ATMU · Atmus Filtration Technologies Inc.

Atmus Filtration Technologies delivered strong Q1 2026 results with net sales rising 14.6% to $478 million, primarily propelled by the January 7, 2026 acquisition of Koch Filter Corporation, which introduced the new Industrial Solutions segment contributing $38 million in sales and $8 million Adjusted EBITDA at 21.9% margin. Power Solutions, the core segment, generated $439 million in sales and $86 million Adjusted EBITDA at 19.6% margin. Gross margin expanded to 28.6% from 26.5% year-over-year, benefiting from acquisition synergies, pricing actions, favorable currency, and reduced separation costs from Cummins Inc., though offset by higher logistics, duties, lower volumes, and manufacturing expenses. Adjusted EBITDA grew to $95 million with a slight margin expansion to 19.8%, excluding $6 million acquisition costs and $1 million integration expenses. GAAP net income of $48 million and adjusted EPS of $0.69 reflected operational strength and a 20.9% effective tax rate. Cash generation improved markedly, with operating cash flow at $38 million and adjusted free cash flow at $33 million. The company reaffirmed full-year 2026 guidance, signaling confidence in Power Solutions ($1,790-$1,850 million sales) and Industrial Solutions ($155-$165 million) growth amid data centers and power generation demand. CEO Steph Disher highlighted team execution in integrating Koch Filter while advancing the four-pillar growth strategy in uncertain markets. Capital returns included $7 million in share repurchases under the $150 million program (with $62 million remaining) and a $0.055 per share dividend, underscoring commitment to shareholders.