Aug 7, 2026, 6:46 AM ETIndustrials

Atmus Filtration Technologies — Second Quarter 2026 Earnings Summary

ATMUATMUS FILTRATION TECHNOLOGIES INC

Financial Performance

Net sales reached a record $528 million in Q2 2026, up 16.4% from $454 million in Q2 2025.
GAAP net income was $64 million ($0.78 diluted EPS), compared to $60 million ($0.72 diluted EPS) in the prior year period.
Adjusted earnings per share was $0.82, compared to $0.75 in the prior year.
Adjusted EBITDA was $109 million with a margin of 20.7%, compared to $95 million (21.0% margin) in Q2 2025.
Gross margin was $154 million (29.2% of net sales), up from $131 million (28.9%) in Q2 2025.
Cash provided by operating activities was $78 million, compared to $44 million in Q2 2025.
Adjusted free cash flow was $67 million, compared to $36 million in Q2 2025.
The effective tax rate was 22.8% in Q2 2026, compared to 21.9% in the prior year.
Total debt increased to $998.3 million ($6.3 million current maturities + $992.0 million long-term) as of June 30, 2026, from $570.0 million ($30.0 million current + $540.0 million long-term) as of December 31, 2025.

The company raised its full-year 2026 guidance for total net sales to a range of $1,975 million to $2,030 million.
Power Solutions segment full-year sales guidance is raised to $1,820 million to $1,865 million.
Industrial Solutions segment full-year sales guidance is raised to $155 million to $165 million.
Full-year 2026 Adjusted EBITDA margin guidance is set at 19.75% to 20.25%.
Full-year 2026 Adjusted earnings per share guidance is raised to a range of $2.85 to $3.00.

Power Solutions segment net sales were $486 million with an Adjusted EBITDA margin of 20.8%.
Industrial Solutions segment net sales were $42 million with an Adjusted EBITDA margin of 18.9%.
Sales growth was driven by the acquisition of Koch Filter Corporation, pricing increases, favorable currency impacts, and higher volumes.
Gross margin increases were attributed to pricing, incremental margin from the Koch Filter acquisition, favorable currency, higher volume, and lower one-time separation costs, partially offset by higher materials and manufacturing costs.
One-time integration costs of $1 million associated with the Koch Filter acquisition were excluded from Adjusted EBITDA.

Atmus operates as a global leader in filtration and media solutions with two primary segments: Power Solutions (Fleetguard® brand) and Industrial Solutions (Koch Filter® brand).
The Power Solutions segment serves global on- and off-highway equipment markets.
The Industrial Solutions segment addresses commercial and industrial HVAC applications, data centers, and power generation environments.
The company employs nearly 5,000 people worldwide.

Forward-looking statements involve risks and uncertainties, including those detailed in the company's Annual Report on Form 10-K and Quarterly Report on Form 10-Q.
Actual outcomes may differ from forecasts due to underlying assumptions, known or unknown risks, and uncertainties.
Risks include market conditions, integration of the Koch Filter acquisition, and separation costs from Cummins Inc.

CEO Steph Disher stated the team delivered record sales through a focus on solving customer filtration challenges with Fleetguard® and Koch Filter® products.
Management reaffirmed commitment to executing a four-pillar growth strategy and creating long-term shareholder value.
The tone reflects confidence in the acquisition integration and future growth trajectory.

Atmus repurchased $13 million of common stock during the quarter under a $150 million authorization, leaving $49 million remaining as of June 30, 2026.
A quarterly cash dividend of $0.055 per share was paid.
The acquisition of Koch Filter Corporation significantly impacted the balance sheet, increasing Goodwill from $84.7 million to $302.6 million and Intangible assets from $0 to $209.3 million.
Cash and cash equivalents increased to $259.0 million at June 30, 2026, from $236.4 million at December 31, 2025.
The company hosted a conference call and webcast on August 7, 2026, to discuss results.