Diesel’s Current Industry Headlines

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This Month’s Issue Includes:

• Diesel Fuel Pricing
• Regulatory & Tech
• MTU
• Cummins
• Caterpillar
• Volvo-Penta
• Wartsila
• JLG Industries
• Freightliner
• International Trucks
• John Deere
• Volvo Trucks
• Western Star Trucks
• Daimler
• Kirby Corporation
• Allison Transmission
• PACCAR
• Generac
• Terex
• Clark Material Handling

Market Trends and Fuel Prices

• Diesel Fuel Prices
  Recent data from the U.S. Energy Information Administration (EIA) and AAA shows a continued downward trend in U.S. diesel fuel prices. As of August 18, the average U.S. on-highway diesel price was $3.713 per gallon, a drop from the previous week's price. The EIA's latest short-term energy outlook forecasts a fall in prices throughout the rest of 2025 and into 2026.
• Renewable Diesel Expansion
  ExxonMobil's Imperial Oil Limited affiliate in Canada has started producing renewable diesel at its Strathcona Refinery, expected to become the country's largest facility of its kind. Source: ExxonMobil Official
• EPA DEF System Guidance
  The U.S. Environmental Protection Agency (EPA) has issued new guidance regarding Diesel Exhaust Fluid (DEF) systems. Starting with model year 2027, on-road diesel trucks must avoid immediate power loss when DEF levels are low. This rule provides more flexibility for operators and prevents trucks from being stranded. Source: EPA Official
• Potential Greenhouse Gas Regulation Changes
  The EPA is considering rescinding the Greenhouse Gas Endangerment Finding, which could significantly impact future emissions standards for diesel engines. This has been a major topic of discussion in the industry. Source: EPA GHG Information

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MTU / Rolls-Royce Power Systems – August 2025 Highlights

• New mtu Product Launch in China
  Date: August 7, 2025
  Launch of the mtu Series 2000 G06 engine, manufactured locally in Suzhou via the MTU Yuchai Power joint venture. Targeted for data centers, industrial parks, and mobile power units. Built to German quality standards with enhanced local service support. Source: mtu Solutions
• Apprentices Recognized with Awards
  Date: August 12, 2025
  Four Rolls-Royce apprentices received Industry and Commerce awards, highlighting the company’s investment in vocational training and workforce development. Source: mtu Solutions
• Major mtu Engine Order for Saudi Rail
  Date: August 21, 2025
  Rolls-Royce secured an order to supply 50 mtu engines for high-speed trains in Saudi Arabia. Source: mtu Solutions
• e-Fuels Partnership for Eco-Friendly Data Centers
  Date: August 5, 2025
  Collaboration with INERATEC to deliver e-fuels for climate-friendly data center operations. Source: mtu Solutions
• Strong Half-Year Financial Performance
  Date: Reported August 4, 2025 (H1 Results)
  Revenue: €2.4B (~£2.0B), up 20%
  Adjusted Operating Profit: €371M (~£313M), up 89%
  Growth driven by energy & government demand, data center expansion, BESS projects, and marine yacht propulsion. Heavy investment in new platforms at Aiken (SC), Mankato (MN), and Germany. Source: Marine Industry News
• Breakthrough: 100% Hydrogen Engine Achieves Key Milestone
  Date: August 2025
  Rolls-Royce Power Systems achieved a major step with its 100% hydrogen-powered mtu engine, demonstrating reliable full-load performance and highlighting climate-neutral propulsion for energy, rail, and marine sectors. Source: mtu Solutions

At a Glance: Key News & Innovation

• Product Innovation: Series 2000 G06 engine production launched in China
• Talent Development: Apprentices awarded for excellence
• Global Orders: 50 mtu engines ordered for Saudi high-speed trains
• Sustainability: e-fuel partnership for greener data center operations
• Financials: Strong H1 results: revenue +20%, profit +89%
• Hydrogen Future: 100% hydrogen mtu engine achieves milestone

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Cummins – August 2025 Highlights

• Strong Q2 Earnings Driven by Power Generation Demand
  Cummins reported Q2 revenue of $8.64B, surpassing analyst expectations due to strong demand for power generation systems, especially for AI/data centers. Power Systems segment grew 19% YoY to $1.89B. Sources: Reuters, Cummins Inc.
• Dividend Raised and New High-Power Generator Launched
  Cummins increased quarterly dividend from $1.82 to $2.00 per share (16th consecutive year of growth). Launched S17 Centum genset delivering 1 MW for urban-critical infrastructure. Source: Cummins Inc.
• Regulatory Delays Affect X15 Diesel Engine Launch
  Cummins announced a delay in the EPA 2027-compliant X15 diesel engine due to US emissions uncertainty. Source: DieselNet
• Softening Truck Demand Expected to Continue
  Engine Segment saw 8% YoY drop in Q2 sales; heavy-/medium-duty truck volumes in North America declining. Q3 expected to drop 25–30%. Sources: Post-Journal, Times Observer
• Employee Spotlight: Alexis C.
  Technician profile at Chicago branch highlighting career growth and technical expertise. Source: Cummins Inc.
• Market Response & Investment Insights
  Analysts at Citi called Cummins an “AI stock” due to data center reliance. Raised earnings estimates and $425 target. Stock hit 52-week high ~$399.06. Sources: Citi, MarketWatch, Barron's

At a Glance: August 2025 Highlights

• Financial Results: Q2 revenue $8.64B; strong Power Systems growth; dividend increased
• Product Launch: S17 Centum generator (1 MW, compact)
• Regulatory Impact: Delay of 2027 X15 diesel engine launch
• Market Conditions: Heavy-duty truck demand weak; projected decline Q3
• Employee Focus: Featured employee story – Alexis C.
• Investor Sentiment: Rebranded as “AI stock”; analyst upgrades and bullish outlook

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Caterpillar – August 2025 Highlights

• Q2 Financial Results & Tariff Challenges
  Caterpillar reported Q2 2025 revenue of $16.6B, a 1% YoY decline. Adjusted EPS dropped from $5.99 to $4.72. Profits and margins were impacted by unfavorable price realization, partly offset by higher sales volume. Caterpillar Official Site, Reuters. U.S. tariffs could cost up to $1.5B in 2025, with $400–$500M expected in Q3, raising component costs and squeezing margins amid softening demand in construction and resource segments. Reuters, Financial Times
• Stock Reactions & Market Sentiment
  The earnings miss and tariff concerns caused a pullback in Caterpillar shares. Analysts remain optimistic: Evercore ISI upgraded the stock from “Hold” to “Buy”, raising the price target to $476. MarketWatch, Reuters, Barron's
• High-Impact Divestment by Norway’s Sovereign Wealth Fund
  Norway’s $2T sovereign wealth fund divested from Caterpillar, citing ethical concerns over the use of its machinery in the Israeli-Palestinian conflict. This marks the first divestment from a non-Israeli company due to this conflict. Reuters, The Guardian

At a Glance: August 2025 Highlights

• Q2 Results & Margins: Revenue $16.6B (-1% YoY); Adjusted EPS $4.72
• Tariff Impact: Up to $1.5B hit in 2025; $400–$500M expected in Q3
• Stock Response: Shares dipped; Evercore ISI upgraded to “Buy” with $476 price target
• Ethical Divestment: Norway’s sovereign wealth fund divested over ethical concerns

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Volvo Penta – August 2025 Highlights

• New Leadership: Hanna Ljungqvist to Lead Marine Business
  Volvo Penta has announced that Hanna Ljungqvist will become the new Head of Volvo Penta Marine Business and a member of its Executive Group, effective October 1, 2025. Sources: Boating Industry, Volvo Penta Official, WorkBoat
• Leadership Background
  Ljungqvist returns with senior experience at Volvo Trucks in India and Indonesia and prior leadership within Volvo Penta Marine Division. Sources: Boating Industry, WorkBoat
• Florida Detroit Diesel-Allison Wins Service Excellence Award
  Recognized for commitment to service quality. Sources: Facebook, Instagram
• Atlantic Detroit Diesel-Allison Appointed New Authorized Power Center
  Division of Stewart & Stevenson appointed as a new Authorized Power Center for Volvo Penta in the marine industry. Source: Volvo Group

At a Glance: Latest Update Details

• Leadership Transition: Hanna Ljungqvist appointed as Head of Marine Business (effective Oct 1)
• Award Recognition: Florida Detroit Diesel-Allison won the Volvo Penta Service Excellence Award
• New Authorized Power Center: Atlantic Detroit Diesel-Allison appointed for Volvo Penta Marine

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Wärtsilä – August 2025 Highlights

• Strategic Partnership Announced
  Wärtsilä has partnered with leading shipping companies to advance sustainable propulsion and hybrid solutions for marine vessels. Sources: Wärtsilä Official, Marine Log
• New Energy Storage System Deployed
  The company deployed a new energy storage solution for large-scale industrial applications, enhancing energy efficiency and grid reliability. Sources: Wärtsilä Official, Energy Storage News
• Digital Solutions Expansion
  Wärtsilä expanded its digital portfolio to optimize vessel performance and predictive maintenance, supporting more efficient operations. Sources: Wärtsilä Official, WorkBoat
• Leadership Recognition
  CEO and senior management recognized for advancing sustainable solutions in marine and energy sectors. Sources: Wärtsilä Official, Boating Industry

At a Glance: August 2025 Highlights

• Strategic Partnership: Collaboration with shipping companies on sustainable propulsion
• Energy Storage: New industrial-scale energy storage solution deployed
• Digital Solutions: Expanded portfolio for predictive maintenance and operational efficiency
• Leadership Recognition: Executive team honored for sustainable innovation

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JLG – Latest Update – August 2025

• Global Expansion
  JLG has announced expansion of its production capabilities in North America and Europe to meet increasing demand for aerial work platforms and telehandlers. Sources: JLG Official, Construction Equipment
• New Electric Models Released
  The company introduced new electric scissor lifts and boom lifts to support sustainable construction and indoor operations. Sources: JLG Official, KHL Group
• Training & Workforce Development
  JLG expanded its operator training programs in the U.S., emphasizing safety, productivity, and skill development for contractors and rental companies. Sources: JLG Official, RER Magazine
• Industry Recognition
  JLG received awards for innovative design and safety features across multiple equipment lines. Sources: JLG Official, Equipment World

At a Glance: August 2025 Highlights

• Global Expansion: Increased production capabilities in North America and Europe
• New Electric Models: Electric scissor and boom lifts launched
• Training Programs: Expanded operator and safety training initiatives
• Industry Recognition: Awards for innovative design and safety

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Other Industry News

• Freightliner
  Freightliner has opened the order books for its Fifth-Generation Cascadia, marking a significant update to its flagship model.
  Source: TT News, Reuters
• International Trucks
  International Trucks has appointed a new Chief Human Resources Officer, Gabriel Duarte-Urrutia, effective September 1, 2025, and recognized its 2025 Diamond Supplier Award winners.
  Source: International Newsroom
• John Deere
  John Deere reported Q3 net income of $1.289B (down from $1.734B YoY) and announced layoffs at three Midwestern facilities due to declining sales and tariffs.
  Source: Newsweek, John Deere Official
• Volvo Trucks
  Volvo Trucks secured an order for 264 VNL 860 trucks from Averitt Express and additional orders from Verspeeten Cartage.
  Source: Newsweek, Volvo Trucks
• Western Star Trucks
  Western Star Trucks posted record sales (1,136 units) and hosted the 2025 Star Nation Experience showcasing the 47X and 49X trucks.
  Source: TheTrucker.com, Truckinginfo, Work Truck Online
• Daimler
  Daimler Truck achieved 12.9% adjusted return on sales in Q2 2025, despite lower unit sales, and warned of tougher conditions in H2 2025.
  Source: Daimler Truck, TT News, Reuters
• Kirby Corporation
  Kirby posted Q2 revenue of $855.5M (up from $824.4M YoY) with higher margins in its Distribution & Services segment.
  Source: Kirby Corporation, AInvest
• Allison Transmission
  A Swedish refuse hauler in Gothenburg is now using Allison Transmission automatics for intensive start-stop operations.
  Source: Allison Transmission
• PACCAR
  PACCAR declared a regular quarterly dividend of $0.33 per share, reported Q2 2025 net income of $723.8M, and offered limited-time financing for new orders. Tariff impacts are expected to cost around $75M in Q3 2025. Additionally, PACCAR's Kenworth and Peterbilt brands have seen strong demand for their heavy-duty trucks, while ongoing supply chain adjustments continue to affect delivery times. The company also highlighted investments in electrification and advanced driver-assistance systems as part of its long-term strategy.
  Source: PACCAR Official, Trucking Dive, Reuters
• Generac Holdings Inc.
  Generac's stock reached a 52-week high of $203.25 on August 13, later falling to $186.99 by August 27. Citigroup downgraded the stock from "Buy" to "Neutral" on August 26. Institutional investors like Orbis Allan Gray Ltd and Trexquant Investment LP increased their stakes. The company also reported Q2 2025 earnings of $1.65 per share, beating expectations, with revenue of $1.06B (+6.3% YoY).
  Source: MarketWatch, Fintel, MarketBeat, MarketScreener
• Terex Corporation
  Terex announced a re-pricing of its term loan, reducing annual cash interest costs by ~$3M. Q2 net sales were $1.5B (+7.6% YoY) with adjusted EPS of $1.49. Declared quarterly dividend of $0.17/share.
  Source: Terex Investors, Simply Wall St, AInvest
• Clark Material Handling
  Clark introduced the SES stand-up forklift for better warehouse maneuverability. Announced 2024 Dealer of the Year awards and celebrated opening of new global headquarters in Flower Mound, TX.
  Source: Instagram, Clark MHC News, IVT International

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