Atmus Filtration Technologies Reports $48.4M Net Income and $477.5M Revenue in Q1 2026

Atmus Filtration Technologies Inc. reported a net income of $48.4 million for the first quarter of 2026, reflecting an 8.3% increase from $44.7 million in the same period of 2025. The company's revenue for the quarter reached $477.5 million, a 14.6% increase compared to $416.5 million in the prior year. This growth was attributed to the acquisition of Koch Filter, which contributed $38.4 million in sales, alongside favorable currency impacts of $16.3 million and pricing increases of $8.3 million. However, lower sales volumes had a negative impact of $2.0 million.

The financial performance of Atmus showed significant changes compared to the previous fiscal period. Gross margin improved to $136.8 million, up 23.8% from $110.5 million, driven by the incremental margin from Koch Filter, favorable pricing, and reduced one-time costs. Operating income also increased by 17.6% to $76.3 million, despite a rise in interest expenses to $14.1 million due to increased borrowings related to the Koch Filter acquisition. The effective tax rate for the quarter was 20.9%, slightly lower than the 21.3% reported in the previous year.

Strategically, Atmus completed the acquisition of Koch Filter on January 7, 2026, for approximately $456.4 million. This acquisition has allowed Atmus to establish a new Industrial Solutions segment, which focuses on high-growth markets such as commercial HVAC and data centers. The integration of Koch Filter is expected to enhance Atmus's market position in the industrial air filtration sector. The company incurred $6.3 million in transaction-related expenses during the quarter, which were reflected in its operating expenses.

Operationally, Atmus reported a total employee headcount of 1,200 as of March 31, 2026, an increase from 1,100 in the previous year, reflecting the integration of Koch Filter. The company also noted a geographic expansion, with U.S. sales rising to $258.4 million from $207.6 million, while international sales remained relatively stable at $219.1 million. The company’s market share in the filtration industry is expected to grow as it leverages the capabilities of Koch Filter.

Looking ahead, Atmus anticipates continued challenges in the aftermarket demand, which has remained soft, and expects a gradual recovery in first-fit demand in the latter half of 2026. The company is focused on managing costs and optimizing its supply chain in response to ongoing economic conditions and tariff impacts. Atmus believes that its cash flow from operations, combined with its new credit facilities, will provide sufficient liquidity to support its operational needs and strategic initiatives moving forward.