Atmus Filtration Technologies (ATMU) Q2 2026 earnings summary

Executive summary

• Achieved record Q2 2026 net sales of $528 million, up 16.4% year-over-year, driven by the Koch Filter acquisition, favorable pricing, currency, and higher volumes.

• Net income rose to $64 million, with diluted EPS of $0.78 and adjusted EPS of $0.82.

• Adjusted EBITDA reached $109 million (20.7% margin), reflecting one-time integration and separation costs.

• Integration of Koch Filter nearly complete, with full completion expected in Q3 2026.

• Growth strategy execution continues, focusing on OEM partnerships, aftermarket expansion, supply chain transformation, and industrial filtration growth.

Financial highlights

• Gross margin improved to $154 million (29.2% of sales), up from $131 million (28.9%) year-over-year.

• Adjusted free cash flow was $67 million, up from $36 million year-over-year.

• Selling, administrative, and R&D expenses rose to $62 million, mainly due to personnel and IT costs.

• Joint venture income remained flat at $8 million, with China strong but India weaker due to Middle East conflict.

• Returned $18 million to shareholders via $13 million in buybacks and $5 million in dividends.

Outlook and guidance

• Full-year 2026 net sales expected between $1,975 million and $2,030 million, up ~13.5% at midpoint.

• Power Solutions segment sales forecasted at $1,820–$1,865 million; Industrial Solutions at $155–$165 million.

• Adjusted EBITDA margin projected at 19.75%–20.25%; adjusted EPS guidance raised to $2.85–$3.00.

• Share repurchases planned at $20–$40 million for 2026; surplus cash to be used for debt reduction.

• Guidance excludes $3–$6 million in one-time Koch Filter integration costs and $6 million in transaction costs.