Nov 6, 2026, 6:47 AM ETIndustrials

Atmus Filtration Technologies — Third Quarter 2026 Earnings Summary

ATMUATMUS FILTRATION TECHNOLOGIES INC

Financial Performance

Net sales reached $510 million for the quarter, a 13.9% increase compared to $448 million in the third quarter of 2025.
Net income was $61 million ($0.74 diluted EPS), up from $55 million ($0.66 diluted EPS) in the prior year period.
Adjusted earnings per share were $0.77, compared to $0.69 in the same period last year.
Adjusted EBITDA was $104 million with a margin of 20.4%, matching the 20.4% margin recorded in the third quarter of 2025.
Gross margin was $154 million (30.3% of net sales), an increase from $129 million (28.9%) in the prior year period.
Cash provided by operating activities was $98 million, compared to $82 million in the third quarter of 2025.
Adjusted free cash flow was $88 million, compared to $72 million in the third quarter of 2025.
The effective tax rate for the quarter was 22.8%, down from 23.6% in the prior year period.
Long-term debt stood at $948.3 million as of September 30, 2026, up from $540.0 million as of December 31, 2025.

The company raised its full-year 2026 total net sales guidance to a range of $2,010 million to $2,035 million.
Power Solutions segment full-year net sales guidance is raised to $1,850 million to $1,870 million.
Industrial Solutions segment full-year net sales guidance is raised to $160 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 set at $2.90 to $3.05.

Power Solutions segment net sales were $468 million, with an Adjusted EBITDA of $96 million and a margin of 20.5%.
Industrial Solutions segment net sales were $42 million, with an Adjusted EBITDA of $8 million and a margin of 19.6%.
Sales growth was driven by the acquisition of Koch Filter Corporation, favorable volumes, currency benefits, and pricing increases.
Growth was partially offset by tariff refunds payable to customers.
Gross margin expansion was attributed to incremental margin from the Koch Filter acquisition, favorable volume, pricing, manufacturing costs, currency impacts, lower one-time separation costs, and lower warranty costs.
Higher material and freight costs partially offset gross margin improvements.

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

Sales growth was negatively impacted by tariff refunds payable to customers.
Material and freight costs increased, partially offsetting margin gains.
Forward-looking statements involve risks and uncertainties, including assumptions about industry performance, market position, and potential materialization of known or unknown risks as detailed in the company's SEC filings.

CEO Steph Disher expressed pride in the team's dedication, citing strong financial results and the protection of customer interests through Fleetguard® and Koch Filter® products.
Management highlighted strong cash generation and outlook as the basis for expanding the share repurchase program.
Capital allocation strategy focuses on investing for growth and returning cash to shareholders to create value.

Atmus repurchased $20 million of common stock during the third quarter under the $150 million program authorized in July 2024.
On November 4, 2026, the Board authorized a new $300 million share repurchase program, replacing the prior authorization.
The company paid a quarterly cash dividend of $0.06 per share, representing a 9% increase from the prior quarter.
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 $206.4 million between December 31, 2025, and September 30, 2026.
Cash and cash equivalents increased to $273.3 million as of September 30, 2026, from $236.4 million at the end of 2025.
The third quarter of 2025 excluded $4 million of one-time separation costs from Cummins Inc., while the third quarter of 2026 excluded $1 million of one-time capital expenditures associated with the Koch Filter acquisition.