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

Strategic priorities and growth pillars

• Four key growth pillars: expand first-fit market share, accelerate aftermarket growth, transform supply chain, and build industrial market exposure.

• Focused on executing these pillars and completing separation from Cummins.

• Aftermarket now represents 80% of business, with dedicated distribution centers improving inventory and margins.

• Increased capital investment from 1.5%-2% to 2%-3% of sales, driving efficiency and automation.

• Management focus and resource allocation post-separation have enabled operational improvements.

Margin expansion and supply chain improvements

• Achieved 400 basis points margin improvement since IPO, exceeding initial targets.

• Margin gains driven by net price-cost recovery, supply chain transformation, and procurement focus.

• Vendor management and manufacturing efficiency investments have contributed to cost reduction.

• Aftermarket pricing flexibility has enabled steady price increases and margin expansion.

• Incremental margins targeted at approximately 25% as revenue grows.

Joint ventures and global manufacturing

• Two main JVs: China (Dongfeng) and India, with technology and market access as strategic focus.

• India JV has strong market position and is leveraged for global supply and growth.

• Manufacturing strategy is region-for-region, with flexibility to adjust for tariffs and logistics.

• Mexico facility serves global aftermarket, providing pricing flexibility amid tariff risks.