ATMUS FILTRATION TECHNOLOGIES INC 2026 Q2
Earnings Overview & AI Insights

Earnings Performance

Summary of Financial Performance: Atmus delivered record Q2 2026 sales of $528 million, up 16.4% year over year, driven by the Koch Filter acquisition and stronger Power Solutions performance. Gross margin improved to 29.2% from 28.9%. Adjusted EBITDA was $109 million, or 20.7% margin, slightly below last year’s 21.0% margin, while adjusted EPS rose to $0.82 from $0.75. Adjusted free cash flow was strong at $67 million, and the company returned $18 million to shareholders in the quarter.

Company Outlook & Strategy: Management narrowed full-year adjusted EBITDA margin guidance to 19.75%–20.25% and raised/confirmed full-year revenue outlook to $1.975 billion–$2.03 billion, implying about 13.5% midpoint growth. Adjusted EPS is expected at $2.85–$3.00. The company remains focused on its 4-pillar growth strategy: expanding first-fit share, accelerating aftermarket growth, improving supply chain productivity, and building an industrial filtration platform. Integration of Koch Filter is almost complete, with remaining items expected to finish in Q3, after which attention shifts to growth initiatives and bolt-on M&A.

Key Industry Trends: Management noted signs of recovery in freight markets, including higher spot rates and improving sentiment, but aftermarket remains generally flat year over year. In first fit, the U.S. EPA’s clarification on 2027 emissions standards is easing some pre-buy behavior, while customers expect a stronger second half on cyclical recovery. Internationally, weakness persists in Europe, the Middle East, and parts of Asia Pacific, while China remained relatively strong. India was weaker due to the Middle East conflict.

Operational Highlights: Atmus reported progress on “Lean the Atmus Way,” with the Mexico site becoming the first certified location, supporting productivity and margin expansion. Delivery and on-shelf availability reached all-time highs through the controlled distribution network. Koch Filter integration is more than 95% complete and should finish in Q3. The company is also pursuing industrial air as the core of its industrial filtration platform while remaining open to water and liquid filtration opportunities.

Challenges & Risks: Key headwinds included subdued aftermarket conditions in several regions, higher materials and manufacturing costs, elevated SG&A from people-related expenses and IT consulting, FX losses in other income/expense, and integration/amortization costs from Koch Filter. Management also highlighted geopolitical pressure on India from the Middle East conflict and noted that freight market recovery is still not fully inflected.

Key Analyst Questions & Responses: Analysts asked about aftermarket vs. first-fit performance and share gains. Management said aftermarket remained “flattish” overall, with strength in the U.S. and Mexico but weakness in Europe, the Middle East, and APAC outside China; share gains were still running in the 1%–2% range. First fit showed early cyclical recovery in Q2, with Atmus seeing improvement ahead of OEM build data by 4–6 weeks, and management characterized first-fit performance as balanced between market recovery and share gains.