Cummins Inc - CMI STOCK NEWS

Daimler Truck AG and Cummins Inc. (NYSE: CMI) have signed a framework agreement for a strategic partnership in medium-duty engines. Cummins will invest in developing a medium-duty engine platform, ceasing Daimler's own investment for Euro VII emissions compliance. Cummins will establish a local production facility in Mannheim, Germany, expected to start in the second half of the decade, ensuring job maintenance in the region. Both companies aim to improve competitiveness and explore further cooperation opportunities.

Cummins reported a 59% revenue increase to $6.1 billion in Q2 2021, with strong demand in North America (up 74%) and internationally (up 42%). Net income rose to $600 million ($4.10 per share). EBITDA for the quarter was $974 million (15.9% of sales), up from $549 million (14.3% of sales) year-over-year. The company is exploring strategic alternatives for its Filtration business. Cummins maintains a full-year revenue guidance increase of 20-24% and plans to return 75% of operating cash flow to shareholders through dividends and buybacks.

Air Products and Cummins Inc. have signed a memorandum of understanding to accelerate hydrogen fuel cell truck integration across the Americas, Europe, and Asia. Air Products plans to convert its fleet of approximately 2,000 trucks to zero-emission hydrogen fuel cell vehicles, starting with a demonstration phase set for 2022. This transition underscores Air Products' commitment to sustainability, aiming to lead the hydrogen adoption for heavy-duty applications. Both companies will work on enhancing hydrogen accessibility and infrastructure to support this initiative.

Chevron and Cummins (NYSE: CMI) have signed a memorandum of understanding (MOU) to explore a strategic alliance in the hydrogen and alternative energy sectors. The collaboration aims to promote hydrogen as a decarbonizing solution for transport and industry, develop market demand for hydrogen-powered vehicles, create necessary infrastructure, and utilize Cummins’ technologies at Chevron’s refineries. Both companies emphasize their commitment to advancing lower-carbon solutions.

Cummins (NYSE: CMI) launched the Cummins Water Works program, aiming to tackle the global water crisis through sustainable projects. With an initial investment of $8 million, the program will focus on five water-stressed countries: Mexico, Brazil, India, South Africa, and the U.S. By 2025, the initiative aims to provide fresh water access to 20 million individuals. Cummins plans to exceed its annual water use with net water benefits by 2030, and aims for water neutrality in all regions by 2050. The program partners with The Nature Conservancy and Water.org to implement impactful water projects.

The Board of Directors of Cummins (NYSE: CMI) has announced a 7% increase in its quarterly cash dividend, raising it to $1.45 per share from $1.35. This dividend will be payable on September 2, 2021, to shareholders of record by August 20, 2021. This marks the 12th consecutive year of dividend increases, reflecting the company’s commitment to returning capital to shareholders while investing in future growth. In 2020, Cummins reported $1.8 billion in earnings on $19.8 billion in sales.

Cummins (NYSE: CMI) has initiated testing of a hydrogen-fueled internal combustion engine, reinforcing its leadership in gaseous-fuel applications. This proof-of-concept aims to enhance power solutions that meet future energy demands while significantly reducing emissions. Utilizing advanced technologies, the engine promises improved power density and efficiency without the typical limitations found in diesel or natural gas conversions. Cummins is also investing in various hydrogen technologies, including fuel cells and electrolyzers, to support the decarbonization of commercial vehicles.

Cummins (NYSE: CMI) has signed a Letter of Intent to acquire a 50% stake in Momentum Fuel Technologies from Rush Enterprises, aiming to enhance natural gas fuel delivery systems for commercial vehicles in North America. The collaboration is set to combine Cummins' powertrain expertise with Momentum's compressed natural gas systems, boosting customer service for CNG and RNG markets. The joint venture will leverage over 250 service locations across the U.S. and Canada, providing comprehensive support and parts inventory. The deal is expected to finalize later this year, pending usual regulatory approvals.