Ladies and gentlemen, thank you for standing by. Welcome to the Cummins Inc. Annual Meeting. I will now turn the conference over to Jennifer Rumsey, Chair and CEO. You may begin.
Good morning, welcome to Cummins' 2026 Annual Meeting of Shareholders. I am Jennifer Rumsey, Chair and Chief Executive Officer of Cummins, and I will chair today's meeting. We are again holding this year's meeting virtually. While you are not able to attend the meeting at a physical location, we believe the virtual meeting format drives better efficiency and allows for greater participation by stakeholders who would otherwise be unable to attend in person. As in past years, we will hold the business portion of the meeting first. If you've not yet voted your shares or wish to change your vote, please do so now by clicking on the Voting button toward the bottom of your screen and follow the instructions there as the voting will end when the meeting is adjourned.
After the meeting is adjourned, I will give a brief business update, and then we will take live questions. We ask you to submit questions by typing them in the Ask a Question text box, and I will attempt to answer as many as time allows. Let's get started. The meeting is now called to order. On the call with us today is Nicole Lamb-Hale, Vice President and Chief Administrative Officer and Corporate Secretary of Cummins. Nicole will assist me and act as Secretary of the meeting. Also on the call today are members of our Board of Directors. In the interest of time, I will not read all of their names, but you can find their names and biographies in our proxy statement. In addition, members of the Cummins leadership team as well as other officers of the company are with us on the call today.
Also joining us today representing our independent public accountants and auditor, PricewaterhouseCoopers, is Tony Furse. Finally, Peter Hagberg has been appointed as the independent Inspector of Elections at today's meeting. In keeping with our policy of confidential voting, the inspector is an independent inspector. Mr. Hagberg has been duly sworn and is attending virtually. Now we will begin the business portion of the meeting. I'll turn it over to Nicole.
Thank you, Jen. A notice of the annual meeting was properly given, a quorum is present, and the meeting is now open for business. Copies of the minutes of the last annual meeting held on May 13th 2025 , are available upon written request to the corporate secretary if any shareholder wishes to see them.
We have six matters of business to come before the shareholders today, all as set forth in our proxy statement. The first is the election of the 11 directors nominated by our board. The second matter is an advisory vote on the compensation of our named executive officers. The third matter is the ratification of PricewaterhouseCoopers as our independent public accountants for 2026. The fourth matter is the consideration of Cummins' 2026 Omnibus Incentive Plan. The fifth matter is a shareholder proposal received from The Accountability Board. Matthew Prescott, President and COO of The Accountability Board, is joining us today to discuss the proposal. Operator, please open the line for Mr. Prescott.
Hi, everybody. I can keep the comments very brief this morning for the sake of time. Just wanna say thanks to the company and to the board for considering our proposal. Obviously, we didn't see eye to eye on it, but we appreciate the consideration. We think the proposal is pretty self-explanatory, and would just encourage anybody who has questions about it to read the proposal itself in the proxy statement. Thanks so much, and have a good day.
Thank you, Mr. Prescott, for joining us today. The company has recommended against this shareholder proposal. Our response is detailed in the proxy statement. The sixth matter is a shareholder proposal received from Boyar Research on behalf of shareholders. The Bahnsen Family Trust, Mr. David Bahnsen, on behalf of the Bahnsen Family Trust, has prepared and delivered a recorded message for the meeting. Operator, please play the recording.
Hello, fellow Cummins shareholders. My name is David Bahnsen. I am a financial advisor, a Cummins shareholder, and an investor, but I am not a shareholder activist. I make investment decisions in accordance with my fiduciary duty to my clients to optimize their financial success. I do not invest to use my influence to pull companies into various political or social causes, as is so often done through shareholder resolutions. My intention in this proposal is the opposite: to further shareholder interest by getting politics out of the company, not by pushing more politics onto it. The inherently political nature of Cummins' charitable partnership with the Human Rights Campaign is clear. The question is: Does Cummins work with outside activist organizations jeopardize its commitment to political neutrality and create otherwise avoidable controversy? The clear trend across corporate America makes the answer clear.
Non-activist shareholders who invest for return expect companies to avoid activism, to prioritize fiduciary duty and wealth creation above all else. We are right to expect that Cummins is no exception. Cummins' rating from the Human Rights Campaign does not indicate political neutrality. It indicates alignment with highly controversial medical interventions, including hormone regimens and gender transition surgery. Further, Cummins' active participation in activist indices is concerning for shareholders who expect the company to avoid these political controversies. Cummins should not be grabbing headlines for political stances, and it does not need to seek applause from activists. Its core business, meeting the needs of humanity by building diesel engines and the generators that help power our world, is a noble, commendable, and vital business model that every investor can and ought to be proud of.
The reputational risks of participation with radical activist groups are well demonstrated, as the majority of the Fortune 500 have cut ties with groups like Human Rights Campaign. This return to sanity is an additional point in favor of caution and fiduciary duty above all else. That's the point of this proposal, my friends. We're asking Cummins to defend its core business as the most potent social initiative it has to offer, being a growing company that creates products, jobs, wealth, and human flourishing. Above all, we're asking Cummins to avoid activism and to refocus on serving customers at a profit for the benefit of us, the owners, the shareholders of Cummins Inc. Thank you very much.
Thank you, Boyar Research, the Bahnsen Family Trust, and Mr. Bahnsen for the recorded message. The company has recommended against this shareholder proposal. Our response is detailed in the proxy statement. Thank you. Nicole, may we have the preliminary voting results?
The polls for voting on the matters before this meeting are now closed. The preliminary tabulation of the Inspector of Elections indicates that the shareholders have elected the slate of the 11 board-nominated directors for the ensuing year. The shareholders have approved the compensation of our named executive officers. Shareholders have also ratified the appointment of PricewaterhouseCoopers LLP as our auditors for 2026. Shareholders have approved the 2026 Omnibus Incentive Plan. Shareholders have rejected the proposal from The Accountability Board regarding the separation of the roles of chair and chief executive officer, and the shareholders have rejected the proposal from Boyar Research on behalf of the Bahnsen Family Trust, requesting a report on the company's charitable support. The final vote tabulations will be published in a current report on Form 8-K that we will timely file with the U.S. Securities and Exchange Commission following the meeting.
Thank you, shareholders, for your vote. This concludes the official portion of the meeting, and the meeting is hereby adjourned. I'll now provide an update on how Cummins performed in 2025. Following my remarks, I will take live questions from shareholders. As Chair and CEO, I am proud to share how Cummins performed in 2025 and how we are positioning the company for the years ahead. This past year required steady leadership, thoughtful decision-making, and continued focus on what matters most: delivering innovative and dependable products and services for our customers, continuing to invest in the development of our people, and driving sustainable long-term returns for our shareholders. Grounded in our long-standing values, the progress we made reflects both the strength of our multi-solution strategy, the capability of our people, and our ability to adapt and innovate in a changing world.
As detailed in our 2025 annual report available on our website for the year, Cummins generated $33.7 billion in revenue and $5.4 billion in EBITDA, representing 16% of sales. These results reflect the strength of our diversified portfolio across geographies and markets and technologies, as well as cost discipline and operational efficiency across our business. Despite a down cycle in North America truck markets, we achieved record earnings and met our 2030 financial commitments ahead of schedule, an accomplishment that makes me especially proud. We also delivered strong returns to our shareholders. In 2025, we returned $1.1 billion through dividends and increased our common stock dividend for the 16th consecutive year while continuing to invest in our people, products, and long-term growth.
Total shareholder return was 49% in 2025, exceeding our custom peer group average of 24% and the S&P 500 return of 18%. Over the three, five, and 10-year periods, our return similarly outperformed both our peer group average and the broader U.S. equity market. Our broad mix of product offerings and global manufacturing and distribution footprint again proved to be a source of strength. Power Systems and Distribution delivered outstanding results in 2025, achieving record revenue and profitability, supported by strong demand for reliable backup power, particularly for data centers. At the same time, Engine and Components operated through a cyclical downturn in North America medium and heavy-duty truck markets. While volumes were lower, teams maintained strong cost discipline, product quality, and customer support, preserving the durability and performance standards customers associate with Cummins and positioning these businesses to perform as markets recover.
We continue to invest in products and technologies that help our customers succeed today while preparing for the future. In 2025, we introduced the X10 engine as part of our Cummins HELM platform. Alongside the X15 and B Series, the X10 expands customer choice while delivering durability, efficiency, and reliability expected from Cummins. We also unveiled the B7.2 diesel engine, bringing the latest advancements to one of our most trusted platforms. Designed as a global solution with flexibility across applications, both the X10 and B7.2 will be produced for North America markets at our Rocky Mount Engine Plant in North Carolina. Supporting customers while sustaining high-quality manufacturing jobs. Within power systems, we expanded our generator set offering with the launch of the S17 Centum, engineered to deliver higher power density and compact footprints for urban and other space-constrained mission-critical applications.
Together, the investments we've made across our full Centum lineup and the expected capacity of our 95-liter platform position us to meet sustained demand for dependable high-performance backup power across critical markets. We also strengthened our capabilities in hybrid solutions for mining and rail through the acquisition of First Mode assets and a new collaboration with Komatsu. These actions reflect our belief that the energy transition will take many paths and that practical scalable solutions can deliver both economic and environmental benefits. As the energy transition proves more dynamic, uncertain, and divergent across markets than initially expected, our strategy is designed to remain adaptable and resilient. We continue to align our investments with our customer readiness and market demand. In 2025, we took targeted actions within Accelera to curtail future investments in our electrolyzer business and concentrate resources on opportunities with the strongest long-term potential.
We continue to deploy capital with discipline as customer needs and the pace of technology development evolves across our markets, prioritizing investments that generate strong returns and create durable competitive advantage. While the mix of our investments has shifted over the past five years, our strategy remains unchanged. Pursue multiple paths forward by strengthening our core today and advancing low and zero emission solutions when and where our customers are ready. Throughout the year, Cummins employees demonstrated resilience, accountability, and care for our customers, for one another, and for the communities where we live and work. Their efforts were recognized through external honors for culture, inclusion, innovation, and workplace excellence, affirming the values that guide how we lead and operate. Now in 2026, visibility is improving in key areas, including regulatory, trade, and tariff certainty in North America.
While some end markets remain in cyclical lows, we expect conditions in North America truck markets to improve as the year progresses alongside continued strength in power generation, industrial, and aftermarket demand. Cummins is prepared to build on the momentum of 2025, continuing to innovate where it matters most, delivering dependable performance for customers and creating long-term value for our shareholders. We look forward to engaging with the investment community at our Analyst Day next week on May 21st in New York City, where we will share more about our strategy, outlook, and how we are positioning Cummins for durable growth and long-term impact. Thank you for your continued trust and support of Cummins. I am proud of what we accomplished in 2025 and confident in the road ahead. I look forward to your questions.
Now let me turn it over to Nicole, who will facilitate this portion of the meeting.
Thank you, Jennifer. It appears that we have no active questions. If any questions arise after this meeting, such matters may be raised separately after the annual meeting by contacting investor relations at investor.cummins.com.
Thank you everyone for attending today's meeting. Have a great day.
This concludes today's annual meeting. You may now disconnect.