Atmus Filtration Technologies (ATMU) Q4 2024 earnings summary

Executive summary

• Achieved record sales of $1.67B for full year 2024, up 2.5% year-over-year, with Q4 sales of $407M, up 1.8%.

• Net income rose to $186M for 2024, with Q4 net income at $40M.

• Adjusted EBITDA margin improved to 19.7% for 2024, up from 18.6% in 2023.

• Adjusted EPS reached $2.50 for 2024, up from $2.31 year-over-year.

• Completed operational separation from former parent, enabling accelerated growth and independence.

Financial highlights

• Q4 2024 sales were $407M, up from $400M in Q4 2023; full year sales $1.67B vs. $1.628B.

• Q4 adjusted EBITDA was $78M (19.1% margin), up from $71M (17.9%); full year adjusted EBITDA was $330M (19.7% margin), up from $302M (18.6%).

• Q4 adjusted EPS was $0.58, up from $0.49; full year adjusted EPS was $2.50, up from $2.31.

• Adjusted free cash flow for 2024 was $115M, down from $152M in 2023, impacted by higher inventory and transition costs.

• Gross margin for the year was $462M, up $29M year-over-year.

Outlook and guidance

• 2025 revenue expected to be flat to up 4%, in the range of $1.67B–$1.735B.

• Adjusted EBITDA margin guidance of 19%–20%; Adjusted EPS expected between $2.35–$2.60.

• Aftermarket revenue expected to be flat to up 3%; first fit market expected to be down 0%–10%.

• FX headwinds (~2%) and input cost inflation (notably steel and labor) anticipated, with pricing actions lagging until mid-year.

• Market recovery, especially in aftermarket and first fit, expected to be weighted toward the second half of 2025.