Atmus Filtration Technologies Q2 Earnings Call Highlights

Atmus Filtration Technologies reported record second-quarter sales of $528 million, up 16.4% from $454 million a year earlier, driven by the acquisition of Koch Filter and growth in its Power Solutions business.

The company also reported adjusted EBITDA of $109 million, adjusted earnings per share of $0.82, and adjusted free cash flow of $67 million.

Chief Executive Officer Steph Disher said the company’s results reflected progress across its four-pillar growth strategy: expanding first-fit market share, accelerating profitable aftermarket growth, transforming the supply chain, and building an industrial filtration platform.

“We achieved record sales in the second quarter and delivered strong results among our key metrics, including adjusted EBITDA, free cash flow, and EPS,” Disher said.

Atmus said it has exited more than 95% of the transition service agreement activities associated with its Koch Filter acquisition, which closed earlier in 2026.

The company expects to complete the remaining integration work during the third quarter.

The acquisition established Atmus’ Industrial Solutions segment, which recorded $42 million in second-quarter sales and $8 million in adjusted EBITDA, representing an 18.9% margin.

The company said Industrial Solutions is performing in line with expectations, and it continues to target full-year revenue of $155 million to $165 million for the segment.

Disher said Atmus is shifting attention toward growth initiatives in industrial filtration, particularly industrial air.

The company is evaluating bolt-on acquisition opportunities to build scale around Koch Filter while remaining open to potential industrial water and liquid-filtration investments that could provide an anchor for a broader platform.

Chief Financial Officer Jack Kienzler said the company sees opportunities to expand Koch Filter’s distributor relationships, introduce products to address coverage gaps, and target higher-growth end markets including data centers and healthcare.

Power Solutions, Atmus’ larger operating segment, generated $486 million in second-quarter revenue, up 7% from the prior-year period.

Kienzler attributed the increase to 3% higher pricing, 2% volume growth and a 2% favorable foreign-exchange effect.

Disher said the company’s aftermarket conditions remained broadly flat during the quarter, though it is seeing stronger sentiment in the U.S. and Mexico.

The aftermarket represents approximately 85% of Power Solutions revenue, with roughly half of that business located in the U.S., according to Disher.

Markets in Europe, the Middle East and Asia-Pacific excluding China remained subdued.