Atmus Filtration Technologies Inc. (NYSE: ATMU) Reports Robust Q1 2026 Results

Strong Financial Performance and Strategic Acquisition Fuel Growth

Atmus Filtration Technologies Inc., a global leader in filtration and media solutions, has announced its financial results for the first quarter ended March 31, 2026. The company delivered robust growth across key metrics, underpinned by the successful acquisition of Koch Filter Corporation and continued execution on its four-pillar growth strategy.

Key Financial Highlights

• Net Sales: \$478 million, up 14.6% from \$417 million in Q1 2025
• Power Solutions Segment: Net sales of \$439 million
• Industrial Solutions Segment: Net sales of \$38 million
• GAAP Net Income: \$48 million (\$0.59 diluted EPS), up from \$45 million (\$0.54 diluted EPS) in Q1 2025
• Adjusted Earnings Per Share: \$0.69, versus \$0.63 in Q1 2025
• Adjusted EBITDA: \$95 million (19.8% margin), compared to \$82 million (19.6% margin) in Q1 2025
• Cash Provided by Operating Activities: \$38 million, up from \$29 million in Q1 2025
• Adjusted Free Cash Flow: \$33 million, up from \$20 million in Q1 2025

Segment Performance

• Power Solutions:
  • Adjusted EBITDA: \$86 million (19.6% margin)
• Industrial Solutions (newly established via Koch Filter Acquisition):
  • Adjusted EBITDA: \$8 million (21.9% margin)

Strategic Acquisition: Koch Filter Corporation

Atmus completed the acquisition of Koch Filter Corporation on January 7, 2026, marking a pivotal expansion into commercial and industrial HVAC applications and high-growth markets such as data centers and power generation environments. The acquisition not only contributed to the sales growth but also established the Industrial Solutions segment, broadening the company’s addressable market and strengthening its competitive position.

2026 Outlook and Guidance

Atmus reaffirmed its guidance for the full year 2026:

• Total Company Net Sales: \$1,945 million to \$2,015 million
• Power Solutions Segment: \$1,790 million to \$1,850 million
• Industrial Solutions Segment: \$155 million to \$165 million
• Adjusted EBITDA Margin: 19.5% to 20.5%
• Adjusted Earnings Per Share: \$2.75 to \$3.00

Shareholder Actions and Capital Allocation

• Share Repurchase: Atmus repurchased \$7 million of common stock under its \$150 million share repurchase program. As of March 31, 2026, \$62 million remains authorized for future repurchases.
• Dividend: The company paid a quarterly cash dividend of \$0.055 per share.

Profitability Drivers

• Gross margin improved to \$137 million (28.6% of net sales), up from \$111 million (26.5%) in Q1 2025, driven by incremental margin from Koch Filter, price increases, lower separation costs, and favorable currency impacts, partially offset by higher logistics/duties and lower volumes.
• Adjusted EBITDA excludes \$6 million in acquisition costs and \$1 million in integration costs related to Koch Filter in Q1 2026.
• Effective tax rate slightly decreased to 20.9% from 21.3% last year.

Balance Sheet Updates

• Cash and cash equivalents: \$209.6 million (down from \$236.4 million at year-end 2025)
• Long-term debt increased to \$998.1 million (from \$540 million at year-end 2025), reflecting financing for the Koch Filter acquisition.
• Goodwill and intangible assets increased substantially due to the Koch Filter acquisition.

Management Commentary

“The Atmus team delivered strong financial results while simultaneously integrating Koch Filter to unlock growth for our Industrial Solutions business segment,” said Steph Disher, CEO of Atmus. “I continue to be inspired by our people’s ability to navigate uncertain markets and execute our four-pillar growth strategy to deliver long-term shareholder value.”

Additional Investor Information

• Atmus will host a conference call and webcast on May 1, 2026, at 10:00 a.m. CT to discuss its results and outlook.
• The company uses several non-GAAP measures (Adjusted EBITDA, Adjusted EPS, Adjusted Free Cash Flow) to provide clearer insights into underlying performance. These measures exclude one-time costs related to the separation from Cummins Inc. and the Koch Filter acquisition and integration.
• Risks and uncertainties are outlined in the company’s latest SEC filings, including the Annual Report on Form 10-K and Quarterly Report on Form 10-Q.

Investor Takeaways & Potential Price Sensitivity

• The successful integration and performance of Koch Filter is a significant growth driver and could positively impact Atmus’s share value.
• Substantial improvement in cash flow and profitability metrics, alongside an active share repurchase program and dividend payments, are positive signals for shareholder returns.
• Management’s reaffirmed guidance and confidence in meeting full-year targets may further bolster investor sentiment.
• Increase in long-term debt could affect risk perception, but is offset by the expected incremental earnings from the Koch Filter acquisition.
• Any deviation from integration plans or guidance, or unforeseen challenges in the Industrial Solutions segment, could become price-sensitive risks.

Contact Information

Investor Relations: Todd Chirillo ([email protected])
Media Relations: Jayme Owen ([email protected])

Disclaimer

The above article is for informational purposes only and does not constitute investment advice. Investors should review Atmus Filtration Technologies Inc.’s official filings and consult with their financial advisors before making investment decisions. Forward-looking statements are subject to risks and uncertainties that may cause actual results to differ materially from those projected. Atmus undertakes no obligation to update these statements except as required by law.

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