Cummins (CMI), Versatile Brand Partner Over Hydrogen Engines
In a recent development, Cummins Inc. CMI signed a letter of intent with Buhler Industries Inc., a leading tractor manufacturer under the Versatile brand. Both companies plan to integrate the Cummins 15-liter hydrogen engines into Versatile’s equipment to drive efforts in de-carbonizing the agriculture market.
Each company is uniquely placed to enhance its reputation in agriculture as it explores new powertrain technologies. The companies’ shared commitment to technology will allow both to leverage each other’s strengths to breed new opportunities.
While diesel engines will be the chosen source of power in agriculture for years to come, hydrogen fuel cells are gathering steam as they meet the requirements of heavy-duty trucking while ensuring sustainable, zero-carbon solutions, ideally suited to farming.
Hydrogen combustion engines provide a cost-effective zero-carbon fueled solution for high load factor and high utilization applications. The technology brings the benefits of a more-timely solution to reduce carbon emissions without compromising on productivity.
Also, the high similarity in engine components between diesel and hydrogen is advantageous for OEMs. Thus, it will provide farmers with a reliable solution, easy to service and maintain.
Cummins appears enthusiastic about its adoption of hydrogen fuel cell and aims to make carbon-neutral commercial transportation economically feasible for customers.
In May, CMI joined forces with Daimler Truck North America, the largest heavy-duty truck producer in North America, to add to and validate Freightliner Cascadia trucks with its indigenous hydrogen fuel cell powertrain for use in the region. The units are expected to be launched in 2024 for selected customers. The collaboration is expected to support the companies’ joint goal to curb emissions across product offerings and operations.
In May 2022, Cummins also launched its 15-liter hydrogen engine at ACT Expo in Long Beach, CA. Full production is expected in 2027. It will help customers curtail greenhouse gas emissions faster. The engine will be a zero-carbon fueled solution for multiple markets and CMI intends to produce hydrogen internal combustion engines in both the 15-liter and 6.7-liter versions.
In April, Cummins, through its affiliate Hydrogenics Europe N.V., inked a deal to supply a 2.5-megawatt electrolyzer to Hysetco, a hydrogen mobility company owned by Total Energies, Air Liquide, Toyota, Kouros and others. The Hysetco project aims to create the largest hydrogen taxi fleet worldwide by 2024, fueled by 12 large hydrogen refueling stations. CMI broke ground with the deal as it looks to power the world’s largest hydrogen taxi fleet.
Zacks Rank & Key Picks
CMI carries a Zacks Rank #3 (Hold), currently. Better-ranked players in the auto space include Harley-Davidson HOG, LCI Industries LCII and BorgWarner BWA, each carrying a Zacks Rank #2 (Buy), currently. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Harley-Davidson has an expected earnings growth rate of 6.9% for the current year. The Zacks Consensus Estimate for current-year earnings has been revised 8.5% upward in the past 30 days.
Harley-Davidson’s earnings beat the Zacks Consensus Estimate in three of the trailing four quarters and missed the mark in one. HOG pulled off a trailing four-quarter earnings surprise of 49.52%, on average. The stock has risen 0.4% in the past year.
LCI Industries has an expected earnings growth rate of 68.1% for the current year. The Zacks Consensus Estimate for current-year earnings has been revised 1.3% upward in the past 30 days.
LCI Industries’ earnings beat the Zacks Consensus Estimate in all the trailing four quarters. LCII pulled off a trailing four-quarter earnings surprise of 26.48%, on average. The stock has declined 12.8% over the past year.
BorgWarner has an expected earnings growth rate of 2.9% for the current year. The Zacks Consensus Estimate for current-year earnings has been revised 5.2% upward in the past 30 days.
BorgWarner’s earnings beat the Zacks Consensus Estimate in all the trailing four quarters. BWA pulled off a trailing four-quarter earnings surprise of 29.45%, on average. The stock has declined 10.5% over the past year.
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