Atmus Filtration Technologies, Inc. (ATMU) AI Stock Analysis

Atmus Filtration Technologies, Inc.

(NYSE:ATMU)

Select Model

Rating:61Neutral

Price Target:$48.00▲(5.06% Upside)

Action:reiterated

Date:08/17/26

The score is driven primarily by a mixed financial profile: strong margins and improving free cash flow are offset by a sharp TTM revenue decline and elevated leverage. The latest earnings call improves the outlook with growth guidance, strong recent free-cash-flow performance, and a plan to pay down debt, while technical signals remain soft and valuation support is moderate with a low dividend yield.

Positive Factors

Recurring aftermarket demandThe installed base of engines and industrial equipment creates recurring replacement needs, giving Atmus a durable aftermarket revenue stream. This repeat-purchase model can support customer retention, improve demand visibility, and complement original-equipment sales across multiple end markets.

Negative Factors

Elevated leverageThe debt-heavy capital structure increases sensitivity to any downturn in earnings or cash flow and reduces financial flexibility relative to a less levered balance sheet. Although management plans debt paydown, elevated leverage can constrain investment and amplify the impact of weaker operating conditions.

Atmus Filtration Technologies, Inc. Key Performance Indicators (KPIs)

Revenue by SegmentAnalyzes revenue from different business segments, highlighting which areas drive growth and profitability, and indicating strategic focus or diversification within Atmus Filtration Technologies, Inc.

Chart Insights

Growth in 2025 was concentrated in the Fuel segment, which drove the bulk of the company’s topline lift before a modest pullback in Q1‑2026; Lube and Air showed only cyclical bumps and Other actually weakened into late 2025. Management notes the quarter’s upside owed more to pricing/FX and the Cook Filter acquisition than volume, so the pattern suggests revenue strength is partly transient and exposed to petrochemical input costs, regional destocking and aftermarket softness—risks to watch despite steady adjusted margins and healthy liquidity.

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Atmus Filtration Technologies, Inc. (ATMU) vs. SPDR S&P 500 ETF (SPY)

Market Cap: $3.73B
Dividend Yield: 0.49%
Average Volume (3M): 704.30K
Price to Earnings (P/E): 17.4
Beta (1Y): 0.92
Revenue Growth: 13.05%
EPS Growth: 15.73%
Country: US
Employees: 4,500
Sector: Consumer Cyclical
Sector Strength: 61
Industry: Auto - Parts

Atmus Filtration Technologies, Inc. Business Overview & Revenue Model

Company Description

Atmus Filtration Technologies Inc. specializes in the global design, manufacturing, and distribution of advanced filtration products, marketed under its reputable Fleetguard brand. The company's comprehensive portfolio includes essential components s...

How the Company Makes Money

Atmus makes money primarily by selling filtration products to customers that need ongoing maintenance and replacement of filters used in engines and industrial equipment. Its revenue model is centered on (1) aftermarket/recurring replacement demand (...

Atmus Filtration Technologies, Inc. Earnings Call Summary

Earnings Call Date:Aug 06, 2026(Q2-2026)|% Change Since:-16.08%|Next Earnings Date:Nov 05, 2026

Earnings Call SentimentPositive

The call presents a largely positive operational and financial picture: record revenue, improved EPS and materially higher free cash flow, successful progress integrating Koch Filter, and constructive full-year revenue and EPS guidance. Headwinds include modest EBITDA margin compression, rising commodity and manufacturing costs tied to the Middle East conflict, localized JV weakness (India) and some one-time integration inefficiencies in Industrial Solutions. Management communicated a clear capital allocation plan (debt paydown plus share repurchases) and expects the remaining integration work to complete in Q3, supporting confidence in future performance.

Positive Updates

Record Quarterly Revenue

Q2 sales of $528 million, up 16.4% versus $454 million in prior year, driven by the Koch Filter acquisition and strong Power Solutions performance.

Negative Updates

Slight EBITDA Margin Compression

Adjusted EBITDA margin down slightly to 20.7% from 21.0% year-over-year (≈-30 basis points), and company narrowed full-year EBITDA top end by ~25 bps to 20.25% due to expected headwinds.

Company Guidance

Atmus guided 2026 Power Solutions revenue of $1.82B–$1.865B (≈4.5% growth at the midpoint) with volume growth roughly flat–2%, pricing adding ~1.5% and foreign exchange a ~2% tailwind, Industrial Solutions revenue of $155M–$165M, and total company revenue of $1.975B–$2.03B (~13.5% growth at the midpoint); full‑year adjusted EBITDA was narrowed to 19.75%–20.25% and adjusted EPS to $2.85–$3.00. Management expects share repurchases around $14M–$20M in 2026, will allocate surplus cash to pay down gross debt, and reiterated 1%–2% share‑gain expectations in Power Solutions; acquisition-related items include integration costs of $3M–$6M and intangible amortization of $11M–$13M. The guidance is anchored by strong Q2 metrics — sales $528M (+16.4% YoY), Power Solutions sales $486M, Industrial sales $42M, gross margin $154M (29.2%), adjusted EBITDA $109M (20.7%), Power Solutions EBITDA $101M (20.8%), Industrial EBITDA $8M (18.9%), adjusted EPS $0.82, adjusted free cash flow $67M, capex $13M, $18M returned to shareholders, and a trailing‑12‑month net debt/adjusted EBITDA of ~1.9x.

Atmus Filtration Technologies, Inc. Financial Statement Overview

Summary

Margins and cash generation are supportive (TTM gross margin ~28.8%, EBIT margin ~17.0%, FCF ~$190M and up ~20.5%), but the sharp TTM revenue decline (~-24.8%) raises near-term earnings risk. Balance-sheet risk is a notable drag with materially higher leverage (debt-to-equity ~2.62x), making results more sensitive if the downturn persists.

Income Statement

62Positive

Balance Sheet

45Neutral

Cash Flow

70Positive

Financial statement breakdown
Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	1.90B	1.76B	1.67B	1.63B	1.56B	1.44B
Gross Profit	547.10M	509.50M	474.20M	432.70M	359.20M	349.30M
EBITDA	359.70M	329.60M	286.00M	273.70M	197.50M	205.40M
Net Income	215.10M	207.40M	185.60M	171.30M	170.40M	170.10M
Balance Sheet
Total Assets	1.89B	1.35B	1.19B	1.09B	867.40M	848.30M
Cash, Cash Equivalents and Short-Term Investments	259.00M	236.40M	184.30M	168.00M	0	0
Total Debt	998.30M	570.00M	631.60M	625.90M	32.60M	35.10M
Total Liabilities	1.44B	972.20M	962.90M	1.01B	411.80M	411.10M
Stockholders Equity	454.80M	378.50M	227.40M	80.70M	455.60M	437.20M
Cash Flow
Free Cash Flow	190.40M	148.80M	56.80M	143.20M	128.20M	176.50M
Operating Cash Flow	245.50M	202.70M	105.40M	189.00M	165.70M	209.90M
Investing Cash Flow	-509.00M	-53.90M	-48.60M	-45.80M	-37.50M	-33.40M
Financing Cash Flow	329.00M	-101.70M	-35.80M	24.80M	-128.20M	-176.50M

Atmus Filtration Technologies, Inc. Technical Analysis

Technical Analysis SentimentPositive

Last Price45.69

Price Trends

50DMA45.45Positive

100DMA48.34Negative

200DMA52.96Negative

Market Momentum

MACD0.05Negative

RSI54.89Neutral

STOCH79.20Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ATMU, the sentiment is Positive. The current price of 45.69 is above the 20-day moving average (MA) of 44.51, above the 50-day MA of 45.45, and below the 200-day MA of 52.96, indicating a neutral trend. The MACD of 0.05 indicates Negative momentum. The RSI at 54.89 is Neutral, neither overbought nor oversold. The STOCH value of 79.20 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for ATMU.

Atmus Filtration Technologies, Inc. Risk Analysis

Atmus Filtration Technologies, Inc. disclosed 42 risk factors in its most recent earnings report. Atmus Filtration Technologies, Inc. reported the most risks in the "Finance & Corporate" category.

Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy

Latest Risks Added

0 New Risks

Atmus Filtration Technologies, Inc. Peers Comparison

Overall Rating

UnderperformOutperform

Sector (61)

Financial Indicators

ATMU against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
DORM	72Outperform	$4.01B	20.12	13.42%	―	2.20%	-16.49%
SMP	67Neutral	$947.45M	13.59	12.51%	3.07%	5.50%	119.37%
PHIN	63Neutral	$2.26B	12.58	12.19%	1.86%	5.60%	125.39%
Sector *	61Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
ATMU	61Neutral	$3.73B	17.37	54.68%	0.49%	13.05%	15.73%
GPC	51Neutral	$16.67B	465.00	0.69%	3.49%	5.29%	-95.50%
LKQ	47Neutral	$4.68B	18.56	3.96%	6.47%	-3.24%	-62.39%

* Consumer Cyclical Sector Average

Performance Comparison

ATMU and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
ATMU	Atmus Filtration Technologies, Inc.	45.69	-0.11	-0.24%
DORM	Dorman Products	136.01	2.43	1.82%
GPC	Genuine Parts	120.90	1.62	1.36%
LKQ	LKQ Corporation	18.56	-10.58	-36.30%
SMP	Standard Motor Products	42.41	6.46	17.98%
PHIN	PHINIA Inc.	62.92	11.15	21.53%

Atmus Filtration Technologies, Inc. Corporate Events

Executive/Board Changes

Atmus Filtration Announces Executive Leadership Transition in HR

Neutral

Oct 26, 2026

On October 21, 2026, Atmus Filtration Technologies Inc. disclosed that Senior Vice President and Chief People Officer Renee Swan resigned from the company, effective November 11, 2026, to pursue other opportunities. The company stated that her depart...

Business Operations and StrategyDividends

Atmus Filtration Technologies Raises Quarterly Dividend Payout

Positive

Aug 14, 2026

On August 14, 2026, Atmus Filtration Technologies announced that its Board of Directors had approved an increase in the company’s quarterly cash dividend to $0.06 per common share, up from $0.055 previously. The dividend will be paid on Septemb...

Glossary

BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.

Date of analysis: Aug 17, 2026

Atmus Filtration Technologies, Inc. AI Stock Analysis