Summary of Key Points from Conference Call Industry Overview - **Industry Focus**: The discussion primarily revolves around the **distributed power generation** sector, particularly in relation to **data centers** and the competitive landscape involving major players like **CAT** (Caterpillar) and **CMI** (Cummins) [2][4]. Core Insights - **Demand Trends**: There is a growing demand for **on-site generation** and **backup power**, which is favorable for CAT. The shift towards **prime power** (natural gas) over traditional grid power is seen as a potential challenge for CMI unless it diversifies its product offerings [2][4]. - **Competitive Dynamics**: CAT is perceived to have a competitive edge due to its diverse product range in diesel and gas engines, while CMI and Rolls Royce may face vulnerabilities due to their focus on diesel [4][5]. - **Natural Gas Preference**: Natural gas is favored for prime power applications due to lower emissions and maintenance costs compared to diesel. This shift is expected to impact the market dynamics significantly [4][5]. - **Capacity Constraints**: Diesel engine capacity is expanding rapidly, leading to shorter lead times, while gas capacity is constrained and expected to remain tight until 2027, which may support OEM pricing [4][5]. Additional Insights - **Market Entry and Pricing Pressure**: New entrants in the diesel engine market are not expected to capture significant market share quickly. However, they may exert pricing pressure on incumbents like CAT and CMI due to competitive pricing strategies [4][5]. - **Generator Preferences**: Smaller generators (2-4 MW) are preferred for both prime and backup applications due to their redundancy and ease of redeployment. Larger gas turbines are increasingly adopted for larger data centers [4][5]. - **Dealer Networks**: Reliable dealer networks are crucial for OEM differentiation, especially given the uptime requirements in the industry [4]. Financial Outlook - **Pricing and Margin Concerns**: There are concerns regarding potential pricing and margin erosion in backup power applications, which could negatively impact both CMI and CAT [5]. - **Investor Sentiment**: Investors are cautious about the current market conditions, questioning the timing for investments in URI (United Rentals) and its ability to achieve double-digit EBITDA growth in the future [10][12][13]. Conclusion - The shift towards distributed generation and natural gas applications presents both opportunities and challenges for key players in the industry. CAT is well-positioned to benefit from these trends, while CMI may need to adapt its strategy to maintain competitiveness. The overall market dynamics are influenced by capacity constraints, pricing pressures, and evolving customer preferences.

Core Insights - Atmus Filtration Technologies reported a strong financial performance for the third quarter of 2025, with net sales increasing by 10.9% year-over-year to $448 million, driven by higher volume, pricing increases, and favorable currency impacts [5][7][21] - The company has completed its operational separation from Cummins Inc., achieving full operational control and a fully integrated distribution network [4][5] - Atmus has raised its guidance for 2025, indicating positive expectations for future performance [3] Financial Performance - Net sales for Q3 2025 were $448 million, up from $404 million in Q3 2024 [5][21] - Gross margin increased to $129 million, representing 28.9% of net sales, compared to 27.6% in the same period last year [6][21] - GAAP net income was $55 million, or $0.66 per diluted share, compared to $44 million, or $0.52 per diluted share in Q3 2024 [9][21] - Adjusted EBITDA was $92 million, with an adjusted EBITDA margin of 20.4%, up from $79 million and 19.6% in Q3 2024 [8][21] Cash Flow and Shareholder Returns - Cash provided by operating activities was $82 million, an increase from $71 million in Q3 2024 [10][11] - Adjusted free cash flow was $72 million, compared to $65 million in the same quarter last year [11] - The company repurchased $30 million of common stock under its $150 million share repurchase program and declared a quarterly cash dividend of $0.055 per share, a 10% increase from the previous quarter [3][32] Operational Developments - The operational separation from Cummins Inc. has been completed, marking a significant milestone for Atmus [4][5] - The company has established a fully integrated distribution network, enhancing its operational capabilities [4]

Summary of Key Points from the Conference Call Industry Overview - The focus is on the **data center** industry, particularly the **backup power** segment involving manufacturers like **Caterpillar (CAT)**, **Cummins (CMI)**, and **Rolls-Royce (mtu)** [1][2][5] Core Insights and Arguments - **Earnings Growth Potential**: Backup generators are expected to be a significant driver of earnings growth for CAT and CMI, with potential revenue from US data center generator sales projected to nearly double by 2028, reaching approximately **$1.5 billion** for both companies [2][5] - **Market Dynamics**: The US data center build is anticipated to grow at an **18% CAGR** from 2025 to 2028, with a base of around **8.5 GW** in 2025 [6][19] - **Market Share Estimates**: Market shares are estimated at **50% for CAT**, **35% for CMI**, and **10% for mtu** in the backup generator market [6][44] - **Pricing Trends**: A **5% CAGR** for generator pricing is expected from 2025 to 2028, with an estimated cost of **$650,000 per MW** by 2028 [6][38] Financial Projections - **Revenue Estimates**: - CAT is projected to generate approximately **$1.8 billion** from backup generators in 2025, growing to **$3.4 billion** by 2028 [15] - CMI is expected to see revenue from backup generators rise from **$1.5 billion** in 2025 to **$2.9 billion** by 2028 [15] - **Earnings Per Share (EPS) Impact**: - CAT's power generation business could contribute about **$1** of incremental EPS by 2028, while CMI's backup generator sales could translate to approximately **$4** of incremental EPS [11][12][61] Structural Considerations - **Market Constraints**: There are concerns about capacity constraints for manufacturers, which may lead to market share slippage for leading OEMs [6][45] - **Redundancy Needs**: Data centers require backup power systems with a redundancy multiplier of **0.9**, ensuring operational continuity [31][34] Competitive Landscape - **Behind the Meter vs. Front of the Meter**: There is a debate on whether "behind the meter" generation will cannibalize opportunities for large combined-cycle gas turbine manufacturers like GE Vernova [9][13] - **Production Capacity Expansion**: Both CAT and CMI are expanding their production capacities significantly, with CAT increasing by **125%** and CMI doubling its production for specific engine sizes [48] Risks and Considerations - **Market Risks**: Key risks include rising raw material costs, labor costs, and potential weakness in major markets like China [72] - **Valuation Metrics**: CAT is trading at approximately **25x** consensus 2026 EPS, while CMI is at **17x**. Both companies need to achieve significant growth in other segments to meet market expectations [70][71] Additional Insights - **Long-term Growth**: Despite the robust growth expected in the power generation segment, it will still represent a modest portion of overall revenues for CAT and CMI, estimated at **20%** and **16%** respectively by 2028 [10][66] - **Interactive Model**: An interactive model has been developed to allow investors to test various assumptions regarding the revenue potential from backup generators for US data centers [5][14] This summary encapsulates the critical insights and projections regarding the backup power market within the data center industry, focusing on the key players and their expected financial performance.

Core Insights - Lennox has appointed Tracy Embree to its board of directors, effective May 22, 2025, bringing significant experience from her previous role as President of Otis Americas [1][2] - The board believes Ms. Embree's background in industrial strategy, emerging technologies, and sustainable solutions will enhance Lennox's strategic growth initiatives [2] - Ms. Embree has a strong history in complex manufacturing environments and has held various leadership roles, including a 23-year tenure at Cummins Inc. [3] Company Background - Lennox is a leader in energy-efficient climate-control solutions, focusing on sustainability and reducing carbon footprints for residential and commercial customers [5] - The company is recognized for its innovation in cooling, heating, indoor air quality, and refrigeration systems [5] Educational Background - Tracy Embree holds a bachelor's degree in chemical engineering from the Massachusetts Institute of Technology and an MBA from Harvard Business School [4]

TABLE OF CONTENTS As filed with the Securities and Exchange Commission on May 16, 2023 Registration No. 333-269894 UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 Amendment No. 2 to Form S-1 REGISTRATION STATEMENT UNDER THE SECURITIES ACT OF 1933 Atmus Filtration Technologies Inc. (Exact name of registrant as specified in its charter) 3714 88-1611079 (I.R.S. Employer Identification Number) Delaware (State or Other Jurisdiction of Incorporation or Organization) 26 Century Boulevard Na ...

TABLE OF CONTENTS As filed with the Securities and Exchange Commission on March 31, 2023 Registration No. 333-269894 UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM S-1/A REGISTRATION STATEMENT UNDER THE SECURITIES ACT OF 1933 Atmus Filtration Technologies Inc. (Exact name of registrant as specified in its charter) Delaware (State or Other Jurisdiction of Incorporation or Organization) 3714 (Primary Standard Industrial Classification Code Number) 88-1611079 (I.R.S. Employer Iden ...

TABLE OF CONTENTS As filed with the Securities and Exchange Commission on February 21, 2023 Registration No. 333- UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM S-1 REGISTRATION STATEMENT UNDER THE SECURITIES ACT OF 1933 Atmus Filtration Technologies Inc. (Exact name of registrant as specified in its charter) Delaware (State or Other Jurisdiction of Incorporation or Organization) 3714 (Primary Standard Industrial Classification Code Number) 88-1611079 (I.R.S. Employer Identific ...