Atmus Filtration Technologies Inc.

What they do

Atmus designs and manufactures filtration products for on-highway commercial vehicles and off-highway agriculture, construction, mining and power generation equipment. Products include fuel, lube, air, hydraulic and crankcase ventilation filters as well as coolants and other chemicals. In 2025, approximately 14% of net sales were first-fit to OEMs and approximately 86% were aftermarket, with 46% of net sales outside the U.S. and Canada. Operations include 10 manufacturing facilities, 11 distribution centers and five technical facilities, plus joint ventures in China and India.

Revenue drivers

• Power Solutions segment — Reported second-quarter 2026 net sales of $486 million, the large majority of company revenue, serving commercial vehicle and off-highway filtration. Segment Adjusted EBITDA was $101 million at a 20.8% margin.
• Industrial Solutions segment — Reported second-quarter 2026 net sales of $42 million following the Koch Filter acquisition, with Segment Adjusted EBITDA of $8 million at an 18.9% margin. Full-year 2026 guidance is $155 million to $165 million.
• Aftermarket replacement sales — Atmus estimates approximately 86% of 2025 net sales came from aftermarket replacement and repair parts, providing a recurring revenue base. Full-spectrum offerings support one-stop shopping across core markets.
• First-fit OEM sales — Approximately 14% of 2025 net sales were first-fit components installed on new vehicles and equipment. This channel positions Atmus on new platforms and supports later aftermarket pull-through.

Recent performance

Second-quarter 2026 net sales were a record $527.9 million, up 16.4% from $453.5 million in the prior-year quarter, driven by the Koch Filter acquisition, pricing, currency and higher volumes. Gross margin rose to $153.9 million, or 29.2% of net sales, from $131.0 million and 28.9% a year earlier. GAAP net income was $63.9 million, or $0.78 diluted EPS, versus $59.9 million and $0.72. Adjusted EBITDA was $109 million at a 20.7% margin, and cash from operating activities was $78 million with adjusted free cash flow of $67 million.

Strategy

Management states four strategy pillars: grow share in first-fit in core markets, accelerate profitable growth in the aftermarket, transform the supply chain, and expand into industrial filtration markets. The company points to product development, enhanced content per vehicle, multi-channel distribution and supply-chain cost transformation as focus areas. The Koch Filter acquisition added an industrial filtration platform alongside the core Fleetguard business. Atmus also repurchased $13 million of stock in the second quarter under a $150 million program authorized in July 2024, with $49 million remaining, and paid a quarterly dividend of $0.055 per share.

Risks

• Customer concentration — The 10-K identifies significant customer concentration among Cummins, PACCAR and the Traton Group, so the loss of a top OEM relationship could materially affect results.
• Reliance on investees — Atmus derives significant earnings from equity method investees it does not directly control, including joint ventures in China and India.
• Cyclical end markets — Customers operate in cyclical industries, and the 10-K flags current economic conditions in those industries as a risk to demand.
• Commodity and supply chain costs — Results are exposed to variability in material and commodity costs and interruptions in the supply of critical materials and components.

Outlook

On August 7, 2026 Atmus raised full-year 2026 guidance to total net sales of $1,975 million to $2,030 million, with Power Solutions at $1,820 million to $1,865 million and Industrial Solutions at $155 million to $165 million. Management guided Adjusted EBITDA margin to 19.75% to 20.25% and Adjusted earnings per share to $2.85 to $3.00. CEO Steph Disher attributed second-quarter record sales to solving filtration challenges with Fleetguard and Koch Filter branded products and restated commitment to the four-pillar growth strategy.