Atmus Raises 2026 Sales Outlook After Koch Filter Quarter

The Tip Desk · November 6, 2026 · 2 min read

Net sales were $510 million in the third quarter, and the company lifted full-year 2026 sales guidance to $2,010 million to $2,035 million.

Atmus Filtration Technologies Inc. (ATMU) reported third-quarter net sales of $510 million, up 13.9% from $448 million a year earlier, and raised its full-year 2026 sales outlook after a quarter in which the Koch Filter acquisition, volumes, currency and pricing more than offset tariff refunds payable to customers.

The filtration and media solutions company said the year-over-year sales increase slowed from 16.4% in the second quarter. Sequential sales were $510 million after a record $528 million in the second quarter.

Power Solutions, the Fleetguard-branded on- and off-highway equipment business, posted net sales of $468 million, down from $486 million in the second quarter. Industrial Solutions, the Koch Filter HVAC and data-center segment, held at $42 million.

Gross margin was $154 million, or 30.3% of sales. The company said the increase versus a year earlier was primarily due to incremental margin from Koch Filter, favorable volume, pricing, manufacturing costs, currency, lower one-time costs associated with the separation from Cummins Inc. and lower warranty costs, partially offset by higher material and freight costs.

Adjusted EBITDA was $104 million, with an Adjusted EBITDA margin of 20.4%. Power Solutions Adjusted EBITDA was $96 million and a 20.5% margin. Industrial Solutions Adjusted EBITDA was $8 million and a 19.6% margin.

Net income was $61 million, or $0.74 a share, compared with $55 million, or $0.66 a share, a year earlier. Adjusted earnings were $0.77 a share. The effective tax rate was 22.8%.

Cash provided by operating activities was $98 million. Adjusted free cash flow was $88 million, excluding $1 million of one-time capital expenditures associated with the Koch Filter acquisition.

The company is raising full-year 2026 net sales guidance to $2,010 million to $2,035 million from $1,975 million to $2,030 million. Power Solutions is now expected at $1,850 million to $1,870 million and Industrial Solutions at $160 million to $165 million. Adjusted EBITDA margin guidance remains 19.75% to 20.25%. Adjusted earnings per share are now expected at $2.90 to $3.05.

During the third quarter, Atmus repurchased $20 million of common stock under the $150 million program authorized in July 2024. On November 4, the board authorized a new $300 million share repurchase program that replaces the prior authorization. The quarterly cash dividend rose 9% to $0.06 a share.

Chief Executive Officer Steph Disher said the team’s dedication drove the results while Fleetguard and Koch Filter products protected what is important to customers.