Atmus Raises 2026 Guidance After Sales Grow 13.9% to $510 Million
Key Facts
Atmus Filtration Technologies reported net sales of $510 million for the third quarter ended September 30 on November 6, 2026, up 13.9% from $448 million in the same period of 2025. Net income was $61 million, compared with $55 million a year earlier, while diluted earnings per share rose to $0.74 from $0.66. Adjusted earnings per share came to $0.77, exceeding the analyst consensus of $0.70, according to Investing.com. The results prompted the company to raise both its sales and adjusted earnings per share guidance ranges for fiscal 2026. Shares also rose 2.0% after the results and improved outlook, according to the report published on the day of the announcement.
The company said sales growth came mainly from the Koch Filter acquisition, along with improved volumes, currency benefits and price increases, partly offset by tariff refunds owed to customers. Atmus completed the acquisition of Koch Filter on January 7, 2026, and the deal established its Industrial Solutions segment. The segment includes markets such as commercial and industrial heating, ventilation and air conditioning, data centers and power generation. Revenue growth therefore combined the contribution from the acquisition with improved volumes, pricing and currencies. In the second quarter, sales had risen 16.4% year over year to $528 million, compared with $454 million in the same period of 2025.
Gross profit improved to $154 million from $129 million, and the gross margin rose to 30.3% from 28.9%, according to the earnings release. The company attributed the improvement to contributions from Koch Filter, volume, pricing, manufacturing costs and currencies, as well as lower business separation and warranty costs. These factors were partly offset by higher materials and freight costs. Adjusted earnings before interest, taxes, depreciation and amortization were $104 million, compared with $92 million in the corresponding quarter of 2025. But the adjusted earnings margin remained at 20.4%, unchanged from a year earlier, despite the increase in value.
Atmus raised its fiscal 2026 guidance to net sales of between $2,010 million and $2,035 million and adjusted earnings per share of between $2.90 and $3.05. After its second-quarter results, the company had raised its outlook to a sales range of between $1,975 million and $2,030 million and adjusted earnings per share of between $2.85 and $3.00. The November update raised both the low and high ends of the sales range, as well as those of the adjusted earnings per share range. Chief Executive Officer Steve Dishar said, "The continued dedication of the Atmus team drove our strong financial results." She added that Fleetguard and Koch Filter products protect what matters to customers.
Cash generated from operating activities was $98 million in the quarter, while adjusted free cash flow was $88 million. The company repurchased $20 million of common stock during the period under a $150 million program approved in July 2024. On November 4, 2026, the board approved a new share repurchase program of up to $300 million, replacing the previous authorization. The decision sets a new cap for the authorization, but approval does not necessarily mean the full amount will be spent. The company also paid a quarterly cash dividend of $0.06 per share, up 9% from the previous quarter.
Atmus was scheduled to release its third-quarter results before the market opened on November 6, 2026, and hold its earnings call the same day at 10:00 a.m. Central Time. The stock closed at $46.16 on November 5, before the results were announced, according to EL7 data. The 2.0% share gain came after the announcement, according to Investing.com. The results included higher earnings and cash flows, as well as raised annual guidance and an expanded repurchase program. The new sales and adjusted earnings per share ranges remain the company's guidance for fiscal 2026.