Atmus Filtration Technologies (US:ATMU)2026-02-13 11:48Financial Performance - Atmus reported net sales of $447 million for Q4 2025, a 9.8% increase from $407 million in Q4 2024, and full-year sales of $1,764 million, up 5.7% from the prior year[7][13]. - GAAP net income for Q4 2025 was $48 million, or $0.58 diluted earnings per share, compared to $40 million, or $0.48 per share in Q4 2024; full-year net income was $207 million, or $2.50 per share, up from $186 million, or $2.22 per share in 2024[10][17]. - Adjusted EBITDA for Q4 2025 was $85 million with a margin of 19.1%, and for the full year, it was $354 million with a margin of 20.0%, compared to $330 million and 19.7% in 2024[5][15]. - Adjusted earnings per share for Q4 2025 was $0.66, compared to $0.58 in Q4 2024; for the full year, it was $2.73, up from $2.50 in 2024[10][18]. - Operating income for the year ended December 31, 2025, rose to $299.0 million, a 12.3% increase from $266.2 million in 2024[31]. - Net income for the year ended December 31, 2025, was $207.4 million, reflecting an 11.0% increase from $185.6 million in 2024[31]. - Basic earnings per share for the year ended December 31, 2025, increased to $2.52, compared to $2.23 in 2024, marking a 13.0% growth[31]. Cash Flow and Capital Expenditures - Adjusted free cash flow for Q4 2025 was $31 million, up from $28 million in Q4 2024; full-year adjusted free cash flow was $158 million, compared to $115 million in 2024[12][20]. - Cash provided by operating activities for Q4 2025 was $47.5 million, significantly up from $20.0 million in Q4 2024[45]. - Free cash flow (non-GAAP) for Q4 2025 reached $31.2 million, compared to $10.0 million in Q4 2024[45]. - Capital expenditures for Q4 2025 were $16.3 million, up from $10.0 million in Q4 2024[45]. - Adjusted free cash flow (non-GAAP) for the year 2025 was $158.3 million, compared to $114.5 million in 2024[45]. Guidance and Future Outlook - The company provided guidance for 2026, expecting total revenue between $1,945 million and $2,015 million, with Power Solutions segment revenue projected at $1,790 million to $1,850 million and Industrial Solutions segment revenue at $155 million to $165 million[6]. Shareholder Returns - Atmus returned $78 million to investors in 2025, including $61 million in stock repurchases and $17 million in dividends; a $150 million share repurchase program was authorized in July 2024[4]. Margins and Profitability - Gross margin for Q4 2025 was $127 million, representing 28.5% of net sales, compared to $107 million and 26.3% in Q4 2024; full-year gross margin was $498 million, or 28.2% of net sales[8][14]. - Gross margin for the year ended December 31, 2025, improved to $498.3 million, representing a gross margin percentage of 28.2%, compared to 27.7% in 2024[31]. - The effective tax rate for Q4 2025 was 21.3%, and for the full year, it was 22.1%[11][19]. Acquisitions and Corporate Actions - The company completed the acquisition of Koch Filter Corporation on January 7, 2026, establishing the Industrial Solutions segment[3]. Impairments and Restructuring Costs - The company recognized fixed asset impairment charges of $8.4 million during 2025, which are not expected to materially affect financial position or cash flows[39]. - The company recognized fixed asset impairment charges of $1.9 million for the year ended December 31, 2025[42]. - The company incurred one-time restructuring costs of $0.05 per share in 2024 and $0.19 per share in 2025[42]. - The tax impact of one-time separation costs for 2025 was $3.4 million, compared to $5.3 million in 2024[43]. - The tax impact of one-time restructuring costs for 2024 was $0.9 million[43]. Balance Sheet Highlights - Cash and cash equivalents at the end of the period increased to $236.4 million, up from $184.3 million at the end of 2024[35]. - Total assets as of December 31, 2025, reached $1,350.7 million, a 13.5% increase from $1,190.3 million in 2024[33]. - Total liabilities as of December 31, 2025, were $972.2 million, slightly up from $962.9 million in 2024[33].