10-Q · May 1, 2026
Atmus Filtration Technologies posted Q1 2026 financial results with a notable increase in net sales, reaching $477.5 million, a 14.6% rise from $416.5 million in Q1 2025. Diluted EPS was reported at $0.59, reflecting an…
Earnings analysis · 10-Q
ATMU earnings analysis
Filed August 7, 2026 · Our reading of the company's report
The latest report
Atmus delivered a strong Q2, with revenue of $527.9 million, diluted EPS of $0.78 and free cash flow of $64.8 million, all improving materially year over year and exceeding consensus EPS and revenue estimates. Gross and…
Read full summary
Atmus delivered a strong Q2, with revenue of $527.9 million, diluted EPS of $0.78 and free cash flow of $64.8 million, all improving materially year over year and exceeding consensus EPS and revenue estimates. Gross and operating margins expanded, supported by pricing, currency, volume and the Koch Filter acquisition, although higher interest expense and acquisition-related leverage are notable offsets. Management continues to expect soft aftermarket conditions through the remainder of 2026 and did not provide updated numeric guidance in the 10-Q.
Gross and operating margin
How much of each revenue dollar the business keeps.
One point per quarterly or annual filing. Both margins are shares of that report's revenue.
From revenue to operating profit
Where each $100 of revenue went in this report.
Cost of sales, operating expenses, and what remained. Figures are rounded to whole dollars.
Where revenue came from
The business segments reported by the company.
Shares of the segments disclosed in this filing, largest first.
How we read each report
Our analysis across the last few reports.
Our model's reading of each filing, not the share price or the market's reaction. Annual and quarterly reports each occupy one position.
Reported figures
- Earnings per share
- $0.78
What stood out
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Revenue Beat and Strong Growth
Q2 net sales were $527.9 million, up $74.4 million or 16.4% year over year and above the $505.5 million consensus estimate. Management attributed the increase to $42.4 million from Koch Filter, $12.9 million of pricing, $10.8 million of favorable currency and $8.3 million of volume.
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Margins and EPS Improved
Gross margin increased to 29.2% from 28.9% year over year, while operating margin rose to 18.4% from 18.0% based on operating income of $97.2 million versus $81.7 million. Q2 diluted EPS was $0.78 versus $0.72, above the $0.77 consensus estimate.
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Free Cash Flow Accelerated
Free cash flow was $64.8 million in Q2 versus $32.4 million in the prior-year quarter. Six-month free cash flow was $90.3 million versus $48.7 million, while capital expenditures remained approximately 3% of six-month net sales at $25.6 million.
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Koch Filter Adds Industrial Scale
The newly established Industrial Solutions segment generated $42.4 million of Q2 sales and $8.0 million of Segment Adjusted EBITDA. The Koch Filter acquisition contributed $10.7 million of incremental gross margin in Q2.
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Operating Cash Generation Improved
Operating cash flow increased to $115.9 million for the first six months from $73.1 million a year earlier, a $42.8 million improvement. Management cited $24.7 million of higher net income and non-cash adjustments and $13.5 million of lower working-capital requirements.
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Liquidity Remains Available
Cash and cash equivalents increased to $259.0 million from $236.4 million at December 31, 2025. The company also retained $500.0 million of undrawn revolving-credit capacity as of June 30, 2026.
What to watch
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Tariff and Trade Policy Volatility
The filing materially updates the tariff risk discussion: tariffs and related trade measures created $12.9 million of favorable Q2 pricing, but unfavorable material and freight costs totaled $3.2 million. Management states that tariff refunds, trade restrictions and customer pass-through treatment remain uncertain.
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Higher Leverage and Interest Exposure
Debt increased to $998.3 million from $570.0 million at December 31, 2025, primarily to fund the $453.9 million Koch Filter acquisition. A 0.125% change in SOFR would affect annual interest expense by approximately $1.3 million.
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Soft End-Market Demand
Management reports that aftermarket demand remained soft during the first six months of 2026 and expects slow global aftermarket growth to continue through the remainder of 2026; first-fit demand remains depressed, with recovery expected only in the latter half of 2026. The company estimates that 86% of 2025 sales were aftermarket and 14% were first-fit.
Management's outlook
The 10-Q provides no explicit numeric revenue or EPS guidance and does not state that the prior 2026 outlook of $1.945 billion-$2.015 billion revenue and $2.75-$3.00 EPS was changed. Management expects aftermarket demand to remain soft through the remainder of 2026, with first-fit recovery expected in the latter half of 2026.
Earlier filings 4
10-K · February 13, 2026
Atmus reported full-year 2025 Net sales of $1,764.3 million, Net income of $207.4 million and Adjusted EBITDA of $353.5 million, driven by an 86% aftermarket mix and 46% of sales outside the U.S. & Canada. The company…
10-Q · May 3, 2024
Atmus reported Q1 net sales of $426.6 million, up $8.0 million versus $418.6 million in Q1 2023, while gross margin rose to $111.8 million. Net income and diluted EPS declined to $45.5 million and $0.54 (from $52.7…
10-K · February 14, 2024
Atmus reported $1,628.1 million in net sales, $171.3 million in net income and $302.3 million in Adjusted EBITDA for the year ended December 31, 2023. The business emphasizes a durable recurring aftermarket (≈81% of…
This is our reading of a public filing, not the filing itself. Analysis can contain errors; check the source document for full context.