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Atmus Filtration posts record Q2 sales and raises full-year top-line
Second-quarter revenue rose to $528 million, and adjusted free cash flow nearly doubled to $67 million, funding $18 million in dividends and buybacks.
Atmus Filtration Technologies (NYSE: ATMU) reported second-quarter sales of $528 million, up 16.4% from $454 million a year earlier, marking a company record, according to Yahoo Finance. Adjusted EPS rose to $0.82 from $0.75, while adjusted free cash flow nearly doubled to $67 million from $36 million.
The filtration maker said its core Power Solutions diesel filtration business contributed $486 million in sales, with pricing, volume, and foreign exchange each adding 3 points, 2 points, and 2 points, respectively. Gross margin expanded to 29.2% from 28.9%, and total adjusted EBITDA reached $109 million.
Management pointed to a cyclical recovery showing up in the numbers, along with new regulatory clarity from the EPA. The agency proposed allowing engine makers to sell current models into 2027 under a nonconformance penalty, which executives said should ease the pre-buy pressure that has weighed on truck demand.
Atmus also said integration of its Koch Filter acquisition is more than 95% complete under a transition services agreement, with the remaining work expected to be finished by the third quarter. Industrial Solutions added $42 million in sales at an 18.9% adjusted EBITDA margin, and the company narrowed its full-year adjusted EBITDA guidance to 19.75% to 20.25%, with adjusted EPS guided to $2.85 to $3.00.