Atmus Filtration Technologies (ATMU) investor relations material

Executive summary

• Q3 net sales rose 13.9% YoY to $510.0M and net income increased 10.6% to $60.6M; Koch Filter contributed $41.9M in sales after its January acquisition.

• Nine-month net sales increased 15.0% to $1,515.4M; gross margin improved, while acquisition-related borrowing increased interest expense.

• Q3 adjusted EBITDA was $104.2M and adjusted EPS was $0.77; FY26 sales and adjusted EPS guidance increased.

Financial highlights

• Q3 gross margin was $154.4M, or 30.3%, versus $129.4M and 28.9% YoY; operating income rose to $90.7M from $81.9M.

• Q3 net income was $60.6M versus $54.8M; diluted EPS was $0.74 versus $0.66, and adjusted EPS was $0.77 versus $0.69.

• Cash from operating activities was $98M versus $82M; adjusted free cash flow was $88M versus $72M.

• Excluding tariff refunds and FX benefits, Q3 organic sales grew 5%.

Outlook and guidance

• FY26 sales guidance increased to $2,010M–$2,035M from $1,975M–$2,030M; adjusted EPS guidance rose to $2.90–$3.05 from $2.85–$3.00.

• FY26 adjusted EBITDA margin guidance remains 19.75%–20.25%.

• FY26 segment sales guidance: Power Solutions $1,850M–$1,870M; Industrial Solutions $160M–$165M.

• Planning assumptions include JV income of $29M–$33M, tax rate of 21%–23%, interest expense of $50M–$55M, D&A of ~$50M, and capex of $50M–$55M.

• Adjusted EBITDA and EPS guidance excludes ~$3M of Koch Filter integration costs and $6M of transaction costs; adjusted EPS also excludes acquired intangible amortization.