HIGHOutside partyGeographic
China-based investees
“10-K Item 1A: 'more than 50 percent of these earnings from our China-based investees'”
CMI · Concentration risk · 10-K extracted
Cummins (CMI) concentration risks
Updated
The most significant concentration Cummins discloses is China-based investees, classified HIGH by disclosed size. Below: the full set from the latest 10-K — verbatim quotes, filing references, and a synthesis of what these exposures mean together.
Model-generated analysis — not investment advice. Not a registered investment advisor. Past performance does not guarantee future results.
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Source: Cummins’s SEC Form 10-K filed — view the filing on SEC EDGAR ↗
At a glance
Disclosed-size breakdown · 3 disclosed concentrations
HIGH2
MEDIUM1
LOW0
Disclosed concentrations
Each card carries a disclosed-size chip (HIGH / MEDIUM / LOW — how large the exposure is as a share of revenue, not how dangerous it is) and a nature tag: Built-in(the company’s own model, geography, or products) or Outside party (an external customer, supplier, or distributor it relies on).
HIGHOutside partySupplier
single-source parts and raw materials
“10-K Item 1A: 'We single source a number of parts and raw materials critical to our business operations'”
MEDIUMOutside partyCustomer
few large on-highway truck OEM customers
“10-K Item 1A: 'We recognize significant sales of engines and components to a few large on-highway truck OEM customers'”
TrendMatrix Research · concentration synthesis
What these concentrations mean together
updated 2026-06-24The company carries a multi-dimensional concentration profile spanning geography, supply chain, and customer mix, with the largest disclosed exposures on the supply and geographic sides both rated high share by disclosed size. On the earnings side, the filing discloses that more than 50 percent of earnings from China-based investees — a high-share geographic dependency — flow through a concentrated regional footprint. This is a dependency exposure: policy shifts, tariffs, or competitive changes in that single market can disproportionately affect equity earnings. Compounding this, the company single sources a number of parts and raw materials critical to its operations, also a high-share dependency. Single-sourced critical inputs are among the most idiosyncratic risks in an industrial supply chain; an outage at one qualified vendor without a qualified backup can halt production lines. The customer dimension carries a moderate share by disclosed size: significant engine and component sales flow to a few large on-highway truck OEM customers. That exposure is dependency in character — revenue is levered to a small set of buyers whose own production cycles amplify the company's volume swings across freight cycles. Across all three axes, the profile describes a business where geographic, supply-chain, and customer concentration reinforce rather than offset each other, and where managing any one axis in isolation understates the interconnected nature of the exposures.
For the engine’s reasoning on CMI’s current verdict — including which dimensions drove the score — see the per-dimension breakdown.
Industry peers · Specialty Industrial Machinery
Peer concentration profile
| Symbol | Name | HIGH | MEDIUM | LOW | Total |
|---|---|---|---|---|---|
| CMI● | Cummins Inc. | 2 | 1 | 0 | 3 |
| AOS | A.O. Smith Corporation | 1 | 1 | 1 | 3 |
| CR | Crane Company | 0 | 1 | 0 | 1 |
| AME | AMETEK, Inc. | 0 | 0 | 1 | 1 |
| BW | Babcock & Wilcox Enterprises, I | 0 | 0 | 0 | 0 |
| CSW | CSW Industrials, Inc. | 0 | 0 | 0 | 0 |
Concentration counts reflect items disclosed in each peer’s most recent 10-K; disclosed-size classification uses TrendMatrix’s internal 10-K extraction taxonomy.