Atmus Filtration Technologies Inc. (ATMU) FY2025 10-K Annual Report

Filed: Feb 13, 2026
Industrials
Motor Vehicle Parts & AccessoriesSEC EDGAR

Atmus Filtration Technologies Inc. (ATMU) 10-K annual report for fiscal year 2025, filed with SEC EDGAR on Feb 13, 2026. This page provides AI-powered analysis including business overview, management discussion & analysis (MD&A), risk factors, and key financial data such as revenue, net income, gross margin, operating margin, and return on equity (ROE) extracted from XBRL.

Atmus Filtration Technologies Inc. FY2025 10-K Analysis

Business Overview

  • Core business: filtration technology products and services for various industrial applications
  • New emphasis on separation from Cummins Inc. via multiple agreements dated May 29, 2023, indicating independence steps
  • Strategic shift: executed Stock Purchase Agreement with Cummins for Air Distribution Technologies on Nov 21, 2025
  • Credit facilities updated with Amended and Restated Credit Agreement on Jan 7, 2026, suggesting financial restructuring or capital management
  • Filing highlights extensive intercompany agreements with Cummins, reflecting transition period post-spinoff or acquisition separation

Management Discussion & Analysis

  • Revenue $1,764.3M in 2025, up $94.7M (5.7%) YoY from $1,669.6M in 2024; driven by higher volumes $51.9M and pricing $50.0M, offset by $7.3M forex headwinds
  • Gross margin $498.3M (28.2% of sales) in 2025, up $36.2M and 0.5 ppt vs 2024 margin 27.7%; improvement led by pricing and volume gains, partially offset by higher logistics and currency
  • Best segment: aftermarket contributed ~86% of sales with recurring revenue base; first-fit segment (14%) experienced reduced demand in 2025
  • Operating income $299.0M (16.9% margin) up $32.8M (12.3%) YoY; SG&A expense $184.3M (10.4% margin) decreased $3.3M; interest expense down $7.2M to $33.4M
  • Operating cash flow $202.7M in 2025, up $97.3M YoY; capital expenditures $53.9M (3.1% of sales); share repurchases $60.7M; dividends paid $17.3M
  • Management outlook: expect continued soft aftermarket demand and reduced first-fit demand in 2026 due to market cyclicality; no further one-time separation costs anticipated after 2025
  • Key risks: customer concentration among Cummins, PACCAR, Traton; supply chain complexities; inflation and commodity cost variability; macroeconomic and geopolitical uncertainties; exposure to regulatory and environmental costs

Risk Factors

  • Regulatory risk: compliance with increasingly stringent environmental laws and cleanup requirements for contaminated property exposure globally
  • Macroeconomic threat: 46.6% of net sales concentrated in Cummins (18.8%), PACCAR (16.3%), Traton Group (11.5%) risking revenue from any customer loss
  • Operational risk: supply chain complexity and potential delays in critical materials sourcing impacting multiple manufacturing sites globally
  • Market disruption risk: energy transition and electrified powertrains reducing demand for internal combustion engine filtration, Cummins aiming 2030 GHG reduction goals
  • Financial risk: substantial indebtedness secured by all assets via term loan and revolving credit facility restricting financial flexibility

Atmus Filtration Technologies Inc. FY2025 Key Financial Metrics
XBRL

Revenue

$1.8B

+5.7% YoY

Net Income

$207M

+11.7% YoY

Gross Margin

28.2%

+57bp YoY

Operating Margin

16.9%

+100bp YoY

Net Margin

11.8%

+64bp YoY

ROE

54.8%

-2682bp YoY

Total Assets

$1.4B

+13.5% YoY

EPS (Diluted)

$2.50

+12.6% YoY

Operating Cash Flow

$203M

+92.3% YoY

Source: XBRL data from Atmus Filtration Technologies Inc. FY2025 10-K filing on SEC EDGAR. All figures in USD.

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