Atmus Filtration Technologies Delivers Strong Third Quarter 2025 Results, Raises Full-Year Guidance Following Full Operational Separation from Cummins Inc.
Atmus Filtration Technologies Inc. a global leader in advanced filtration and media solutions, reported robust financial results for the third quarter ended September 30, 2025, reflecting continued operational excellence, disciplined financial management, and strategic progress following its complete separation from Cummins Inc. The company’s performance underscores its resilience in a challenging macroeconomic environment and highlights its capacity to generate sustained profitability and cash flow while advancing shareholder returns.
Third Quarter 2025 Financial Highlights
- Net Sales: $448 million, up 10.9% year-over-year
- GAAP Net Income: $55 million
- Diluted Earnings Per Share (EPS): $0.66
- Adjusted EPS: $0.69
- Adjusted EBITDA: $92 million
- Adjusted EBITDA Margin: 20.4%
- Operating Cash Flow: $82 million
- Adjusted Free Cash Flow: $72 million
These results reflect both top-line expansion and margin improvement driven by increased sales volume, effective pricing strategies, favorable currency movements, and disciplined cost management.
2025 Outlook Raised Amid Strong Performance
In light of its continued momentum and improved market outlook, Atmus has raised its full-year 2025 guidance. The company now expects:
- Revenue between $1.72 billion and $1.745 billion
- Adjusted EBITDA margin in the range of 19.5% to 20.0%
- Adjusted EPS between $2.50 and $2.65
This updated guidance reflects Atmus’ confidence in its operational agility, strong customer relationships, and the benefits of full independence from Cummins Inc., which were fully realized during the quarter.
Operational and Strategic Milestones
A key highlight of the quarter was Atmus’ successful completion of its operational separation from Cummins Inc., marking a major step in its transformation into a fully independent, stand-alone company. The transition services agreement between the two entities has been completed, giving Atmus full control of its global operations, including manufacturing, supply chain, and distribution systems.
Steph Disher, Chief Executive Officer of Atmus, expressed pride in the company’s achievements:
“I am extremely grateful to our employees for achieving the completion of our operational separation during the quarter. The separation has been a multi-year journey and marks a significant milestone for our company. I continue to be inspired by our people who have delivered another quarter of strong financial results amidst challenging market conditions.”
The full operational independence allows Atmus to focus entirely on executing its strategic initiatives, enhancing its product portfolio, and expanding its global presence across the filtration and media solutions markets.
Detailed Third Quarter Financial Review
Revenue and Sales Growth:
Atmus reported net sales of $448 million for Q3 2025, a significant 10.9% increase from $404 million in the same period last year. The growth was driven by higher demand across industrial and transportation segments, price improvements, and favorable foreign currency effects. The company’s diversified customer base and broad product portfolio continued to mitigate regional and sector-specific challenges.
Gross Margin Improvement:
Gross margin rose to $129 million, compared to $111 million in Q3 2024. As a percentage of sales, gross margin improved to 28.9% from 27.6% a year earlier. This improvement was primarily attributed to pricing initiatives, higher volumes, reduced manufacturing costs, and lower one-time separation-related expenses. These gains were partially offset by increased logistics costs due to ongoing global supply chain pressures.
Operating Profit and Adjusted EBITDA:
Adjusted EBITDA reached $92 million, up from $79 million in the prior-year quarter, representing a 16.5% year-over-year increase. The Adjusted EBITDA margin expanded to 20.4%, up from 19.6% in Q3 2024. This solid performance demonstrates Atmus’ ongoing focus on operational efficiency, cost discipline, and profitable growth initiatives.
One-time separation costs were reduced to $4 million in Q3 2025, compared to $9 million in the same period last year, indicating the successful conclusion of transition-related activities.
Net Income and Earnings:
GAAP net income for the quarter was $55 million, compared to $44 million in Q3 2024, representing a 25% increase year-over-year. Diluted earnings per share (EPS) rose to $0.66, up from $0.52 in the prior-year quarter. On an adjusted basis, EPS reached $0.69, versus $0.61 last year, highlighting the company’s ability to deliver consistent earnings growth despite macroeconomic headwinds.
Tax and Cash Flow Performance:
The company reported an effective tax rate of 23.6%, reflecting stable tax management and predictable financial performance.
Cash flow generation remained strong, with $82 million in operating cash flow, compared to $71 million in Q3 2024. Adjusted free cash flow was $72 million, up from $65 million in the previous year. The improvement reflects enhanced working capital efficiency and reduced separation-related expenditures.
Adjusted free cash flow excluded $3 million in one-time capital expenditures related to the Cummins separation, compared to $5 million in the prior-year period. Similarly, Q3 2024 excluded $5 million in other separation costs, including working capital inefficiencies from the transition to standalone operations.
Shareholder Returns and Capital Allocation
Atmus continues to demonstrate a balanced approach to capital allocation, prioritizing both shareholder returns and strategic reinvestment. During the quarter, the company repurchased $30 million of common stock under its $150 million share repurchase authorization approved by the Board of Directors in July 2024. As of September 30, 2025, $69 million remained under the authorization, giving the company flexibility for future buybacks.
Additionally, Atmus increased its quarterly dividend by 10% to $0.055 per share of common stock, underscoring management’s confidence in the company’s financial strength and long-term cash generation capacity.
Atmus continues to advance its strategy as a fully independent global filtration leader. Its focus areas include:
- Innovation and Technology Leadership: Expanding its R&D pipeline to develop advanced filtration and media technologies for cleaner, more efficient industrial and transportation systems.
- Operational Efficiency: Leveraging its now fully integrated global supply chain and manufacturing footprint to enhance agility and reduce costs.
- Customer Diversification: Strengthening relationships across automotive, industrial, and energy sectors while pursuing emerging opportunities in electric mobility and renewable energy markets.
- Sustainability: Reinforcing its commitment to environmental responsibility through cleaner product design, efficient manufacturing processes, and sustainable sourcing.
Disher emphasized Atmus’ focus on the future:
“Our independence marks the beginning of a new chapter for Atmus. With a strong foundation, a talented global team, and a clear growth strategy, we are well-positioned to deliver long-term value for our shareholders and customers. We are confident in our ability to sustain profitable growth through disciplined execution and innovation.”
Atmus Filtration Technologies’ third-quarter performance demonstrates its successful transition into a self-sustaining, high-performing company following its separation from Cummins Inc. With strong financial results, improved margins, rising cash flow, and shareholder-friendly initiatives, the company enters the final quarter of 2025 in a position of strength.
By continuing to execute on its operational and strategic priorities—anchored by innovation, efficiency, and disciplined capital allocation—Atmus remains on track to achieve its raised full-year guidance and deliver long-term sustainable growth in the global filtration industry.
