Cummins shareholders approve board, executive pay

Shareholders of Cummins Inc . (NYSE:CMI), a global power leader in engines and turbines with a market capitalization of $45.8 billion, cast their votes on several key proposals during the company’s annual meeting held on May 13, 2025. InvestingPro analysis shows the company maintains a "GOOD" financial health score and has consistently raised its dividend for 19 consecutive years, demonstrating strong corporate governance. The meeting saw the election of eleven directors for a one-year term, an advisory vote on executive compensation, the ratification of the company’s auditors, and a shareholder proposal regarding an independent board chairman.

The eleven directors were elected to serve until the 2026 annual meeting, with substantial support for each nominee. The advisory vote on the compensation of Cummins’ named executive officers was approved, signaling shareholder satisfaction with the company’s executive pay structure. This governance stability comes as the company maintains strong fundamentals, with a P/E ratio of 16.4 and a healthy dividend yield of 2.2%. For deeper insights into Cummins’ valuation and performance metrics, InvestingPro offers comprehensive analysis with 12 additional key insights.

PricewaterhouseCoopers LLP was ratified as the company’s auditors for the fiscal year 2025, continuing their long-standing relationship with Cummins. However, the shareholder proposal for an independent board chairman did not pass, with a significant majority voting against it.

The voting outcomes reflect the shareholders’ trust in the current management and board of directors. Cummins, headquartered in Columbus (WA:CLC), Indiana, remains a significant player in the industrial sector, providing engines, power generation, and related components and technologies.

The annual meeting had a strong turnout, with approximately 85.7% of the outstanding shares represented. This high level of participation underscores the importance that shareholders place on the governance and direction of the company.

Cummins has reported this information in accordance with the Securities Exchange Act of 1934, and the details of the votes are filed with the U.S. Securities and Exchange Commission. The company continues to focus on innovation and market leadership in its field, backed by the support of its shareholders.

In other recent news, Cummins Inc. reported its Q1 2025 earnings, which exceeded expectations with an earnings per share (EPS) of $5.96, surpassing the forecast of $5.02. However, the company’s revenue slightly missed estimates, coming in at $8.17 billion against a forecast of $8.24 billion, representing a 3% year-over-year decline. Cummins also announced a quarterly cash dividend of $1.82 per share, payable on June 5, 2025. Additionally, the company completed a $2 billion senior notes offering, with proceeds intended for general corporate purposes, including potential debt refinancing. Citi analysts raised their price target for Cummins to $350, maintaining a Buy rating, while BofA Securities increased their target to $326, keeping a Neutral rating. Despite these positive developments, Cummins withdrew its annual financial guidance due to uncertainties surrounding trade tariffs. The company’s Power Systems segment showed strong performance, with EBITDA increasing by 64% year-over-year, driven by demand from data centers and efficiency gains.

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