Atmus Filtration Technologies (ATMU) Goldman Sachs Industrials and Materials Conference 2025 summary

Operational separation and strategic priorities

• Completed full operational separation from Cummins with minimal business disruption, establishing new functions and distribution centers.

• IT and other teams executed around 300 projects over several years, now shifting focus to growth initiatives.

• Emphasis on enhancing customer experience through digital tools and improved internal processes.

Growth strategies and market expansion

• Focused on winning new business in core first-fit markets and expanding to new customers, with early progress in both.

• Aftermarket growth advanced through new distribution channels, including 100+ outlets in Latin America and a partnership with Traction in Canada.

• Investing in resources and digital tools to support sales and engineering teams for continued growth.

M&A and industrial market entry

• Announced acquisition of Koch Filter for $450M, expanding into industrial air filtration and diversifying end markets.

• Koch Filter brings high aftermarket content, multi-channel distribution, and is expected to be EPS and EBITDA margin accretive in year one.

• $4M in expected run-rate synergies, mainly from supply chain and cost efficiencies.

• Acquisition financed with cash and revolver, targeting leverage reduction to 1.5x net debt/EBITDA in coming quarters.

• Building M&A pipeline for further bolt-on acquisitions in industrial air, water, and liquid markets.