Could Cummins Engine develop into a one-stop shop for hydrogen matters? The company is working on a series of products and applications that should lead to zero emissions, so for example on engines for e-fuels or hydrogen, in the area of electrolysis as well as stack production for trucks/commercial vehicles, and on rail vehicles and ships.
Cummins’ 135-kW fuel cell system for commercial vehicles
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With electrolysis, Cummins was able to triple the order volume in 2022 to 300 million USD. Cummins is supplying a PEM electrolyzer for a 35-MW project for Linde in the USA at Niagara Falls. The company is well positioned. It counts on a variety of technological developments, which can be seen from the fact that Cummins offers all electrolysis variants – so from PEM to SOFC to alkaline – according to customer and project requirements.
The 26.2 billion USD turnover and 2.2 billion USD net earnings (15.12 USD per share) for 2022 speaks for itself. The projected annual growth is 10 to 15 percent on average. The business of the unit New Power is still small, but will substantially gain in size in the future, was a takeaway from the latest earnings press conference. Very probably Cummins is also making strategic acquisitions in this area, as it’s already doing in other segments of the company. The over 2 billion USD annual profit provides a basis for many fantastic developments.

Disclaimer
Each investor must always be aware of their own risk when investing in shares and should consider a sensible risk diversification. The FC companies and shares mentioned here are small and mid cap, i.e. they are not standard stocks and their volatility is also much higher. This report is not meant to be viewed as purchase recommendations, and the author holds no liability for your actions. All information is based on publicly available sources and, as far as assessment is concerned, represents exclusively the personal opinion of the author, who focuses on medium- and long-term valuation and not on short-term profit. The author may be in possession of the shares presented here.
Written by author Sven Jösting, March 5th, 2023
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