Cummins

Recent results show Cummins passing through price and benefiting from mix, with Distribution and Power Systems margin expansion even as truck markets softened. Gross margin in 2025 YTD improved versus 2024, aided by strong power generation demand and pricing on updated light-duty products.

Aftermarket parts and service contribute steadier, higher-margin revenue. Still, engines and components remain competitive and cyclical, and large OEMs can exert negotiating leverage. Cummins’ data center power exposure likely has above-average pricing stickiness due to mission-critical uptime, but this is balanced against supplier competition.

On balance we see moderate pricing power that can hold margins through cycles but is not monopolistic.