CUMMINS INC (CMI) Risk Factors

Recent key developments

Concrete developments — dated events, named agreements and instruments, legal proceedings — that CUMMINS INC surfaced in its latest filing.

• Settlement Agreements with EPA, CARB, Environmental and Natural Resources Division of U.S. DOJ, and California Attorney General's Office to resolve regulatory civil claims regarding emissions certification and compliance for certain engines used in pick-up trucks
• Recorded a charge of $2.0 billion in Q4 2023 related to the Settlement Agreements2023-10-01
• Recorded immaterial amounts for stipulated penalties determined probable and estimable subsequent to Q2 20242024-04-01
• In October 2023, the EPA published a final rule imposing reporting and recordkeeping requirements on manufacturers and importers of PFAS2023-10
• Benefits from specific trade agreements such as the United States-Mexico-Canada Agreement
• China, India, and Germany plan to implement bans on diesel-powered products
• California officials have called for a phase-out of sales of certain diesel-powered vehicles by 20352035
• In 2025, nearly 50% of equity, royalty and interest income from investees was from three 50%-owned joint ventures in China: Chongqing Cummins Engine Company, Ltd., Dongfeng Cummins Engine Company, Ltd., and Beijing Foton Cummins Engine Co., Ltd.2025
• $469 million of equity, royalty and interest income from investees in 2025, compared to $395 million in 20242025
• At December 31, 2025, we employed approximately 67,400 persons worldwide with about 20,000 represented by various unions2025-12-31
• Collective bargaining agreements expire between 2026 and 2030
• Previously announced charges of $59 million for recalls of model years 2013-2018 RAM 2500 and 3500 and model years 2016-2019 Titan trucks