Atmus Filtration Technologies Reports Q1 2025 Net Income of $44.7 Million

Atmus Filtration Technologies Inc. reported a net income of $44.7 million for the first quarter of 2025, a slight decrease from $45.5 million in the same period last year. The company's revenue for the quarter was $416.5 million, down 2.4% from $426.6 million in the first quarter of 2024. The decline in revenue was attributed to unfavorable currency impacts of $11.4 million and lower sales volumes of approximately $3.5 million, which were partially offset by favorable pricing impacts of $4.8 million. The gross margin for the quarter was $110.5 million, reflecting a decrease of $1.3 million compared to the previous year, with a gross margin percentage of 26.5%, up from 26.2%.

In terms of operational changes, Atmus experienced an increase in selling, general, and administrative expenses, which rose to $45.9 million from $43.3 million year-over-year. This increase was primarily driven by higher people-related and consulting expenses. Research and development expenses decreased to $9.1 million from $10.1 million, reflecting lower personnel costs. The company also reported a decrease in equity, royalty, and interest income from investees, which fell to $9.2 million from $10.4 million, primarily due to lower earnings from joint ventures.

Atmus continues to navigate the complexities of its recent separation from Cummins Inc., which was fully completed in March 2024. The company is incurring one-time costs associated with establishing itself as a standalone entity, totaling approximately $9.3 million in the first quarter of 2025. These costs are expected to continue throughout the year, with estimates of $10 million to $15 million in one-time expenses related to the separation. The company is also investing in capital expenditures to support its operational independence, with $12.4 million spent in the first quarter.

The company’s balance sheet remains strong, with total assets of $1.23 billion as of March 31, 2025, compared to $1.19 billion at the end of 2024. Cash and cash equivalents were reported at $183.3 million, slightly down from $184.3 million. Atmus has a total debt of $588.8 million, down from $600 million at the end of the previous year, and maintains a revolving credit facility of $400 million, which remains untapped.

Looking ahead, Atmus anticipates continued challenges due to market conditions, including the impact of recent U.S. tariff increases on imports, which could affect both costs and demand for its products. The company is actively evaluating these market dynamics and their potential effects on its operations and financial performance. Despite these challenges, Atmus remains focused on leveraging its strong market position and operational capabilities to drive future growth.