Atmus Filtration Technologies (ATMU) Q1 2025 earnings summary

Executive summary

• Q1 2025 sales were $417 million, down 2.4% year-over-year, mainly due to unfavorable 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, reflecting removal of one-time separation costs.

• 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 an outflow of $13 million last year.

• Achieved significant progress on operational separation from Cummins, now operating as a fully 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 for Q1 2025 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.

• Net debt-to-adjusted EBITDA ratio at 1.2x for the trailing 12 months ended March 31.

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

Outlook and guidance

• 2025 revenue guidance reaffirmed at $1,670–$1,735 million, with adjusted EBITDA margin expected between 19.0% and 20.0%.

• Adjusted EPS guidance set at $2.35–$2.60 for the full year, excluding $10–$15 million in one-time separation costs.

• Capital expenditures projected at $45–$50 million, excluding $5–$10 million in one-time separation capex.

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

• Currency headwind of approximately 1.5% expected for the full year.