Atmus Filtration Technologies (ATMU) Q4 2025 earnings summary

Executive summary

• Achieved net sales of $447 million in Q4 2025 (up 9.8% YoY) and $1.764 billion for the full year (up 5.7% YoY), reflecting disciplined execution and a four-pillar growth strategy.

• 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; diluted EPS was $0.58 and $2.50, and adjusted EPS was $0.66 and $2.73, respectively.

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

• Returned $78 million to shareholders in 2025 via $61 million in share buybacks and $17 million in dividends; $69 million remains authorized for repurchases.

• Launched NanoNet N3 media, awarded Product of the Year by the World Filtration Institute.

Financial highlights

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

• Gross margin for Q4 was $127 million (28.5% of sales), up from $107 million (26.3%) YoY; full year gross margin was $498 million (28.2%), up from $462 million (27.7%).

• 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 in Q4 and $2.73 for the year, up from $0.58 and $2.50, respectively.

• Adjusted free cash flow was $31 million in Q4 and $158 million 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 expected in the 19.5%–20.5% range; adjusted EPS guidance is $2.75–$3.00.

• 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 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.