CMI · 10-Q · 2026Q3 · Full report

Emissions Regulation Transition

CUMMINS INC · 2026-11-05 · Importance 23 · Surprise 24

For 2026 and beyond, management warns that government-policy changes—including reduced incentives, delayed infrastructure mandates or revised emissions standards—may affect Accelera’s ability to compete, scale zero-emissions technologies or recover investments. The filing does not quantify the potential financial impact or identify specific jurisdictions for these possible policy changes.

Key facts

• The EPA finalized the rescission of the 2009 Greenhouse Gas Endangerment Finding and repealed all GHG emission standards for on-highway vehicles and engines effective April 20, 2026. source
• If NHTSA finalizes a rule, Cummins could incur a non-cash expense up to the value of its existing credits; it held $89 million of GHG emission compliance credits at September 30, 2026. source
• Changes in government policies, including reduced incentives, delayed infrastructure mandates or revised emissions standards, may affect Accelera's ability to compete, scale or recover zero-emissions technology investments. source
• Depending on future NHTSA rulemaking, Cummins may no longer be able to use emissions compliance credits on future engine sales, and the credits could have minimal or no value. source
• Cummins' research activities include developing products and technologies for future emissions standards, improving diesel and natural-gas engine fuel economy, and developing electrified power systems, batteries and electric-power technologies. source