Atmus Filtration Technologies (US:ATMU)2026-02-13 19:01Financial Performance - For the year ended December 31, 2025, Atmus generated $1,764.3 million in net sales, $207.4 million in net income, and $353.5 million in adjusted EBITDA[13]. - Approximately 46% of Atmus' net sales in 2025 came from outside the United States and Canada, with 86% of net sales generated in the aftermarket[18][30]. - Cummins accounted for approximately 18.8% of Atmus' net sales in 2025, with the next four top customers collectively contributing around 40% of net sales[29][42]. Research and Development - Research, development, and engineering expenses were $40.7 million in 2025, compared to $40.6 million in 2024 and $42.5 million in 2023[47]. - Atmus has approximately 1,200 worldwide active or pending patents and over 650 trademark registrations as of December 31, 2025[24][43]. Market Presence - Atmus operates through 11 distribution centers, 10 manufacturing facilities, and five technical facilities, with a presence on six continents[18]. - The company's core markets are on-highway and off-highway, representing approximately 58% and 42% of net sales in 2025, respectively[30]. - Atmus aims to expand into industrial filtration markets and leverage its global footprint for growth opportunities[19]. - The company has a strong history with leading OEMs, which accounted for approximately 70% of net sales in 2025[28]. Product Offering - Atmus' filtration products enable lower emissions and provide superior asset protection, enhancing customer value through extended service intervals and reduced maintenance costs[20]. - Atmus' products include fuel filters, lube filters, air filters, and hydraulic filters, with a recurring revenue model driving consistent demand across regions[49]. Employee and Organizational Culture - Atmus employed approximately 4,500 persons worldwide as of December 31, 2025, with 53% represented by unions under collective bargaining agreements[51]. - Atmus' leadership culture focuses on authentic, transparent, and approachable management to empower employees and enhance organizational effectiveness[55]. - The company maintains competitive pay and benefits, conducting annual compensation studies to ensure fair and equitable pay[58]. - Inclusion and diversity are critical to Atmus' success, with 43% of the executive team being female and 14% ethnically diverse[65]. Financial Obligations and Risks - The company has a $600 million term loan facility and a five-year $400 million revolving credit facility, with interest rates affected by the net leverage ratio[261]. - A 0.125% change in SOFR would result in a $0.7 million annual impact on interest expense based on outstanding borrowings as of December 31, 2025[261]. - Atmus' foreign currency contracts could experience a potential gain or loss of approximately $10.3 million with a hypothetical 10% fluctuation in currencies for the year ended December 31, 2025[260]. Commitment to Safety and Quality - Atmus has a commitment to health, safety, and environment, aiming for zero serious injury fatalities in the workplace[61]. - The company emphasizes product quality, performance, and customer service as principal methods of competition in the filtration markets[50].