Cummins Inc. Boosts Quarterly Dividend by 10%, Signaling Confidence

COLUMBUS, Ind. – July 15, 2025 – In a move underscoring its robust financial health and commitment to shareholder returns, the Board of Directors of Cummins Inc. (NYSE: CMI) today announced a significant increase in its quarterly common stock cash dividend. The dividend will rise by approximately 10%, from $1.82 per share to $2.00 per share, marking the 16th consecutive year of dividend increases for the global power solutions leader.

This consistent upward trajectory in dividend payouts highlights Cummins' long-standing dedication to providing value to its shareholders. The newly approved dividend is payable on September 4, 2025, to shareholders of record as of August 22, 2025. Such a sustained record of dividend growth is often viewed by investors as a strong indicator of a company's stable earnings, effective capital management, and optimistic outlook on future cash flows.

A Legacy of Shareholder Returns

Cummins Inc. has built a reputation not only as a leader in power solutions but also as a reliable dividend payer. The decision to increase the dividend for the 16th consecutive year places Cummins in an elite group of companies that consistently return capital to shareholders. This track record is particularly appealing to income-focused investors and those seeking long-term stability in their portfolios. A consistent dividend growth policy can also attract institutional investors who prioritize companies with predictable income streams.

Market Context and Implications

This dividend increase comes at a time when global industrial and power markets are navigating various economic currents. Cummins, with its diversified portfolio spanning engines, filtration, power generation, and new power technologies, is well-positioned to capitalize on evolving demands. The 10% hike suggests that management is confident in the company's ability to generate strong free cash flow, even amidst potential economic headwinds or investment in new technologies like hydrogen and electric powertrains.

For the broader market, a dividend increase from a bellwether industrial company like Cummins can be interpreted as a positive signal regarding the health of the manufacturing and transportation sectors. It suggests that despite ongoing supply chain challenges or inflationary pressures, the company foresees continued demand for its products and services, enabling it to sustain and grow its profitability.

Investment Insights for Shareholders

For current and prospective investors, this dividend announcement offers several key insights:

• Confidence in Future Earnings: The increase signals management's strong belief in Cummins' ability to generate consistent and growing earnings in the coming quarters and years.
• Attractive Income Stream: With the new dividend of $2.00 per share, Cummins becomes an even more attractive option for income-seeking investors, potentially boosting its dividend yield.
• Financial Stability: A long history of dividend increases, especially for 16 consecutive years, points to robust financial management and a resilient business model capable of weathering economic cycles.
• Capital Allocation Strategy: This move reinforces Cummins' balanced approach to capital allocation, combining investments in growth initiatives with direct returns to shareholders.

Investors should consider how this dividend increase fits into their overall investment strategy. While past performance is not indicative of future results, a company with such a consistent dividend growth record often demonstrates underlying operational strength and a commitment to shareholder value.

About Cummins Inc.

Cummins Inc., a global power solutions leader, designs, manufactures, distributes, and services a broad portfolio of power solutions. Headquartered in Columbus, Indiana, the company's products range from diesel and natural gas engines to hybrid and electric powertrains, as well as related components and technologies. Cummins serves a diverse set of markets, including on-highway, off-highway, mining, marine, rail, defense, and power generation. Its commitment to innovation and sustainability positions it at the forefront of the energy transition, developing advanced technologies that meet the evolving needs of its global customer base.