Atmus Filtration Technologies (ATMU) Q4 2025 earnings summary

Executive summary

• Achieved strong financial results in 2025, with Q4 sales of $447 million and full-year sales of $1.764 billion, reflecting 9.8% and 5.7% year-over-year growth, respectively.

• Adjusted EBITDA margin reached 19.1% in Q4 and 20.0% for the year, with net income of $48 million in Q4 and $207 million for the year.

• Adjusted EPS was $0.66 for Q4 and $2.73 for the year, with diluted EPS of $0.58 and $2.50, respectively.

• Completed the acquisition of Koch Filter, establishing the Industrial Solutions segment and expanding into industrial air filtration markets.

• Returned $78 million to shareholders in 2025 through $61 million in share buybacks and $17 million in dividends.

Financial highlights

• Q4 2025 sales were $447 million, up from $407 million year-over-year; full-year sales reached $1.764 billion, up from $1.67 billion.

• Gross margin for Q4 was $127 million (28.5%), up from $107 million (26.3%) YoY; full-year gross margin was $498 million (28.2%).

• Adjusted EBITDA for Q4 was $85 million (19.1% margin); full-year adjusted EBITDA was $354 million (20.0% margin).

• Adjusted EPS was $0.66 for Q4 and $2.73 for the year; adjusted free cash flow was $31 million in Q4 and $158 million for the year.

• Net income margin was 10.7% in Q4 and 11.8% for the year.

Outlook and guidance

• 2026 total revenue expected between $1.945 billion and $2.015 billion, with Power Solutions projected at $1.79–$1.85 billion and Industrial Solutions at $155–$165 million.

• Adjusted EBITDA margin guidance is 19.5%–20.5%; adjusted EPS expected in the $2.75–$3.00 range.

• Guidance excludes $3–$8 million in one-time Koch Filter integration costs and $6 million in transaction costs.

• Aftermarket and off-highway markets expected to remain flat; heavy and medium-duty U.S. markets could be flat to up 10%.

• Industrial Solutions segment expected to grow 1%–8%, with data center-related business growing at a high-teens rate.