Cummins Inc.

Q2 results were strong and beat the “cycle-over-cycle” theme - Record Q2 sales: $9.5B, +9% YoY - EBITDA: $1.7B (17.5% margin) vs $1.6B (18.4%) YoY - Main drivers of higher EBITDA dollars: higher power generation volumes, joint venture earnings, and positive pricing - Offsets / headwinds noted: tariffs (described as *immaterial to EBITDA dollars in Q2* by CFO) plus higher incentive compensation tied to record full-year projections

Capacity-constrained but high-demand “Power Systems” momentum is the standout opportunity - Management repeatedly emphasized exceptionally strong data center backup / prime power demand - North America power generation revenue: +19% YoY (data centers + additional capacity brought online end of 2025) - China (incl. JVs): $2.3B, +30% YoY, driven by accelerating data center demand; also noted strong on/off-highway and construction improvement - Power Gen revenues outlook: still expected +15% to +25% in 2026, but growth is constrained by capacity for large gensets—customers sometimes shifting toward smaller configurations

2026 outlook: raised again (good), with clearer end-market visibility (good/surprising) - Full-year revenue growth forecast raised to: +10% to +13% (from prior +8% to +11%) - EBITDA margin dollars guidance raised (midpoint): to ~18.0%–18.5% - Underlying optimism attributed to: stronger North America on-highway, continued power generation, and improved China demand in multiple end markets (especially data centers)