CMIHIGH SIGNALFINANCIAL10-K

CMI delivered exceptional financial performance with net income surging 143% to $1.0B and operating cash flow increasing 143.5% to $3.6B, while total debt more than doubled.

The dramatic improvement in profitability and cash generation suggests CMI has achieved significant operational efficiency gains or benefited from favorable market conditions. However, the 149.6% increase in total debt to $1.6B warrants monitoring, though the strong cash generation and 20.2% increase in stockholders' equity indicate the company remains financially robust.

Comparing 2026-02-10 vs 2025-02-11View on EDGAR →
FINANCIAL ANALYSIS

CMI demonstrated remarkable financial strength with net income and operating cash flow both surging over 143%, indicating exceptional operational performance and cash generation capabilities. The balance sheet shows mixed signals - while stockholders' equity grew 20.2% and current assets increased 14.7%, total debt more than doubled and cash declined 18.9%, suggesting significant capital deployment or financing activities. Overall, the substantial earnings growth and strong cash flow generation far outweigh the debt increase, signaling robust business momentum and improved operational efficiency.

FINANCIAL STATEMENT CHANGES
Total Debt
Balance Sheet
+149.6%
$653.0M$1.6B

Debt increased 149.6% — substantial leverage increase; assess whether deployed for growth or covering losses.

Operating Cash Flow
Cash Flow
+143.5%
$1.5B$3.6B

Operating cash flow surged 143.5% — exceptional cash generation, highest quality earnings signal.

Net Income
P&L
+143%
$428.0M$1.0B

Net income grew 143% — bottom-line growth signals improving overall business health.

Stockholders Equity
Balance Sheet
+20.2%
$10.3B$12.3B

Equity base grew 20.2% — retained earnings accumulation or equity issuance strengthening the balance sheet.

Cash & Equivalents
Balance Sheet
-18.9%
$2.6B$2.1B

Cash decreased 18.9% — monitor burn rate and upcoming capital needs.

Current Assets
Balance Sheet
+14.7%
$14.8B$16.9B

Current assets grew 14.7% — improving short-term liquidity or inventory/receivables build.

Current Liabilities
Balance Sheet
-14.5%
$11.2B$9.6B

Current liabilities reduced — improved short-term financial position and working capital health.

LANGUAGE CHANGES
NEW — 2026-02-10
PRIOR — 2025-02-11
ADDED
As of January 31, 2026, there were 138,165,463 shares outstanding of $ 2.50 par value common stock.
and its consolidated subsidiaries are hereinafter sometimes referred to as Cummins, we, our, or us.
CAUTIONARY STATEMENTS REGARDING FORWARD-LOOKING INFORMATION Certain parts of this annual report contain forward-looking statements intended to qualify for the safe harbors from liability established by the Private Securities Litigation Reform Act of 1995.
Forward-looking statements are generally accompanied by words such as anticipates, expects, forecasts, intends, plans, believes, seeks, estimates, could, should, may or words of similar meaning.
Future factors that could affect the outcome of forward-looking statements include the following: GOVERNMENT REGULATION any adverse consequences resulting from entering into agreements with the U.S.
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REMOVED
As of January 31, 2025, there were 137,481,164 shares outstanding of $ 2.50 par value common stock.
and its consolidated subsidiaries are hereinafter sometimes referred to as "Cummins," "we," "our," or "us." CAUTIONARY STATEMENTS REGARDING FORWARD-LOOKING INFORMATION Certain parts of this annual report contain forward-looking statements intended to qualify for the safe harbors from liability established by the Private Securities Litigation Reform Act of 1995.
Forward-looking statements are generally accompanied by words such as "anticipates," "expects," "forecasts," "intends," "plans," "believes," "seeks," "estimates," "could," "should," "may" or words of similar meaning.
We are a global power solutions leader comprised of five business segments - Engine, Components, Distribution, Power Systems and Accelera - supported by our global manufacturing and extensive service and support network, skilled workforce and vast technical expertise.
Our products range from advanced diesel, natural gas, electric and hybrid powertrains and powertrain-related components including aftertreatment, turbochargers, fuel systems, valvetrain technologies, controls systems, air handling systems, automated transmissions, axles, drivelines, brakes, suspension systems, electric power generation systems, electrified power systems with innovative components and subsystems, including battery, fuel cell and electric power technologies and hydrogen production technologies.
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