NYSE:ATMU
Atmus Filtration Technologies Inc.
A global leader in filtration solutions delivering proprietary technologies that optimize performance across automotive, energy, and industrial markets.
Key Metrics
Investment Thesis
Bull Case
Atmus offers compelling value with consistent revenue growth and improving profitability driven by its dominant market position in high-barrier-to-entry filtration niches. The balance sheet remains resilient with $236.4M in cash providing flexibility for R&D investment and shareholder returns, while the company's global footprint mitigates regional economic volatility.
Bear Case
Investors should be cautious due to the company's substantial long-term debt of $540M which could constrain financial flexibility during interest rate hikes or revenue slowdowns. The heavy reliance on cyclical industries like automotive exposes earnings to significant macroeconomic headwinds that could impact future growth trajectories.
About Atmus Filtration Technologies Inc.
Atmus Filtration Technologies Inc. designs and manufactures advanced filtration systems serving industries such as automotive, energy, and industrial sectors globally. The company leverages its proprietary technology to deliver high-performance filters that enhance operational efficiency and sustainability for clients worldwide.
Analysis
Management Discussion
The company demonstrated robust financial health with revenue growing to $1.76B in 2025, up from $1.63B in 2023, while net income climbed steadily to $207.4M. Strong operational cash flow of $202.7M supported strategic capital expenditures and share repurchases, indicating confidence in future growth prospects despite a significant debt load.
Industry Overview
The global industrial filtration market is expanding as manufacturers prioritize sustainability and efficiency, creating favorable conditions for specialized players with advanced technology. Consolidation trends favor large-scale producers capable of meeting stringent regulatory standards while delivering cost-effective solutions to diverse industrial customers.
Financial Statements
Income Statement
Balance Sheet
Cash Flow
| Metric | 2023 | 2024 | 2025 |
|---|---|---|---|
| Revenue | $1.63B | $1.67B | $1.76B |
| Cost of Revenue | $1.20B | $1.21B | $1.27B |
| Gross Profit | $432.7M | $462.1M | $498.3M |
| Operating Expenses | $184.3M | $195.9M | $199.3M |
| Operating Income | $248.4M | $266.2M | $299.0M |
| R&D | $42.5M | $40.6M | $40.7M |
| G&A | $174.7M | $187.6M | $184.3M |
| Stock-Based Comp | $5.5M | $11.9M | $12.4M |
| D&A | $21.5M | $24.8M | $30.0M |
| Depreciation | $21.5M | $24.8M | $26.6M |
| Other OpEx | $-32.9M | $-32.3M | $-25.7M |
| Non-Operating Income | $-22.0M | $-31.4M | $-32.8M |
| Interest Expense | $25.8M | — | — |
| Pre-Tax Income | $226.4M | $234.8M | $266.2M |
| Income Tax | $55.1M | $49.2M | $58.8M |
| Continuing Ops | $171.3M | $185.6M | $207.4M |
| Discontinued Ops | $0 | $0 | $0 |
| Net Income | $171.3M | $185.6M | $207.4M |
| Minority Interest | $0 | $0 | $0 |
| Net to Common | $171.3M | $185.6M | $207.4M |
| Metric | 2023 | 2024 | 2025 |
|---|---|---|---|
| Current Assets | $693.0M | $755.0M | $892.4M |
| Cash & Equivalents | $168.0M | $184.3M | $236.4M |
| Accounts Receivable | $184.5M | $254.2M | $320.1M |
| Inventory | $250.0M | $266.6M | $282.3M |
| Prepaid Expenses | $28.2M | $49.9M | $53.6M |
| Other Current Assets | $62.3M | $0 | $0 |
| Long-Term Assets | $395.6M | $435.3M | $458.3M |
| Goodwill | $84.7M | $84.7M | $84.7M |
| Operating Leases | $24.8M | $37.3M | $39.5M |
| Other LT Assets | $286.1M | $313.3M | $334.1M |
| Total Assets | $1.09B | $1.19B | $1.35B |
| Current Liabilities | $375.0M | $344.9M | $368.2M |
| Accounts Payable | $174.2M | $193.1M | $201.9M |
| Current Debt | $7.5M | $22.5M | $30.0M |
| Current Leases | $7.1M | $12.0M | $17.1M |
| Taxes Payable | $10.3M | $6.8M | $9.4M |
| Other Current Liab | $175.9M | $110.5M | $109.8M |
| Long-Term Liabilities | $632.9M | $618.0M | $604.0M |
| Long-Term Debt | $592.5M | $570.0M | $540.0M |
| LT Operating Leases | $18.5M | $26.6M | $23.8M |
| Other LT Liab | $21.7M | $21.0M | $39.4M |
| Total Liabilities | $1.01B | $962.9M | $972.2M |
| Shareholders' Equity | $80.7M | $227.4M | $378.5M |
| Paid-In Capital | $49.7M | $61.9M | $72.7M |
| Retained Earnings | $87.2M | $264.5M | $454.6M |
| AOCI | $-56.2M | $-79.0M | $-68.1M |
| Total L&E | $1.09B | $1.19B | $1.35B |
| Metric | 2023 | 2024 | 2025 |
|---|---|---|---|
| Net Income (CFO) | $171.3M | $185.6M | $207.4M |
| Non-Cash Adjustments | $-33.6M | $-111.5M | $-79.0M |
| Working Capital Changes | $51.3M | $31.3M | $74.3M |
| Cash from Operations | $189.0M | $105.4M | $202.7M |
| Capital Expenditures | $45.8M | $48.6M | $53.9M |
| Cash from Investing | $-45.8M | $-48.6M | $-53.9M |
| Debt Issuances | $650.0M | $0 | $0 |
| Debt Repayments | $50.0M | $7.5M | $22.5M |
| Share Buybacks | — | $20.0M | $60.7M |
| Cash from Financing | $24.8M | $-35.8M | $-101.7M |
| FX Effect | $0 | $-4.7M | $5.0M |
| Net Change in Cash | $168.0M | $16.3M | $52.1M |
| Beginning Cash | $0 | $168.0M | $184.3M |
| Ending Cash | $168.0M | $184.3M | $236.4M |
Frequently Asked Questions
How does Atmus Filtration Technologies Inc. make money?
Automotive filtration systems providing essential engine protection and air quality control; Industrial filtration solutions for harsh environments including mining and manufacturing; Energy sector filters designed for oil and gas operations requiring high durability and efficiency standards.
What are the main risks for ATMU?
Cyclical downturns in the automotive and energy sectors impacting order volumes and pricing power; Potential supply chain disruptions affecting raw material availability for filter media production; Intensifying competition from low-cost manufacturers potentially eroding profit margins over time.
What is ATMU's competitive advantage?
Proprietary filtration technologies that offer superior performance metrics compared to standard industry solutions; Established global supply chain network ensuring consistent delivery of critical components to major OEMs; Strong intellectual property portfolio protecting core designs and manufacturing processes from imitation.
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Not financial advice. All content is for informational purposes only. Data may contain errors. Consult a qualified financial advisor before making investment decisions.