Core Viewpoint - The push for U.S. datacenters to utilize their own power supply is expected to significantly increase demand for Wartsila's environmentally friendly products and lead to a "double-digit" percentage growth in hiring servicing staff over the next two years [1] Company Summary - Wartsila anticipates an 80% increase in delivery capacity for datacentre engines by 2028, driven by U.S. initiatives promoting energy and water-efficient technologies [1] - The company has secured contracts for approximately 1.2 gigawatts of power for datacentres, highlighting the importance of its technology in decision-making processes [1] - Wartsila's engine technology uses "up to 2,000 times less water" than comparable gas turbines and can reduce fuel costs by 20-35%, making it a competitive choice for datacentres [1] Industry Summary - The U.S. market accounts for about half of the world's datacentres, with expected growth as companies seek to enhance computing power, leading to increased competition for skilled workers [1] - The CEO emphasized the need for more vocational training in the U.S. to meet the rising demand for talent in the industry, as there is currently a tight supply of qualified personnel [1]

Revenue growth of 28.9% for the full year was driven by higher unit sales across nearly every reporting category, particularly in heavy-duty and high-horsepower engines. The data center market emerged as a critical growth engine, with combined sales of MTU Yuchai and Yuchai branded high-horsepower units increasing from 750 to over 2,000 units. Gross margin expansion to 16.5% was attributed to a favorable shift in product mix toward high-margin heavy-duty engines and ongoing cost reduction initiatives. ...

Engine unit sales increased 28.7% in the second half to 210,913 units. The company said growth was led by truck and bus engines, which rose 49.2% year over year. Truck engine unit sales increased 59.4%, including a 100.61% increase in heavy-duty truck engines. Off-road engine unit sales rose 7.5%, supported by more than 22% growth in industrial engines and marine and genset engines, partially offset by lower agricultural engine unit sales.Chief Financial Officer Choon Sen Loo attributed the margin improveme ...

China Yuchai International (NYSE:CYD) H2 2025 Earnings call February 24, 2026 08:00 AM ET Company ParticipantsChoon Sen Loo - CFOFiona Lim - Global Financial Crimes Compliance Specialist of Global Economic SanctionsKelvin Lai - General Manager of OperationsKevin Theiss - Head of Investor RelationsWeng Ming Hoh - President and DirectorConference Call ParticipantsSteven Liu - Equity Research AnalystWei Shen - Equity Research Analyst of China Auto & Industrials ResearchYing Si - Equity Research AnalystKevin Th ...

China Yuchai International (NYSE:CYD) H2 2025 Earnings call February 24, 2026 08:00 AM ET Company ParticipantsChoon Sen Loo - CFOFiona Lim - Global Financial Crimes Compliance Specialist of Global Economic SanctionsKelvin Lai - General Manager of OperationsKevin Theiss - Head of Investor RelationsWeng Ming Hoh - President and DirectorConference Call ParticipantsSteven Liu - Equity Research AnalystWei Shen - Equity Research Analyst of China Auto & Industrials ResearchYing Si - Equity Research AnalystOperator ...

China Yuchai International (NYSE:CYD) H2 2025 Earnings call February 24, 2026 08:00 AM ET Speaker5Good day, and thank you for standing by. Welcome to China Yuchai International Limited, second half, 2025 financial results. At this time, all participants are in a listen-only mode. After the speaker's presentation, there will be a question and answer session. To ask a question during the session, you need to press star 1 and 1 on your telephone. You will then hear an automated message advising your hand is ra ...

Core Viewpoint - China Yuchai International Limited reported significant growth in engine sales and financial performance for the second half of 2025 and the full fiscal year 2025, driven by strong demand in the truck and bus segments, alongside strategic expansions in international markets [1][2]. Financial Highlights for 2H 2025 - Total number of engines sold increased by 28.7% to 210,913 units compared to 163,843 units in 2H 2024 [1]. - Basic and diluted earnings per share rose by 108.7% to RMB 4.57 (US$ 0.65) from RMB 2.19 in 2H 2024 [1]. - Profit for the period increased by 77.7% to RMB 275.7 million (US$ 39.2 million) compared to RMB 155.1 million in 2H 2024 [1]. - Operating profit grew by 193.1% to RMB 469.2 million (US$ 66.7 million) from RMB 160.1 million in 2H 2024 [1]. - Revenue increased by 33.5% to RMB 11.8 billion (US$ 1.7 billion) compared to RMB 8.8 billion in 2H 2024 [1]. Financial Highlights for FY 2025 - Total number of engines sold increased by 29.4% to 461,309 units compared to 356,586 units in FY 2024 [2]. - Basic and diluted earnings per share increased by 74.4% to RMB 14.32 (US$ 2.04) from RMB 8.21 in FY 2024 [2]. - Profit for the year increased by 64.8% to RMB 810.5 million (US$ 115.3 million) compared to RMB 491.7 million in FY 2024 [2]. - Operating profit increased by 82.7% to RMB 1.1 billion (US$ 155.2 million) compared to RMB 597.0 million in FY 2024 [2]. - Revenue grew by 28.9% to RMB 24.7 billion (US$ 3.5 billion) compared to RMB 19.1 billion in FY 2024 [2]. Sales Performance - Truck and bus engine unit sales rose by 42.8%, significantly outpacing the market sales growth of 4.5% for 2025 [2]. - Total truck engine unit sales rose by 50.7% YoY, compared to a 5.9% YoY increase in truck unit sales [2]. - Off-road engine unit sales increased by 13.0% YoY, with industrial and marine sales growth exceeding 24% YoY [2]. Research and Development - R&D expenses increased by 48.0% to RMB 874.9 million (US$ 124.5 million) compared to RMB 591.1 million in 2H 2024 [1]. - Total R&D expenditure, including capitalized costs, was RMB 974.2 million (US$ 138.6 million), representing 8.3% of revenue in 2H 2025 [1]. Balance Sheet Highlights as of December 31, 2025 - Short-term and long-term loans and borrowings were RMB 2.0 billion (US$ 287.4 million), down from RMB 2.5 billion at the end of FY 2024 [2]. - Trade and bills payables were RMB 11.1 billion (US$ 1.6 billion), compared to RMB 8.5 billion at the end of FY 2024 [2]. - Cash and bank balances were RMB 7.9 billion (US$ 1.1 billion), up from RMB 6.4 billion at the end of FY 2024 [2]. Strategic Developments - The company expanded its international presence with a strategic agreement in Vietnam and shipped products to Germany and Mexico [2]. - An indirect subsidiary filed for a potential listing on the Hong Kong Stock Exchange in January 2026 [2].

Group 1 - The company has made significant investments in a fuel-agnostic engine platform to align with its Destination Zero strategy and prepare for upcoming EPA regulations [1][2] - The company has launched three new engine platforms simultaneously, which is an unprecedented move in its history, indicating a strong commitment to the diesel engine market [2] - The company believes that diesel engines have a long runway and sees an opportunity to deliver effective technology and gain market share in this space [2]

Summary of Cummins (NYSE:CMI) 2026 Conference Call Company Overview - **Company**: Cummins Inc. (NYSE:CMI) - **Date of Conference**: February 18, 2026 - **Key Participants**: Kyle Menges (Citi), Jeff Wiltrout (Corporate Strategy), Nick Arens (Investor Relations) Key Points Industry and Market Position - Cummins is focusing on a **fuel-agnostic engine platform** to align with the **Destination Zero strategy** and prepare for **EPA 2027 regulations** [1][2] - The company has invested heavily in **next-generation engine technology**, launching three new engine platforms simultaneously, which is unprecedented for Cummins [2][3] Electric Vehicle (EV) Strategy - Cummins acknowledges the **growing trend towards zero-emissions technologies**, including battery electric and E-axles, and has made investments in these areas over the last decade [5][6] - The company views **Tesla** as a significant competitor in the heavy-duty truck market but believes that the economic viability of battery electric trucks will depend on regulatory drivers [6][7] - In **China**, there has been a significant push for battery electric trucks, with over **20% adoption** in the heavy-duty truck market, although Cummins is less exposed to this segment [9][10] EPA 2027 Regulations - The **35 milligram NOx standard** is expected to be implemented, with a potential removal of extended warranty requirements to reduce upfront costs for fleets [15][16] - Cummins is confident in its architecture and technology to meet these regulations, although the timeline for launching three platforms is challenging due to supplier and regulatory coordination [16][19] Financial Outlook and Pricing - The average selling price of trucks is expected to increase by about **$10,000**, primarily driven by the powertrain segment [24][25] - The company anticipates that the new engine platforms will provide margin opportunities over the next few years as production stabilizes [26] Research and Development (R&D) - R&D spending has increased by approximately **$150 million annually** for platform investments, with expectations for a tapering off post-launch in 2027 [27][29] Power Generation and Data Centers - Cummins has seen significant growth in the **power generation** and **data center** markets, driven by increased demand for redundant power solutions [31][32] - The company has doubled its capacity to serve this market and is evaluating further investments for growth [34][36] - The order backlog extends through **2027**, with discussions about orders into **2028** [41][42] Competitive Landscape - Cummins maintains a strong competitive position in the data center backup power market due to its established relationships, reputation, and distribution capabilities [62][63] - The company is aware of increasing competition but believes its unique offerings are difficult to replicate [64] Tariff Impacts - Tariffs are impacting margins, particularly in the engine and distribution segments, with an estimated **50 basis points of dilution** in guidance due to tariff surcharges [73][74] - The company is exploring potential rebates related to tariffs, which could improve margins if successful [76][78] Future Guidance and Investor Day - Cummins plans to update its **2030 financial targets** at the upcoming Investor Day, focusing on engine components, power generation, margin profiles, and capital allocation strategies [99][100][101] Additional Insights - The company is actively engaging with customers to secure favorable payment terms and long-term contracts to support investments in capacity [96][98] - There is a strong demand for backup power solutions, with no visible signs of a slowdown in demand expected through the decade [48][50]

Summary of WeiChai Power Conference Call Company Overview - **Company**: WeiChai Power (2338.HK, 000338.SZ) - **Industry**: China Industrials - **Current Stock Rating**: Equal-weight - **Price Target**: HK$26.20 - **Current Share Price (as of Feb 10, 2026)**: HK$29.20 - **Market Capitalization**: Rmb225,885 million - **Fiscal Year Ending**: December 2024 Key Industry Insights - **HDT Market Sales**: Expected to be flat or mildly grow in 2026, supported by solid exports, particularly to Africa and the Middle East, and the extension of domestic trade-in subsidy policies [3][8] - **LNG HDT Penetration**: Anticipated to rise slightly in 2026 from approximately 24% in 2025 [3] - **New Energy HDT Penetration**: Expected to surpass 30% in 2026 [3] Financial Performance and Projections - **New Energy Business Revenue**: Reached approximately Rmb3 billion in 2025, doubling year-on-year, with continued growth momentum expected in 2026 [8] - **Large-Bore Engine Shipments**: Projected to double year-on-year to approximately 2,800 units in 2026, contributing to a total sales target of around 13,000 units [8] - **AIDC Generator ASP**: Remains stable at over Rmb2 million, with a capacity of 3,000 to 4,000 units [8] - **SOFC Capacity**: Expected to reach 1GW by 2030, with the first 10MW production line going live in 2026 [8] Strategic Goals - **Market Share in LNG HDT Engines**: WeiChai aims to stabilize its market share at 55-60% in the long term [8] - **Global AIDC Generator Share**: Targeting a 20-30% share in 3-5 years, up from the current teens [8] Risks and Considerations - **Upside Risks**: Stronger-than-expected recovery from KION, better volume growth in engine and HDT sales due to stronger stimulus [12][13] - **Downside Risks**: Slower-than-expected AI capital expenditures, potential market share loss in the engine/HDT market [12][13] Valuation Methodology - **P/E Ratios**: - Traditional engine and truck business: 10x 2026e P/E, in line with an 8-year historical average [10] - AIDC business: 60x 2026e P/E, considering strong net profit growth of approximately 100% year-on-year [10] Conclusion WeiChai Power is positioned for moderate growth in the HDT market, with significant advancements in its new energy segment. The company is focusing on stabilizing its market share in LNG HDT engines while expanding its presence in the AIDC generator market. However, it faces risks related to market dynamics and competition.