CMI · 10-Q · 2026Q2 · Full report

Liquidity and Cash Position

CUMMINS INC · 2026-08-04 · Importance 49 · Surprise 6 · Contradicted

Cummins held $3.9 billion of cash and marketable securities at June 30, 2026. The company also had access to $4.0 billion of credit facilities, net of $348 million of commercial paper outstanding, for working capital, investment, acquisition and funding requirements. The debt-to-capital ratio was 35.6%, down from 36.0% at December 31, 2025, because stronger earnings increased equity despite higher total debt. During the first half, Cummins entered into swaps converting $350 million of 2054 senior notes from a fixed 5.45% rate to daily SOFR plus a spread.

Key facts

• Access to credit facilities: $4.0 billion (net of $348 million of commercial paper outstanding) source
• In May 2024, we entered into an accounts receivable sales agreement with Wells Fargo Bank, N.A., to sell certain accounts receivable up to the Board approved limit of $500 million. source
• There was no activity under the accounts receivable sales program during the six months ended June 30, 2026, and this agreement expired in July 2026 and was not renewed. source
• Cash and marketable securities on hand at June 30, 2026: $3.9 billion source
• Net cash used in financing activities increased $1,465 million for the six months ended June 30, 2026 versus the comparable period in 2025, primarily due to lower proceeds from borrowings of $1,826 million and higher repurchases of common stock of $468 million, partially offset by lower payments of commercial paper of $901 million. source
• As a well-known seasoned issuer, we filed an automatic shelf registration for an undetermined amount of debt and equity securities with the SEC on February 13, 2025. source
• We anticipate making additional defined benefit pension contributions during the remainder of 2026 of $23 million for our U.S. and U.K. qualified and non-qualified pension plans. source
• We expect our 2026 annual net periodic pension cost to approximate $75 million. source

Impact estimates