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Stocks•28 May 2026•

2 min read

Filtration Divergence: Atmus Enters Data Centers as Donaldson Faces Margin Pressure

Key Facts

1Atmus acquired Koch Filter to enter the data center filtration market, achieving 21.9% EBITDA margins in its first quarter of ownership.

2Donaldson cut its guidance following a 420 basis point year-over-year collapse in industrial margins.

3Atmus trades at a forward PE of 16.64x compared to Donaldson's 21.03x, despite Atmus showing faster growth and better execution.

As AI infrastructure expansion accelerates, specialized filtration solutions are becoming critical for global data center sustainability. According to reports, Atmus Filtration Technologies acquired Koch Filter to gain direct entry into this high-growth market, achieving impressive EBITDA margins of 21.9% in its first quarter of ownership. Conversely, Donaldson Company cut its forward guidance following a 420 basis point year-over-year collapse in its industrial margins, signaling a significant operational divergence between the two industry players.

Valuation metrics further highlight this gap, with Atmus trading at a forward PE ratio of 16.64x, while Donaldson maintains a richer multiple of 21.03x despite slowing growth. Within the broader industrial peer group, companies like Parker-Hannifin (PH) have shown resilience in aerospace sectors, whereas Donaldson faces headwinds from its dilutive acquisition of Facet, which per market data and financial reports is not expected to be earnings accretive until 2027.

Traders should monitor industrial demand signals following the Philadelphia Fed Manufacturing Index's drop to -0.4 (as of May 21, 2026). For Atmus, the upcoming quarterly results will be a key catalyst to confirm the sustainability of its data center margins. Additionally, global manufacturing health remains a factor to watch, with US Manufacturing PMI at 55.3 compared to 53.7 in the UK (as of late May 2026), which may influence broader filtration demand.