Atmus Q1 sales slightly beat estimates on Koch Filter acquisition

Overview

• Filtration solutions provider's Q1 net sales rose 15%, slightly beating analyst expectations

• Adjusted EPS for Q1 beat analyst expectations

• Company repurchased $7 mln in stock under existing buyback program

Outlook

• Atmus expects 2026 net sales between $1.945 bln and $2.015 bln

• Company sees 2026 adjusted EPS in the range of $2.75 to $3.00

• Atmus projects adjusted EBITDA margin for 2026 between 19.5% and 20.5%

Result Drivers

• KOCH FILTER ACQUISITION - Co said sales growth was primarily driven by the acquisition of Koch Filter, which established the Industrial Solutions segment

• PRICING AND CURRENCY - Co cited increases in pricing and favorable currency impacts as additional contributors to sales growth, partially offset by lower volumes

• GROSS MARGIN IMPROVEMENT - Gross margin rose due to incremental margin from Koch Filter, price increases, lower one-time separation costs, and favorable currency, partly offset by higher logistics and duties costs and lower volumes

Company press release: ID:nBw2gVvM5a

Key Details

*Applies to a deviation of less than 1%; not applicable for per-share numbers.

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 4 "strong buy" or "buy", 1 "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the auto, truck & motorcycle parts peer group is "buy"

• Wall Street's median 12-month price target for Atmus Filtration Technologies Inc is $69.50, about 9.6% above its April 30 closing price of $63.40

• The stock recently traded at 21 times the next 12-month earnings vs. a P/E of 21 three months ago

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