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COLUMBUS, Ind. - Cummins Inc. [NYSE: CMI], a global power solutions leader with a market capitalization of $45.1 billion and strong financial health according to InvestingPro analysis, and Isuzu Motors Limited have announced their collaboration to introduce a new battery electric powertrain for the F-series medium-duty truck. The fully integrated powertrain, featuring Accelera’s next-generation battery and other advanced components, is scheduled for production in 2027 and will be unveiled at the upcoming ACT Expo in Anaheim, California.
This initiative is part of the zero-emissions efforts by Accelera™ by Cummins, the company’s dedicated business segment for such technologies. With annual revenue of $34.1 billion and a moderate debt level, Cummins demonstrates the financial strength to support its innovative ventures. InvestingPro data reveals the company has maintained dividend payments for an impressive 55 consecutive years, showcasing its commitment to shareholder returns while investing in future technologies. Shaun Skinner, President and CEO of Isuzu Commercial Truck of America, Inc., expressed enthusiasm about providing customers in the US and Canada with a zero-emissions truck that will enhance their fleet’s operational efficiencies and meet a broad range of medium-duty truck needs.
The powertrain will integrate Accelera’s lithium iron phosphate (LFP) tiered platform batteries, known for their cycle-life capability and cost-effectiveness, the 14Xe eAxle with an ELFA™ motor and inverter, and the compact Power Controls and Accessory Systems (PCAS) 3.0. Amy Davis, President of Accelera, highlighted the significance of this milestone in advancing zero-emissions commercial transportation and the integration of Accelera’s components as a testament to its leadership in the sector.
The battery electric powertrain aims to deliver improved performance, reliability, and efficiency, aiming to reduce the total cost of ownership and reach diesel parity to encourage the adoption of zero-emissions technologies. The F-series will be available in Class 6 and 7, with a newly designed low-cab forward chassis, catering to various fleet demands.
The powertrain components are versatile, suitable for different applications including buses and heavy-duty vehicles, and are manufactured or assembled in the U.S., contributing to a localized supply chain. Attendees of the ACT Expo, running from April 28 to May 1, can view these components and Accelera’s electric powertrain solutions.
This announcement, based on a press release statement, signifies a move towards decarbonizing the commercial transportation sector and reflects the ongoing efforts by Cummins and Isuzu to innovate within the zero-emissions space. Trading at a P/E ratio of 11.48, Cummins currently appears undervalued according to InvestingPro Fair Value calculations. Investors seeking detailed analysis can access the comprehensive Pro Research Report, available exclusively to InvestingPro subscribers, which provides deep insights into Cummins’ financial health, market position, and growth prospects.
In other recent news, Cummins Inc. has reported earnings of approximately $3.9 billion on sales of $34.1 billion in 2024. The company also announced a quarterly dividend of $1.82 per share, reflecting its commitment to shareholder value. Additionally, Cummins unveiled its new X10 engine, part of the HELM™ series, designed for both heavy and medium-duty applications, which is set to replace the L9 and X12 platforms. This engine features advanced digital technologies and offers increased Power Take-Off capabilities, with plans for extensive real-world testing before its 2027 launch.
In other developments, UBS analysts have adjusted Cummins’ stock price target to $400 while maintaining a Buy rating, citing concerns over the North American truck market. They have revised earnings per share estimates for 2025 and 2026 downwards due to anticipated lower earnings in the Engine/Components segment. Cummins is also navigating regulatory challenges, as the Environmental Protection Agency’s reassessment of vehicle-emissions rules could impact future truck sales and earnings expectations for 2026. Meanwhile, the company announced the upcoming retirement of Chief Administrative Officer Sharon Barner, who has been instrumental in shaping Cummins’ strategic direction.
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