Category: 3. Business

Matthew Hornbach: Welcome to Thoughts on the Market. I’m Matthew Hornbach, Global Head of Macro Strategy.

 

Michael Gapen: And I’m Michael Gapen, Morgan Stanley’s Chief U.S. Economist.

 

Matthew Hornbach: Today we’ll be talking about the Federal Open Market Committee meeting that occurred last week.

 

It’s Thursday, February 5th at 8:30 am in New York.

 

So, Mike, last week we had the first Federal Open Market Committee meeting of 2026. What were your general impressions from the meeting? And how did it compare to what you had thought going in?

 

Michael Gapen: Well, Matt, I think that the main question for markets was how hawkish a hold or how dovish a hold would this be. As you know, it was widely expected the Fed would be on hold. The incoming data had been fairly solid. Inflation wasn’t all that concerning, and most of the employment data suggested things had stabilized. So, it was clear they were going to pause.

 

The question was would they pause or would they be on pause, right? And in our view, it was more of a dovish hold. And by that, it suggests to us, or they suggested to us, I should say, that they still have an easing bias and rates should generally move lower over time.

 

So, that really was the key takeaway for me. Would they signal a prolonged pause and perhaps suggest that they might be done with the easing cycle? Or would they say, yes, we’ve stopped for now, but we still expect to cut rates later? Perhaps when inflation comes down and therefore kind of retain a dovish bias or an easing bias in the policy rate path. So, to me, that was the main takeaway.

 

Matthew Hornbach: Of course, as we all know, there are supposed to be some personnel changes on the committee this year. And Chair Powell was asked several questions to try to get at the future of this committee and what he himself was going to do personally. What was your impression of his response and what were the takeaways from that part of the press conference?

 

Michael Gapen: Well, clearly, he’s been reluctant to, say, pre-announce what he may do when his term is chair ends in May.   But his term as a governor extends into 2028. So, he has options. He could leave normally that’s what happens. But he could also stay and he’s never really made his intentions clear on that part. I think for maybe personal or professional reasons. But he has his own; he has his own reasons and, and that’s fine.

 

And I do think the recent subpoena by the DOJ has changed the calculus in that. At least my own view is that it makes it more likely that he stays around. It may be easier for him to act in response to that subpoena by being on staff. It’s a request for additional information; he needs access to that information. I think you could construct a reasonable scenario under which, ‘Well, I have to see this through, therefore, I may stay around.’ But maybe he hasn’t come to that conclusion yet.

 

And then stepping back, that just complicates the whole picture in the sense that we now know the administration has put forward Kevin Warsh as the new Fed chair. Will he be replacing the seat that Jay Powell currently sits in? Will he be replacing the seat that Stephen Myron is sitting in?

 

So yes, we have a new name being put forward, but it’s not exactly clear where that slot will be; and what the composition of the committee will look like.

 

Matthew Hornbach: Well, you beat me to the punch on mentioning Kevin Warsh…

 

Michael Gapen: I kind of assumed that’s where you were going.

 

Matthew Hornbach: It was going to be my next question.   I’m curious as to what you think that means for Fed policy later this year, if anything. And what it might mean more medium term?

 

Michael Gapen: Yeah. Well, first of all, congratulations to Mr. Warsh on the appointment. In terms of what we think it means for the outlook for the Fed’s reaction function and interest rate policy, we doubt that there will be a material change in the Fed’s reaction function.

 

His previous public remarks don’t suggest his views on interest rate policy are substantively outside the mainstream, or at least certainly the collective that’s already in the FOMC. Some people would prefer not to ease. The majority of the committee still sees a couple more rate cuts ahead of them.

 

Warsh is generally aligned with that, given his public remarks. But then also all the reserve bank presidents have been renominated. There’s an ongoing Supreme Court case about the ability of the administration to fire Lisa Cook. If that is not successful, then Kevin Warsh will arrive in an FOMC where there’s 16 other people who all get a say. So, the chair’s primary responsibility is to build a consensus; to herd the cats, so to speak. To communicate to markets and communicate to the public.

 

So, if Mr. Warsh wanted to deviate substantially from where the committee was, he would have to build a consensus to do that. So, we think, at least in the near term, the reaction function won’t change. It’ll be driven by the data, whether the labor market holds up, whether inflation, decelerates as expected. So, we don’t look for material change.

 

Now you also asked about the medium term. I do think where his views differ, at least with respect to current Fed policy is on the size of the Fed’s balance sheet and its footprint in financial markets. So, he has argued over time for a much smaller balance sheet. He’s called the Fed’s balance sheet bloated. He has said that it creates distortions in markets, which mean interest rates could be higher than they otherwise would be. And so, I think if there is a substantive change in Fed policy going forward, it could be there on the balance sheet.

 

But what I would just say on that is it’ll likely take a lot of coordination with Treasury. It will likely take changes in rules, regulations, the supervisory landscape. Because if you want to reduce the balance sheet further without creating volatility in financial markets, you have to find a way to reduce bank demand for it. So, this will take time, it’ll take study, it’ll take patience. I wouldn’t look for big material changes right out of the box.

 

So Matt, what I’d like to do is, if I could flip it back to you, Warsh was certainly one of the expected candidates, right? So, his name is not a surprise. But as we knew financial markets, one day we’re thinking it’d be one candidate. The next day it’d be thinking at the next it was somebody else.

 

How did you see markets reacting to the announcement of Mr. Warsh? For the next Fed share, and then maybe put that in context of where markets were coming out of the last FOMC meeting.

 

Matthew Hornbach: Yeah, so the markets that moved the most were not the traditional, very large macro markets like the interest rate marketplace or the foreign exchange market. The markets that moved the most were the prediction markets. These newer markets that offer investors the ability to wager on different outcomes for a whole variety of events around the world.   But when it comes to the implications of a Kevin Warsh led Fed – for the bigger macro markets like interest rates and currencies, the question really comes down to how?

 

If the Fed’s balance sheet policies are going to take a while to implement, those are not going to have an immediate effect, at least not an effect that is easily seen with the human eye. But it’s other types of policy change in terms of his communication policy, for example. One of the points that you raised in your recent note, Mike, was how Kevin Warsh favored less communication than perhaps some of the recent, Federal Open Market Committees had with the public.

 

And so, if there is some kind of a retrenchment from the type of over-communication to the marketplace, from either committee members or non-voters that could create a bit more volatility in the marketplace. Of course, the Fed has been one of the central banks that does not like to surprise the markets in terms of its monetary policy making. And so, that contrasts with other central banks in the G10. For example, the Swiss National Bank tends to surprise quite a lot. The Reserve Bank of Australia tends to surprise markets. More often, certainly than the Fed does. So, to the extent that there’s some change in communication strategy going forward that could lead to more volatile interest rate in currency markets.

 

And that then could cause investors to demand more risk premium to invest in those markets. If you previously were comfortable owning a longer duration Treasury security because you felt very comfortable with the future path of Fed policy, then a Kevin Warsh led Fed – if it decides to change the communication strategy – could naturally lead investors to demand more risk premium in their investments. And that, of course, would lead to a steeper U.S. Treasury curve, all else equal. So that would be one of the main effects that I could see happen in markets as a result of some potential changes that the Fed may consider going forward.

 

So, Mike, with that said, this was the first FOMC meeting of the year, and the next meeting arrives in March. I guess we’ll just have to wait between now and then to see if the Fed is on hold for a longer period of time or whether or not the data convinced them to move as soon as the March meeting.

 

Thanks for taking time to talk, Mike.

 

Michael Gapen: Great speaking with you, Matt.

 

Matthew Hornbach: And thanks for listening. If you enjoy Thoughts on the Market, please leave us a review wherever you listen and share the podcast with a friend or colleague today. 

Ecological harm from pesticides is growing globally, a study has found, with bugs, fish, pollinators and land-based plants among six species groups hit hardest.

Insects suffered the greatest increase in harm from synthetic farm chemicals between 2013 and 2019, the study shows, with “applied” toxicity rising by 42.9%, followed by soil organisms, which faced an increase of 30.8%.

Aquatic plants and land-based vertebrates were the only two groups for which the danger fell.

World leaders promised to halve the risks from pesticides by the end of the decade at a 2022 UN summit. Last year, the UN adopted an indicator of progress known as total applied toxicity (TAT), which factors in the different levels of harm that chemicals cause different species.

To monitor progress toward the biodiversity pledge, the researchers used the TAT framework and safety thresholds from seven regulatory authorities around the world to develop a globally consistent measure of damage from 625 pesticides.

Jakob Wolfram, an ecotoxicologist at RPTU University Kaiserslautern-Landau and lead author of the study, said he was “highly concerned” by the trend, especially in developing countries and regions with high biodiversity.

“It should be a stark warning that applied toxicities are still increasing in many regions, particularly for species groups that serve vital ecological functions,” he said.

The study, which examined 65 countries representing almost 80% of farmland on the planet, found total applied toxicity fell in Europe, which began to phase out neonicotinoids in 2013, and China, which introduced a zero-growth-pesticide policy in 2015.

However, toxicity increased considerably in much of Africa, India, the US, Brazil and Russia. Chile is the only country on track to meet the UN target of reducing pesticide risk by 50% by 2030, the study found.

Mónica Martínez Haro, a wildlife toxicologist at Spain’s National Research Council, who was not involved in the study, described the research as “highly relevant and high-quality” but said the results may be partly underestimated given limitations in the data.

She said pesticides were designed to act lethally on target organisms but could also act “sub-lethally and silently” on other organisms, masking some of their effects on ecological health.

Martínez Haro said: “This is a key study that highlights the urgent need for substantial measures at a global level – such as agricultural diversification, less intensive soil management, greater conversion to organic farming, and the switch to less toxic pesticides – if the United Nations’ goal of safeguarding biodiversity is to be achieved.”

Synthetic chemicals that kill pests have increased the productivity of farmland, allowing more food to be grown on the same area, but have harmed the ecosystems in which they are used.

The researchers studied 2013 to 2019 because it had the best global data coverage, but said applied toxicity had probably continued to rise as pesticide application trends have continued. Farmers around the world spray about 4m tons of pesticides each year, nearly double what they did in the 1990s.

Wolfram said the global rise in applied toxicities of pesticides for most species groups suggested that ecosystems had become “increasingly impaired” by pesticides. “[This] directly counteracts the risk reduction target set out by the UN’s Global Biodiversity Framework.”

While the new tool allowed the world to gauge progress towards the target, Wolfram added, the pesticide application data needed was sparsely available for most countries, and often of insufficient quality. “One central call from our study is that long-term, high-quality data is needed globally to assess the current status and trends of applied toxicities.”

Filter by article type:

In-brief analysis

In-depth analysis

Designation strengthens BIZENGRI® development program in rare cholangiocarcinoma

LEXINGTON, Mass., Feb. 5, 2026 /PRNewswire/ — Partner Therapeutics, Inc. (PTx), a privately held, fully integrated biotechnology company, today announced that the U.S. Food and Drug Administration (FDA) has granted Orphan Drug Designation (ODD) to zenocutuzumab‑zbco for the treatment of adults with advanced unresectable or metastatic cholangiocarcinoma. Zenocutuzumab-zbco is being developed in a subset of patients with cholangiocarcinoma harboring a neuregulin 1 (NRG1) gene fusion.

Cholangiocarcinoma (CCA) is a rare, aggressive malignancy of the bile ducts, typically diagnosed at an advanced stage when curative options are limited. There are approximately 8,000 cases annually in the United States, and the five-year survival rate for all stages remains below 15 percent, emphasizing the need for new therapeutic approaches. NRG1 gene fusions result from structural DNA rearrangements and typically occur without other oncogenic alterations. Like other fusions, they are best detected with a combination of tissue-based RNA and DNA next generation sequencing.

Systemic first-line treatment regimens in cholangiocarcinoma yield modest clinical benefit, with overall response rates (ORRs) of 26% to 29% and median overall survival (OS) of 11.7 to 12.8 months. Second-line treatment with FOLFOX provides an ORR of 5%, progression free survival of 4.0 months, and median OS of 6.2 months. Zenocutuzumab-zbco has shown activity in patients with cholangiocarcinoma harboring NRG1 gene fusion.

“Patients with cholangiocarcinoma face a particularly aggressive cancer with poor prognosis and limited treatment options. Receiving Orphan Drug Designation for zenocutuzumab in patients with CCA harboring the NRG1 gene fusion is a significant regulatory milestone for Partner Therapeutics and highlights the urgent need for new and effective treatment options for patients with this disease” said Juan W. Valle, MD, Chief Medical Officer of the Cholangiocarcinoma Foundation.

The FDA grants Orphan Drug Designation to investigational products designed to treat rare diseases or conditions affecting fewer than 200,000 people in the United States. Designation benefits may include up to seven years of market exclusivity upon approval, exemption from FDA user fees, eligibility for clinical‑trial tax credits, and closer collaboration with the Agency during development.

Zenocutuzumab‑zbco, marketed as BIZENGRI®, received Breakthrough Therapy Designation from the FDA in October 2025 and was granted accelerated approval in December 2024 for adults with advanced unresectable or metastatic non‑small cell lung cancer and pancreatic ductal adenocarcinoma harboring NRG1 gene fusions following prior therapy.

For more information on the eNRGy trial and zenocutuzumab-zbco, please visit www.partnertx.com.

About NRG1 Gene Fusions

NRG1 fusions are unique cancer drivers that create oncogenic chimeric ligands rather than the more widely described chimeric receptors (NTRK, RET, ROS1, ALK, and FGFR fusions). The chimeric ligands bind to HER3, triggering HER2/HER3 heterodimerization and activate downstream signaling pathways that cause cancer cells to grow and proliferate. Zenocutuzumab-zbco is a bispecific antibody that blocks HER2/HER3 dimerization and NRG1 fusion interactions with HER3, resulting in the suppression of these pathways. Comprehensive molecular testing, notably the combination of tissue-based DNA and RNA next generation sequencing, is essential to identify rare and actionable gene fusions, including NRG1.

About BIZENGRI (zenocutuzumab-zbco)

INDICATIONS

BIZENGRI is indicated for the treatment of adults with advanced unresectable or metastatic non-small cell lung cancer (NSCLC) harboring a neuregulin 1 (NRG1) gene fusion with disease progression on or after prior systemic therapy.

BIZENGRI is indicated for the treatment of adults with advanced unresectable or metastatic pancreatic adenocarcinoma harboring a neuregulin 1 (NRG1) gene fusion with disease progression on or after prior systemic therapy.

These indications are approved under accelerated approval based on overall response rate and duration of response. Continued approval for these indications may be contingent upon verification and description of clinical benefit in a confirmatory trial(s). 

Important Safety Information

BOXED WARNING: EMBRYO-FETAL TOXICITY

Embryo-Fetal Toxicity: Exposure to BIZENGRI during pregnancy can cause embryo-fetal harm. Advise patients of this risk and the need for effective contraception.

WARNINGS AND PRECUATIONS

Infusion-Related Reactions/Hypersensitivity/Anaphylactic Reactions

BIZENGRI can cause serious and life-threatening infusion-related reactions (IRRs), hypersensitivity and anaphylactic reactions. Signs and symptoms of IRR may include chills, nausea, fever, and cough.

In the eNRGy study, 13% of patients experienced IRRs, all were Grade 1 or 2; 91% occurred during the first infusion.

Administer BIZENGRI in a setting with emergency resuscitation equipment and staff who are trained to monitor for IRRs and to administer emergency medications. Monitor patients closely for signs and symptoms of infusion reactions during infusion and for at least 1 hour following completion of first BIZENGRI infusion and as clinically indicated. Interrupt BIZENGRI infusion in patients with ≤ Grade 3 IRRs and administer symptomatic treatment as needed. Resume infusion at a reduced rate after resolution of symptoms. Immediately stop the infusion and permanently discontinue BIZENGRI for Grade 4 or life-threatening IRR or hypersensitivity/anaphylaxis reactions. 

Interstitial Lung Disease/Pneumonitis

BIZENGRI can cause serious and life-threatening interstitial lung disease (ILD)/pneumonitis.

In the eNRGy study, ILD/pneumonitis occurred in 2 (1.1%) patients treated with BIZENGRI. Grade 2 ILD/pneumonitis (Grade 2) resulting in permanent discontinuation of BIZENGRI occurred in 1 (0.6%) patient. Monitor for new or worsening pulmonary symptoms indicative of ILD/pneumonitis (e.g., dyspnea, cough, fever). Immediately withhold BIZENGRI in patients with suspected ILD/pneumonitis and administer corticosteroids as clinically indicated.

Permanently discontinue BIZENGRI if ILD/pneumonitis ≥ Grade 2 is confirmed. 

Left Ventricular Dysfunction

BIZENGRI can cause left ventricular dysfunction.

Left ventricular ejection fraction (LVEF) decrease has been observed with anti-HER2 therapies, including BIZENGRI. Treatment with BIZENGRI has not been studied in patients with a history of clinically significant cardiac disease or LVEF less than 50% prior to initiation of treatment.

In the eNRGy study, Grade 2 LVEF decrease (40%-50%; 10 – 19% drop from baseline) occurred in 2% of evaluable patients. Cardiac failure without LVEF decrease occurred in 1.7% of patients, including 1 (0.6%) fatal event.

Before initiating BIZENGRI, evaluate LVEF and monitor at regular intervals during treatment as clinically indicated. For LVEF of less than 45% or less than 50% with absolute decrease from baseline of 10% or greater which is confirmed, or in patients with symptomatic congestive heart failure (CHF), permanently discontinue BIZENGRI. 

Embryo-Fetal Toxicity

Based on its mechanism of action, BIZENGRI can cause fetal harm when administered to a pregnant woman. No animal reproduction studies were conducted with BIZENGRI. In post marketing reports, use of a HER2-directed antibody during pregnancy resulted in cases of oligohydramnios manifesting as fatal pulmonary hypoplasia, skeletal abnormalities, and neonatal death. In animal models, studies have demonstrated that inhibition of HER2 and/or HER3 results in impaired embryo-fetal development, including effects on cardiac, vascular and neuronal development, and embryolethality. Advise patients of the potential risk to a fetus. Verify the pregnancy status of females of reproductive potential prior to the initiation of BIZENGRI. Advise females of reproductive potential to use effective contraception during treatment with BIZENGRI and for 2 months after the last dose. 

ADVERSE REACTIONS

NRG1 Gene Fusion Positive Unresectable or Metastatic NSCLC

Serious adverse reactions occurred in 25% of patients with NRG1 gene fusion positive NSCLC who received BIZENGRI. Serious adverse reactions in ≥ 2% of patients included pneumonia (n=4) dyspnea and fatigue (n=2 each). Fatal adverse reactions occurred in 3 (3%) patients and included respiratory failure (n=2), and cardiac failure (n=1). Permanent discontinuation of BIZENGRI due to an adverse reaction occurred in 3% of patients. Adverse reactions resulting in permanent discontinuation of BIZENGRI included dyspnea, pneumonitis and sepsis (n=1 each).

In patients with NRG1 gene fusion positive NSCLC who received BIZENGRI, the most common (>20%) adverse reactions, including laboratory abnormalities, were decreased hemoglobin (35%), increased alanine aminotransferase (30%), decreased magnesium (28%), increased alkaline phosphatase (27), decreased phosphate (26%), diarrhea (25%), musculoskeletal pain (23%), increased gamma-glutamyl transpeptidase (23%), increased aspartate aminotransferase (22%), and decreased potassium (21%).

NRG1 Gene Fusion Positive Unresectable or Metastatic Pancreatic Adenocarcinoma

Serious adverse reactions occurred in 23% of patients with NRG1 gene fusion positive pancreatic adenocarcinoma who received BIZENGRI.

There were 2 fatal adverse reactions, one due to COVID-19 and one due to respiratory failure.

In patients with NRG1 gene fusion positive pancreatic adenocarcinoma who received BIZENGRI the most common (≥20%) adverse reactions, including laboratory abnormalities, were increased alanine aminotransferase (51%), diarrhea (36%), increased aspartate aminotransferase (31%), increased bilirubin (31%), decreased phosphate (31%), increased alkaline phosphatase (28%), decreased sodium (28%), musculoskeletal pain (28%), decreased albumin (26%), decreased potassium (26%), decreased platelets (26%), decreased magnesium (24%), increased gamma-glutamyl transpeptidase (23%), decreased hemoglobin (23%), vomiting (23%), nausea (23%), decreased leukocytes (21%), and fatigue (21%). 

Please see full Prescribing Information, including Boxed Warning

About Partner Therapeutics

Partner Therapeutics, Inc. (PTx), an integrated biotechnology company, focuses on development and commercialization of therapeutics to improve health outcomes in cancer and serious diseases, as well as global health security threats. The company believes in delivering products and supporting medical teams with the purpose of achieving superior outcomes for patients and their families. PTx’s portfolio includes zenocutuzumab-zbco (BIZENGRI®) and sargramostim (EU: IMREPLYS®; US: LEUKINE®; and with Nobelpharma Co. Ltd for JAPAN: SARGMALIN®). Visit www.partnertx.com.

References:

1. BIZENGRI (zenocutuzumab-zbco) injection [package insert]. Available at: https://www.bizengrihcp.com/pi
2. American Cancer Society (ACS). Key statistics about bile duct cancer. Last Revised: October 11, 2024. Accessed at https://www.cancer.org/cancer/types/bile-duct-cancer/about/key-statistics.html, on 25 Jul 2025.
3. Schram AM, Goto K, Kim DW, et al. Efficacy of zenocutuzumab in NRG1 fusion–positive cancer. N Engl J Med. 2025;392:566-76. doi: 10.1056/NEJMoa2405008
4. Valle J, Wasan H, Palmer DH, et al. Cisplatin plus gemcitabine versus gemcitabine for biliary tract cancer. N Engl J Med. 2010;362(14):1273-81. doi:10.1056/NEJMoa0908721
5. Oh DY, Ruth He A, Qin S, et al. Durvalumab plus gemcitabine and cisplatin in advanced biliary tract cancer. NEJM Evid. 2022;1(8):EVIDoa2200015. doi:10.1056/EVIDoa2200015
6. Kelley RK, Ueno M, Yoo C, et al. Pembrolizumab in combination with gemcitabine and cisplatin compared with gemcitabine and cisplatin alone for patients with advanced biliary tract cancer (KEYNOTE-966): a randomised, double-blind, placebo-controlled, phase 3 trial. Lancet.2023;401(10391):1853-65. doi:10.1016/s0140-6736(23)00727-4. Erratum in: Lancet. 2024 Mar 23;403(10432):1140. doi: 10.1016/S0140-6736(24)00545-2.

BIZENGRI^® is a registered trademark of Merus B.V. Under an agreement with Merus, PTx has exclusive rights to develop, manufacture, and commercialize zenocutuzumab-zbco for the treatment of NRG1+ cancer in the U.S. and provide the product on a named-patient basis for this use outside of the U.S. pending future regulatory developments.

PARTNER THERAPEUTICS^®, IMREPLYS^®, and LEUKINE^® are registered trademarks owned by Partner Therapeutics, Inc. ©2026 Partner Therapeutics, All rights reserved.

SOURCE Partner Therapeutics, Inc.

The price of bitcoin continued its monthslong slide Thursday, falling another 11% to $67,000, its lowest level in 15 months

The price of bitcoin continued its monthslong slide Thursday, falling another 11% to $67,000, its lowest level in 15 months.

The original cryptocurrency, pitched as “digital gold,” has lost 46% of its value since Oct. 6, when it hit a record high of $126,210.50, according to crypto trading platform Coinbase. As of 10:30 a.m. EST Thursday, its price had dipped to $67,245.

After the election of President Donald Trump in November of 2024, Bitcoin prices chugged higher for the better part of a year, in part due to investors’ expectations of a more crypto-friendly administration in Washington.

Companies that enable investors to buy and sell cryptocurrencies, as well as the growing number of companies who have made investing in bitcoin their main business focus, have also been hit hard in the recent sell-off.

Coinbase Global fell 9.1% and online trading platform Robinhood Markets lost 8.1%. Bitcoin mining company Riot Platforms dropped 10%.

Strategy, the biggest of the so-called crypto treasury companies that raises money just to buy bitcoin, tumbled 13%. The company, formerly called MicroStrategy, reports on its website holdings of 713,502 bitcoin. With the average purchase prices for those above $76,000, it means the company is under water on the investment. Thursday morning its bitcoin holdings were worth about $47.8 billion, less than the $54.3 billion Strategy says they cost.

American Bitcoin, in which Trump’s sons Eric Trump and Donald Trump Jr. hold a stake, fell 6.6% and is now down more than 80% since Oct. 7.

Other Trump-related crypto ventures have declined as well. The market value for the World Liberty Financial token, or $WLFI, has fallen to about $3.25 billion from above $6 billion in mid-September, according to coinmarketcap.com. And the price of a meme coin named for President Donald Trump, $TRUMP, is $3.93, a fraction of the $45 asking price just before his inauguration in January.

SAN FRANCISCO & LONDON, February 5, 2026 – Armada and Nscale have signed a letter of intent (LOI) to deliver both large-scale and edge AI infrastructure for public sector and enterprise customers worldwide. Nscale is a European-headquartered AI infrastructure builder bringing online some of the largest supercomputer clusters globally – with a full stack platform spanning power, data centers, compute, and software. San Francisco-based Armada delivers real-time distributed intelligence through its leading modular data centers (Galleons) and proprietary Armada Edge Platform (AEP). Together they can deliver sovereign solutions, both at scale and at the edge.

‍

This collaboration aims to bring full-stack edge AI technology offerings directly to multiple sites around the globe. With access to land and power at these sites, Armada and Nscale intend to deliver solutions that include modular data center infrastructure, GPU compute capacity, application software, and customer support to end customers in the private and public sectors.

‍

Nscale and Armada together combine rapidly deployable, turnkey infrastructure with large-scale sovereign cloud deployments, empowering customers to maintain sovereign compute environments anywhere in the world. Enterprises and governments can now establish secure, compliant AI infrastructure in locations where existing infrastructure doesn’t exist, and far faster than full data center builds.

‍

The solution enables a hub-and-spoke model. Large-scale data centers from Nscale provide superior unit economics and foundational capacity. Armada’s turnkey deployments, like Leviathan, its megawatt Galleon, extend sovereign capabilities to new geographies at the edge.

‍

“There is increasing demand from enterprises and governments for operational AI, and meeting that need requires infrastructure that is scalable, distributed, and ultimately sovereign,” said Josh Payne, Founder and CEO of Nscale. “By working with Armada, we will be able to offer customers a flexible foundation for deploying advanced AI workloads wherever they need to operate, without compromising performance, security, or control.”

‍

“As AI adoption accelerates, organizations need infrastructure that can reach beyond centralized clusters, on Earth and even beyond,” said Dan Wright, Co-Founder and CEO of Armada. “One of Armada’s key differentiators is that we enable sovereign AI, with speed and scale. Partnering with Nscale allows us to extend our modular AI infrastructure into new global markets, supporting customers who require sovereign, high-performance compute.”

‍

Together, Armada and Nscale intend to establish a repeatable model for deploying AI infrastructure globally. By uniting large-scale sovereign cloud services, modular compute, and distributed operations, this will enable organizations to accelerate AI adoption while maintaining security, compliance, and performance at scale.

‍

Notes to Editors

About Armada

Armada is a full-stack edge infrastructure company delivering compute, storage, connectivity, and AI/ML capabilities to the most remote and rugged industrial environments on Earth. From energy to defense, Armada enables organizations to operate at the edge — without compromise.

‍

Media Contact:

Armada: press@armada.com

‍

About Nscale

Nscale is building the global hyperscaler engineered for AI infrastructure. Through vertically integrated AI solutions and modular, first-principles data center design across Europe and North America, Nscale delivers the compute foundation for enterprise AI training, fine-tuning, and inference at scale.

‍

Media Contact:

Nscale: press@nscale.com

Atossa’s Rare Pediatric Disease Designation for (Z)-endoxifen in neuromuscular diseases qualifies for a future PRV upon FDA approval

SEATTLE, Feb. 5, 2026 /PRNewswire/ — Atossa Therapeutics, Inc. (Nasdaq: ATOS) (“Atossa” or the “Company”), a clinical-stage biopharmaceutical company developing novel therapies in oncology and other areas of high unmet clinical need, today reaffirmed its strong market position around its Duchenne Muscular Dystrophy (DMD) program following  yesterday’s congressional announcement that it had passed a five-year reauthorization of the Rare Pediatric Disease Priority Review Voucher (“PRV”) Program. The program extends the Company’s ability to be eligible to receive a future PRV upon the U.S. Food and Drug Administration’s (“FDA”) approval following the FDA granting Rare Pediatric Disease (“RPD”) designation to (Z)-endoxifen for the treatment of DMD late last year.

RPD designation is granted to drug candidates intended to treat serious or life-threatening diseases that primarily affect individuals from birth to 18 years of age. Upon approval of a qualifying marketing application, drugs with RPD designation may be eligible for a PRV, which can be used to obtain priority review for a future application or may be sold or transferred to another sponsor. In the last 18 months, disclosed PRV sales have ranged from $150–$200 million.

“The renewal of the PRV program represents an important signal from Congress that it understands the complexities and financial burden on the drug development industry. The program’s continuation, along with the RPD designation, underscores the validation of the science supporting the potential of (Z)-endoxifen as a treatment for Duchenne Muscular Dystrophy,” said Steven Quay, M.D., Ph.D., Atossa Therapeutics President and Chief Executive Officer. “DMD is one of the most devastating childhood diseases. Families urgently need better options beyond steroids and gene-targeted approaches. While oncology remains our core focus, this milestone highlights (Z)-endoxifen’s potential as a platform therapy in both cancer and rare diseases, opening the door to potential non-dilutive value creation through the Rare Pediatric Disease program.”

“The passage the PRV reauthorization is a win for all children with serious and rare diseases,” said Janet Rea, MSPH, Senior Vice President of Research and Development at Atossa. “We are very encouraged by emerging preclinical data with (Z)-endoxifen and its potential in DMD, and we look forward to advancing this program to the clinic for boys living with DMD. Unlike more recent therapeutic approaches, (Z)-endoxifen does not target specific exon defects, thus potentially offering a broader and more accessible treatment approach for this patient population. Having previously secured IND clearance for what is now the DMD treatment, EXONDYS 51® (eteplirsen), I am excited to further Atossa’s DMD (Z)-endoxifen program.”

About Rare Pediatric Disease Designation

The FDA’s Rare Pediatric Disease designation is reserved for serious or life-threatening diseases that primarily affect individuals from birth to 18 years old and that meet the definition of a rare disease or condition within the meaning of Section 526 of the Federal Food, Drug & Cosmetic Act (“FD&C Act”). Drugs granted RPD designation may be eligible for a PRV upon FDA approval of a qualifying New Drug Application or Biologics License Application, provided it meets all statutory criteria under Section 529(a)(4) of the FD&C Act. A PRV may be used by the sponsor or sold or transferred to another company.

About Duchenne Muscular Dystrophy

Duchenne Muscular Dystrophy is a rare, progressive, X-linked neuromuscular disorder caused by one or more mutation in the dystrophin gene. Symptoms typically emerge in early childhood and include progressive muscle weakness, loss of ambulation, respiratory compromise, and cardiomyopathy. DMD is uniformly fatal, often in early adulthood, and despite recent therapeutic advances, there remains a substantial unmet medical need for safe, effective, and accessible treatments.

About (Z)-Endoxifen

(Z)-endoxifen is a potent Selective Estrogen Receptor Modulator/Degrader (SERM/D) with demonstrated activity across multiple mechanisms of interest. Atossa is evaluating its potential applications in oncology and rare diseases. The Company’s proprietary oral formulation has shown a favorable safety profile and pharmacology distinct from tamoxifen, including ER-targeted effects and PKC inhibition. Atossa’s (Z)-endoxifen is not approved for any indication.

Atossa’s (Z)-endoxifen program is supported by a growing global intellectual property portfolio, including multiple recently issued U.S. patents and numerous pending applications worldwide.

About Atossa Therapeutics

Atossa Therapeutics, Inc. (Nasdaq: ATOS) is a clinical-stage biopharmaceutical company developing innovative medicines in oncology and other areas of significant unmet need. The Company’s lead product candidate, (Z)-endoxifen, is currently in development across several clinical settings. More information is available at https://atossatherapeutics.com.

Forward-Looking Statements

This press release contains certain “forward-looking statements” within the meaning of applicable securities laws, including but not limited to, our expectations regarding the Company’s development and regulatory strategy and related milestones, the potential indications that the Company may pursue for (Z)-endoxifen, the potential for (Z)-endoxifen to receive regulatory approval and the timing thereof, the potential extension of the RPD Priority Review Voucher program and the Company’s potential eligibility for and value of a future Priority Review Voucher, and the potential market and growth opportunities for the Company. Words such as “expect,” “potential,” “continue,” “may,” “will,” “should,” “could,” “would,” “seek,” “intend,” “plan,” “estimate,” “anticipate,” “believe,” “design,” “predict,” “future,” or other similar expressions or statements regarding intent, belief or current expectations, are forward-looking statements.

Forward-looking statements in this press release are subject to risks and uncertainties that may cause actual results, outcomes, or the timing of actual results or outcomes to differ materially from those projected or anticipated, including, without limitation, risks and uncertainties associated with: our ability to successfully execute our strategy to shorten our clinical development timelines and pursue a metastatic breast cancer indication, DMD indication or other indications for our lead program, (Z)-endoxifen; expected timing, completion and results of our preclinical studies, clinical trials and research and development programs; the unpredictable relationship between preclinical study results and clinical study results; the timing or likelihood of regulatory filings and approvals; the outcome or timing of necessary regulatory approvals; our ability to regain and maintain compliance with Nasdaq listing requirements; our ability to establish and maintain intellectual property rights covering our products; the impact of general macroeconomic conditions on our business; our ability to raise capital; and other risks and uncertainties detailed from time to time in Atossa’s filings with the SEC, including, without limitation, its Annual Reports on Form 10-K and Quarterly Reports on Form 10-Q.

The market value of a Priority Review Voucher is variable and subject to a number of factors beyond our control and reported past PRV sale amounts are not necessarily indicative of PRV sale amounts in the future.

Forward-looking statements are presented as of the date of this press release. Except as required by law, we do not intend to update any forward-looking statements.

SOURCE Atossa Therapeutics Inc

• Fourth quarter revenues of $8.5 billion; GAAP¹ Net Income of $593 million, or 6.9% of sales

• EBITDA² in the fourth quarter was 13.5% of sales; Diluted EPS of $4.27

• Fourth quarter results include $218 million, or $1.54 per diluted share, of charges related to the Electrolyzer business within Accelera, of which $175 million were non-cash charges

• Full-year 2025 revenues of $33.7 billion; GAAP Net Income of $2.8 billion, or 8.4% of sales

• EBITDA for full year 2025 was 16.0% of sales; Diluted EPS of $20.50

• Full-year 2025 results include $458 million, or $3.28 per diluted share, of charges related to the Electrolyzer business within Accelera, of which $415 million were non-cash charges

• Full-year 2026 revenues expected to increase 3% to 8%; EBITDA expected to range between 17.0% and 18.0% of sales

COLUMBUS, Ind.–(BUSINESS WIRE)–
Cummins Inc. (NYSE: CMI) today reported fourth quarter and full-year 2025 results.

“Cummins delivered strong operational results in the fourth quarter and full year despite continued weakness in North America truck markets. Our Distribution and Power Systems segments achieved record full-year sales and profitability as a result of disciplined execution and robust demand for data center backup power,” said Jennifer Rumsey, Chair and CEO of Cummins. “In the fourth quarter, we recorded charges related to our electrolyzer business within the Accelera segment, reflecting actions taken as part of a strategic review initiated in response to shifts in hydrogen adoption expectations. These decisions were aimed at streamlining operations and reducing ongoing costs in light of the weaker outlook for demand.”

“2025 marked a historic year for Cummins as we made significant progress in advancing key strategic priorities while continuing to raise performance cycle over cycle. I am tremendously proud of our employees for their resiliency and commitment to delivering for our customers amid persistent market uncertainty and change. Our disciplined cost management, diversified portfolio and effective execution allowed us to deliver strong results despite this challenging environment,” concluded Rumsey.

Fourth quarter 2025 revenues of $8.5 billion increased 1% from the same quarter in 2024. Sales in North America decreased 2% while international revenues increased 5%.

Net income attributable to Cummins in the fourth quarter was $593 million, or $4.27 per diluted share, compared to $418 million, or $3.02 per diluted share, in 2024. The current quarter results include charges related to the electrolyzer business within Accelera of $218 million, or $1.54 per diluted share. The fourth quarter of 2024 included Accelera reorganization actions of $312 million, or $2.14 per diluted share, which were primarily non-cash charges.

EBITDA in the fourth quarter was $1.2 billion, or 13.5% of sales, compared to $1.0 billion, or 12.1% of sales, a year ago. EBITDA for the fourth quarter of 2025 and the fourth quarter of 2024 included the charges noted above.

Full-year 2025 revenues of $33.7 billion decreased 1% from 2024. Sales in North America decreased 3% and international revenues increased 2% compared to 2024.

Net income for the full year 2025 was $2.8 billion, or $20.50 per diluted share, compared to $3.9 billion, or $28.37 per diluted share, in 2024. 2025 results included charges related to the electrolyzer business within Accelera of $458 million, or $3.28 per diluted share. 2024 results included the gain related to the separation of Atmus, net of transaction costs and other expenses, of $1.3 billion, or $9.28 per diluted share; charges related to Accelera reorganization actions of $312 million, or $2.12 per diluted share; and first quarter restructuring expenses of $29 million, or $0.16 per diluted share.

EBITDA in 2025 was $5.4 billion, or 16.0% of sales, compared to $6.3 billion, or 18.6% of sales, a year ago. EBITDA for 2025 and 2024 included the gains and charges noted above.

2026 Outlook:

Based on its current forecast, Cummins projects full-year 2026 revenue to be in the range of up 3% to 8%, and EBITDA to be in the range of 17.0% and 18.0% of sales.

Cummins plans to continue generating strong operating cash flow and returns for shareholders and is committed to our long-term strategic goal of returning 50% of operating cash flow back to shareholders.

“In 2026, we anticipate that demand will be slightly better in the North America on-highway truck markets, particularly in the second half of the year, paired with continued strength in data center power generation markets. Cummins remains well-positioned to invest in future growth, deliver strong financial results and return cash to shareholders in 2026,” said Rumsey.

2025 Highlights:

• Cummins increased its common stock cash dividend for the 16th straight year and returned a total of $1,055 million to shareholders through dividends.

• Cummins introduced the much-anticipated B7.2 and X10 engines as part of our Cummins HELM™ platforms. Alongside the X15, the X10 and B7.2 provide customers with a power solution to meet their unique operational requirements while maintaining the performance and reliability for which Cummins is known. The B7.2 will feature a slightly higher displacement and is designed to be a global platform that creates flexibility for different applications and duty cycles. The X10 will replace both the L9 and X12 engine platforms to deliver a new level of performance, durability and efficiency for heavy and medium-duty customers. Both engines will be manufactured at Rocky Mount Engine Plant in North Carolina.

• In February, Cummins announced the acquisition of assets of First Mode, a leader in retrofit hybrid solutions for mining and rail operations. The acquisition included hybrid mining and rail product lines, and the full IP portfolio of hybrid powertrain solutions. This technology represents the first commercially available retrofit hybrid system for mining equipment, significantly reducing total cost of ownership (TCO) while advancing decarbonization in operations.

• Jennifer Rumsey was named one of Barron’s Top CEOs of 2025. Jennifer was recognized for her visionary leadership and commitment to innovation and sustainability. The annual list features 26 leaders whose deft guidance has put their companies in a stronger competitive position.

• Cummins received several prestigious honors in 2025 recognizing the company’s commitment to its people, culture and innovation. Of note, Forbes named Cummins one of America’s Best Employers for Company Culture and one of America’s best Employers for Engineers. Military Friendly® recognized the company as a Top Military-Friendly Employer, and Cummins was named a Best Place to Work for Disability Inclusion for the fifth consecutive year with a score of 100 on the Disability Equality Index®. Additionally, Cummins earned the Gold Bell Seal for Workplace Mental Health, received a Platinum Hermes Creative Award for its “It’s OK” campaign, and was recognized for product and technical excellence with a Gold Product of the Year Award for the Centum™ Series generators and Powertrain Magazine’s Alternative Engine of the Year Award for the next-generation X15 Off-Highway engine.

1 Generally Accepted Accounting Principles in the U.S.

2 Earnings or losses before interest expense, income taxes, depreciation and amortization and noncontrolling interests

Fourth quarter 2025 detail (all comparisons to same period in 2024):

Engine Segment

• Sales – $2.6 billion, down 4%

• Segment EBITDA – $263 million, or 10.1% of sales, compared to $367 million, or 13.5% of sales

• Revenues decreased 5% in North America and 4% in international markets due to lower medium-duty and heavy-duty truck demand in the United States and Mexico.

Components Segment

• Sales – $2.4 billion, down 7%

• Segment EBITDA – $327 million, or 13.4% of sales, compared to $361 million, or 13.7% of sales

• Revenues in North America decreased 15% and international sales increased 4% primarily due to lower medium-duty and heavy-duty truck demand in the United States and stronger demand in Europe and China.

Distribution Segment

• Sales – $3.3 billion, up 7%

• Segment EBITDA – $495 million, or 15.1% of sales, compared to $400 million, or 13.0% of sales

• Revenues in North America increased 10% and international sales increased 2% driven by increased demand for power generation products, particularly for data center applications.

Power Systems Segment

• Sales – $1.9 billion, up 11%

• Segment EBITDA – $418 million, or 21.7% of sales, compared to $314 million, or 18.0% of sales

• Revenues in North America increased 15% and international sales increased 8% driven primarily by increased power generation demand, particularly for data center markets in North America, China and Asia Pacific.

Accelera Segment

• Sales – $131 million, up 31%

• Segment EBITDA loss – $374 million, which includes $218 million of charges related to the electrolyzer business within Accelera.

• Revenues increased due to electrolyzer installation timing. The company remains committed to pacing and focusing its zero-emissions investments on the most promising paths in order to ensure long-term success as part of Cummins’ Destination Zero strategy. These continued investments contributed to the EBITDA losses.

About Cummins Inc.

Cummins Inc., a global power leader, is committed to powering a more prosperous world. Since 1919, we have delivered innovative solutions that move people, goods and economies forward. Our five business segments—Engine, Components, Distribution, Power Systems and Accelera™ by Cummins—offer a broad portfolio, including advanced diesel, alternative fuel, electric and hybrid powertrains; integrated power generation systems; critical components such as aftertreatment, turbochargers, fuel systems, controls, transmissions, axles and brakes; and zero-emissions technologies like battery and electric powertrain systems. With a global footprint, deep technical expertise and an extensive service network, we deliver dependable, cutting-edge solutions tailored to our customers’ needs, supporting them through the energy transition with our Destination Zero strategy. We create value for customers, investors and employees and strengthen communities through our corporate responsibility global priorities: education, equity and environment. Headquartered in Columbus, Indiana, Cummins employs approximately 70,000 people worldwide and earned $3.9 billion on $34.1 billion in sales in 2024. Learn more at www.cummins.com.

Forward-looking disclosure statement

Information provided in this release that is not purely historical are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, including statements regarding our forecasts, guidance, preliminary results, expectations, hopes, beliefs and intentions on strategies regarding the future. These forward-looking statements include, without limitation, statements relating to our plans and expectations for our revenues and EBITDA. Our actual future results could differ materially from those projected in such forward-looking statements because of a number of factors, including, but not limited to: any adverse consequences from changes in tariffs and other trade disruptions; any adverse consequences resulting from entering into agreements with the U.S. Environmental Protection Agency, California Air Resources Board, the Environmental and Natural Resources Division of the U.S. Department of Justice and the California Attorney General’s Office to resolve certain regulatory civil claims regarding our emissions certification and compliance process for certain engines primarily used in pick-up truck applications in the U.S., which became final and effective in April 2024, including required additional mitigation projects; adverse reputational impacts and potential resulting legal actions, increased scrutiny from regulatory agencies, as well as unpredictability in the adoption, implementation and enforcement of emission standards around the world; evolving environmental and climate change legislation and regulatory initiatives; changes in international, national and regional trade laws, regulations and policies; changes in taxation; global legal and ethical compliance costs and risks; future bans or limitations on the use of diesel-powered products; raw material, transportation and labor price fluctuations and supply shortages; aligning our capacity and production with our demand; the actions of, and income from, joint ventures and other investees that we do not directly control; large truck manufacturers’ and original equipment manufacturers’ customers discontinuing outsourcing their engine supply needs or experiencing financial distress, or change in control; product recalls; variability in material and commodity costs; the development of new technologies that reduce demand for our current products and services; lower than expected acceptance of new or existing products or services; product liability claims; our sales mix of products; climate change, global warming, more stringent climate change regulations, accords, mitigation efforts, greenhouse gas regulations or other legislation designed to address climate change; our plan to reposition our portfolio of product offerings through exploration of strategic acquisitions, divestitures or exiting the production of certain product lines or product categories and related uncertainties of such decisions; increasing interest rates; challenging markets for talent and ability to attract, develop and retain key personnel; exposure to potential security breaches or other disruptions to our information technology (IT) environment and data security; the use of artificial intelligence in our business and in our products and challenges with properly managing its use; political, economic and other risks from operations in numerous countries including political, economic and social uncertainty and the evolving globalization of our business; competitor activity; increasing competition, including increased global competition among our customers in emerging markets; failure to meet sustainability expectations or standards, or achieve our sustainability goals; labor relations or work stoppages; foreign currency exchange rate changes; the performance of our pension plan assets and volatility of discount rates; the price and availability of energy; continued availability of financing, financial instruments and financial resources in the amounts, at the times and on the terms required to support our future business; and other risks detailed from time to time in our SEC filings, including particularly in the Risk Factors section of our 2024 Annual Report on Form 10-K and Quarterly Reports on Form 10-Q. Shareholders, potential investors and other readers are urged to consider these factors carefully in evaluating the forward-looking statements and are cautioned not to place undue reliance on such forward-looking statements. The forward-looking statements made herein are made only as of the date of this release and we undertake no obligation to publicly update any forward-looking statements, whether as a result of new information, future events or otherwise. More detailed information about factors that may affect our performance may be found in our filings with the SEC, which are available at https://www.sec.gov or at https://www.cummins.com in the Investor Relations section of our website.

Presentation of Non-GAAP Financial Information

EBITDA is a non-GAAP measure used in this release and is defined and reconciled to what management believes to be the most comparable GAAP measure in a schedule attached to this release, except for forward-looking measures of EBITDA where a reconciliation to the corresponding GAAP measures is not available due to the variability, complexity and limited visibility of the non-cash items that are excluded from the non-GAAP outlook measure. Cummins presents this information as it believes it is useful to understanding the Company’s operating performance, and because EBITDA is a measure used internally to assess the performance of the operating units.

Webcast information

Cummins management will host a teleconference to discuss these results today at 10 a.m. EDT. This teleconference will be webcast and available on the Investor Relations section of the Cummins website at www.cummins.com. Participants wishing to view the visuals available with the audio are encouraged to sign-in a few minutes prior to the start of the teleconference.

CUMMINS INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF NET INCOME (Unaudited) (a)
		Three months ended
		December 31,
In millions, except per share amounts			2025				2024
NET SALES		$	8,536			$	8,447
Cost of sales			6,585				6,413
GROSS MARGIN			1,951				2,034
OPERATING EXPENSES AND INCOME
Selling, general and administrative expenses			786				801
Research, development and engineering expenses			350				356
Equity, royalty and interest income from investees			116				70
Other operating expense, net			118				215
OPERATING INCOME			813				732
Interest expense			82				89
Other income, net			60				19
INCOME BEFORE INCOME TAXES			791				662
Income tax expense			171				217
CONSOLIDATED NET INCOME			620				445
Less: Net income attributable to noncontrolling interests			27				27
NET INCOME ATTRIBUTABLE TO CUMMINS INC.		$	593			$	418
EARNINGS PER COMMON SHARE ATTRIBUTABLE TO CUMMINS INC.
Basic		$	4.29			$	3.04
Diluted		$	4.27			$	3.02
WEIGHTED-AVERAGE COMMON SHARES OUTSTANDING
Basic			138.2				137.4
Diluted			139.0				138.4
(a) Prepared on an unaudited basis in accordance with accounting principles generally accepted in the United States of America.

CUMMINS INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF NET INCOME (Unaudited) (a)
		Years ended December 31,
In millions, except per share amounts			2025				2024
NET SALES		$	33,670			$	34,102
Cost of sales			25,154				25,663
GROSS MARGIN			8,516				8,439
OPERATING EXPENSES AND INCOME
Selling, general and administrative expenses			3,125				3,275
Research, development and engineering expenses			1,396				1,463
Equity, royalty and interest income from investees			469				395
Other operating expense, net			439				346
OPERATING INCOME			4,025				3,750
Interest expense			329				370
Other income, net			267				1,523
INCOME BEFORE INCOME TAXES			3,963				4,903
Income tax expense			1,006				835
CONSOLIDATED NET INCOME			2,957				4,068
Less: Net income attributable to noncontrolling interests			114				122
NET INCOME ATTRIBUTABLE TO CUMMINS INC.		$	2,843			$	3,946
EARNINGS PER COMMON SHARE ATTRIBUTABLE TO CUMMINS INC.
Basic		$	20.62			$	28.55
Diluted		$	20.50			$	28.37
WEIGHTED-AVERAGE COMMON SHARES OUTSTANDING
Basic			137.9				138.2
Diluted			138.7				139.1
(a) Prepared on an unaudited basis in accordance with accounting principles generally accepted in the United States of America.

CUMMINS INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) (a)
		December 31,
In millions, except par value			2025				2024
ASSETS
Current assets
Cash and cash equivalents		$	2,845			$	1,671
Marketable securities			764				593
Total cash, cash equivalents and marketable securities			3,609				2,264
Accounts and notes receivable, net			5,818				5,181
Inventories			5,822				5,742
Prepaid expenses and other current assets			1,676				1,565
Total current assets			16,925				14,752
Long-term assets
Property, plant and equipment, net			6,958				6,356
Investments and advances related to equity method investees			2,133				1,889
Goodwill			2,224				2,370
Other intangible assets, net			2,167				2,351
Pension assets			1,033				1,189
Other assets			2,552				2,633
Total assets		$	33,992			$	31,540
LIABILITIES
Current liabilities
Accounts payable (principally trade)		$	3,800			$	3,951
Loans payable			313				356
Commercial paper			353				1,259
Current maturities of long-term debt			94				660
Accrued compensation, benefits and retirement costs			825				1,084
Current portion of accrued product warranty			693				679
Current portion of deferred revenue			1,606				1,347
Other accrued expenses			1,926				1,898
Total current liabilities			9,610				11,234
Long-term liabilities
Long-term debt			6,792				4,784
Deferred revenue			1,054				1,065
Other liabilities			3,128				3,149
Total liabilities		$	20,584			$	20,232
EQUITY
Cummins Inc. shareholders’ equity
Common stock, $2.50 par value, 500 shares authorized, 222.5 and 222.5 shares issued		$	2,673			$	2,636
Retained earnings			22,616				20,828
Treasury stock, at cost, 84.4 and 85.1 shares			(10,662	)			(10,748	)
Accumulated other comprehensive loss			(2,278	)			(2,445	)
Total Cummins Inc. shareholders’ equity			12,349				10,271
Noncontrolling interests			1,059				1,037
Total equity		$	13,408			$	11,308
Total liabilities and equity		$	33,992			$	31,540
(a) Prepared on an unaudited basis in accordance with accounting principles generally accepted in the United States of America.

CUMMINS INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) (a)
		Three months ended
		December 31,
In millions			2025				2024
NET CASH PROVIDED BY OPERATING ACTIVITIES		$	1,534			$	1,422
CASH FLOWS FROM INVESTING ACTIVITIES
Capital expenditures			(544	)			(540	)
Investments in and net advances to equity investees			(133	)			(81	)
Investments in marketable securities—acquisitions			(494	)			(438	)
Investments in marketable securities—liquidations			319				347
Other, net			(33	)			(1	)
Net cash used in investing activities			(885	)			(713	)
CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds from borrowings			103				97
Net borrowings of commercial paper			—				(377	)
Payments on borrowings and finance lease obligations			(148	)			(182	)
Dividend payments on common stock			(277	)			(250	)
Payments for purchase of redeemable noncontrolling interests			(55	)			(50	)
Other, net			8				25
Net cash used in financing activities			(369	)			(737	)
EFFECT OF EXCHANGE RATE CHANGES ON CASH AND CASH EQUIVALENTS			(1	)			(34	)
Net increase (decrease) in cash and cash equivalents			279				(62	)
Cash and cash equivalents at beginning of period			2,566				1,733
CASH AND CASH EQUIVALENTS AT END OF PERIOD		$	2,845			$	1,671
(a) Prepared on an unaudited basis in accordance with accounting principles generally accepted in the United States of America.

CUMMINS INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) (a)
		Years ended December 31,
In millions			2025				2024
NET CASH PROVIDED BY OPERATING ACTIVITIES		$	3,621			$	1,487
CASH FLOWS FROM INVESTING ACTIVITIES
Capital expenditures			(1,235	)			(1,208	)
Investments in and net advances to equity investees			(196	)			(214	)
Acquisition of businesses, net of cash acquired			(12	)			(58	)
Investments in marketable securities—acquisitions			(1,627	)			(1,500	)
Investments in marketable securities—liquidations			1,450				1,460
Cash associated with Atmus divestiture			—				(174	)
Other, net			(111	)			(88	)
Net cash used in investing activities			(1,731	)			(1,782	)
CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds from borrowings			2,335				2,720
Net payments of commercial paper			(906	)			(237	)
Payments on borrowings and finance lease obligations			(975	)			(1,568	)
Dividend payments on common stock			(1,055	)			(969	)
Payments for purchase of redeemable noncontrolling interests			(110	)			(50	)
Other, net			(61	)			(69	)
Net cash used in financing activities			(772	)			(173	)
EFFECT OF EXCHANGE RATE CHANGES ON CASH AND CASH EQUIVALENTS			56				(40	)
Net increase (decrease) in cash and cash equivalents			1,174				(508	)
Cash and cash equivalents at beginning of year			1,671				2,179
CASH AND CASH EQUIVALENTS AT END OF PERIOD		$	2,845			$	1,671
(a) Prepared on an unaudited basis in accordance with accounting principles generally accepted in the United States of America.

CUMMINS INC. AND SUBSIDIARIES SEGMENT INFORMATION (Unaudited)
In millions		Engine				Components				Distribution				Power Systems				Accelera				Total Segments				Intersegment Eliminations (1)				Total
Three months ended December 31, 2025
External sales		$	1,980			$	2,092			$	3,280			$	1,062			$	122			$	8,536			$	—			$	8,536
Intersegment sales			620				353				5				867				9				1,854				(1,854	)			—
Total sales			2,600				2,445				3,285				1,929				131				10,390				(1,854	)			8,536
Research, development and engineering expenses			159				58				11				65				57		(2)		350				—				350
Equity, royalty and interest income (loss) from investees			67				7				28				27				(13	)			116				—				116
EBITDA (3)			263				327				495				418				(374	)	(2)		1,129				22				1,151
Depreciation and amortization (4)			70				125				33				36				14				278				—				278
EBITDA as a percentage of segment sales			10.1	%			13.4	%			15.1	%			21.7	%			NM				10.9	%							13.5	%
Three months ended December 31, 2024
External sales		$	2,064			$	2,247			$	3,060			$	992			$	84			$	8,447			$	—			$	8,447
Intersegment sales			656				394				8				751				16				1,825				(1,825	)			—
Total sales			2,720				2,641				3,068				1,743				100				10,272				(1,825	)			8,447
Research, development and engineering expenses			148				78				14				56				60		(5)		356				—				356
Equity, royalty and interest income (loss) from investees			54				13				17				14				(28	)	(5)		70				—				70
EBITDA (3)			367				361				400				314				(431	)	(5)		1,011				9				1,020
Depreciation and amortization (4)			64				126				31				32				16				269				—				269
EBITDA as a percentage of segment sales			13.5	%			13.7	%			13.0	%			18.0	%			NM				9.8	%							12.1	%
“NM” – not meaningful information
(1) Included intersegment sales, intersegment profit in inventory and unallocated corporate expenses. There were no significant unallocated corporate expenses for the three months ended December 31, 2025 and 2024.
(2) Included $7 million of charges in research, development and engineering expenses and $218 million of charges in EBITDA, related to Accelera actions in the fourth quarter of 2025. See footnote below for additional information.
(3) EBITDA is defined as earnings or losses before interest expense, income taxes, depreciation and amortization and noncontrolling interests. We believe EBITDA is a useful measure of our operating performance as it assists investors and debt holders in comparing our performance on a consistent basis without regard to financing methods, capital structure, income taxes or depreciation and amortization methods, which can vary significantly depending upon many factors.
(4) Depreciation and amortization, as shown on a segment basis, excludes the amortization of debt discount and deferred costs included in our Condensed Consolidated Statements of Net Income as interest expense. A portion of depreciation expense is included in research, development and engineering expenses.
(5) Included $2 million of charges in research and development expenses, $17 million of charges in equity, royalty and interest income (loss) from investees and $312 million of charges in EBITDA, all related to Accelera actions in the fourth quarter of 2024.

CUMMINS INC. AND SUBSIDIARIES SEGMENT INFORMATION (Unaudited)
In millions		Engine				Components				Distribution				Power Systems				Accelera				Total Segments				Intersegment Eliminations (1)				Total
Year ended December 31, 2025
External sales		$	8,104			$	8,643			$	12,386			$	4,114			$	423			$	33,670			$	—			$	33,670
Intersegment sales			2,771				1,506				19				3,349				37				7,682				(7,682	)			—
Total sales			10,875				10,149				12,405				7,463				460				41,352				(7,682	)			33,670
Research, development and engineering expenses			624				280				53				253				186		(2)		1,396				—				1,396
Equity, royalty and interest income (loss) from investees			254				31				105				109				(30	)			469				—				469
EBITDA (3)			1,382				1,398				1,808				1,694				(896	)	(2)		5,386				(1	)			5,385
Depreciation and amortization (4)			276				496				129				140				52				1,093				—				1,093
EBITDA as a percentage of total sales			12.7	%			13.8	%			14.6	%			22.7	%			NM				13.0	%							16.0	%
Year ended December 31, 2024
External sales		$	8,987			$	9,894			$	11,352			$	3,500			$	369			$	34,102			$	—			$	34,102
Intersegment sales			2,725				1,785				32				2,908				45				7,495				(7,495	)			—
Total sales			11,712				11,679				11,384				6,408				414				41,597				(7,495	)			34,102
Research, development and engineering expenses			616				328				55				236				226		(5)		1,461				2				1,463
Equity, royalty and interest income (loss) from investees			212				64				90				79				(50	)	(5)		395				—				395
EBITDA (3)			1,653				1,591		(6)		1,378				1,180				(764	)	(5)		5,038				1,288				6,326
Depreciation and amortization (4)			245				493				123				131				61				1,053				—				1,053
EBITDA as a percentage of total sales			14.1	%			13.6	%			12.1	%			18.4	%			NM				12.1	%							18.6	%
“NM” – not meaningful information
(1) Included intersegment sales, intersegment profit in inventory and unallocated corporate expenses. There were no significant unallocated corporate expenses for the twelve months ended December 31, 2025. The twelve months ended December 31, 2024, included a $1.3 billion gain related to the divestiture of Atmus Filtration Technologies Inc. (Atmus) and $14 million of costs associated with the divestiture of Atmus.
(2) Included $7 million of charges in research, development and engineering expenses and $458 million of charges in EBITDA, related to Accelera actions in the second half of 2025. See footnote below for additional information.
(3) EBITDA is defined as earnings or losses before interest expense, income taxes, depreciation and amortization and noncontrolling interests. We believe EBITDA is a useful measure of our operating performance as it assists investors and debt holders in comparing our performance on a consistent basis without regard to financing methods, capital structure, income taxes or depreciation and amortization methods, which can vary significantly depending upon many factors.
(4) Depreciation and amortization, as shown on a segment basis, excluded the amortization of debt discount and deferred costs included in the Condensed Consolidated Statements of Net Income as interest expense. The amortization of debt discount and deferred costs was $12 million and $12 million for the year ended December 31, 2025 and 2024, respectively. A portion of depreciation expense is included in research, development and engineering expenses.
(5) Included $2 million of charges in research and development expenses, $17 million of charges in equity, royalty and interest income (loss) from investees and $312 million of charges in EBITDA, all related to Accelera strategic reorganization actions in the fourth quarter of 2024. See footnote below for additional information.
(6) Included $21 million of costs associated with the divestiture of Atmus for the twelve months ended December 31, 2024.

CUMMINS INC. AND SUBSIDIARIES

SELECT FOOTNOTE DATA

(Unaudited)

EQUITY, ROYALTY AND INTEREST INCOME FROM INVESTEES

Equity, royalty and interest income from investees included in our Condensed Consolidated Statements of Net Income for the reporting periods was as follows:

		Three months ended December 31,								Years ended December 31,
In millions			2025				2024				2025				2024
Manufacturing entities
Chongqing Cummins Engine Company, Ltd.		$	21			$	9			$	89			$	60
Dongfeng Cummins Engine Company, Ltd.			18				15				70				66
Beijing Foton Cummins Engine Co., Ltd.			17				13				64				42
Tata Cummins, Ltd.			10				9				33				31
All other manufacturers			2				(16	)	(1)		29				25		(1)
Distribution entities
Komatsu Cummins Chile, Ltda.			13				13				54				55
All other distributors			8				7				25				17
Cummins share of net income			89				50				364				296
Royalty and interest income			27				20				105				99
Equity, royalty and interest income from investees		$	116			$	70			$	469			$	395
(1) Included $17 million of charges in equity, royalty and interest income (loss) from investees related to the Accelera strategic reorganization actions in the fourth quarter of 2024.

ACCELERA ACTIONS

During the third quarter of 2025, in our Accelera segment, we observed rapidly deteriorating conditions in our electrolyzer markets and overall hydrogen markets, along with significant uncertainty in the alternative power markets resulting from reductions in government incentives. As a result, we determined that a triggering event occurred for our electrolyzer reporting unit, warranting an interim impairment test of goodwill and the related asset group. We also re-evaluated the recoverability of certain inventory in this business due to the declining customer demand, resulting in a $30 million excess and obsolete inventory write-down. We concluded that the undiscounted cash flows exceeded the carrying value of the related asset group and thus an impairment did not exist for the related long-lived assets. However, we determined that on a fair value basis our goodwill was fully impaired and recorded a charge of $210 million. The fair value of this reporting unit was determined using primarily a discounted cash flow model (a form of the income approach). This model incorporated a number of assumptions and judgements surrounding current market and economic conditions, internal forecasts of future business performance including short and long-term growth rates, earnings or losses before interest expense, income taxes, depreciation and amortization and noncontrolling interests (EBITDA) margins and discount rates.

The continuing deterioration in the electrolyzer markets in the fourth quarter of 2025, prompted a strategic review of this business. As a result of these market conditions and the current business outlook, we intend to stop new commercial activity in the electrolyzer space, subject to information and consultation in accordance with local legal requirements. We will continue to fulfill existing customer commitments. As a result of this shift, we recorded several non-cash charges in the fourth quarter related to inventory write-downs along with intangible and fixed asset impairments. We also recorded severance of approximately $13 million and contract termination costs of $34 million. Total charges for the fourth quarter actions were $218 million, or $1.54 per diluted share.

The following table presents the impact of these actions on our Condensed Consolidated Statements of Net Income:

		Year ended
In millions		December 31, 2025				Statement of Net Income Location
Impairment of goodwill		$	210			Other operating expense, net
Inventory write-downs			119			Cost of sales
Impairment of property, plant and equipment and leases			55			Other operating expense, net
Contract termination costs			34			Cost of sales
Impairment of other intangible assets			27			Other operating expense, net
Severance			13			Cost of sales, selling, general and administrative expenses and research, development and engineering expenses
Total		$	458

The majority of the $458 million is reflected in net cash provided by operating activities, as a change in inventory of $119 million and other, net of $292 million. Of the $458 million, $415 million were non-cash charges and the majority of the remaining $43 million cash charge will be paid during 2026. Of the total charges, approximately $445 million occurred in jurisdictions where we receive no tax benefits because of valuation allowances or the charges are attributable to nondeductible goodwill.

INCOME TAXES

On July 4, 2025, The Act was signed into law, enacting significant changes to U.S. federal income tax rules affecting corporations, such as the ability to immediately deduct domestic research and development costs, restoration of elective 100 percent bonus depreciation for qualified property and changes to the international tax provisions. Implementation of The Act resulted in an increase to tax expense of $39 million in the second half of 2025, primarily due to a reduction in the foreign income deduction and changes to the research and development tax credit. Additionally, certain provisions of The Act resulted in lower U.S. tax-related cash payments in 2025 and should result in lower U.S. tax-related payments for the next several fiscal years.

Our effective tax rate for 2026, excluding discrete items, is expected to approximate 24.0 percent.

Our effective tax rates for the three and twelve months ended December 31, 2025, were 21.6 percent and 25.4 percent, respectively. Our effective tax rates for the three and twelve months ended December 31, 2024, were 32.8 percent and 17.0 percent, respectively.

The three months ended December 31, 2025, contained net favorable discrete tax items of $69 million, or $0.50 per diluted share, primarily due to $39 million of favorable return to provision adjustments, $21 million of favorable adjustments for uncertain tax positions, $3 million of favorable adjustments for share-based compensation and $6 million of other favorable tax items.

The year ended December 31, 2025, contained net favorable discrete tax items of $75 million, or $0.54, per diluted share, primarily due to $51 million of favorable adjustments for uncertain tax positions and $15 million of favorable adjustments for share-based compensation, $7 million of favorable return to provision adjustments and $2 million of other favorable adjustments.

The three months ended December 31, 2024, contained net unfavorable discrete tax items of $7 million, or $0.05 per diluted share, primarily due to $50 million of unfavorable adjustments related to Accelera strategic reorganization actions, partially offset by $34 million of favorable return to provision adjustments and net $9 million of other favorable adjustments.

The year ended December 31, 2024, contained net favorable discrete tax items primarily due to the $1.3 billion non-taxable gain on the Atmus split-off. Other discrete tax items were net favorable by $59 million, or $0.42 per diluted share, primarily due to $52 million of favorable return to provision adjustments, $22 million of favorable share-based compensation tax benefits, $21 million of favorable adjustments related to audit settlements and $20 million of favorable adjustments from tax return amendments, partially offset by $50 million of unfavorable adjustments related to Accelera strategic reorganization actions and a net $6 million of other unfavorable adjustments.

Reconciliation of Non GAAP measures – Earnings before interest, income taxes, depreciation and amortization and noncontrolling interests (EBITDA)

We believe EBITDA is a useful measure of our operating performance as it assists investors and debt holders in comparing our performance on a consistent basis without regard to financing methods, capital structure, income taxes or depreciation and amortization methods, which can vary significantly depending upon many factors. We believe EBITDA excluding special items, as noted in the table below, is a useful measure of our operating performance. This statement excludes forward looking measures of EBITDA where a reconciliation to the corresponding accounting principles generally accepted in the United States (GAAP) measures is not available due to the variability, complexity and limited visibility of non-cash items that are excluded from the non-GAAP outlook measure.

EBITDA is not in accordance with, or an alternative for, GAAP and may not be consistent with measures used by other companies. It should be considered supplemental data; however, the amounts included in the EBITDA calculation are derived from amounts included in our Condensed Consolidated Statements of Net Income. Below is a reconciliation of net income attributable to Cummins Inc. to EBITDA for each of the applicable periods:

		Three months ended December 31,								Years ended December 31,
In millions			2025				2024				2025				2024
Net income attributable to Cummins Inc.		$	593			$	418			$	2,843			$	3,946
Net income attributable to Cummins Inc., as a percentage of net sales			6.9	%			4.9	%			8.4	%			11.6	%
Add:
Net income attributable to noncontrolling interests			27				27				114				122
Consolidated net income			620				445				2,957				4,068
Add:
Interest expense			82				89				329				370
Income tax expense			171				217				1,006				835
Depreciation and amortization			278				269				1,093				1,053
EBITDA		$	1,151			$	1,020			$	5,385			$	6,326
EBITDA, as a percentage of net sales			13.5	%			12.1	%			16.0	%			18.6	%
Special items:
Accelera actions			218				312				458				312
Atmus divestiture costs			—				—				—				35
Restructuring actions			—				—				—				29
Gain related to the divestiture of Atmus			—				—				—				(1,333	)
EBITDA, excluding special items		$	1,369			$	1,332			$	5,843			$	5,369
EBITDA, excluding special items, as a percentage of net sales			16.0	%			15.8	%			17.4	%			15.7	%

CUMMINS INC. AND SUBSIDIARIES

SEGMENT SALES DATA

(Unaudited)

Engine Segment Sales by Market and Unit Shipments by Engine Classification

Sales for our Engine segment by market were as follows:

2025
In millions		Q1				Q2				Q3				Q4				YTD
Heavy-duty truck		$	921			$	976			$	772			$	820			$	3,489
Medium-duty truck and bus			986				950				784				893				3,613
Light-duty automotive			421				486				583				440				1,930
Off-highway			443				487				466				447				1,843
Total sales		$	2,771			$	2,899			$	2,605			$	2,600			$	10,875
2024
In millions		Q1				Q2				Q3				Q4				YTD
Heavy-duty truck		$	1,059			$	1,184			$	1,021			$	980			$	4,244
Medium-duty truck and bus			995				1,074				1,073				1,024				4,166
Light-duty automotive			438				461				395				301				1,595
Off-highway			436				432				424				415				1,707
Total sales		$	2,928			$	3,151			$	2,913			$	2,720			$	11,712

Unit shipments by engine classification (including unit shipments to Power Systems and off-highway engine units included in their respective classification) were as follows:

2025
Units (1)		Q1			Q2			Q3			Q4			YTD
Heavy-duty		26,700			29,600			22,400			23,200			101,900
Medium-duty		75,200			73,400			63,100			68,800			280,500
Light-duty		39,100			44,000			49,600			39,100			171,800
Total units		141,000			147,000			135,100			131,100			554,200
2024
Units (1)		Q1			Q2			Q3			Q4			YTD
Heavy-duty		33,600			37,500			32,400			29,400			132,900
Medium-duty		75,800			79,600			79,200			75,700			310,300
Light-duty		54,800			57,200			41,400			36,000			189,400
Total units		164,200			174,300			153,000			141,100			632,600
(1) Unit shipments exclude aftermarket parts.

Components Segment Sales by Business

Sales for our Components segment by business were as follows:

2025
In millions		Q1				Q2				Q3				Q4				YTD
Drivetrain and braking systems		$	1,056			$	1,095			$	917			$	918			$	3,986
Emission solutions			902				900				788				867				3,457
Components and software			595				587				537				564				2,283
Automated transmissions			117				123				87				96				423
Total sales		$	2,670			$	2,705			$	2,329			$	2,445			$	10,149
2024
In millions		Q1				Q2				Q3				Q4				YTD
Drivetrain and braking systems		$	1,232			$	1,256			$	1,131			$	1,114			$	4,733
Emission solutions			971				941				864				825				3,601
Components and software			611				623				581				589				2,404
Automated transmissions			165				162				148				113				588
Atmus (1)			353				—				—				—				353
Total sales		$	3,332			$	2,982			$	2,724			$	2,641			$	11,679
(1) Included sales through the March 18, 2024, divestiture.

Distribution Segment Sales by Product Line

Sales for our Distribution segment by product line were as follows:

2025
In millions		Q1				Q2				Q3				Q4				YTD
Power generation		$	1,090			$	1,200			$	1,247			$	1,395			$	4,932
Parts			1,031				1,015				1,013				1,024				4,083
Service			416				439				495				448				1,798
Engines			370				387				417				418				1,592
Total sales		$	2,907			$	3,041			$	3,172			$	3,285			$	12,405
2024
In millions		Q1				Q2				Q3				Q4				YTD
Power generation		$	707			$	954			$	1,091			$	1,220			$	3,972
Parts			1,001				990				1,004				985				3,980
Service			406				448				455				444				1,753
Engines			421				437				402				419				1,679
Total sales		$	2,535			$	2,829			$	2,952			$	3,068			$	11,384

Power Systems Segment Sales by Product Line

Sales for our Power Systems segment by product line were as follows:

2025
In millions		Q1				Q2				Q3				Q4				YTD
Power generation		$	1,001			$	1,205			$	1,280			$	1,245			$	4,731
Industrial			498				506				531				528				2,063
Generator technologies			150				178				185				156				669
Total sales		$	1,649			$	1,889			$	1,996			$	1,929			$	7,463
2024
In millions		Q1				Q2				Q3				Q4				YTD
Power generation		$	853			$	987			$	1,055			$	1,090			$	3,985
Industrial			420				478				508				526				1,932
Generator technologies			116				124				124				127				491
Total sales		$	1,389			$	1,589			$	1,687			$	1,743			$	6,408

 

View source version on businesswire.com: https://www.businesswire.com/news/home/20260205124135/en/

Melinda Koski

External Communications

812-377-0500

melinda.koski@cummins.com

Source: Cummins Inc.

Released February 5, 2026