Atmus Filtration Technologies Inc.

Q2 2026 sales were a record $528 million, up 16.4% from $454 million a year ago. Gross margin was $154 million, or 29.2%, versus $131 million, or 28.9%, last year. Adjusted EBITDA was $109 million, or 20.7%, versus $95 million, or 21.0%; adjusted EPS was $0.82 versus $0.75; and adjusted free cash flow was $67 million versus $36 million. For the full year, Atmus now expects total company revenue of $1.975 billion to $2.03 billion, adjusted EBITDA margin of 19.75% to 20.25%, and adjusted EPS of $2.85 to $3. Power Solutions revenue is expected at $1.82 billion to $1.865 billion, and Industrial Solutions revenue at $155 million to $165 million.

Steph Disher said the quarter showed record sales and strong execution across the company’s four-pillar strategy: first-fit share gains, aftermarket growth, supply-chain improvement, and expansion into industrial filtration. She emphasized that Koch Filter integration is nearly done and that management is shifting focus toward growth initiatives in industrial air and potential bolt-on acquisitions. Her tone was confident and constructive, but she repeatedly noted that aftermarket is still flat and that some regions remain subdued.

Jack Kienzler highlighted the key financial drivers: gross margin of $154 million, or 29.2%, helped by pricing, Koch Filter contribution, FX, higher volumes, and the end of one-time separation costs, partly offset by higher materials and manufacturing costs. He said SG&A was $62 million, adjusted EBITDA was $109 million, and adjusted free cash flow was $67 million, while net debt to adjusted EBITDA was about 1.9x for the trailing 12 months ended June 30. He also said $13 million of capex was invested, $18 million was returned to shareholders, tariff refunds received so far were immaterial, and tariff-related EBITDA impact is expected to remain substantially neutral.

Analysts focused on the split between aftermarket and first-fit, price realization, Middle East exposure, industrial margin timing, and whether the full-year EBITDA margin guide was being pressured by mix or costs. Management said aftermarket remains flat overall, with stronger sentiment in the U.S. and Mexico but subdued conditions in Europe, the Middle East, and parts of Asia, while first-fit is beginning to see a cyclical recovery. On pricing, Jack said full-year realization is expected around 1.5%, with moderating comparisons in the second half and some commodity inflation tied to the Middle East conflict; he also said tariff refunds are immaterial and the net tariff impact should be substantially neutral.