative fuels.
Products & services
- Diesel and natural gas engines
- Standby and prime power generators
- Turbochargers and fuel systems
- Aftertreatment systems (particulate filters, SCR)
- Axles, brakes, and transmissions
- Batteries, fuel cells, and electric powertrains (Accelera)
What is Cummins worth?
On an owner-earnings DCF, Cummins's most-likely value is about $420 versus a recent price near $523 (20% above fair value). But TacticScale only calls a stock undervalued when the price sits below its conservative no-growth floor (~$224) with a margin of safety — so the honest verdict here is “Fairly priced — no edge.” Fair value earns its keep only at the extremes, not in the wide middle.
Price sits in the normal range — fair value isn't actionable here; it earns its keep only when price drops below the no-growth floor, or runs to roughly double the optimistic case.
Analysis, not advice. Fair value is a margin-of-safety estimate from a deterministic owner-earnings DCF, not a price target or recommendation. See the full breakdown →
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