Who Owns Cummins?

Cummins is a global power generation solutions provider based in Columbus, Indiana. The American multinational corporation was founded in 1919 by mechanic Clessie Cummins and banker William Irwin.

The company designs, manufactures, distributes, and services power products, including diesel, natural gas, electric, and hybrid powertrains, filtration and fuel systems, turbochargers, axles, drivelines, brakes, transmissions, suspensions, EV batteries, hydrogen production, and fuel cell products. As of Feb 2024, Cummins employed around 75,500 people.

Cummins is a global power leader. The corporation serves customers online, through company-owned, and via independent distributor locations and dealerships worldwide. In Nov 2023, Cummins unveiled three new agricultural machine engines.

The company launched its B6.7H hydrogen internal combustion engine, the B4.5 Structural tractor engine, and the L9 Harvest engine. The B6.7H offers 216 kW and 1200 Nm peak torque using hydrogen fuel. Consumers with power-intensive farming operations can use the L9 Harvest engine. [1]

Cummins supplies engines to several iconic auto brands. The company has partnered with Ram Truck for decades. In Jan 2024, Cummins announced that it would recall and repair over 600,000 Ram trucks as part of a $2 billion settlement with federal and California authorities.

The move came after Cummins was sued for installing illegal control software in 630,000 Ram 2500 and 3500 heavy-duty pickups to skirt diesel emissions tests. Cummins agreed to pay a $1.675 billion civil penalty and $325 million for pollution remedies to settle claims. [2]

Cummins operates through four business divisions: engines, components, distribution, and sustainable energy. The company recorded double-digit growth in subsequent quarters. In Q3 2023, Cummins’ sales increased 16% in North America and 13% in international markets. Its Q3 2023 profits surged by 64% compared to Q3 2022. But who owns Cummins? [3]

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Who is Cummins’ Parent Company?

Cummins, Inc. is an NYSE-listed public company trading under the CMI symbol. The company is owned by its shareholders and guided by its top management team. In Jan 2024, Cummins, Inc. announced three leadership changes.

Former President of Engine Business, Srikanth Padmanabhan, was appointed executive VP and President of Operations. Brett Merritt succeeded Padmanabhan as President of the Engine Business, and Bonnie Fetch became President of the Distribution Business. [4]

Cummins, Inc.’s operation spans the auto manufacturing space, from engines to components and services. The company is expanding its offering through strategic acquisitions.

In Aug 2022, Cummins acquired Michigan-based Meritor Inc. for $3.7 billion. Meritor Inc. is an automotive parts supplier. Cummins will leverage Meritor’s technologies, like ePowertrains, to accelerate its efforts to curb emissions from vehicles and industrial applications. [5]

Cummins, Inc. is streamlining its portfolio to focus on its engine business. The company spun off its filtration unit to create Atmus Filtration Technologies. In May 2023, Atmus Filtration Technologies Inc. went public on NYSE in a $275 million IPO under the ATMU symbol. Atmus shares surged 11% in its debut and closed trading with a $1.8 billion market valuation. Cummins retained an 83% stake in Atmus and control over the new company. [6]

Cummins, Inc. is committed to reducing carbon emissions and accelerating customers’ transition to a sustainable future. The company launched the Accelera by Cummins brand for its New Power business unit, offering zero-emissions solutions.

In Sep 2023, Accelera by Cummins, Daimler Trucks & Buses, PACCAR, and EVE Energy announced a joint venture (JV). The JV seeks to accelerate and localize US battery cell production and supply. Cummins, Inc. also partnered with Freightliner and Knight Transportation, Inc. to help its customers achieve their decarbonization goals. [7]

Image Credit: Fahim Junaid

Cummins Ownership History

Mechanic Clessie Cummins partnered with banker William Irwin to establish the Cummins Engine Company in Columbus, Indiana. They founded the company in Feb 1919 to develop an engine invented by Rudolf Diesel in the 1800s.

The two co-founders were the company’s original owners. In 1924, Clessie combined his 1921 patented direct-injection design and Rudolf Diesel’s engine design to create a new Model F Engine. This innovation marked the birth of Cummins Company.

Clessie developed the Model U engine in 1928. This critical invention accelerated Cummins Co. towards automotive power. In 1931, the first truck powered by a Cummins Model U engine raced from New York City to Los Angeles in a record-breaking time of 97 hours.

This public exhibition was staged by co-founder Clessie and cemented Cummins Co.’s position as a powerhouse in the diesel engine and mechanical engineering sectors. [8]

Clessie handed over Cummins Engine Co.’s leadership to Irwin’s great-nephew, Irwin Miller. Miller was appointed as general manager in 1934 and led Cummins to international prominence. The company earned its first profit three years after Miller took over.

Cummins stock was initially traded publicly in 1947, transferring ownership to shareholders. In 1954, Miller established the Cummins Foundation. The company started a new manufacturing facility in Scotland two years later. By the 1960s, Cummins had expanded into 98 countries. [9]

Cummins accelerated its global expansion in the 1960s and 1970s by opening manufacturing plants in Darlington and Daventry in the UK. The company extended its product line with new engines.

In the 1980s, Cummins integrated electronic controls into its engines to optimize performance and reduce carbon emissions. The company introduced the Cummins 5.9-liter, ISX15, N14, QSB6.7, and L10 engines between 1984 and 2007. They are fuel-efficient, durable, and reliable. [10]

Image Credit: Abhijeet Gaikwad

Cummins’ Shareholder Structure

Cummins, Inc. is a public company trading on the NYSE as CMI. Anyone can buy Cummins, Inc. stock to own a stake in the business. As of Dec 2023, Cummins, Inc. had 222,479,875 Stock A shares with one vote. This figure includes 85,700,000 company-owned shares and 136,207,470 free-float shares held by individual investors. [11]

Cummins, Inc. spun off Atmus, which went public in May 2023. Atmus sold 16,243,070 shares, or 19.5% of its common stock in the IPO, and Cummins and its shareholders retained the remaining 80.5%.

This stake represents 67,054,726 Atmus shares. In Feb 2024, Cummins announced an exchange offer to split off its interest in Atmus Filtration Tech. The company invited its shareholders to swap their Cummins shares for Atmus shares.

The exchange rate was $107.53 of Atmus shares for every $100 Cummins common stock. This transferred some of Cummins’ shareholders to Atmus Filtration Technologies, Inc. [12]

Cummins’ shareholder structure includes institutions, insiders, and individual investors. The company has 1,813 institutional owners. As of Dec 2023, Vanguard Group was Cummins’ largest institutional shareholder, with 12.19%.

This figure represents 16.67 million shares. Blackrock is Cummins’ second-largest shareholder with 8.46%, followed by Price T.Rowe Associates at 5.81%, State Street Corp at 4.44%, Geode Capital at 2.38%, Fisher Asset at 1.98%, and Morgan Stanley at 1.52%.

Other top players include First Eagle Investment at 1.46%, Public Investment Fund at 1.32%, and Northern Trust Corp at 1.27%. [13]

Cummins’ insiders own 0.41% of the company. As of Mar 2024, Director Tom Lynch was Cummins’ top insider shareholder, with 80,180 shares. President of Operations Srikanth Padmanabhan is second with 28,051, followed by CFO Mark Smith at 22,180, CEO Jennifer Rumsey at 22,060, and Chief Administrative Officer Sharon Barner at 20,873.

Other insiders owning Cummins shares include Sherry Aaholm, Amy Rochelle, General Counsel Nicole Lamb-Hale, Donald Jackson, and Nathan Stoner. [14]

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