Atmus Filtration Technologies (ATMU) CL King's 22nd Annual Best Ideas Conference 2024 summary

Business overview and market position

• Global leader in filtration products for commercial vehicles, with $1.6B in 2023 sales and a 60/40 split between on-highway and off-highway markets.

• 50% of revenue from North America, 80% from aftermarket, providing recurring revenue and stability.

• Key OEM partners include Cummins (17% of sales), PACCAR, Traton, Komatsu, Foton, and Volvo.

• IPO completed in May 2023, with full share exchange finalized in March 2024.

• Focused on being a one-stop shop for all filtration needs, covering fuel, lubricant, air, coolant, and crankcase ventilation.

Strategic growth pillars

• Four main strategies: grow first-fit share, accelerate aftermarket growth, transform supply chain, and expand into industrial filtration.

• First-fit growth targets existing blue-chip OEMs, new off-highway customers, and previously untapped segments like rail and agriculture.

• Aftermarket growth driven by brand strength, expanding distributor network, and leveraging OE dealer relationships.

• Industrial market expansion pursued via programmatic M&A, targeting industrial air, liquids, and water verticals.

Technology and competitive advantages

• Technology leadership supported by five global technical centers and 1,250 active/pending patents.

• In-house media capabilities and early customer engagement differentiate product offerings.

• Competitive set includes Donaldson, Parker Hannifin, Mahle, and Mann+Hummel.

• Synergies in M&A include purchasing leverage, R&D, and global distribution reach.