Latest news with #CumminsInc
Globe and Mail
7 days ago
- Automotive
- Globe and Mail
Cummins Elects Matthew Tsien to its Board of Directors
Today, Cummins Inc. (NYSE: CMI) announced the election of Matthew Tsien to its Board of Directors. This press release features multimedia. View the full release here: Cummins elects Matthew Tsien to its Board of Directors 'I am honored to welcome Matt to our Board of Directors,' said Jennifer Rumsey, Chair and CEO, Cummins Inc. 'His deep technical expertise, global leadership experience and strong track record of innovation will be invaluable as we advance our Destination Zero strategy and navigate an exciting, yet rapidly evolving, global landscape.' Tsien brings more than four decades of experience in the automotive industry, including senior leadership roles at General Motors (GM). Most recently, he served as the Executive Vice President and Chief Technology Officer, where he led GM's future technology initiatives and accelerated investments in electrification technologies. He also served as President of GM Ventures, overseeing the company's venture capital investments and fostering innovation, and before that served as President of GM China. Tsien currently serves as a board member for AGCO Corporation and Magna International. He holds a bachelor's degree from Kettering University and master's degrees from Standford University and Massachusetts Institute of Technology. — About Cummins Inc. Cummins Inc., a global power solutions leader, is comprised of five business segments – Engine, Components, Distribution, Power Systems and Accelera by Cummins – supported by our global manufacturing and extensive service and support network, skilled workforce and vast technological expertise. Cummins is committed to its Destination Zero strategy, which is grounded in the company's commitment to sustainability and helping its customers successfully navigate the energy transition with its broad portfolio of products. The products range from advanced diesel, natural gas, electric and hybrid powertrains and powertrain-related components including aftertreatment, turbochargers, fuel systems, valvetrain technologies, controls systems, air handling systems, automated transmissions, axles, drivelines, brakes, suspension systems, electric power generation systems, electrified power systems with innovative components and subsystems, including battery, fuel cell and electric power technologies and hydrogen production technologies. Headquartered in Columbus, Indiana (U.S.), since its founding in 1919, Cummins employs approximately 69,600 people committed to powering a more prosperous world through three global corporate responsibility priorities critical to healthy communities: education, environment, and equality of opportunity. Cummins serves its customers online, through a network of company-owned and independent distributor locations, and through thousands of dealer locations worldwide and earned about $3.9 billion on sales of $34.1 billion in 2024. See how Cummins is powering a world that's always on by accessing news releases and more information at Forward-looking disclosure statement Information provided in this release that is not purely historical are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, including statements regarding our forecasts, guidance, preliminary results, expectations, hopes, beliefs and intentions on strategies regarding the future. These forward-looking statements include, without limitation, statements relating to our plans and expectations for our revenues and EBITDA. Our actual future results could differ materially from those projected in such forward-looking statements because of a number of factors, including, but not limited to: any adverse consequences from changes in tariffs and other trade disruptions; any adverse consequences resulting from entering into agreements with the U.S. Environmental Protection Agency, California Air Resources Board, the Environmental and Natural Resources Division of the Department of Justice and the California Attorney General's Office to resolve certain regulatory civil claims regarding our emissions certification and compliance process for certain engines primarily used in pick-up truck applications in the U.S., which became final and effective in April 2024, including required additional mitigation projects, adverse reputational impacts and potential resulting legal actions; increased scrutiny from regulatory agencies, as well as unpredictability in the adoption, implementation and enforcement of emission standards around the world; evolving environmental and climate change legislation and regulatory initiatives; changes in international, national and regional trade laws, regulations and policies; changes in taxation; global legal and ethical compliance costs and risks; future bans or limitations on the use of diesel-powered products; raw material, transportation and labor price fluctuations and supply shortages; aligning our capacity and production with our demand; the actions of, and income from, joint ventures and other investees that we do not directly control; large truck manufacturers' and original equipment manufacturers' customers discontinuing outsourcing their engine supply needs or experiencing financial distress, or change in control; product recalls; variability in material and commodity costs; the development of new technologies that reduce demand for our current products and services; lower than expected acceptance of new or existing products or services; product liability claims; our sales mix of products; climate change, global warming, more stringent climate change regulations, accords, mitigation efforts, greenhouse gas regulations or other legislation designed to address climate change; our plan to reposition our portfolio of product offerings through exploration of strategic acquisitions, divestitures or exiting the production of certain product lines or product categories and related uncertainties of such decisions; increasing interest rates; challenging markets for talent and ability to attract, develop and retain key personnel; exposure to potential security breaches or other disruptions to our information technology (IT) environment and data security; the use of artificial intelligence in our business and in our products and challenges with properly managing its use; political, economic and other risks from operations in numerous countries including political, economic and social uncertainty and the evolving globalization of our business; competitor activity; increasing competition, including increased global competition among our customers in emerging markets; failure to meet sustainability expectations or standards, or achieve our sustainability goals; labor relations or work stoppages; foreign currency exchange rate changes; the performance of our pension plan assets and volatility of discount rates; the price and availability of energy; continued availability of financing, financial instruments and financial resources in the amounts, at the times and on the terms required to support our future business; and other risks detailed from time to time in our SEC filings, including particularly in the Risk Factors section of our 2024 Annual Report on Form 10-K and Quarterly Reports on Form 10-Q. Shareholders, potential investors and other readers are urged to consider these factors carefully in evaluating the forward-looking statements and are cautioned not to place undue reliance on such forward-looking statements. The forward-looking statements made herein are made only as of the date of this release and we undertake no obligation to publicly update any forward-looking statements, whether as a result of new information, future events or otherwise. More detailed information about factors that may affect our performance may be found in our filings with the SEC, which are available at or at in the Investor Relations section of our website.
Business Wire
7 days ago
- Automotive
- Business Wire
Cummins Elects Matthew Tsien to its Board of Directors
COLUMBUS, Ind.--(BUSINESS WIRE)--Today, Cummins Inc. (NYSE: CMI) announced the election of Matthew Tsien to its Board of Directors. 'I am honored to welcome Matt to our Board of Directors,' said Jennifer Rumsey, Chair and CEO, Cummins Inc. 'His deep technical expertise, global leadership experience and strong track record of innovation will be invaluable as we advance our Destination Zero strategy and navigate an exciting, yet rapidly evolving, global landscape.' Tsien brings more than four decades of experience in the automotive industry, including senior leadership roles at General Motors (GM). Most recently, he served as the Executive Vice President and Chief Technology Officer, where he led GM's future technology initiatives and accelerated investments in electrification technologies. He also served as President of GM Ventures, overseeing the company's venture capital investments and fostering innovation, and before that served as President of GM China. Tsien currently serves as a board member for AGCO Corporation and Magna International. He holds a bachelor's degree from Kettering University and master's degrees from Standford University and Massachusetts Institute of Technology. — About Cummins Inc. Cummins Inc., a global power solutions leader, is comprised of five business segments – Engine, Components, Distribution, Power Systems and Accelera by Cummins – supported by our global manufacturing and extensive service and support network, skilled workforce and vast technological expertise. Cummins is committed to its Destination Zero strategy, which is grounded in the company's commitment to sustainability and helping its customers successfully navigate the energy transition with its broad portfolio of products. The products range from advanced diesel, natural gas, electric and hybrid powertrains and powertrain-related components including aftertreatment, turbochargers, fuel systems, valvetrain technologies, controls systems, air handling systems, automated transmissions, axles, drivelines, brakes, suspension systems, electric power generation systems, electrified power systems with innovative components and subsystems, including battery, fuel cell and electric power technologies and hydrogen production technologies. Headquartered in Columbus, Indiana (U.S.), since its founding in 1919, Cummins employs approximately 69,600 people committed to powering a more prosperous world through three global corporate responsibility priorities critical to healthy communities: education, environment, and equality of opportunity. Cummins serves its customers online, through a network of company-owned and independent distributor locations, and through thousands of dealer locations worldwide and earned about $3.9 billion on sales of $34.1 billion in 2024. See how Cummins is powering a world that's always on by accessing news releases and more information at Forward-looking disclosure statement Information provided in this release that is not purely historical are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, including statements regarding our forecasts, guidance, preliminary results, expectations, hopes, beliefs and intentions on strategies regarding the future. These forward-looking statements include, without limitation, statements relating to our plans and expectations for our revenues and EBITDA. Our actual future results could differ materially from those projected in such forward-looking statements because of a number of factors, including, but not limited to: any adverse consequences from changes in tariffs and other trade disruptions; any adverse consequences resulting from entering into agreements with the U.S. Environmental Protection Agency, California Air Resources Board, the Environmental and Natural Resources Division of the Department of Justice and the California Attorney General's Office to resolve certain regulatory civil claims regarding our emissions certification and compliance process for certain engines primarily used in pick-up truck applications in the U.S., which became final and effective in April 2024, including required additional mitigation projects, adverse reputational impacts and potential resulting legal actions; increased scrutiny from regulatory agencies, as well as unpredictability in the adoption, implementation and enforcement of emission standards around the world; evolving environmental and climate change legislation and regulatory initiatives; changes in international, national and regional trade laws, regulations and policies; changes in taxation; global legal and ethical compliance costs and risks; future bans or limitations on the use of diesel-powered products; raw material, transportation and labor price fluctuations and supply shortages; aligning our capacity and production with our demand; the actions of, and income from, joint ventures and other investees that we do not directly control; large truck manufacturers' and original equipment manufacturers' customers discontinuing outsourcing their engine supply needs or experiencing financial distress, or change in control; product recalls; variability in material and commodity costs; the development of new technologies that reduce demand for our current products and services; lower than expected acceptance of new or existing products or services; product liability claims; our sales mix of products; climate change, global warming, more stringent climate change regulations, accords, mitigation efforts, greenhouse gas regulations or other legislation designed to address climate change; our plan to reposition our portfolio of product offerings through exploration of strategic acquisitions, divestitures or exiting the production of certain product lines or product categories and related uncertainties of such decisions; increasing interest rates; challenging markets for talent and ability to attract, develop and retain key personnel; exposure to potential security breaches or other disruptions to our information technology (IT) environment and data security; the use of artificial intelligence in our business and in our products and challenges with properly managing its use; political, economic and other risks from operations in numerous countries including political, economic and social uncertainty and the evolving globalization of our business; competitor activity; increasing competition, including increased global competition among our customers in emerging markets; failure to meet sustainability expectations or standards, or achieve our sustainability goals; labor relations or work stoppages; foreign currency exchange rate changes; the performance of our pension plan assets and volatility of discount rates; the price and availability of energy; continued availability of financing, financial instruments and financial resources in the amounts, at the times and on the terms required to support our future business; and other risks detailed from time to time in our SEC filings, including particularly in the Risk Factors section of our 2024 Annual Report on Form 10-K and Quarterly Reports on Form 10-Q. Shareholders, potential investors and other readers are urged to consider these factors carefully in evaluating the forward-looking statements and are cautioned not to place undue reliance on such forward-looking statements. The forward-looking statements made herein are made only as of the date of this release and we undertake no obligation to publicly update any forward-looking statements, whether as a result of new information, future events or otherwise. More detailed information about factors that may affect our performance may be found in our filings with the SEC, which are available at or at in the Investor Relations section of our website.
Yahoo
11-07-2025
- Automotive
- Yahoo
Cummins Unveils New Hydrogen Turbocharger for European Heavy-Duty Engines
Cummins Inc. (NYSE:CMI) is one of the best manufacturing stocks to buy according to hedge funds. On July 2, Cummins Inc. announced the launch of its new turbocharger specifically engineered for hydrogen internal combustion engines (H2 ICE). This marks a significant advancement for heavy-duty commercial on-highway applications in Europe. Cummins Components and Software/CCS is a division of Cummins' Components business segment and has already secured a contract to supply these H2 ICE turbochargers to a major European OEM. The H2 ICE turbocharger is designed to meet the increasing demand for efficient and sustainable solutions, supporting the transition to low-emission transportation. A mechanic standing proudly in a factory floor surrounded by the engines the company produces. It is specifically intended to power the first hydrogen internal combustion engine for heavy-duty on-highway applications in the European market. H2 ICE engine technology has been classified as zero-emission by the European Union/EU and is considered a promising bridge solution for reducing emissions. These H2 ICE engine platforms are also compliant with the upcoming Euro VII emission standards. Cummins Inc. (NYSE:CMI) offers various power solutions worldwide. It operates through 5 segments: Engine, Distribution, Components, Power Systems, and Accelera. While we acknowledge the potential of CMI as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the . READ NEXT: and . Disclosure: None. This article is originally published at Insider Monkey. Sign in to access your portfolio
Yahoo
05-07-2025
- Business
- Yahoo
Cummins Inc. (NYSE:CMI) Shares Could Be 37% Below Their Intrinsic Value Estimate
Using the 2 Stage Free Cash Flow to Equity, Cummins fair value estimate is US$525 Cummins' US$332 share price signals that it might be 37% undervalued The US$353 analyst price target for CMI is 33% less than our estimate of fair value How far off is Cummins Inc. (NYSE:CMI) from its intrinsic value? Using the most recent financial data, we'll take a look at whether the stock is fairly priced by taking the expected future cash flows and discounting them to today's value. We will take advantage of the Discounted Cash Flow (DCF) model for this purpose. Don't get put off by the jargon, the math behind it is actually quite straightforward. We would caution that there are many ways of valuing a company and, like the DCF, each technique has advantages and disadvantages in certain scenarios. If you want to learn more about discounted cash flow, the rationale behind this calculation can be read in detail in the Simply Wall St analysis model. AI is about to change healthcare. These 20 stocks are working on everything from early diagnostics to drug discovery. The best part - they are all under $10bn in marketcap - there is still time to get in early. We're using the 2-stage growth model, which simply means we take in account two stages of company's growth. In the initial period the company may have a higher growth rate and the second stage is usually assumed to have a stable growth rate. To begin with, we have to get estimates of the next ten years of cash flows. Where possible we use analyst estimates, but when these aren't available we extrapolate the previous free cash flow (FCF) from the last estimate or reported value. We assume companies with shrinking free cash flow will slow their rate of shrinkage, and that companies with growing free cash flow will see their growth rate slow, over this period. We do this to reflect that growth tends to slow more in the early years than it does in later years. A DCF is all about the idea that a dollar in the future is less valuable than a dollar today, and so the sum of these future cash flows is then discounted to today's value: 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 Levered FCF ($, Millions) US$2.73b US$3.13b US$3.47b US$3.73b US$3.94b US$4.12b US$4.30b US$4.46b US$4.62b US$4.77b Growth Rate Estimate Source Analyst x7 Analyst x5 Analyst x1 Analyst x1 Est @ 5.52% Est @ 4.74% Est @ 4.20% Est @ 3.82% Est @ 3.56% Est @ 3.37% Present Value ($, Millions) Discounted @ 7.9% US$2.5k US$2.7k US$2.8k US$2.8k US$2.7k US$2.6k US$2.5k US$2.4k US$2.3k US$2.2k ("Est" = FCF growth rate estimated by Simply Wall St)Present Value of 10-year Cash Flow (PVCF) = US$26b The second stage is also known as Terminal Value, this is the business's cash flow after the first stage. For a number of reasons a very conservative growth rate is used that cannot exceed that of a country's GDP growth. In this case we have used the 5-year average of the 10-year government bond yield (2.9%) to estimate future growth. In the same way as with the 10-year 'growth' period, we discount future cash flows to today's value, using a cost of equity of 7.9%. Terminal Value (TV)= FCF2035 × (1 + g) ÷ (r – g) = US$4.8b× (1 + 2.9%) ÷ (7.9%– 2.9%) = US$100b Present Value of Terminal Value (PVTV)= TV / (1 + r)10= US$100b÷ ( 1 + 7.9%)10= US$47b The total value, or equity value, is then the sum of the present value of the future cash flows, which in this case is US$72b. The last step is to then divide the equity value by the number of shares outstanding. Compared to the current share price of US$332, the company appears quite good value at a 37% discount to where the stock price trades currently. Remember though, that this is just an approximate valuation, and like any complex formula - garbage in, garbage out. The calculation above is very dependent on two assumptions. The first is the discount rate and the other is the cash flows. If you don't agree with these result, have a go at the calculation yourself and play with the assumptions. The DCF also does not consider the possible cyclicality of an industry, or a company's future capital requirements, so it does not give a full picture of a company's potential performance. Given that we are looking at Cummins as potential shareholders, the cost of equity is used as the discount rate, rather than the cost of capital (or weighted average cost of capital, WACC) which accounts for debt. In this calculation we've used 7.9%, which is based on a levered beta of 1.140. Beta is a measure of a stock's volatility, compared to the market as a whole. We get our beta from the industry average beta of globally comparable companies, with an imposed limit between 0.8 and 2.0, which is a reasonable range for a stable business. View our latest analysis for Cummins Strength Earnings growth over the past year exceeded the industry. Debt is well covered by earnings. Weakness Dividend is low compared to the top 25% of dividend payers in the Machinery market. Opportunity Annual earnings are forecast to grow for the next 3 years. Good value based on P/E ratio and estimated fair value. Threat Debt is not well covered by operating cash flow. Dividends are not covered by cash flow. Annual earnings are forecast to grow slower than the American market. Although the valuation of a company is important, it shouldn't be the only metric you look at when researching a company. The DCF model is not a perfect stock valuation tool. Rather it should be seen as a guide to "what assumptions need to be true for this stock to be under/overvalued?" If a company grows at a different rate, or if its cost of equity or risk free rate changes sharply, the output can look very different. Why is the intrinsic value higher than the current share price? For Cummins, we've put together three important factors you should consider: Risks: To that end, you should learn about the 2 warning signs we've spotted with Cummins (including 1 which makes us a bit uncomfortable) . Management:Have insiders been ramping up their shares to take advantage of the market's sentiment for CMI's future outlook? Check out our management and board analysis with insights on CEO compensation and governance factors. Other High Quality Alternatives: Do you like a good all-rounder? Explore our interactive list of high quality stocks to get an idea of what else is out there you may be missing! PS. The Simply Wall St app conducts a discounted cash flow valuation for every stock on the NYSE every day. If you want to find the calculation for other stocks just search here. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
Associated Press
02-07-2025
- Automotive
- Associated Press
Cummins Launches Industry-First Hydrogen Internal Combustion Engine Turbochargers for On-Highway Applications
Cummins Global power and technology leader Cummins Inc. (NYSE: CMI), is pleased to announce the launch of its new turbocharger designed specifically for hydrogen internal combustion engines (H2 ICE). This advancement in turbocharging technology marks a significant milestone for heavy-duty commercial on-highway applications in Europe. Cummins Components and Software (CCS), part of Cummins' Components business segment, has secured a contract to supply H2 ICE turbochargers to a major European OEM, showcasing its leadership in hydrogen innovation. The H2 ICE turbocharger meets the industry's growing demand for efficient and sustainable solutions, supporting the transition to low-emission transportation. It is specifically designed to power the first hydrogen internal combustion engine for heavy-duty on-highway applications in the European market. Pioneering innovation to support global decarbonization efforts The integration of the H2ICE turbocharger into hydrogen-powered heavy-duty vehicles reinforces Cummins' commitment to delivering sustainable and cost-effective solutions for decarbonizing transportation. H2 ICE engine technology has been classified as zero-emission by the European Union (EU) and represents a promising bridge solution for reducing emissions. H2ICE engine platforms also comply with the upcoming Euro VII emission standards, demonstrating the potential of hydrogen as a viable alternative in the journey toward global decarbonization. Innovation leadership in turbocharging technologies The Cummins H2 ICE variable geometry turbocharger has been meticulously engineered to meet the unique requirements of hydrogen engines. With bespoke aerodynamics and advanced prognostics, the turbocharger optimizes performance under the challenging conditions presented by hydrogen combustion. The product is a cornerstone of Cummins' Destination Zero strategy, which aims to achieve decarbonization by working with partners across industries to develop cutting-edge, sustainable technologies. Key Features of the CCS H2 ICE Turbocharger: Challenges and Successes During the development of the turbocharger, Cummins overcame significant challenges posed by the use of hydrogen as a fuel. These included adapting aerodynamics to address varying lambda requirements, managing the increased water production resulting from hydrogen combustion, and mitigating the metallurgical impacts of hydrogen use. Despite these hurdles, Cummins has successfully delivered a reliable and high-performance turbocharger for hydrogen powered heavy-duty on-highway truck engines. To know more about Cummins' turbocharging technology and innovations, please visit Turbochargers | Cummins Inc. About Cummins Inc. Cummins Inc., a global power solutions leader, comprises five business segments - Engine, Components, Distribution, Power Systems and Accelera by Cummins - supported by its global manufacturing and extensive service and support network, skilled workforce and vast technological expertise. Cummins is committed to its Destination Zero strategy, which is grounded in the company's commitment to sustainability and helping its customers successfully navigate the energy transition with its broad portfolio of products. The products range from advanced diesel, natural gas, electric and hybrid powertrains and powertrain-related components including aftertreatment, turbochargers, fuel systems, valvetrain technologies, controls systems, air handling systems, automated transmissions, axles, drivelines, brakes, suspension systems, electric power generation systems, electrified power systems with innovative components and subsystems, including battery, fuel cell and electric power technologies and hydrogen production technologies. Headquartered in Columbus, Indiana (U.S.), since its founding in 1919, Cummins employs approximately 69,600 people committed to powering a more prosperous world through three global corporate responsibility priorities critical to healthy communities: education, environment and equality of opportunity. Cummins serves its customers online, through a network of company-owned and independent distributor locations, and through thousands of dealer locations worldwide and earned about $3.9 billion on sales of $34.1 billion in 2024. See how Cummins is leading your world toward a future of smarter, cleaner power at Media Contact Melinda KoskiExternal Communications Director317.476.3293 Email
