Cummins

Cummins has several durable advantages. Brand trust and a century of field performance support pricing and specification wins with OEMs and end users across engine classes and power systems.

The company’s global service network of roughly 650 distributor locations and over 19,000 certified dealers creates switching frictions for fleets and operators that rely on uptime, parts availability, diagnostics, and warranty support. These support tangible and intangible switching costs after the initial engine selection.

Scale purchasing and shared technology across Engine, Components, and Power Systems create cost advantages and product breadth. In data center backup power, Cummins benefits from efficient scale and a reputation for reliability, though competition (notably Caterpillar) remains intense.

Risks to moat durability include OEM vertical integration, electrification potentially reducing demand for diesel over a long horizon, and regulatory shifts. Overall: intangible assets 70; switching costs 75; cost advantage 70; efficient scale 72; network effects 20. Weighted by importance, we score the moat at 74.