Atmus Filtration Technologies (ATMU) Q2 2024 earnings summary

Executive summary

• Q2 2024 net sales reached $433 million, up 4.6% year-over-year, driven by higher volumes and pricing.

• Net income rose to $56.2 million, with diluted EPS of $0.67 and adjusted EPS of $0.71, both up from prior year.

• Adjusted EBITDA was $93 million, with a margin of 21.4%, reflecting improved profitability.

• Celebrated one year as a public company, completed full separation from Cummins, and now operates independently.

• Announced first quarterly dividend of $0.05 per share and a $150 million share repurchase program.

Financial highlights

• Gross margin increased to $132 million (30.5% of sales) from $114 million (27.7%) year-over-year.

• Adjusted EBITDA margin improved to 21.4% from 19.3% in Q2 2023.

• Adjusted EPS was $0.71, up from $0.63 in Q2 2023; adjusted free cash flow was $34 million, excluding one-time separation costs.

• Cash provided by operating activities was $23 million for Q2 2024.

• For the first half of 2024, net sales reached $859.2 million, up 3.2% year-over-year; net income was $101.7 million, up 2.8%.

Outlook and guidance

• 2024 revenue guidance set at $1,625–$1,675 million, with adjusted EBITDA margin expected between 18.5% and 19.5%.

• Adjusted EPS forecasted in the range of $2.15 to $2.40.

• Aftermarket revenue expected to be flat to up 5% for the year, with global aftermarket markets projected down 2%–4%.

• U.S. heavy-duty truck market expected down 7%–12% for the year; medium-duty truck guidance raised to flat to up 5%.

• One-time separation and capital expenditures expected to total $10–$20 million in 2024, mostly completed by year-end.