Power solutions provider Cummins will stop new commercial efforts in its electrolyzer division, citing a weakening market for hydrogen and changes in federal policy support, but reported strong gains in other divisions driven by data centers, the company said in its quarterly earnings call February 5.
The company took a $218 million charge in Q4 2025 related to its electrolyzer business, Accelera. The company said during its previous earnings report in November that it would be undergoing a strategic review of its electrolyzer business in response to shifts in hydrogen adoption expectations.
“These decisions were aimed at streamlining operations and reducing ongoing costs in light of the weaker outlook for (hydrogen) demand,” CEO Jennifer Ramsey said.
In more positive news, Ramsey said the company’s Distribution and Power Systems segments achieved “record full-year sales and profitability as a result of … robust demand for data center backup power.” Distribution revenues were up 10% in 2025, while Power Systems revenues were up 15%.
“There continues to be a desire for most, really, all data center customers to have diesel backup power available just to ensure the level of uptime and reliability that they need,” Ramsey said.
