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Cummins CMI Power Systems — Product Warranty Expense

Other segment segments

Engine
$93M+9.4%
Components
$27M+3.8%
Accelera
$13M+62.5%
Distribution
$7M+16.7%

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GMProduct Warranty Expense, Net Of Recoveries
$1.58B-19.7%
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ALSNStandard Product Warranty Accrual
$61M+90.6%

Other financials

Income statement

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Revenue$8.4B+2.7%
Gross profit$2.2B+4.1%
Operating income$949.0M-16.3%
Net income$680.0M-20.0%
EPS (diluted)$4.71-21.0%

Balance sheet

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Cash & equivalents$2.6B+70.6%
Total debt$8.0B+25.0%
Total equity$12.4B+13.1%
Total assets$34.4B+5.9%

Cash flow

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Operating cash flow$309.0M+10,400%
CapEx$189.0M+16.7%
Free cash flow$120.0M+173%

Valuation

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Market cap$91.71B+79.6%
Enterprise value$97.13B+69.8%
P/E32.9×+16.3×
P/S2.7×+1.2×

Profitability

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Gross margin25.4%+0.1pp
Operating margin11.3%-0.4pp
Net margin8.2%-0.3pp
FCF margin7.9%+7.9pp

Returns & leverage

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Return on equity23.9%-5.0pp
Debt / equity0.6×+0.1×
Current ratio1.7×+0.4×

Where this comes from

Reported directly by Cummins in its filing.

Tagged under the XBRL concept us-gaap:ProductWarrantyExpense.

The official record: Cummins’s 10-Q, filed May 5, 2026, on SEC EDGAR. View the filing →

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Questions, answered.

What is Cummins's power systems — product warranty expense?
Cummins (CMI) reported power systems — product warranty expense of $17M in Q1 2026.
How has Cummins's power systems — product warranty expense changed year-over-year?
Cummins's power systems — product warranty expense decreased by 46.9% year-over-year, from $32M to $17M.
What is the long-term trend for Cummins's power systems — product warranty expense?
Over 3 years (2022 to 2025), Cummins's power systems — product warranty expense has grown at a 21.6% compound annual growth rate (CAGR), from $70M to $126M.
What does power systems — product warranty expense mean?
This represents the estimated costs the company expects to incur for repairing or replacing products under warranty within the Power Systems segment. It reflects the quality and reliability of the products manufactured. A rising trend may indicate manufacturing defects or quality control issues that could impact future profitability.