Atmus Filtration Technologies Inc. (ATMU) · Nov 6, 2026 · Earnings
Beat — Adjusted EPS $0.77 vs ~$0.73 consensus; sales $510M vs ~$501.6M
Atmus earnings beat on sales and adjusted EPS, while Koch Filter expands the business and supports stronger cash returns.
Atmus is in the middle of turning its January 2026 Koch Filter acquisition into a second growth platform alongside its core Fleetguard business, targeting industrial HVAC, data centers and power generation. Koch Filter's strategic role was already known; this quarter tests whether the acquired business can add growth without diluting the company's operating model.
The quarter beat the market's near-term bar. Net sales reached $510.0 million, ahead of the roughly $501.6 million consensus, while adjusted EPS was $0.77 versus about $0.73-$0.74 expected. The revenue beat was helped by Koch Filter, volume, pricing and currency, while gross margin expanded to 30.3% from 28.9%.
| Q3 2026 | Q3 2025 | Consensus | |
|---|---|---|---|
| Net sales (Financial Statements) | $510.0M (+13.9%) | $447.7M | $501.6M |
| Adjusted EPS (EPS reconciliation) | $0.77 | $0.69 | $0.73-$0.74 |
| Adjusted EBITDA (EBITDA reconciliation) | $104.2M (+13.9%) | $91.5M | |
| Adjusted EBITDA margin (EBITDA reconciliation) | 20.4% | 20.4% | |
| Adjusted free cash flow (Cash flow reconciliation) | $88.4M (+23.1%) | $71.8M | |
| Industrial Solutions sales (Segment results) | $41.9M |
The acquisition is beginning to show up as a real operating contribution, not just an accounting add-on. Industrial Solutions generated $41.9 million of sales and $8.2 million of segment adjusted EBITDA at a 19.6% margin, while Power Solutions remained the earnings engine with $96.0 million of segment adjusted EBITDA. The more important read is that total adjusted EBITDA margin held at 20.4% despite the acquired business still being integrated.
Cash generation gives Atmus room to return more capital, but the balance sheet is carrying the acquisition. Adjusted free cash flow rose to $88.4 million, and the board replaced the $150 million authorization with a new $300 million buyback program while raising the quarterly dividend 9% to $0.06 per share. At the same time, long-term debt increased to $948.3 million from $540.0 million at year-end, reflecting the acquisition financing; that leverage makes continued execution and cash conversion important even though the quarter itself was clean.
Bottom line: This was a modestly better-than-expected quarter that validates the Koch Filter expansion without a margin setback. It strengthens Atmus's growth-and-cash-return story, but does not yet rewrite it because the acquisition's strategic promise was already established and leverage is higher.
A buy-side analyst on every ticker — it reads every public company's filing the instant it drops and decodes it into plain English.
A buy-side analyst on every ticker — the whole market decoded the second it moves, before it's a headline. Free gives you a taste. Pro takes the cap off and opens the full read on every company.
by Signing in NOW, claim your FREE 14-day Pro trial!