Atmus Filtration Technologies Reports Third Quarter 2023 Results

NASHVILLE, Tenn. – Atmus Filtration Technologies Inc. (Atmus; NYSE: ATMU), a global leader in filtration and media solutions, today reported financial results for its third quarter that ended September 30, 2023.

Third Quarter Highlights 

• Net sales of $396 million
• GAAP net income of $38 million
• Diluted earnings per share of $0.45
• Adjusted earnings per share of $0.52
• Adjusted EBITDA of $73 million and adjusted EBITDA margin of 18.3 percent
• Cash provided by operating activities was $58 million
• Adjusted free cash flow was $50 million

During the third quarter, Atmus repaid the $50 million borrowed under the Revolving Credit Facility at the May 30 IPO launch. Atmus now has full availability under the $400 million facility, and when combined with $139 million of cash on hand, Atmus had $539 million of liquidity on September 30.

“Atmus continues to deliver solid operating results and robust cash generation,” said Steph Disher, Chief Executive Officer of Atmus. “The financial flexibility provided by our strong cash and liquidity positions us well to execute on both organic and inorganic growth opportunities.”

Third Quarter Results

For the third quarter of 2023, Atmus posted net sales of $396 million, compared to $401 million in the third quarter of 2022, a decrease of approximately 1 percent. The decrease in sales was primarily driven by a decrease in volume partially offset by increases in pricing and the favorable impacts of currency.

Gross margin was $103 million, compared to $100 million in the third quarter of fiscal year 2022, an increase of approximately 3 percent. Gross margin as a percent of net sales was 26.0% compared to 24.9% in the same period last year. The increase in gross margin and gross margin as a percent of net sales was driven by an increase in pricing, favorable freight and commodities costs, partially offset by lower volumes and unfavorable manufacturing and other costs.

Adjusted EBITDA was $73 million, compared to $72 million in the third quarter of 2022. Adjusted EBITDA margin was 18.3% compared to 17.9% in the same period last year. Adjusted EBITDA in the third quarter of 2023 excludes $7 million of one-time costs associated with the separation of our business from Cummins Inc. compared to the prior year quarter which excludes $2 million of one-time costs.

Net income was $38 million, or $0.45 of diluted earnings per share in the third quarter of 2023, compared to $50 million, or $0.61 of diluted earnings per share in the same period last year. 

Adjusted earnings per share was $0.52 in the third quarter of 2023, compared to $0.62 of adjusted earnings per share in the same period last year.