Cummins has taken a $312m hit as it cuts costs in its hydrogen and zero-emission business amid slowing demand.
The engine manufacturer said it had conducted a strategic review of its Accelera segment, which produces electrolysers and fuel cells, to streamline operations and refocus investments on the most promising opportunities.
In its Q4 2024 results, Cummins announced plans to consolidate “certain manufacturing efforts,” prioritise its strongest business areas, rely on more partners and reduce spending in certain technologies, joint ventures and markets.
Cummins has not revealed which parts of Accelera are impacted by the cuts. H2 View has reached out for clarification.
As a result of the measures, the firm incurred non-cash charges during Q4 from inventory write-downs, as well as recorded several accounting losses related to inventory, equipment and joint ventures.
The company also said it had spent around $7m in severance payments, suggesting job cuts were also part of the streamlining measures. H2 View has requested more details.
Despite these cost-cutting measures, Accelera’s sales grew 23% in Q4 to $100m, though its EBITDA loss widened from -$121m in Q3 2023 to -$43m, reflecting the restructuring costs.
Accelera was launched by Cummins less than two years ago as the brand for its New Power business, to “secure a sustainable future for the industries that keep the world running.”
In recent years, Cummins and Accelera have announced various electrolyser manufacturing capacity expansions across North America and Europe. Last October, the clean tech brand opened a 500MW PEM electrolyser factory in Spain.
