Atmus Filtration Technologies (ATMU) Q1 2025 earnings summary

Executive summary

• Q1 2025 net sales were $417 million, down 2.4% year-over-year due to currency and lower volumes, partially offset by pricing gains.

• GAAP net income was $45 million, with diluted EPS of $0.54; adjusted EPS was $0.63, up from $0.60 last year.

• Adjusted EBITDA rose to $82 million (19.6% margin), up from $80 million (18.8%) in Q1 2024.

• Cash provided by operating activities improved to $29 million from a negative $8 million in Q1 2024; adjusted free cash flow was $20 million, up from $(13) million last year.

• Completed full operational separation from Cummins in March 2024, now operating as an independent public company.

Financial highlights

• Gross margin was $111 million (26.5% of sales), nearly flat year-over-year despite higher one-time separation and logistics costs.

• Operating income was $65 million, down from $69 million in Q1 2024.

• Adjusted free cash flow was $20 million, a significant improvement from $(13) million in Q1 2024.

• Cash and cash equivalents stood at $183 million at quarter-end, with $583 million in available liquidity.

• Net debt-to-adjusted EBITDA ratio was 1.2x as of March 31, 2025.

Outlook and guidance

• 2025 revenue guidance reaffirmed at $1,670–$1,735 million, with expected growth flat to up 4% year-over-year.

• Adjusted EBITDA margin expected between 19.0% and 20.0%; adjusted EPS guidance set at $2.35–$2.60 for the full year.

• Aftermarket revenue guidance midpoint is flat year-over-year, with a range of -1.5% to +1.5%.

• Pricing expected to contribute 3.2% to revenue growth, with base pricing at 1.7% and tariff-related pricing at 1.5%.

• Management expects to incur $10–$15 million in one-time expenses and $5–$10 million in capital expenditures in 2025 related to the transition to standalone operations.