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.

• Net income increased to $48.4 million, with diluted EPS of $0.59 and adjusted EPS of $0.69, both up year-over-year.

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

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

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

Financial highlights

• 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; cash from operations was $38 million, up $9.4 million year-over-year.

• Long-term debt rose to $998.1 million from $540 million at year-end 2025, reflecting acquisition financing.

• Total assets increased to $1.84 billion from $1.35 billion at year-end 2025.

• Effective tax rate was 20.9%, down from 21.3% year-over-year.

Outlook and guidance

• Full-year 2026 net sales expected between $1,945 million and $2,015 million, up 10%-14% from 2025.

• Power Solutions segment sales forecasted at $1,790 million to $1,850 million; Industrial Solutions at $155 million to $165 million.

• Adjusted EBITDA margin projected at 19.5% to 20.5%; adjusted EPS guidance is $2.75 to $3.00.

• Heavy and medium-duty U.S. markets expected to grow 5%-15% year-over-year, with volume growth weighted to the second half.

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