Cummins And 2 Other Hydrogen Stocks To Watch

Energy prices remain a headache for governments and households, as the IMF keeps warning about the strain from costly fuel and high public debt. That pressure puts cleaner power sources in the spotlight, including hydrogen fuel cell technology that aims to cut reliance on traditional oil and gas. This article walks through three US hydrogen fuel cell stocks from our screener that could help you get exposure to that theme.

The stocks covered below are a sample of the theme, and the full hydrogen fuel cell technology screen surfaced 6 more companies with equally compelling narratives that are not included in this article.

To go deeper, head straight into the Hydrogen Fuel Cell Technology screener to identify, filter and analyze hydrogen fuel cell opportunities that best match your conviction and risk profile.

Cummins is a global power technology group that mixes traditional diesel and natural gas engines with fuel cell systems and hydrogen capable powertrains. It generates about US$10.9b from Engine, US$10.2b from Components, US$12.9b from Distribution and US$8.1b from Power Systems, within a US$72b market value business.

Cummins gives you exposure to the hydrogen fuel cell theme through real hardware, not just early stage concepts. Its push into cleaner high horsepower power systems is where that link is most visible.

“The previously flagged capacity investments are now progressing into a larger buildout, with Cummins planning to reach 55 gigawatts of high horsepower engine capacity by 2030 and 20 gigawatts of that as incremental capacity that can support higher data center related power generation revenue and segment EBITDA.”

What happens to Cummins’ earnings power if a single pressure point in those future high horsepower orders shifts the balance between growth and margins?

That earnings swing is exactly what the full narrative for Cummins unpacks, showing where hydrogen, data centers and margin pressure could be decoupling for Cummins.

FuelCell Energy designs and operates high temperature fuel cell platforms, with its solid oxide electrolysis units and hydrogen producing Tri gen systems giving you direct exposure to hydrogen production alongside broader clean power, backed by US$154 million from fuel cell power plant production and research and a roughly US$1.4b market value.

For investors tracking hydrogen fuel cell technology across real world power projects, FuelCell Energy brings that theme into focus through systems that can turn electricity and natural gas into on site hydrogen and low carbon power for heavy users like data centers.

“While accelerating global electricity demand, especially from AI and data centers, suggests robust long term potential for distributed fuel cell solutions and should support future revenue growth, FuelCell Energy’s technology still competes with rapidly advancing and cost declining alternatives like renewables and battery storage, which could undermine the company’s growth in its core addressable markets and constrain top line expansion.”

What happens to FuelCell Energy’s future margins and backlog momentum if a single assumption about hydrogen rich data center demand proves too optimistic?

That single assumption is where your risk and upside start to diverge, and the full narrative for FuelCell Energy explains how AI demand could either accelerate or stall FuelCell Energy.

PG&E is a California utility that sells and delivers electricity and gas, and it also runs fuel cell based stationary power projects that tie directly into the hydrogen fuel cell theme. The group generated about US$25.8b from these energy services and is valued around US$27.2b.

PG&E brings hydrogen fuel cell technology into a very different setting. Instead of pure play manufacturing or single site projects, the utility is using fuel cell based backup and microgrid style systems to support grid resilience for homes, businesses and energy hungry data centers.

“Expanding opportunities for capital investment in grid modernization, wildfire mitigation, and resilience, fueled by both regulatory mandates and the need to serve new electrification and decarbonization requirements, position PG&E to grow its rate base and regulated earnings steadily over the next decade.”

Whether that plays out for PG&E depends heavily on how one unresolved policy decision eventually filters through to allowed returns and customer bills.

That policy hinge is exactly where PG&E’s risk and upside start to separate, and the full narrative for PG&E shows how grid investment, regulation and earnings could accelerate.

Seeking Alternatives Before The Crowd?

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This 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.

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