Record Q2 2026 results as Atmus Filtration (NYSE: ATMU) raises outlook
Rhea-AI Filing Summary
Atmus Filtration Technologies reported record second-quarter 2026 net sales of $527.9 million, up 16.4% from $453.5 million a year earlier, driven by the Koch Filter acquisition, pricing, favorable currency and higher volumes. GAAP net income was $63.9 million with diluted EPS of $0.78; adjusted EPS was $0.82. Adjusted EBITDA reached $109.1 million, for a margin of 20.7%.
Operating cash flow rose to $77.8 million from $44.4 million, and adjusted free cash flow was $67.2 million. The company repurchased $13 million of stock under its $150 million authorization and paid a quarterly dividend of $0.055 per share.
For full-year 2026, Atmus raised its outlook, guiding to net sales of $1,975 million–$2,030 million, adjusted EBITDA margin of 19.75%–20.25% and adjusted EPS of $2.85–$3.00.
Positive
- Record Q2 net sales of $527.9 million, up 16.4% year over year, reflect strong top-line growth supported by the Koch Filter acquisition, pricing and higher volumes.
- Raised 2026 guidance, with net sales now expected at $1,975–$2,030 million and adjusted EPS at $2.85–$3.00, signaling higher management expectations for full-year performance.
- Cash from operations increased to $77.8 million and adjusted free cash flow to $67.2 million, strengthening the company’s ability to fund investments and capital returns internally.
- $13 million in share repurchases and ongoing cash dividends demonstrate continued direct capital returns to shareholders alongside growth investments.
Negative
- None.
Filing Explained
At June 30, Atmus reported cash alongside long-term debt and current maturities.
This Form 8-K reports the company’s second-quarter results, the type of material event this form is used to disclose, and furnishes the accompanying press release.
The quarter ended
Adjusted EBITDA, adjusted earnings per share, and adjusted free cash flow exclude specified acquisition, integration, separation, or amortization items and are supplemental measures to be considered with GAAP results.
8-K Event Classification
2 items: 2.02, 9.01
2 items
Item 2.02
Results of Operations and Financial Condition
Financial
Disclosure of earnings results, typically an earnings press release or preliminary financials.
Item 9.01
Financial Statements and Exhibits
Exhibits
Financial statements, pro forma financial information, and exhibit attachments filed with this report.
Key Figures
Net sales Q2 2026: $527.9 million
Net income Q2 2026: $63.9 million
Diluted EPS Q2 2026: $0.78
+5 more
8 metrics
Net sales Q2 2026
$527.9 million
Record quarterly net sales, up 16.4% from $453.5 million in Q2 2025
Net income Q2 2026
$63.9 million
Compared with $59.9 million in the second quarter of 2025
Diluted EPS Q2 2026
$0.78
Up from $0.72 diluted EPS in the same period last year
Adjusted EBITDA Q2 2026
$109.1 million
Adjusted EBITDA margin of 20.7% for the quarter
Operating cash flow Q2 2026
$77.8 million
Versus $44.4 million in operating cash flow in Q2 2025
2026 net sales guidance
$1,975–$2,030 million
Full-year 2026 total company net sales outlook
2026 adjusted EPS guidance
$2.85–$3.00
Full-year 2026 adjusted earnings per share guidance
Acquisition cash outflow H1 2026
$453.9 million
Cash used in acquisitions, net of cash acquired, in the first six months of 2026
Key Terms
Adjusted EBITDA, Adjusted free cash flow, EBITDA margin, non-GAAP financial measures, +2 more
6 terms
Adjusted EBITDA financial
"Adjusted EBITDA of $109 million and Adjusted EBITDA margin of 20.7%"
Adjusted EBITDA is a way companies measure how much money they make from their core operations, like running a business, by removing certain costs or income that aren’t part of regular business activities. It helps investors see how well a company is doing without distractions from unusual expenses or gains, making it easier to compare companies or track performance over time.
Adjusted free cash flow financial
"Adjusted free cash flow was $67 million in the second quarter of 2026"
Adjusted free cash flow is the amount of money a company generates from its operations after accounting for essential expenses and investments, like maintaining or upgrading equipment. It shows how much cash is truly available to grow the business, pay debts, or return to shareholders, helping investors see the company's financial health more clearly.
EBITDA margin financial
"EBITDA margin is defined as EBITDA as a percent of Net sales"
EBITDA margin is the share of each dollar of sales that a company keeps as operating cash profit before interest, taxes, and accounting for equipment wear and long-term investments. Think of it like the cash a store has left from every sale after paying day-to-day running costs but before paying rent, loan interest or replacing old machinery. Investors use it to compare core profitability and operational efficiency across companies by removing financing and accounting differences.
non-GAAP financial measures financial
"We use non-GAAP financial information and believe it is useful to investors"
Non-GAAP financial measures are numbers companies use to show their financial performance that exclude certain expenses or income. They help investors see how the company might perform without one-time costs or other unusual items, giving a different perspective from official reports. However, since they can be adjusted, they don’t always tell the full story and should be looked at alongside standard financial figures.
effective tax rate financial
"The effective tax rate for the second quarter of 2026 was 22.8%"
The effective tax rate is the percentage of a company's profits that it pays in taxes. It shows how much of its earnings go to taxes after all deductions and credits are considered. For investors, it indicates how much of the company's income is taken by taxes, impacting overall profitability and financial health.
Earnings Snapshot
Net sales: $527.9 million · Guidance included
three months ended June 30, 2026
Net sales
$527.9 million
up 16.4% from $453.5 million in Q2 2025
Net income
$63.9 million
from $59.9 million in Q2 2025
Diluted EPS
$0.78
from $0.72 in Q2 2025
Adjusted EPS
$0.82
from $0.75 in Q2 2025
Adjusted EBITDA
$109.1 million
from $95.1 million in Q2 2025
Operating cash flow
$77.8 million
from $44.4 million in Q2 2025
Guidance
For full-year 2026, Atmus expects net sales of $1,975 million to $2,030 million, adjusted EBITDA margin of 19.75%–20.25% and adjusted earnings per share of $2.85 to $3.00.
AI-generated analysis. How Rhea-AI works. Not financial advice.
FAQ
How did Atmus Filtration (ATMU) perform in Q2 2026 on revenue and growth?
Atmus reported Q2 2026 net sales of $527.9 million, a 16.4% increase from $453.5 million in Q2 2025. Growth was driven by the Koch Filter acquisition, higher pricing, favorable currency and increased volumes across its segments.
What were Atmus Filtration (ATMU) earnings and margins in Q2 2026?
GAAP net income was $63.9 million with diluted EPS of $0.78, while adjusted EPS was $0.82. Adjusted EBITDA reached $109.1 million, corresponding to an adjusted EBITDA margin of 20.7% for the quarter.
How did cash flow trend for Atmus Filtration (ATMU) in Q2 2026?
Cash provided by operating activities was $77.8 million, up from $44.4 million a year earlier. Adjusted free cash flow was $67.2 million, compared with $35.5 million in Q2 2025, reflecting stronger cash generation after growth and integration spending.
What full-year 2026 guidance did Atmus Filtration (ATMU) provide?
For 2026, Atmus expects net sales of $1,975 million to $2,030 million, an adjusted EBITDA margin of 19.75%–20.25% and adjusted EPS of $2.85–$3.00, representing raised outlook versus prior expectations.
How is the Koch Filter acquisition impacting Atmus Filtration (ATMU) results?
Management noted that Q2 2026 sales growth was primarily driven by the acquisition of Koch Filter, along with pricing, currency and higher volumes. The deal also added $2.9 million of quarterly intangible amortization and related one-time integration costs.
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
___________________________
FORM 8-K
___________________________
CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(d) OF
THE SECURITIES EXCHANGE ACT OF 1934
Date of Report (Date of earliest event reported): August 7, 2026
(Exact name of registrant as specified in its charter)
| (State or other jurisdiction of incorporation or organization) | (Commission File Number) | (I.R.S. Employer Identification No.) | |||||||||
| (Address of Principal Executive Offices) | (Zip Code) | ||||||||||
(615 ) 514-7339
Registrant's telephone number, including area code
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
| Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) | |||||
| Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) | |||||
| Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) | |||||
| Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) | |||||
Securities registered pursuant to Section 12(b) of the Act:
| Title of each class | Trading Symbol(s) | Name of each exchange on which registered | ||||||||||||
Indicate by check mark whether the registrant is an emerging growth company as defined by Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
| Emerging growth company | |||||
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. o
Item 2.02 Results of Operations and Financial Condition.
On August 7, 2026, Atmus Filtration Technologies Inc. (“the Company”) issued the attached press release reporting its financial results for the second quarter of 2026. A copy of this press release is furnished as Exhibit 99.1 to this Current Report on Form 8-K and is incorporated herein by reference.
The information furnished in this Item 2.02, including Exhibit 99.1, is not deemed to be “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or otherwise subject to the liability of that section. This information will not be deemed to be incorporated by reference into any filing under the Securities Act of 1933, as amended (the “Securities Act”), or the Exchange Act, except to the extent that the Company specifically incorporates it by reference.
Item 9.01 Financial Statements and Exhibits.
The following exhibits are being filed as part of this Report.
| Exhibit No. | Description | |||||||
| 99.1 | Press Release issued by Atmus Filtration Technologies Inc. on August 7, 2026. | |||||||
| 104 | Cover Page Interactive Data File (embedded with the Inline XBRL Document). | |||||||
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.
Atmus Filtration Technologies Inc.
By: | /s/ JACK M. KIENZLER | |||||||
| Jack M. Kienzler | ||||||||
Senior Vice President, Chief Financial Officer and Chief Accounting Officer | ||||||||
| (Principal Financial Officer) | ||||||||
August 7, 2026
EXHIBIT 99.1
August 7, 2026
Atmus Filtration Technologies Reports Second Quarter 2026 Results
NASHVILLE, Tenn. – Atmus Filtration Technologies Inc. (Atmus; NYSE: ATMU), a global leader in filtration and media solutions, today reported financial results for its second quarter that ended June 30, 2026.
Second Quarter Highlights
•Record Net sales of $528 million
◦Power Solutions segment net sales of $486 million
◦Industrial Solutions segment net sales of $42 million
•GAAP net income of $64 million
•Diluted earnings per share of $0.78
•Adjusted earnings per share of $0.82
•Adjusted EBITDA of $109 million and Adjusted EBITDA margin of 20.7%
◦Power Solutions Segment Adjusted EBITDA of $101 million and Segment Adjusted EBITDA margin of 20.8%
◦Industrial Solutions Segment Adjusted EBITDA of $8 million and Segment Adjusted EBITDA margin of 18.9%
•Cash provided by operating activities was $78 million
•Adjusted free cash flow was $67 million
2026 Outlook
The company is raising guidance for the full year 2026 as follows:
•Total company Net sales expected to be in the range of $1,975 million to $2,030 million
◦Power Solutions segment expected to be in the range of $1,820 million to $1,865 million
◦Industrial Solutions segment expected to be in the range of $155 million to $165 million
•Adjusted EBITDA margin expected to be in the range of 19.75% to 20.25%
•Adjusted earnings per share expected to be in the range of $2.85 to $3.00
During the quarter, Atmus repurchased $13 million of common stock under the $150 million share repurchase program authorized by the Board of Directors in July 2024. As of June 30, 2026, $49 million was remaining under the authorization. Additionally, Atmus paid a quarterly cash dividend of $0.055 per share of common stock.
“The Atmus team delivered record sales during the quarter through a relentless focus on solving our customer’s toughest filtration challenges with our industry leading Fleetguard® and Koch Filter® branded products,” said Steph Disher, Chief Executive Officer of Atmus. “Our team remains committed to executing our four-pillar growth strategy and creating long-term shareholder value.”
Second Quarter Results
For the second quarter of 2026, Atmus posted net sales of $528 million, compared to $454 million in the second quarter of 2025, an increase of 16.4%. The increase in sales was primarily driven by the acquisition of Koch Filter Corporation (“Koch Filter”), increases in pricing, the favorable impacts of currency and higher volumes.
Gross margin was $154 million, compared to $131 million in the second quarter of 2025. Gross margin as a percent of net sales was 29.2% compared to 28.9% in the same period last year. The increase in Gross margin was primarily due to increases in pricing, incremental margin from the acquisition of Koch Filter, favorable impacts of currency, higher volume and lower one-time costs associated with the separation of the business from Cummins Inc., partially offset by higher materials and manufacturing costs.
Adjusted EBITDA was $109 million, compared to $95 million in the second quarter of 2025. Adjusted EBITDA margin was 20.7% compared to 21.0% in the same period last year. Adjusted EBITDA in the second quarter of 2026 excludes $1 million of one-time integration costs associated with the acquisition of Koch Filter compared to the prior year quarter which excludes $3 million of one-time costs associated with the separation of the business from Cummins.
Net income was $64 million, or $0.78 of diluted earnings per share in the second quarter of 2026, compared to $60 million, or $0.72 of diluted earnings per share in the same period last year.
Adjusted earnings per share was $0.82 in the second quarter of 2026, compared to $0.75 of Adjusted earnings per share in the same period last year.
The effective tax rate for the second quarter of 2026 was 22.8% compared to 21.9% for the same period last year.
Cash provided by operating activities was $78 million in the second quarter of 2026, compared to cash provided by operating activities of $44 million in the second quarter of 2025.
Adjusted free cash flow was $67 million in the second quarter of 2026, compared to $36 million in the second quarter of 2025. Adjusted free cash flow in the second quarter of 2026 excludes $1 million of one-time integration costs and $1 million of one-time capital expenditures associated with the acquisition of Koch Filter. The second quarter of 2025 excludes $3 million of one-time expenditures associated with the separation of the business from Cummins.
Second Quarter 2026 Conference Call and Webcast
Atmus will host a conference call and webcast to discuss the company's second quarter 2026 results on Friday, August 7, 2026, at 10:00 a.m. CT.
A live webcast and replay of the conference call can be accessed from the Atmus investor relations website at https://investors.atmus.com.
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About Atmus Filtration Technologies Inc.
Atmus Filtration Technologies Inc. (Atmus; NYSE: ATMU) is a global leader in filtration and media solutions. With more than 65 years of innovation and engineering expertise to deliver high-performance filtration solutions, Atmus operates through two business segments: Power Solutions, which serves global on- and off-highway equipment markets through its trusted Fleetguard® brand; and Industrial Solutions, which addresses commercial and industrial HVAC applications, and high- growth end markets including data centers and power generation environments – through its dependable Koch Filter® brand. Headquartered in Nashville, Tenn., Atmus employs nearly 5,000 people worldwide who are committed to creating a better future by protecting what is important. Learn more at https://www.atmus.com.
Forward-looking disclosure statement
This press release contains forward-looking statements within the meaning of the safe harbor provisions of the United States Private Securities Litigation Reform Act of 1995, including, without limitation, those that are based on current expectations, estimates and projections about the industries in which we operate and management’s views, plans, objectives, projections, beliefs and assumptions. Forward-looking statements may be identified by the use of words such as “anticipates,” “expects,” “forecasts,” “intends,” “plans,” “believes,” “seeks,” “estimates,” “could,” “should,” “may” or words of similar meaning. All statements other than statements of historical fact are forward-looking statements, including, without limitation, statements regarding the outlook for our future business and financial performance, discussions of future operations, our strategy for growth and market position. These statements are not guarantees of future performance and involve certain risks, uncertainties and assumptions, which are difficult to predict. If the underlying assumptions prove inaccurate, or known or unknown risks or uncertainties materialize, our actual outcomes, results and financial condition may differ materially from what is expressed, implied or forecasted in such forward-looking statements. Risks and uncertainties include, but are not limited to, those reflected in Part I, Item 1A, “Risk Factors,” and elsewhere in our Annual Report on Form 10-K for our fiscal year ended December 31, 2025, in our Quarterly Report on Form 10-Q for the fiscal quarter ended June 30, 2026, and also as may be described from time to time in future reports we file with the Securities and Exchange Commission (SEC). You are cautioned not to place undue reliance on forward-looking statements. The forward-looking statements made herein are made only as of the date hereof and we undertake no obligation to publicly update or to revise any forward-looking statement, whether as a result of new information, future developments or otherwise, except as may be required by law.
Non-GAAP measures
We use non-GAAP financial information and believe it is useful to investors as it provides additional information to facilitate comparisons of historical operating results, identify trends in our underlying operating results and provide additional insight and transparency on how we evaluate our business. We use non-GAAP financial measures to budget, make operating and strategic decisions and evaluate our performance. We have detailed the non-GAAP adjustments that we make in our non-GAAP definitions below. We believe the non-GAAP measures should always be considered along with the related U.S. GAAP financial measures. We have provided the reconciliations between the U.S. GAAP and non-GAAP financial measures and we also discuss our underlying U.S. GAAP results throughout our Management’s Discussion and Analysis of Financial Condition and Results of Operations in our Annual Report on Form 10-K for our fiscal year ended December 31, 2025, and in our Quarterly Report on Form 10-Q for the fiscal quarter ended June 30, 2026.
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Our primary non-GAAP financial measures are listed below and reflect how we evaluate our current and prior-year operating results. As new events or circumstances arise, these definitions could change. When our definitions change, we provide the updated definitions and present the related non-GAAP historical results on a comparable basis.
•“EBITDA” is defined as earnings or losses before interest expense, income taxes, depreciation and amortization and “EBITDA margin” is defined as EBITDA as a percent of Net sales. We believe EBITDA and EBITDA margin are useful measures of our operating performance as they assist investors and debt holders in comparing our performance on a consistent basis without regard to financing methods, capital structure, income taxes or depreciation and amortization methods, which can vary significantly depending upon many factors. Additionally, we believe these metrics are widely used by investors, securities analysts, ratings agencies and others in our industry in evaluating performance.
•“Adjusted EBITDA” is defined as EBITDA after adding back certain one-time expenses, reflected in Cost of sales and Selling, general and administrative expenses, associated with becoming a standalone public company, transaction costs associated with the Koch Filter acquisition and costs related to the integration of Koch Filter and “Adjusted EBITDA margin” is defined as Adjusted EBITDA as a percent of Net sales. We believe Adjusted EBITDA and Adjusted EBITDA margin are useful measures of our operating performance as they allow investors and debt holders to compare our performance on a consistent basis without regard to one-time costs attributable to our becoming a standalone public company and costs associated with the acquisition and integration of Koch Filter.
•“Adjusted earnings per share” is defined as diluted earnings per share (the most comparable U.S. GAAP financial measure) after adding back certain one-time expenses, reflected in Cost of sales and Selling, general and administrative expenses, associated with becoming a standalone public company, transaction costs associated with the Koch Filter acquisition, costs related to the integration of Koch Filter and amortization of the intangible assets acquired in the Koch Filter acquisition less the related tax impact of the same one-time expenses, acquisition and integration costs and amortization expense. We believe Adjusted earnings per share provides improved comparability of underlying operating results.
•“Free cash flow” is defined as cash flows provided by (used for) operating activities less capital expenditures and “Adjusted free cash flow” is defined as Free cash flow after adding back certain one-time capital expenditures and other separation costs associated with becoming a standalone public company, transaction costs associated with the Koch Filter acquisition and capital expenditures and other costs related to the integration of Koch Filter. We believe Free cash flow and Adjusted free cash flow are useful metrics used by management and investors to analyze our ability to service and repay debt and return value to shareholders.
The metrics defined above are not in accordance with, or alternatives for, U.S. GAAP financial measures and may not be consistent with measures used by other companies. It should be considered supplemental data; however, the amounts included in the EBITDA, EBITDA margin, Adjusted EBITDA, Adjusted EBITDA margin, Adjusted earnings per share, Free cash flow and Adjusted free cash flow calculations are derived from amounts included in the consolidated statements of net income and cash flows.
We do not consider our non-GAAP financial measures as superior to, or a substitute for, the equivalent measures calculated and presented in accordance with GAAP. Some of the limitations are: such measures do not reflect our cash expenditures, or future requirements for capital expenditures or contractual commitments; such measures do not reflect changes in, or cash requirements for, our
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working capital needs; such measures do not reflect the interest expense or the cash requirements necessary to service interest or principal payments on our debt; although depreciation and amortization are non-cash charges, the assets being depreciated and amortized will often have to be replaced in the future and such measures do not reflect any cash requirements for such replacements; and other companies in our industry may calculate such measures differently than we do, limiting their usefulness as comparative measures. To properly and prudently evaluate our business, we encourage you to review the unaudited condensed consolidated financial statements included in our SEC filings and not rely on a single financial measure to evaluate our business.
# # #
Media Contacts
Investor relations:
Todd Chirillo
investor.relations@atmus.com
Media relations:
Jayme Owen
media.inquiries@atmus.com
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ATMUS FILTRATION TECHNOLOGIES INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF NET INCOME
(in millions, except per share data)
(Unaudited)
| For the Three Months Ended June 30, | |||||||||||
| 2026 | 2025 | ||||||||||
NET SALES(a) | $ | 527.9 | $ | 453.5 | |||||||
| Cost of sales | 374.0 | 322.5 | |||||||||
| GROSS MARGIN | 153.9 | 131.0 | |||||||||
| OPERATING EXPENSES AND INCOME | |||||||||||
| Selling, general and administrative expenses | 51.7 | 46.1 | |||||||||
| Research, development and engineering expenses | 9.8 | 10.7 | |||||||||
| Equity, royalty and interest income from investees | 7.6 | 7.5 | |||||||||
| Intangible asset amortization | 2.9 | — | |||||||||
| Other operating (income) expense, net | (0.1) | — | |||||||||
| OPERATING INCOME | 97.2 | 81.7 | |||||||||
| Interest expense | 13.7 | 8.5 | |||||||||
| Other (expense) income, net | (0.7) | 3.5 | |||||||||
| INCOME BEFORE INCOME TAXES | 82.8 | 76.7 | |||||||||
| Income tax expense | 18.9 | 16.8 | |||||||||
| NET INCOME | $ | 63.9 | $ | 59.9 | |||||||
| PER SHARE DATA: | |||||||||||
| Weighted-average shares for basic EPS | 81.6 | 82.5 | |||||||||
| Weighted-average shares for diluted EPS | 82.0 | 83.0 | |||||||||
| Basic earnings per share | $ | 0.78 | $ | 0.73 | |||||||
| Diluted earnings per share | $ | 0.78 | $ | 0.72 | |||||||
(a)Includes sales to related parties of $13.0 million for the three months ended June 30, 2026, compared with $14.8 million for the three months ended June 30, 2025.
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ATMUS FILTRATION TECHNOLOGIES INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(in millions of U.S. dollars, except share data)
(Unaudited)
| June 30, 2026 | December 31, 2025 | ||||||||||
| ASSETS | |||||||||||
| Cash and cash equivalents | $ | 259.0 | $ | 236.4 | |||||||
| Trade and other receivables, net | 368.0 | 320.1 | |||||||||
| Inventories | 297.0 | 282.3 | |||||||||
| Prepaid expenses and other current assets | 41.2 | 53.6 | |||||||||
| Total current assets | 965.2 | 892.4 | |||||||||
| Property, plant and equipment, net | 212.0 | 197.1 | |||||||||
| Investments and advances related to equity method investees | 92.5 | 89.2 | |||||||||
| Goodwill | 302.6 | 84.7 | |||||||||
| Intangible assets, net | 209.3 | — | |||||||||
| Other assets | 108.7 | 87.3 | |||||||||
| TOTAL ASSETS | $ | 1,890.3 | $ | 1,350.7 | |||||||
| LIABILITIES | |||||||||||
| Accounts payable | $ | 221.4 | $ | 201.9 | |||||||
| Accrued compensation, benefits and retirement costs | 31.4 | 37.9 | |||||||||
| Current portion of accrued product warranty | 3.7 | 5.4 | |||||||||
| Current maturities of long-term debt | 6.3 | 30.0 | |||||||||
| Other accrued expenses | 101.4 | 93.0 | |||||||||
| Total current liabilities | 364.2 | 368.2 | |||||||||
| Long-term debt | 992.0 | 540.0 | |||||||||
| Accrued product warranty | 5.5 | 8.0 | |||||||||
| Other liabilities | 73.8 | 56.0 | |||||||||
| TOTAL LIABILITIES | 1,435.5 | 972.2 | |||||||||
| Commitments and contingencies (Note 9) | |||||||||||
| EQUITY | |||||||||||
Common stock, $0.0001 par value (2,000,000,000 shares authorized, 83,940,943 and 83,504,555 shares issued at June 30, 2026, and December 31, 2025, respectively) | — | — | |||||||||
| Additional paid-in capital | 68.9 | 72.7 | |||||||||
| Retained earnings | 557.9 | 454.6 | |||||||||
| Accumulated other comprehensive loss | (71.0) | (68.1) | |||||||||
Treasury stock, at cost (2,346,969 shares at June 30, 2026, and 1,995,964 shares at December 31, 2025) | (101.0) | (80.7) | |||||||||
| TOTAL EQUITY | 454.8 | 378.5 | |||||||||
| TOTAL LIABILITIES AND EQUITY | $ | 1,890.3 | $ | 1,350.7 | |||||||
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ATMUS FILTRATION TECHNOLOGIES INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(in millions of U.S. dollars)
(Unaudited)
| For the Six Months Ended June 30, | |||||||||||
| 2026 | 2025 | ||||||||||
| CASH PROVIDED BY (USED IN) OPERATING ACTIVITIES | |||||||||||
| Net income | $ | 112.3 | $ | 104.6 | |||||||
| Adjustments to reconcile net income to operating cash flows: | |||||||||||
| Depreciation and amortization | 23.3 | 14.6 | |||||||||
| Deferred income taxes | 2.6 | — | |||||||||
| Equity in income of investees, net of dividends | (5.9) | (7.9) | |||||||||
| Share-based compensation | 7.1 | 5.3 | |||||||||
| Foreign currency remeasurement and transaction exposure | (1.9) | (3.8) | |||||||||
| Changes in current assets and liabilities: | |||||||||||
| Trade and other receivables | (28.8) | (67.8) | |||||||||
| Inventories | (2.1) | (10.1) | |||||||||
| Prepaid expenses and other current assets | 13.1 | 2.7 | |||||||||
| Accounts payable | (4.4) | 38.0 | |||||||||
| Other accrued expenses | (5.6) | (4.1) | |||||||||
| Changes in other liabilities | (7.1) | (5.8) | |||||||||
| Other, net | 13.3 | 7.4 | |||||||||
| Net cash provided by operating activities | 115.9 | 73.1 | |||||||||
| CASH USED IN INVESTING ACTIVITIES | |||||||||||
| Capital expenditures | (25.6) | (24.4) | |||||||||
| Acquisitions, net of cash acquired | (453.9) | — | |||||||||
| Net cash used in investing activities | (479.5) | (24.4) | |||||||||
| CASH PROVIDED BY (USED IN) FINANCING ACTIVITIES | |||||||||||
| Long-term debt proceeds, net of financing costs paid | 995.6 | — | |||||||||
| Payments on long-term debt | (570.0) | (7.5) | |||||||||
| Repurchases of Common stock | (20.3) | (30.1) | |||||||||
| Dividends paid | (9.0) | (8.3) | |||||||||
| Withholding taxes paid on stock-based compensation | (13.3) | — | |||||||||
| Common stock issued | 2.4 | — | |||||||||
| Other, net | (0.6) | — | |||||||||
| Net cash provided by (used in) financing activities | 384.8 | (45.9) | |||||||||
| Effect of exchange rate changes on cash and cash equivalents | 1.4 | 3.7 | |||||||||
| Net increase in cash and cash equivalents | 22.6 | 6.5 | |||||||||
| Cash and cash equivalents at beginning of period | 236.4 | 184.3 | |||||||||
| CASH AND CASH EQUIVALENTS AT END OF PERIOD | $ | 259.0 | $ | 190.8 | |||||||
8
ATMUS FILTRATION TECHNOLOGIES INC. AND SUBSIDIARIES
EARNINGS PER SHARE - RECONCILIATION
(in millions, except per share data)
(Unaudited)
| For the Three Months Ended June 30, | |||||||||||
| 2026 | 2025 | ||||||||||
| Net income | $ | 63.9 | $ | 59.9 | |||||||
| Weighted-average shares for basic EPS | 81.6 | 82.5 | |||||||||
| Plus incremental shares from assumed conversions of long-term incentive plan shares | 0.4 | 0.5 | |||||||||
| Weighted-average shares for diluted EPS | 82.0 | 83.0 | |||||||||
| Basic earnings per share | $ | 0.78 | $ | 0.73 | |||||||
| Diluted earnings per share | $ | 0.78 | $ | 0.72 | |||||||
ATMUS FILTRATION TECHNOLOGIES INC. AND SUBSIDIARIES
NET INCOME TO EBITDA AND ADJUSTED EBITDA - RECONCILIATION
(in millions of U.S. dollars)
(Unaudited)
| For the Three Months Ended June 30, | |||||||||||
| 2026 | 2025 | ||||||||||
| NET INCOME | $ | 63.9 | $ | 59.9 | |||||||
| Plus: | |||||||||||
| Interest expense | 13.7 | 8.5 | |||||||||
| Income tax expense | 18.9 | 16.8 | |||||||||
| Depreciation and amortization | 11.5 | 7.4 | |||||||||
| EBITDA (non-GAAP) | $ | 108.0 | $ | 92.6 | |||||||
| Plus: | |||||||||||
One-time integration costs(a) | $ | 1.1 | $ | — | |||||||
One-time separation costs(b) | — | 2.5 | |||||||||
| Adjusted EBITDA (non-GAAP) | $ | 109.1 | $ | 95.1 | |||||||
| Net sales | $ | 527.9 | $ | 453.5 | |||||||
| Net income margin | 12.1 | % | 13.2 | % | |||||||
| EBITDA margin (non-GAAP) | 20.5 | % | 20.4 | % | |||||||
| Adjusted EBITDA margin (non-GAAP) | 20.7 | % | 21.0 | % | |||||||
(a)Primarily comprised of transaction costs associated with the Koch Filter acquisition and other Information Technology, Human Resources and manufacturing costs related to the integration of Koch Filter.
(b)Primarily comprised of one-time expenses related to Information Technology, warehousing, manufacturing and Human Resources separation costs.
9
ATMUS FILTRATION TECHNOLOGIES INC. AND SUBSIDIARIES
DILUTED EARNINGS PER SHARE TO ADJUSTED EARNINGS PER SHARE - RECONCILIATION
(per share)
(Unaudited)
| For the Three Months Ended June 30, | |||||||||||
| 2026 | 2025 | ||||||||||
| Diluted earnings per share | $ | 0.78 | $ | 0.72 | |||||||
| Plus: | |||||||||||
One-time integration costs(a) | $ | 0.01 | $ | — | |||||||
One-time separation costs(b) | — | 0.03 | |||||||||
Intangible asset amortization(c) | 0.04 | — | |||||||||
| Less: | |||||||||||
Tax impact of one-time integration costs(a) | $ | — | $ | — | |||||||
Tax impact of one-time separation costs(b) | — | — | |||||||||
Tax impact of intangible asset amortization(c) | 0.01 | — | |||||||||
| Adjusted earnings per share | $ | 0.82 | $ | 0.75 | |||||||
(a)Primarily comprised of transaction costs associated with the Koch Filter acquisition and other Information Technology, Human Resources and manufacturing costs related to the integration of Koch Filter. The tax impact of acquisition costs and integration costs for the three months ended June 30, 2026, was $0.3 million.
(b)Primarily comprised of one-time expenses related to Information Technology, warehousing, manufacturing and Human Resources separation costs and the related tax impact of those expenses. The tax impact of one-time separation costs for the three months ended June 30, 2025, were $0.5 million.
(c)Amortization expense of the intangible assets acquired in the Koch Filter acquisition was $2.9 million for the three months ended June 30, 2026. The tax impact of the amortization expense for the three months ended June 30, 2026, was $0.7 million.
ATMUS FILTRATION TECHNOLOGIES INC. AND SUBSIDIARIES
CASH FLOWS FROM OPERATING ACTIVITIES TO FREE CASH FLOW AND
ADJUSTED FREE CASH FLOW - RECONCILIATION
(in millions of U.S. dollars)
(Unaudited)
| For the Three Months Ended June 30, | |||||||||||
| 2026 | 2025 | ||||||||||
| Cash provided by operating activities | $ | 77.8 | $ | 44.4 | |||||||
| Less: | |||||||||||
| Capital expenditures | 13.0 | 12.0 | |||||||||
| Free cash flow (non-GAAP) | $ | 64.8 | $ | 32.4 | |||||||
| Plus: | |||||||||||
| One-time integration costs | $ | 1.1 | $ | — | |||||||
One-time capital expenditures(a) | 1.3 | 3.1 | |||||||||
| Adjusted free cash flow (non-GAAP) | $ | 67.2 | $ | 35.5 | |||||||
(a)One-time capital expenditures for the three months ended June 30, 2026, are primarily comprised of expenditures associated with the integration of Koch Filter. One-time capital expenditures for the three months ended June 30, 2025, are primarily comprised of separation related expenditures.
10
ATMUS FILTRATION TECHNOLOGIES INC. AND SUBSIDIARIES
SUMMARIZED SEGMENT OPERATING RESULTS AND RECONCILIATION TO
INCOME BEFORE INCOME TAXES
(in millions of U.S. dollars)
(Unaudited)
| For the Three Months Ended June 30, 2026 | |||||||||||||||||
| Power Solutions | Industrial Solutions | Total | |||||||||||||||
| External Sales | $ | 485.5 | $ | 42.4 | $ | 527.9 | |||||||||||
| Cost of sales | 341.9 | 31.8 | |||||||||||||||
| Selling, general and administrative expenses | 47.6 | 3.4 | |||||||||||||||
| Research, development and engineering expenses | 9.9 | — | |||||||||||||||
| Equity, royalty and interest income from investees | 7.6 | — | |||||||||||||||
Other expense (a) | 0.6 | — | |||||||||||||||
Add back: Depreciation and amortization (b) | 8.0 | 0.8 | |||||||||||||||
| Segment Adjusted EBITDA | $ | 101.1 | $ | 8.0 | $ | 109.1 | |||||||||||
| Segment Adjusted EBITDA Margin | 20.8 | % | 18.9 | % | |||||||||||||
| Reconciliation to Income before income taxes: | |||||||||||||||||
Corporate expenses (c) | $ | 1.1 | |||||||||||||||
| Interest expense | 13.7 | ||||||||||||||||
| Depreciation and amortization | 11.5 | ||||||||||||||||
| Income before income taxes | $ | 82.8 | |||||||||||||||
(a)Other expense includes Other operating (income) expense, net and Other (expense) income, net from our Condensed Consolidated Statements of Net Income.
(b)Depreciation and amortization are not considered significant segment expenses but are presented here to reconcile to Segment Adjusted EBITDA, the measure used by our chief operating decision maker. The amount of depreciation and amortization disclosed by reportable segment is included within the cost of sales and selling, general and administrative expenses.
(c)Corporate expenses include $1.1 million of costs associated with the integration of Koch Filter.
11
| For the Three Months Ended June 30, 2025 | |||||||||||
| Power Solutions | Total | ||||||||||
| External Sales | $ | 453.5 | $ | 453.5 | |||||||
| Cost of sales | 320.6 | ||||||||||
| Selling, general and administrative expenses | 45.5 | ||||||||||
| Research, development and engineering expenses | 10.7 | ||||||||||
| Equity, royalty and interest income from investees | 7.5 | ||||||||||
Other (income)(a) | (3.5) | ||||||||||
Add back: Depreciation and amortization (b) | 7.4 | ||||||||||
| Segment Adjusted EBITDA | $ | 95.1 | $ | 95.1 | |||||||
| Segment Adjusted EBITDA Margin | 21.0 | % | |||||||||
| Reconciliation to Income before income taxes: | |||||||||||
Corporate expenses (c) | $ | 2.5 | |||||||||
| Interest expense | 8.5 | ||||||||||
| Depreciation and amortization | 7.4 | ||||||||||
| Income before income taxes | $ | 76.7 | |||||||||
(a)Other (income) expense includes Other operating (income) expense, net and Other (expense) income, net from our Condensed Consolidated Statements of Net Income.
(b)Depreciation and amortization are not considered significant segment expenses but are presented here to reconcile to Segment Adjusted EBITDA, the measure used by our chief operating decision maker. The amount of depreciation and amortization disclosed by reportable segment is included within the cost of sales and selling, general and administrative expenses.
(c)Corporate expenses include $2.5 million of one-time separation costs.
12