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COLUMBUS, Indiana - Cummins Inc. (NYSE:CMI), a prominent player in the machinery industry with a market capitalization of $45.66 billion, has introduced a new turbocharger specifically designed for hydrogen internal combustion engines (H2 ICE) for heavy-duty commercial on-highway applications in Europe, according to a press release statement. According to InvestingPro data, the company maintains a strong financial health score, positioning it well for this strategic expansion.
The power and technology company’s Components and Software division has secured a contract to supply these specialized turbochargers to a major European OEM. The new product is designed to power what the company describes as the first hydrogen internal combustion engine for heavy-duty on-highway applications in the European market. With a P/E ratio of 16.32 and strong market presence, Cummins continues to demonstrate its innovation leadership. InvestingPro analysis reveals 10+ additional insights about Cummins’ market position and growth potential.
The H2 ICE turbocharger features custom aerodynamics engineered for hydrogen combustion and advanced prognostics to enhance performance and reliability. The product complies with upcoming Euro VII emission standards.
Hydrogen internal combustion engine technology has been classified as zero-emission by the European Union, positioning it as a potential solution for reducing emissions in heavy transportation.
During development, Cummins addressed several technical challenges related to hydrogen as a fuel, including adapting aerodynamics to address varying lambda requirements, managing increased water production from hydrogen combustion, and mitigating metallurgical impacts.
The turbocharger development aligns with Cummins’ Destination Zero strategy, which focuses on decarbonization initiatives.
Cummins reported sales of $34.1 billion in 2024 with earnings of approximately $3.9 billion. The company employs about 69,600 people globally and maintains a consistent dividend track record, having paid dividends for 55 consecutive years. For deeper insights into Cummins’ financial health and future prospects, investors can access comprehensive analysis through InvestingPro’s detailed research reports, available for over 1,400 US stocks.
In other recent news, Cummins Inc. reported earnings of approximately $3.9 billion on sales totaling $34.1 billion for the year 2024. The company also announced a quarterly cash dividend of $1.82 per share, scheduled for payment on June 5, 2025, to shareholders on record as of May 23, 2025. Cummins successfully completed a $2 billion public offering of senior notes, with proceeds intended for general corporate purposes, including addressing existing debt. In terms of analyst activity, Goldman Sachs upgraded Cummins’ stock rating from Neutral to Buy, raising the price target to $431, citing improved profitability in the Power Systems business. Meanwhile, Citi also maintained a Buy rating and increased its price target to $350, despite adjusting its EPS estimate for 2025. Shareholders recently approved the election of eleven directors and executive compensation at the annual meeting, showing confidence in the company’s leadership. A proposal for an independent board chairman was not passed. Cummins continues to focus on strategies to mitigate tariff impacts and maintain strong performance in its core markets.
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