second quarter 2026
Filed Aug 7, 2026Atmus Filtration Technologies Reports Second Quarter 2026 Results
Record net sales, higher GAAP and adjusted earnings, sharply higher operating cash flow and adjusted free cash flow, and raised full-year 2026 guidance supported a strong reported quarter, despite lower Adjusted EBITDA margin.
Key metrics
as reported| Metric | Value | q/q | y/y |
|---|---|---|---|
| Net salesGAAP | $528 million | – | 16.4% |
| Gross marginGAAP | $154 million | – | – |
| Gross margin as a percent of net salesGAAP | 29.2% | – | – |
| Net incomeGAAP | $64 million | – | – |
| Diluted earnings per shareGAAP | $0.78 | – | – |
| Adjusted earnings per sharenon-GAAP | $0.82 | – | – |
| Adjusted EBITDAnon-GAAP | $109 million | – | – |
| Adjusted EBITDA marginnon-GAAP | 20.7% | – | – |
| Effective tax rateGAAP | 22.8% | – | – |
| Cash provided by operating activitiesGAAP | $78 million | – | – |
| Adjusted free cash flownon-GAAP | $67 million | – | – |
| Power Solutions Segment Adjusted EBITDAnon-GAAP | $101 million | – | – |
| Power Solutions Segment Adjusted EBITDA marginnon-GAAP | 20.8% | – | – |
| Industrial Solutions Segment Adjusted EBITDAnon-GAAP | $8 million | – | – |
| Industrial Solutions Segment Adjusted EBITDA marginnon-GAAP | 18.9% | – | – |
Segments
| Segment | Revenue | q/q | y/y |
|---|---|---|---|
| Power SolutionsNot separately disclosed. | $486 million | – | – |
| Industrial SolutionsNot separately disclosed. | $42 million | – | – |
full year 2026 outlook
- RevenueTotal company Net sales expected to be in the range of $1,975 million to $2,030 million
- NotePower Solutions segment expected to be in the range of $1,820 million to $1,865 million
- NoteIndustrial Solutions segment expected to be in the range of $155 million to $165 million
- NoteAdjusted EBITDA margin expected to be in the range of 19.75% to 20.25%
- NoteAdjusted earnings per share expected to be in the range of $2.85 to $3.00
Capital returns
- During the quarter, Atmus repurchased $13 million of common stock under the $150 million share repurchase program authorized by the Board of Directors in July 2024.
- As of June 30, 2026, $49 million was remaining under the authorization.
- Atmus paid a quarterly cash dividend of $0.055 per share of common stock.
What drove it
- The increase in sales was primarily driven by the acquisition of Koch Filter Corporation, increases in pricing, the favorable impacts of currency and higher volumes.
- The increase in Gross margin was primarily due to increases in pricing, incremental margin from the acquisition of Koch Filter, favorable impacts of currency, higher volume and lower one-time costs associated with the separation of the business from Cummins Inc.
- Gross-margin drivers were partially offset by higher materials and manufacturing costs.
- Adjusted EBITDA in the second quarter of 2026 excludes $1 million of one-time integration costs associated with the acquisition of Koch Filter.
Concerns
- Adjusted EBITDA margin was 20.7% compared to 21.0% in the same period last year.
- Higher materials and manufacturing costs partially offset gross-margin improvement drivers.
- The effective tax rate was 22.8% compared to 21.9% for the same period last year.
What to watch
- Execution against the raised full-year 2026 Net sales range of $1,975 million to $2,030 million.
- Execution against the full-year Adjusted EBITDA margin range of 19.75% to 20.25%.
- Power Solutions segment performance against its full-year range of $1,820 million to $1,865 million.
- Industrial Solutions segment performance against its full-year range of $155 million to $165 million.
- The impact of Koch Filter acquisition and integration costs, including the $1 million of one-time integration costs excluded from second-quarter 2026 Adjusted EBITDA.
Balance sheet and cash flow
- Cash provided by operating activities was $78 million in the second quarter of 2026, compared to cash provided by operating activities of $44 million in the second quarter of 2025.
- Adjusted free cash flow was $67 million in the second quarter of 2026, compared to $36 million in the second quarter of 2025.
- Adjusted free cash flow in the second quarter of 2026 excludes $1 million of one-time integration costs and $1 million of one-time capital expenditures associated with the acquisition of Koch Filter.
- The second quarter of 2025 excludes $3 million of one-time expenditures associated with the separation of the business from Cummins.
Analysis
Atmus reported record net sales of $528 million in the second quarter of 2026, compared with $454 million in the second quarter of 2025, an increase of 16.4%. Management attributed the sales increase to the acquisition of Koch Filter Corporation, pricing, favorable currency impacts and higher volumes. Power Solutions generated $486 million of net sales and Industrial Solutions generated $42 million, although the release did not provide segment-level growth rates or individual segment drivers.
Profitability improved on a GAAP gross-margin basis. Gross margin rose to $154 million from $131 million, while gross margin as a percent of net sales increased to 29.2% from 28.9%. Pricing, incremental margin from the Koch Filter acquisition, currency, volume and lower separation-related one-time costs were cited as contributors. Higher materials and manufacturing costs partially offset those benefits. Adjusted EBITDA increased to $109 million from $95 million, but Adjusted EBITDA margin declined to 20.7% from 21.0%.
GAAP net income was $64 million, or $0.78 of diluted earnings per share, compared with $60 million, or $0.72 per diluted share, in the prior-year period. Adjusted earnings per share increased to $0.82 from $0.75. The reported effective tax rate was 22.8%, compared with 21.9% in the same period last year. Second-quarter 2026 Adjusted EBITDA excluded $1 million of one-time Koch Filter integration costs, versus $3 million of separation-related one-time costs excluded in the prior-year quarter.
Cash generation strengthened materially. Cash provided by operating activities was $78 million compared with $44 million, and adjusted free cash flow was $67 million compared with $36 million. The company repurchased $13 million of common stock during the quarter and paid a quarterly cash dividend of $0.055 per share. As of June 30, 2026, $49 million remained under the share repurchase authorization.
The company raised full-year 2026 guidance, targeting total company Net sales of $1,975 million to $2,030 million, Adjusted EBITDA margin of 19.75% to 20.25%, and Adjusted earnings per share of $2.85 to $3.00. The outlook includes Power Solutions net sales of $1,820 million to $1,865 million and Industrial Solutions net sales of $155 million to $165 million. With no prior outlook supplied, the extent of the guidance increase and performance against prior guidance cannot be assessed from the provided documents.
Management, verbatim
The Atmus team delivered record sales during the quarter through a relentless focus on solving our customer’s toughest filtration challenges with our industry leading Fleetguard ® and Koch Filter ® branded products.
Steph Disher, Chief Executive Officer
Our team remains committed to executing our four-pillar growth strategy and creating long-term shareholder value.
Steph Disher, Chief Executive Officer
Not in the filing
stated, not guessed- Prior-quarter comparisons for all reported metrics.
- GAAP operating income and operating margin.
- Operating expenses.
- GAAP earnings before income taxes.
- GAAP free cash flow.
- Cash balance.
- Debt balance.
- Capital expenditures, except for the stated $1 million of one-time capital expenditures associated with the acquisition of Koch Filter.
- Segment revenue prior-year and prior-quarter comparisons.
- Segment revenue growth rates.
- Segment-specific revenue drivers.
- Prior full-year guidance figures and comparison of actual results with prior guidance.
- Full-year gross-margin, operating-expense and tax-rate guidance.
- GAAP reconciliation details beyond the narrative exclusions provided.
AlphaAI analysis generated from the company’s SEC earnings filing (Form 8-K Item 2.02, or Form 6-K for a foreign private issuer). Every figure was cross-checked against the filing text; consensus estimates, price targets and share-price reactions are not shown because they are not in the filing. AI-generated research, not investment advice.