Description
Atmus Filtration Technologies: Initiation of Coverage- $478 Million Q1 Sales, 19.8% EBITDA Margin & Buybacks Driving The Story!
Atmus Filtration Technologies reported first quarter 2026 sales of $478 million, a 14.6% increase from $417 million in the same period last year, largely driven by the acquisition of Koch Filter which closed in early January. The company now reports two business segments: Power Solutions and the newly formed Industrial Solutions reflecting the Koch Filter integration. Adjusted EBITDA reached $95 million or 19.8% of sales compared to $82 million or 19.6% last year, and adjusted earnings per share rose to $0.69 from $0.63 in the prior year. Adjusted free cash flow improved to $33 million from $20 million in the first quarter of 2025. Power Solutions sales increased 5.4% to $439 million, benefitting from favorable foreign exchange and pricing increases, although volumes declined slightly due to challenging market conditions and specific one-time impacts including supply chain restrictions related to the Middle East conflict. Industrial Solutions contributed $38 million in sales with a reported 6% growth reflecting the first quarter performance of Koch Filter. Gross margin improved to $137 million from $111 million, supported by acquisition-related incremental margin, pricing actions, and cessation of one-time separation costs, partially offset by higher logistics, manufacturing costs, and some volume weakness.
