Atmus Filtration Technologies Inc. (ATMU)

Price$48.59Cached quoteAs of 2026-09-04 16:23 UTC

AI: Fair-priced

Price checkThe shares look roughly fair, with solid growth offset by higher debt and a full valuation.

At the observed market price, Atmus trades at about 18.5 times trailing earnings of roughly $2.61 per share and about 16.5 times the midpoint of management’s 2026 adjusted earnings guidance. Using roughly $190 million of trailing free cash flow—cash left after operating and capital spending—the equity offers only about a 4.8% cash yield. Equity value plus net debt is around 12 times guided adjusted EBITDA, meaning earnings before interest, taxes, depreciation and amortization after specified adjustments. Those are reasonable, not bargain, multiples given the higher post-Koch debt. Benzinga+1 Pasted text

Big pictureRevenue, profit and cash generation are rising, but the new acquisition changed the balance-sheet risk.

From 2021 through 2025, revenue rose from $1.44 billion to $1.76 billion while net income increased from $170 million to $207 million. Gross margin also improved from about 24% to 28%. Free cash flow was uneven, but 2025 reached about $149 million, and first-half 2026 free cash flow nearly doubled year over year to about $90 million. The catch is Koch Filter: the acquisition added diversification and growth, but also pushed debt sharply higher, so future cash must now support both expansion and deleveraging. SEC+1

Business strengthA large replacement-parts business supports recurring demand, while pricing and buybacks have strengthened per-share results.

About 86% of 2025 sales came from aftermarket replacement demand, which is usually steadier than new-equipment sales, although Atmus still serves cyclical truck, construction, agriculture and mining markets. Revenue kept growing through softer first-fit conditions. Shares outstanding fell from about 83.3 million at year-end 2023 to 81.6 million in June 2026 despite stock compensation, so buybacks more than offset dilution. Still, first-half 2026 repurchases were made at an average price roughly 20% above the observed market level, which weakens the capital-allocation score. SEC+2SEC+2

What could change the storyDeleveraging and Koch Filter returns could unlock upside; weaker vehicle demand or margins would expose downside.

The strongest bull case is that Koch Filter adds durable industrial air demand from data centers, power generation and commercial buildings while Atmus maintains roughly a 20% adjusted EBITDA margin, meaning operating profit before interest, taxes, depreciation and amortization. Management previously targeted a high-single-digit return on invested capital from Koch by 2028. The bear case is that slow truck and equipment markets keep organic volumes weak while material and manufacturing costs pressure margins. If debt does not fall or Koch misses its return target, today’s mid-teens earnings multiple would look too demanding. investors.atmus.com+2SEC+2

AI: News

Second-quarter resultsRecord sales and stronger cash flow beat expectations, yet shares sold off amid margin concerns.

On August 7, Atmus reported second-quarter sales of $528 million, up 16.4%, adjusted earnings of $0.82 per share and adjusted free cash flow of $67 million. It raised full-year sales guidance to $1.975-$2.030 billion and earnings guidance to $2.85-$3.00, but narrowed the adjusted EBITDA margin range to 19.75%-20.25%. The stock closed down about 6.1% that day. The timing suggests investors focused on second-half cost pressure, but that attribution is not certain. SEC+1

First-quarter guidance scareEarnings beat forecasts in May, but unchanged full-year guidance disappointed a market expecting faster growth.

On May 1, Atmus reported first-quarter adjusted earnings of $0.69 per share, above the $0.65 consensus, with revenue up 14.6% to $478 million. It nevertheless kept full-year adjusted earnings guidance at $2.75-$3.00, whose midpoint sat slightly below the then-consensus estimate. Investing.com reported shares down 9.6% after the release. That reaction shows valuation has been sensitive not just to current results, but to how much future growth management is willing to promise. investors.atmus.com+1

Koch Filter acquisitionThe January deal added a new growth platform, but it also materially increased debt and integration risk.

Atmus closed the Koch Filter acquisition on January 7 for about $450 million in cash, adding industrial air filtration exposure in commercial buildings, data centers and power generation. A new $1.0 billion term loan refinanced existing borrowings and helped fund the purchase. Management said the deal should add to adjusted earnings and reach a high-single-digit return on invested capital by 2028. The opportunity is real, but the much heavier debt load means the acquisition must produce sustained cash returns to create value. investors.atmus.com+1

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Revenue

2021

2022

2023

2024

2025

Net income

2021

2022

2023

2024

2025

Free cash flow

2021

2022

2023

2024

2025

Total cash / debt

CashTotal debt

2021

2022

2023

2024

2025

Financial statements

	2025	2024	2023	2022	2021
Revenue	$1.76B	$1.67B	$1.63B	$1.56B	$1.44B
Gross profit	$498.3M	$462.1M	$432.7M	$359.2M	$349.3M
Gross margin	28.24%	27.68%	26.58%	22.99%	24.28%
Research & development	$40.7M	$40.6M	$42.5M	$38.6M	$41.6M
Operating expenses	$199.3M	$195.9M	$184.3M	$155.3M	$135.8M
Operating income	$299.0M	$266.2M	$248.4M	$203.9M	$213.5M
Operating margin	16.95%	15.94%	15.26%	13.05%	14.84%
EBITDA	$329.0M	$291.0M	$269.9M	$225.5M	$235.1M
EBITDA margin	18.65%	17.43%	16.58%	14.44%	16.34%
Net income	$207.4M	$185.6M	$171.3M	$170.4M	$170.1M
Net profit margin	11.76%	11.12%	10.52%	10.91%	11.82%
Basic EPSper basic share	$2.52	$2.23	$2.06	$2.05	$2.04
Diluted EPSper diluted share	$2.50	$2.22	$2.05	$2.05	$2.04

Review official source filings ↗

Owners

Reported shareholders

Reference date Jun 30, 2026

Reported holdings Number of shares

View holders

Top 20 reported holders of ATMU
Holder	Shares held
BlackRock, Inc.	12.39M
FMR LLC	5.32M
VANGUARD PORTFOLIO MANAGEMENT LLC	4.6M
Invesco Ltd.	4.46M
PRICE T ROWE ASSOCIATES INC /MD/	4.39M
VANGUARD CAPITAL MANAGEMENT LLC	3.61M
STATE STREET CORP	3.26M
GOLDMAN SACHS GROUP INC	2.9M
GEODE CAPITAL MANAGEMENT, LLC	2.87M
NEUBERGER BERMAN GROUP LLC	2.42M
T. Rowe Price Investment Management, Inc.	1.78M
Channing Capital Management, LLC	1.73M
Jupiter Topco LLC	1.63M
MORGAN STANLEY	1.62M
FIRST TRUST ADVISORS LP	1.59M
DIMENSIONAL FUND ADVISORS LP	1.46M
WELLINGTON MANAGEMENT GROUP LLP	1.45M
WESTWOOD HOLDINGS GROUP INC	1.4M
MANGROVE PARTNERS IM, LLC	1.21M
FRONTIER CAPITAL MANAGEMENT CO LLC	1.16M

Bars compare reported share counts. A matching total for this share class and reporting period is unavailable, so percentages are not shown.

Source: SEC Form 13F ↗Updated Sep 29, 2026 · Quarterly data

Insider buys & sells

Jul 1, 2024–Jun 30, 2026

Buys7$572.2K disclosed value

Sells (SEC code S)6$1.64M disclosed value

Transaction	Insider	Type	Shares	Price	Value	Owned after
Jun 1, 2026Form 4	Swan ReneeChief People Officer	SellCommon Stock	2.6K	$45.25	$116.1K	50.7K
Jun 1, 2026Form 4	Kienzler JackChief Financial Officer	SellCommon Stock	5.1K	$45.25	$232.2K	75.8K
Jun 1, 2026Form 4	Masters CharlesSenior Vice President	SellCommon Stock	2.9K	$45.25	$130.8K	43.6K
Jun 1, 2026Form 4	Disher StephanieChief Executive Officer	SellCommon Stock	25.7K	$45.25	$1.16M	363.0K
May 12, 2026Form 4	HAGGERTY GRETCHEN RDirector	BuyCommon Stock	1.9K	$55.74	$104.3K	25.7K