Atmus Filtration Technologies Reports Strong Fourth Quarter and Full-Year 2024 Financial Results
Atmus Filtration Technologies, a global leader in advanced filtration and media solutions, has announced its financial results for the fourth quarter and full fiscal year ending December 31, 2024. The company demonstrated resilience and growth despite global economic challenges, marking another successful year in its history.
Fourth Quarter and Full-Year 2024 Financial Highlights
- Net Sales: $407 million in Q4; $1,670 million for the full year
- GAAP Net Income: $40 million in Q4; $186 million for the full year
- Diluted Earnings Per Share (EPS): $0.48 in Q4; $2.22 for the full year
- Adjusted Earnings Per Share: $0.58 in Q4; $2.50 for the full year
- Adjusted EBITDA: $78 million in Q4; $330 million for the full year
- Adjusted EBITDA Margin: 19.1% in Q4; 19.7% for the full year
- Operating Cash Flow: $20 million in Q4; $105 million for the full year
- Adjusted Free Cash Flow: $28 million in Q4; $115 million for the full year
2025 Financial Outlook
Atmus is providing guidance for 2025 with the following expectations:
- Revenue: Projected to range between $1,670 million and $1,735 million
- Adjusted EBITDA Margin: Expected between 19.0% and 20.0%
- Adjusted EPS: Forecasted to be between $2.35 and $2.60
The company remains focused on delivering value to shareholders through strong operational execution and strategic financial management. During the fourth quarter, Atmus repurchased $10 million worth of common stock under its $150 million share repurchase program initiated in July 2024. As of December 31, 2024, the company had $130 million remaining under this authorization. Additionally, Atmus declared and paid a quarterly dividend of $0.05 per share.
CEO Commentary
Steph Disher, Chief Executive Officer of Atmus, commented on the company’s performance:
“The Atmus team delivered strong financial results for both the fourth quarter and the full year 2024 by consistently providing industry-leading filtration solutions to our customers. We are committed to executing our long-term growth strategy while returning value to our investors. Our focus remains on driving sustainable growth, operational efficiency, and innovation in filtration technology.”
Fourth Quarter 2024 Performance Overview
Atmus reported net sales of $407 million for the fourth quarter of 2024, reflecting a 1.8% year-over-year increase compared to $400 million in the same period of 2023. This growth was driven by increased sales volume and price adjustments, partially offset by unfavorable currency fluctuations.
- Gross Margin: Increased to $107 million from $106 million in Q4 2023. As a percentage of net sales, gross margin was 26.3%, slightly lower than the 26.4% recorded in the same period last year. This increase was primarily due to improved pricing strategies, favorable manufacturing costs, and higher sales volumes, which helped counterbalance rising logistics, material costs, and one-time restructuring expenses.
- Adjusted EBITDA: Reached $78 million, compared to $71 million in Q4 2023. The adjusted EBITDA margin stood at 19.1%, up from 17.9% in the prior-year period. This increase was achieved despite incurring $7 million in one-time separation costs related to Atmus’ spin-off from Cummins Inc., and an additional $4 million in restructuring costs.
- Net Income: Reported at $40 million, or $0.48 per diluted share, compared to $35 million or $0.42 per diluted share in Q4 2023.
- Adjusted Earnings Per Share: Rose to $0.58, compared to $0.49 in the prior-year quarter.
- Effective Tax Rate: 21.2% for the quarter.
- Cash Flow from Operations: Generated $20 million, compared to $42 million in Q4 2023.
- Adjusted Free Cash Flow: $28 million, compared to $30 million in the same quarter of the previous year. This metric excludes one-time separation-related expenditures and restructuring costs.
Full-Year 2024 Performance Overview
Atmus closed the year with net sales of $1,670 million, representing a 2.5% increase from the $1,628 million recorded in 2023. The company attributed this growth to strategic price adjustments and higher sales volumes, offset slightly by currency headwinds.
- Gross Margin: $462 million, an improvement from $433 million in 2023, marking a 6.8% increase. As a percentage of sales, gross margin expanded to 27.7%, compared to 26.6% in 2023.
- Adjusted EBITDA: $330 million, compared to $302 million in 2023, with an adjusted EBITDA margin of 19.7%, up from 18.6% in the prior year.
- Net Income: $186 million, or $2.22 per diluted share, compared to $171 million or $2.05 per diluted share in 2023.
- Adjusted Earnings Per Share: $2.50, up from $2.31 in 2023.
- Effective Tax Rate: 21.0% for the full year.
- Cash Flow from Operations: $105 million, compared to $189 million in 2023.
- Adjusted Free Cash Flow: $115 million, compared to $152 million in 2023. This measure excludes one-time capital expenditures and separation-related costs incurred during the transition from Cummins Inc.
Strategic Initiatives and Shareholder Returns
Atmus remains committed to returning value to shareholders through disciplined capital allocation. The $150 million share repurchase program launched in mid-2024 is a testament to this commitment. The company also declared a quarterly dividend of $0.05 per share, reinforcing its dedication to providing consistent returns to investors.
The company’s strategic separation from Cummins Inc. was a key milestone in 2024, enabling Atmus to operate as an independent entity. Despite one-time transition costs, the company remains optimistic about its standalone future and long-term growth prospects.
Fourth Quarter and Full-Year 2024 Conference Call and Webcast
Atmus will host a conference call and webcast to discuss its fourth quarter and full-year 2024 financial results on Friday, February 21, 2025, at 10:00 a.m. CT.
A live webcast and replay of the conference call will be accessible via the Atmus investor relations website at http://investors.atmus.com.
Atmus Filtration Technologies has successfully navigated market challenges, demonstrating strong financial performance for both the fourth quarter and the full year 2024. With a clear focus on strategic growth, operational excellence, and shareholder returns, the company is well-positioned for continued success in 2025 and beyond.
