Accelera by Cummins reported a Q3 2024 EBITDA loss of $115 million, even as sales climbed by 7% compared to the previous year’s quarter.
The hydrogen and electric spin-out cited increased electrolyser installations as the reason for the increase in EBITDA loss, up from $114m in Q3 2023.
“We continue to invest in the products and capabilities to support those parts of the business where strong growth is expected while reducing costs in areas where we access the prospects for growth have extended into the future,” explained Mark Smith, the Chief Financial Officer (CFO) at Cummins.
Cummins’ Q3 2024 financial statement added, “Costs associated with the development of electric powertrains, fuel cells and electrolysers, as well as products to support battery electric vehicles, are contributing to EBITDA losses.”
In October, the US-based firm opened a 500MW PEM electrolyser factory in Spain as part of its European expansion, which Jennifer Rumsey, Cummins’ CEO, claimed will help “scale up development, manufacturing and adoption of zero emissions technologies in Europe.”
Read more:Accelera opens 500MW PEM electrolyser factory in Spain
Nevertheless, Cummins logged third-quarter revenues of $8.5bn, the same as Q3 2023. This was “primarily driven by continued high demand in global power generation markets and improved pricing,” according to Rumsey.
Cummins’ other business units saw positive EBITDA results, with its distribution segment recording a 16% increase in sales by $3bn, corresponding to $370m segment EBITDA.
Heavy-duty trucking
However, Cummins’ third-quarter revenues for the heavy-duty truck market declined 1% to $5.2bn. Rumsey cited a “softening heavy-duty market, lower light-duty volumes and a reduction in sales from the Atmus separation,” as a factor, “mostly offset by strong demand in the medium-duty truck and power generation markets.”
The company’s financial statement continued, “Revenues decreased 2% in North America and increased 4% in international markets due to softening demand in North American heavy-duty truck market and strength in global medium-duty truck markets.”
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