Atmus Filtration Technologies (ATMU) Q1 2026 earnings summary

Executive summary

• Net sales reached $478 million for Q1 2026, up 14.7% year-over-year, driven by the Koch Filter acquisition, favorable currency, and pricing, partially offset by lower volumes.

• Adjusted EBITDA was $95 million (19.8% margin), up from $82 million (19.6%) year-over-year.

• Net income increased to $48.4 million, with adjusted EPS of $0.69, up from $0.63 last year.

• Completed the Koch Filter acquisition on January 7, 2026, expanding into industrial air filtration and establishing the Industrial Solutions segment.

• Returned $12 million to shareholders via $7 million in share buybacks and $5 million in dividends; $62 million remains authorized for repurchases.

Financial highlights

• Q1 2026 sales were $478 million, up from $417 million in Q1 2025 (14.6% increase).

• Gross margin improved to $137 million (28.6% of sales) from $111 million (26.5%) year-over-year.

• Adjusted free cash flow was $33 million, up from $20 million in the prior year.

• Operating income grew 17.6% to $76.3 million; interest expense rose to $14.1 million due to higher borrowings for the Koch Filter acquisition.

• $710 million in available liquidity as of March 31, 2026.

Outlook and guidance

• 2026 total revenue expected between $1.945 billion and $2.015 billion, up 10%-14% from 2025.

• Power Solutions revenue guidance: $1.79 billion-$1.85 billion; Industrial Solutions: $155 million-$165 million.

• Full-year adjusted EBITDA margin guidance maintained at 19.5%-20.5%; adjusted EPS expected in the range of $2.75-$3.00.

• U.S. dollar expected to weaken, providing a 1% revenue tailwind.

• Effective tax rate expected between 21% and 23%.