ATMU

Let’s dig into the relative performance of Atmus Filtration Technologies (NYSE:ATMU) and its peers as we unravel the now-completed Q2 gas and liquid handling earnings season. Gas and liquid handling companies possess the technical know-how and specialized equipment to handle valuable (and sometimes dangerous) substances. Lately, water conservation and carbon capture–which requires hydrogen and other gasses as well as specialized infrastructure–have been trending up, creating new demand for products such as filters, pumps, and valves. On the other hand, gas and liquid handling companies are at the whim of economic cycles. Consumer spending and interest rates, for example, can greatly impact the industrial production that drives demand for these companies’ offerings. The 12 gas and liquid handling stocks we track reported a strong Q2. As a group, revenues beat analysts’ consensus estimates by 2% while next quarter’s revenue guidance was 0.8% below. While some gas and liquid handling stocks have fared somewhat better than others, they have collectively declined. On average, share prices are down 2.8% since the latest earnings results. Spun out of Cummins in 2023 after 65 years as part of the engine maker, Atmus Filtration Technologies (NYSE:ATMU) manufactures filters for trucks, construction equipment, and agriculture machinery to reduce emissions and protect engines. Atmus Filtration Technologies reported revenues of $527.9 million, up 16.4% year on year. This print exceeded analysts’ expectations by 3.8%. Overall, it was a very strong quarter for the company with a solid beat of analysts’ EBITDA estimates and a beat of analysts’ EPS estimates. Investor expectations, however, were likely higher than Wall Street’s published projections, leaving some wishing for even better results (analysts’ consensus estimates are those published by big banks and advisory firms, not the investors who make buy and sell decisions). The stock is down 11.3% since reporting and currently trades at $48.34. Is now the time to buy Atmus Filtration Technologies? Access our full analysis of the earnings results here, it’s free. With roots dating back to 1912 as the Piston Ring Company, SPX Technologies (NYSE:SPXC) supplies specialized infrastructure equipment for HVAC systems and detection and measurement applications across industrial, commercial, and utility markets. SPX Technologies reported revenues of $679 million, up 22.9% year on year, outperforming analysts’ expectations by 5.8%. The business had a stunning quarter with an impressive beat of analysts’ organic revenue estimates and a solid beat of analysts’ EBITDA estimates. SPX Technologies pulled off the highest full-year guidance raise in the group. Although it had a fine quarter compared to its peers, the market seems unhappy with the results as the stock is down 1.5% since reporting. It currently trades at $196.28. Is now the time to buy SPX Technologies? Access our full analysis of the earnings results here, it’s free. Founded in 1926, Graco (NYSE:GGG) is an industrial company specializing in the development and manufacturing of fluid-handling systems and products. Graco reported revenues of $590.6 million, up 3.3% year on year, falling short of analysts’ expectations by 3%. It was a slower quarter, leaving some shareholders looking for more. Graco delivered the weakest performance against analyst estimates of the whole group. Interestingly, the stock is up 5.4% since the results and currently trades at $77.88. Read our full analysis of Graco’s results here. Founded in 1988, IDEX (NYSE:IEX) is a global manufacturer specializing in highly engineered products such as pumps, flow meters, and fluidics systems for various industries. IDEX reported revenues of $920.6 million, up 6.4% year on year. This number surpassed analysts’ expectations by 1.7%. Overall, it was a strong quarter as it also produced full-year EPS guidance exceeding analysts’ expectations and an impressive beat of analysts’ EBITDA estimates. IDEX delivered the highest guidance raise among its peers. The stock is flat since reporting and currently trades at $223.74. Read our full, actionable report on IDEX here, it’s free. Founded on the principle of treating others as one wants to be treated, Helios (NYSE:HLIO) designs, manufactures, and sells motion and electronic control components for various sectors. Helios reported revenues of $231.9 million, up 9.1% year on year. This print beat analysts’ expectations by 0.7%. It was a very strong quarter as it also recorded full-year EPS guidance exceeding analysts’ expectations and EPS guidance for next quarter exceeding analysts’ expectations. Helios had the weakest full-year guidance update in the group. The stock is down 12.6% since reporting and currently trades at $71.22. Read our full, actionable report on Helios here, it’s free. Over the past year, investors have been forced to repeatedly answer the same question: what is the market’s biggest risk? The answer has changed several times, and each shift has reshaped market leadership. Late in 2025 and early 2026, artificial intelligence became the market’s primary uncertainty. Investors questioned whether AI would erode software pricing power and weaken competitive moats as AI made it easier to replicate once-differentiated products. By the spring, technology took a back seat to geopolitics. The U.S. conflict with Iran briefly became the market’s dominant narrative, raising concerns about oil prices, inflation, and global growth. But as energy markets remained orderly and fears of a prolonged supply disruption faded, investors quickly turned their focus back to fundamentals. Want to invest in winners with rock-solid fundamentals? Check out our Hidden Gem Stocks and add them to your watchlist. 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Atmus Filtration Technologies delivered a stronger-than-expected second quarter, with management attributing revenue growth to the successful integration of its recent Koch Filter acquisition and solid performance in the Power Solutions segment. CEO Stephanie Disher highlighted the company’s progress executing its four-pillar growth strategy, emphasizing advancements in both first-fit and aftermarket channels. The company’s margin performance benefited from ongoing supply chain improvements and increased pricing, though these gains were partially offset by higher material and manufacturing costs. Management also cited resilient demand in North America and progress in Lean manufacturing initiatives as supporting factors this quarter. Is now the time to buy ATMU? Find out in our full research report (it’s free). Revenue: $527.9 million vs analyst estimates of $508.3 million (16.4% year-on-year growth, 3.8% beat) Adjusted EPS: $0.82 vs analyst estimates of $0.78 (5.2% beat) Adjusted EBITDA: $109.1 million vs analyst estimates of $105 million (20.7% margin, 3.9% beat) Operating Margin: 18.4%, in line with the same quarter last year Market Capitalization: $4.06 billion While we enjoy listening to the management’s commentary, our favorite part of earnings calls is the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention. Quinn Fredrickson (Baird) asked for a breakdown of aftermarket and first-fit revenue trends and the sources of share gains. CEO Stephanie Disher explained that aftermarket demand remained flat overall, with U.S. and Mexico showing strength, while first-fit saw an early cyclical recovery. David Ridley-Lane (Bank of America) requested clarification on the impact of the Middle East conflict and whether lost sales would be recovered. Disher responded that Middle East performance remained below expectations due to ongoing conflict, with partial recovery expected but not fully captured in the quarter. Robert Brooks (Northland Capital Markets) inquired about the seasonality and growth prospects in Industrial Solutions after the Koch Filter acquisition. CFO Jack Kienzler said the segment performed in line with expectations and emphasized new market opportunities, including healthcare and data centers. Tami Zakaria (JPMorgan India Private Limited) asked about the reasons for the narrowed EBITDA margin guidance and sequential margin changes in Industrial Solutions. Kienzler attributed margin pressures to higher incentive compensation and one-off integration expenses, expecting normalization in the second half. Kevin Uherek (Wells Fargo) sought updates on the North America aftermarket and the margin impact of Middle East developments. Disher reiterated a flat outlook for aftermarket demand, while Kienzler highlighted commodity cost inflation as a margin headwind tied to geopolitical factors. In upcoming quarters, the StockStory team will focus on (1) monitoring the complete integration and growth trajectory of the Koch Filter business, (2) tracking the pace of recovery in North American and international aftermarket demand, and (3) assessing the effectiveness of ongoing Lean supply chain initiatives in supporting margins. Additionally, we will watch for further expansion into industrial air and water filtration markets as potential contributors to long-term growth. Atmus Filtration Technologies currently trades at $49.78, down from $54.51 just before the earnings. In the wake of this quarter, is it a buy or sell? The answer lies in our full research report (it’s free for active Edge members). ONE MORE THING: Top 5 Growth Stocks. The biggest stock winners almost always had one thing in common before they ran. Revenue growing like crazy. Meta. CrowdStrike. Broadcom. Our AI flagged all three. They returned 315%, 314%, and 455%, respectively. Find out which 5 stocks it’s flagging this month — FREE. Get Our Top 5 Growth Stocks for Free HERE. Stocks that have made our list include now familiar names such as Nvidia (+1,460% between June 2020 and June 2025) as well as under-the-radar businesses like the once-micro-cap company Tecnoglass (+1,552% between June 2020 and June 2025). Find your next big winner with StockStory today.

Image source: The Motley Fool. Friday, Aug. 7, 2026 at 11:00 a.m. ET Executive Director of Investor Relations - Todd Chirillo Chief Executive Officer - Stephanie Disher Chief Financial Officer - Jack Kienzler Operator: Hello everyone, thank you for joining us and welcome to Atmus Filtration Technologies Second Quarter 2026 Earnings Call. [Operator Instructions]. I will now hand the conference over to Todd Chirillo, Executive Director of Investor Relations. Please go ahead, Todd. Todd Chirillo: Thank you, Percy. Good morning, everyone, and welcome to the Atmos Filtration Technologies Second Quarter 2026 Earnings Call. On the call today, we have Steph Disher, Chief Executive Officer; and Jack Kienzler, Chief Financial Officer. Certain information presented today will be forward-looking and involve risks and uncertainties that could materially affect expected results. Please refer to the slides on our website for the disclosure of the risks that could affect our results and for a reconciliation of any non-GAAP measures referred to on this call. For additional information, please see our SEC filings and the Investor Relations pages available on our website at atmus.com. Now I'll turn the call over to Steph. Stephanie Disher: Thank you, Todd, and good morning, everyone. Today, I will review our second quarter results and share details of our progress executing our 4-pillar growth strategy. I will also provide updates to our outlook for 2026. Jack will then speak to our financial results and segment performance. I am pleased to share that we achieved record sales in the second quarter and delivered strong results among our key metrics, including adjusted EBITDA, free cash flow and EPS. I want to thank our global team for their dedication to our customers and their efforts in delivering these impressive results. Now let me provide you an update on the integration of Koch Filter, our first Industrial Filtration acquisition, which we closed earlier this year. Our team has made tremendous progress, and we have exited more than 95% of the transition services agreement. We expect all remaining integration activities to be completed during the third quarter. With the integration nearly complete, we are turning our attention to growth initiatives in our Industrial Solutions segment. We continue to see value creation opportunities from Koch filter's deep industry experience, combined with our filtration capabilities and global footprint, which will provide ongoing benefits for all stakeholders. Let's now turn to an update on our capital allocation strategy. Our strong cash generation provides us with balance sheet flexibility for both growing the business and returning capital to shareholders. With this balanced approach, we expect share repurchases to be $20 million to $14 million in 2026, aligned with our previous guide. Looking forward, we intend to allocate surplus cash towards paying down gross debt. This will position us for investing in future growth opportunities. Now let's turn to our 4-pillar growth strategy. Our first pillar is to grow share in first-fit. We continue to win with the winners by growing our long-term partnerships with leading global and regional OEMs across a broad range of applications. We are leaders in filtration science with our latest generation NanoNet N3 Filtration Media and advanced testing capabilities strategically located around the world. This allows us to expand our first-fit customer reach across a broad range of applications and provide advanced filtration solutions for OEM. Our second pillar is focused on accelerating profitable growth in the aftermarket. Our global aftermarket consists of thousands of customers across many applications. We have dedicated teams located where our customers need us. We have developed a robust pipeline of opportunities and are working every day to bring our industry-leading fleet guard and Koch Filter products to current and new customers. Our third pillar is focused on transforming our supply chain. We have launched Lean the Atmus Way, our lean-based production system. The program includes implementation of standardized management systems and lean operating practices, which improves productivity and support sustainable margin expansion. I want to recognize our team in Mexico for becoming the first Atmus site to achieve certification in Lean the Atmus Way. In addition, our focus on relentless improvement has allowed us to continue raising our delivery and on-shelf availability metrics to all-time highs through the Atmus controlled distribution network. We have the right products for our customers when and where they need us. Our fourth pillar is to expand into industrial filtration markets. Following the acquisition of Koch Filter, we continue to review a robust pipeline of opportunities with a focus on industrial air to build a platform of scale by leveraging Koch filter and creating value through targeted bolt-on acquisitions. While our primary focus is Industrial Air, we remain opportunistic in evaluating industrial water and liquid filtration assets with the goal of identifying an anchor investment that can serve as the foundation as we build out our broader industrial platform over time. We are focused on delivering long-term shareholder value. through the disciplined development and execution of industrial filtration opportunities. Now let's discuss our second quarter financial results. Sales were a record $528 million compared to $454 million during the same period last year, an increase of 16.4% and driven by the acquisition of Koch filter and strong performance in Power Solutions. Adjusted EBITDA was $109 million or 20.7% and compared to $95 million or 21% last year. Adjusted earnings per share was $0.82 in the second quarter of 2026, and adjusted free cash flow was $67 million. Also during the second quarter, we returned $18 million of cash to shareholders through share buybacks and dividends. Now let's turn to our outlook for the Power Solutions segment. In the aftermarket, we are starting to see signs of health in the overall freight market, including higher spot rates and increasing optimism for improved freight activity. However, we have yet to see a significant inflection and therefore, continue to expect the market to be relatively flat year-over-year. In our first bit market, the U.S. EPA has provided the industry with some regulatory clarity surrounding the implementation of 2027 emission standards. The agency has proposed allowing current engines to be sold into 2027 with a nonconformance penalty. While this is expected to ease some pre-buy pressure, Customers have indicated a stronger second half driven by improved market conditions and a cyclical recovery. We are already seeing the benefits of this cyclical recovery in our 2Q results and have good visibility through the end of the year. We also expect continued market share gains in both aftermarket and first bit through our multichannel distribution strategy, improved on-shelf availability and winning with new and existing customers. For Power Solutions, overall, we expect volume growth in a range of approximately flat to 2%. And inclusive of global markets and share gains. Additionally, pricing is expected to add approximately 1.5% and foreign exchange is expected to be a tailwind of approximately 2%. In total, we expect Power Solutions revenue to be in a range of $1.82 billion to $1.865 billion, which represents growth of approximately 4.5% at the midpoint. In our Industrial Solutions segment, we expect favorable market conditions and strong performance to continue with total revenue to be in a range of $155 million to $165 million. Taken together, we expect total company revenue to be in a range of $1.975 billion to $2.03 billion, an increase of approximately 13.5% at the midpoint, we are narrowing our full year adjusted EBITDA guidance and now expect to be in a range of 19.75% to 20.25%. Lastly, adjusted EPS is expected to be in a range of $2.85 to $3. In summary, our team continues to successfully execute our 4-pillar growth strategy and provide the protection our customers need and value most. I want to thank all Atmusonian for their strong performance in the first half. I remain confident in the ability of our team to continue to deliver for all our stakeholders. Now I will turn the call over to Jack. Jack Kienzler: Thank you, Steph, and good morning, everyone. I also want to recognize our global team for delivering another quarter of strong financial performance, all while successfully navigating challenging market conditions. Sales in the second quarter were a record $528 million compared to $454 million during the same period last year, an increase of 16.4%. Power Solutions delivered sales of $486 million compared to $454 million in the prior year. An increase of 7%. The increase was primarily due to higher pricing of 3% higher volumes of 2% and favorable foreign exchange of 2%. Industrial Solutions sales were $42 million, resulting from the acquisition of Koch filter. Gross margin for the second quarter was $154 million or 29.2% and compared to $131 million or 28.9% in the second quarter of 2025. The increase was primarily due to favorable pricing, incremental margin from the acquisition of Koch Filter favorable foreign exchange, higher volumes and the cessation of onetime separation costs. This was partially offset by higher materials and manufacturing costs. Selling, administrative and research expenses for the second quarter were $62 million compared to $57 million in the prior year. The increase was primarily due to people-related expenses and information technology consulting. Joint venture income was $8 million in the second quarter, flat compared to prior year. Strong performance in China offset weaker markets in India, which has been impacted by the Middle East conflict. Other income expense was unfavorable by $1 million compared to favorable by $4 million in the second quarter of 2025. The increase in expense was primarily due to foreign exchange losses and a nonoperating gain that did not repeat. Excluded from the adjusted results are onetime costs related to the integration of Koch Filter, which for the full year is expected to be in the range of $3 million to $6 million. We also exclude intangible asset amortization resulting from the Koch Filter acquisition, which is expected to be in the range of $11 million to $13 million for 2026. Total enterprise adjusted EBITDA in the second quarter was $109 million or 20.7% compared to $95 million or 21% in the prior period. Segment adjusted EBITDA for the Power Solutions was $101 million or 20.8% compared to $95 million or 21% last year. Industrial Solutions segment adjusted EBITDA was $8 million or 18.9%. Adjusted earnings per share was $0.82 compared to $0.75 last year. Adjusted free cash flow was $67 million this quarter compared to $36 million in the prior year. Now let's turn to our capital deployment strategy. The combination of strong cash flow and continued robust adjusted EBITDA performance has resulted in an estimated net debt to adjusted EBITDA ratio of 1.9x for the trailing 12 months ended June 30. We also invested $13 million in capital expenditures for continued growth, and we returned $18 million to shareholders consisting of $13 million in share repurchases and $5 million of dividends. As Steph highlighted, we will continue to strategically deploy capital through investment in growth and paying down debt to provide balance sheet flexibility. Our cash flow allows us to take this balanced approach for both growth opportunities and returning capital to shareholders. In closing, I want to thank and applaud all of our teams around the world for all of your hard work and dedication in delivering a strong first half of 2026. Now we will take your questions. Operator: [Operator Instructions]. The first question comes from the line of Quinn Fredrickson with Baird. Quinn Fredrickson: Could you guys discuss maybe how aftermarket and first-fit revenues performed in the quarter and also give us an estimate for how much share gains contributed in Power Solutions and whether any change to the year for your assumption there? Stephanie Disher: Thanks, Quinn. Great question. And let me start with, I guess, as I was saying in my prepared remarks, remarks. Our team delivered a really strong quarter. In the Power Solutions segment, overall, record revenues of 16.4% on the same period last year. And in the Power Solutions segment, delivered revenue growth of 7.1%. And as Jack highlighted, that really was broken down between 3% price, 2% volume and 2% FX. So if I take that volume growth year-on-year and break that down as requested to aftermarket and first performance. What we saw in aftermarket, I would say, is still flattish conditions. So if I give you a view of aftermarket around the world, a reminder that aftermarket is 85% of our revenues within the Power Solutions segment. And within that, about 50% of those revenues in the U.S. And so we are seeing stronger sentiment in the U.S. and in Mexico. But as I look around the rest of the world from an aftermarket perspective, I'd say, Europe and the Middle East and Asia Pacific outside China, we're still seeing subdued conditions. And so that balance really gives us a flat aftermarket outlook and also slight aftermarket through the quarter. We continue to deliver strong gains with our customers, and I continue to see us within the range of 1% to 2% within -- for our share gains outlook. If I turn to first-fit market, we did start to see the cyclical recovery in first debt markets that we have been anticipating and was previously incorporated in our guidance. We started to see that uptick in our business in the second quarter. And we do -- just as education to you, we do see that uptick in our business ahead of the vehicle OEMs. The APT data that we often refer to with vehicle build is about 4 to 6 weeks. We're about 4 to 6 weeks ahead of that in terms of the cycle -- of the supply chain cycle. And so we started to see the cyclical upturn in first bit markets here at the end of the second quarter. I would say it was a balanced performance in first-fit between market improvement and share gains through our ongoing strategy of winning winners. Quinn Fredrickson: Thanks, Steph. Jack, could we get an updated view on price cost expectations for the year? And I think you said maybe 2% price. Is that the right way to think about for the full year? So it sounds like you would have taken some pricing actions in July. Could you just clarify on that? Jack Kienzler: Yes, absolutely. So from a pricing perspective, obviously, we continuously assess our pricing and make strategic adjustments where necessary, both in terms of gross pricing as well as rebates and rebates can drive some of the timing nuances. We saw good price realization through the first half, just over 2%. Our full guide is 1.5% for the full year, and that reflects the mix of carryover from prior year as well as some new pricing and obviously anticipate a moderating price realization environment as I think about the year-over-year comparisons in the third quarter and the fourth quarter. As I think about that comparison as well, obviously, there's some rollback of certain tariff pricing that occurred last year that we've continued to implement or remove as policies change. As always, we'll take a balanced approach to pricing and share gains and are certainly doing that over the balance of the year. As I think about some of the cost dynamics in the second half, we continue to see some elevation in our cost base associated with some commodities and a lot of that is driven by the ongoing conflict in the Middle East. That's probably the biggest kind of headwind that's embedded in our second half. And as you look at the first half, year-to-date margin compared to the second half is one of the contributors leading to the implied softening second half compared to first half. The other dynamic I would just call out as you think about that margin walk is not only are we experiencing some commodity price increases associated with the conflict in the Middle East. That's also contributing to weaker overall conditions in India, and therefore, leading to a lower joint venture income outlook than we originally anticipated at the full year. So I think the combination of those hopefully helps you bridge kind of the first half, second half dynamic can get a better sense of price cost dynamics as we move through the year. Operator: The next question comes from the line of David Ridley-Lane with Bank of America. David Ridley-Lane: Thank you very much. On for Andrew Obin. Just really quickly, on the Middle East since you mentioned that, did you catch up on any of the lost sales from first quarter? And what's embedded in the guide that you catch up or don't catch up in the second half? Stephanie Disher: Thanks, David. Good morning. So we didn't fully catch up the Middle East in the second quarter. The conflict is ongoing, as I think we talked about in our first quarter earnings we were uncertain as to how the conflict would play out. So we're still seeing underperformance in our expectations of our Middle East business, driven really by market conditions is how I would describe it. We are anticipating it recovering into the second half. And it is a smaller proportion of our business, as we have shared before, about 2% of overall revenues. We are seeing, as I talked about, subdued conditions through Europe that may also be related to the complete and as Jack referred to, we have seen challenges in our India business through the joint venture line in our P&L that is also related to the Middle East conflict. David Ridley-Lane: Got it. And then just on that point on pricing, First, can you confirm there's no tariff refunds in second quarter results? And then how much of your -- I know it's hard to parse this, but when you lower your prices just mechanically because of the tariffs coming off? How much of a drag is that in the second half ballpark? Because I realize there's still a lot of moving parts around tariffs. Stephanie Disher: Jeff, do you want to take that one? Jack Kienzler: Yes, absolutely. So let me first start with the tariff refund question, David, and then I can talk a little bit about what the implied pricing in the second half is -- as you know, it's a little bit hard to parse out, but I'll do my best. From a tariff refund perspective, as of the end of the second quarter of 2026, we've received an immaterial amount of tariff refund. Of course, we've applied for all the refunds that we feel entitled to and we'll continue to evaluate the potential treatment of those refunds as and when we receive them, including whether or not a portion of those should be allocated to expenses that we've already incurred and then what is left over in terms of customer refunds. Overall, I would say we continue to expect the net impact on EBITDA from a tariff perspective to be substantially neutral. As you note, the tariff environment will continue to evolve with ongoing changes in policy. And I would just say that our strategy to address that remains unchanged. Of course, we'll continue to avail ourselves of any exemptions as to protect our customers from the impact of tariffs, continue to evaluate our supply chain and optimize wherever possible. And then finally, obviously, looking to pass that on the impact of tariffs through pricing. Overall, continue to be guided by cost-neutral principle as it relates to tariffs. From a pricing perspective, I think I'll just kind of talk about it in totality because it's really hard to parse out, given all the moving pieces last year and particularly. But if you look at the full year guide and then year-to-date price realization, you can kind of see price realization, as I said, moderating in the third and the fourth quarter compared to those same periods in the prior year, kind of between -- just over 0.5%, I would say. Operator: The next question comes from the line of Bobby Brooks with Northland Capital Markets. Robert Brooks: So industrial solution, run rate that orderly sale level versus the Cokes 2020 flows when you acquired it to a [indiscernible] any seasonality that would make this an over way of looking [indiscernible] or qualitatively, anything that drove improve sequentially? Stephanie Disher: Good morning, Bobby. I will try my best to make out your question. I must say on my end, it's breaking up a little. So I'll try to summarize. I think what your question is, is related to Industrial Solutions revenues, how is that performing? And is there any seasonality in the for that revenue. So I'll try to answer that, and I'm not sure what's driving the breaking up at your end. So Industrial Solutions is performing right where we would expect it to. I think broadly speaking, we've talked about price for Industrial Solutions, 1% to 2% market share. And really, overall, the market impact for Industrial Solutions being closely linked to GDP or around that sort of 3% level. So overall, the guides we're still giving is 1% to 8% for industrial revenues. We think it's pretty steady over the quarters. So I don't -- I wouldn't call out any specific cyclicality in the quarters and we're confident and really pleased with the ongoing performance relative to our original business case assumptions. Robert Brooks: I apologize for the breaking up. And maybe just a follow-up there. You spoke to how [indiscernible] just want to give you the floor and to speak to what might be some exciting growth in this [indiscernible]? Stephanie Disher: Okay. Jack, do you want to take that? Jack Kienzler: Yes, I'll take it. Thanks, Bobby, for the question. So I think I think -- again, I think I'll interpret your question as just a quick update on the Koch integration overall and then speaking to some of the growth initiatives that the team is thinking through. So first of all, I would just say we continue to be very excited about the acquisition of Koch Filter and very pleased to see such a strong cultural fit with our organization. As you noted and as we noted in our prepared remarks, we're through about 95% of the TSAs and will be planned to fully exit those TSAs here in the third quarter. Overall, continue to be really excited about the growth prospects for that business and a lot of different initiatives that we are working through in a collaborative way with the Koch business of course, continuing to cultivate new market share opportunities through the build-out of distributor relationships, launching new products to fill gaps in that coverage as well as looking to expose the business to high-growth end markets, things such as data centers, health care, so on and so forth. And so -- the team's got a lot of energy around that. We continue to find ways that we can complement the artery strong attributes that they bring to the table and excited about the future. Operator: The next question comes from the line of Tami Zakaria with JPMorgan India Private Limited. Tami Zakaria: Question on your EBITDA margin guide. I think you narrowed the range and the top end came down by 25 basis points. Is that because your first-fit expectation is now better, so that's a mix headwind? Or how should we think about that lowering of the top end of the range? Stephanie Disher: Good morning, Tami, I'll pass that one to Jack. Jack Kienzler: Yes. Thanks, Tami. So first of all, I would just say, we've seen really strong operational execution through the first half of the year. I think year-to-date margins at about 20.3% from an EBITDA perspective over the first 6 months. So really pleased with where that's at. I'll start first, Tami, maybe just bring to life performance in the second quarter. and then I'll speak to the balance of the year and a couple of the moving pieces. As we noted in the second quarter, we saw the benefits of pricing, volume FX and then partially offset by higher material costs and manufacturing costs. In addition, we had a small amount of elevated incentive compensation costs in the quarter as we're outperforming the plan. And then finally, down in the other income expense line item, a couple of nonoperational items in Q2 of '25 that didn't repeat this year. Let me help you then kind of bridge to the full year guide. As our guidance implies, we have more favorability in the first half as you think about year-over-year comparisons in the form of pricing and FX than we will in the second half. So those are a little bit of a moderating lever to pull, if you will. Secondly, we expect the ancillary effects of the Middle East conflict to persist for longer than we originally anticipated. Really driving inflationary pressures associated with raw materials like chemicals, plastics. And then as I noted, I would just say that the other impact from a second half perspective, is those -- the Middle East conflict impacting JV income, most notably in China. And so you'll see that we lowered our outcome a bit on sorry, in India, I apologize. In terms of mix, to your question, Tammy, I think, obviously, there is a little bit of a mix dynamic with strengthening first-fit relative to aftermarket. But I think it's a combination. Tami Zakaria: Understood. That's very helpful. And I wanted to get some clarity on the Industrial Solutions segment. If I look at the EBITDA margin for that segment, it's sequentially down on almost 200 basis points. Is that seasonality? If not, what drove this sequential decline? And how should we think about that segment's EBITDA margin for the back half versus what we saw in the second quarter. Jack Kienzler: Yes, I'll take that one as well, Tami. So Look, year-to-date margin performance is about 20%, if you average the first quarter, second quarter, and that continues to be our guide. And so that's how I would have you think about the third and in the fourth quarter. As you note, second quarter margins took a sequential step down at 18.9% and below that full year guide. Really, I would say that's driven by some one-off impacts that drove some inefficiencies that we expect to be onetime and not repeating in nature. To bring a little color to that, it's a little bit of operational efficiencies as volumes moved around and some inefficiencies associated with the transition off of the TSA, some redundant expenses. So we remain confident in our full year guide for that business and think it's just a temporary nuance. Operator: The next question comes from the line of Kevin Uherek with Wells Fargo. Kevin Uherek: I just wanted to double-click on the North America truck aftermarket market. How have your expectations changed from the beginning of the year? And what are you seeing currently? Stephanie Disher: Kevin, thanks for the question. Look, I would say our guide remains the same actually as we came out from a market perspective. on aftermarket in the U.S. Certainly, we are reading what I'm sure you're reading, which is improving sentiment. And that gives us a lot of optimism is what I would say, but we are not yet seeing that translate in at least the visibility we have at this stage, and we don't have a lot of forward visibility in aftermarket orders, but in the visibility we have at this stage, we're not seeing that translate yet into an uptick in outcomes and market conditions. So the way we see it is really flat year-on-year after market. Obviously, we'll continue to deliver share gains as we've previously guided to, that not significantly changed from where we started out the year. Kevin Uherek: Understood. And then maybe going back to the Middle East conflict. Is there a way you can help us think about the margin impact on the quarter, the moving pieces there? Jack Kienzler: Yes. So I would think about -- again, I highlighted some of the commodity cost impacts. You can imagine it takes a little while for things like that to work through the system. And obviously, we're doing our best to mitigate the impact of those. So it's a bit more of a second half dynamic, I would say, than a Q2 dynamic, and it's one of the drivers, if you will, of the step down in the margin percentage outlook in the second half. If you look at our joint venture income year-over-year, it's flat compared to the same period last year. And I think really what that is reflective of is a strong market in China, not only in the second quarter but in the first half and then some corresponding weakness in our India market, which is driving a bit of that lower joint venture income. Again, originally, we had kind of built in an assumption I think like many people did that we'd see some resolution of that conflict in the second quarter. And obviously, that's not been the case that we'll continue to do our best to mitigate those ongoing impacts not only at the cost line but also trying to get product to our customers. Operator: There are no further questions at this time. I will now turn the call back to Todd Chirillo for closing remarks. Todd Chirillo: Thank you, Percy. That concludes our teleconference for today. Thank you for participating and for your continued interest. Have a great day. Operator: This concludes today's call. Thank you for attending. You may now disconnect. Before you buy stock in Atmus Filtration Technologies, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Atmus Filtration Technologies wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $421,943!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,382,819!* Now, it’s worth noting Stock Advisor’s total average return is 983% — a market-crushing outperformance compared to 216% for the S&P 500. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors. See the 10 stocks » *Stock Advisor returns as of August 14, 2026. This article is a transcript of this conference call produced for The Motley Fool. While we strive for our Foolish Best, there may be errors, omissions, or inaccuracies in this transcript. As with all our articles, The Motley Fool does not assume any responsibility for your use of this content, and we strongly encourage you to do your own research, including listening to the call yourself and reading the company's SEC filings. Please see our Terms and Conditions for additional details, including our Obligatory Capitalized Disclaimers of Liability. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. Atmus Filtration (ATMU) Q2 2026 Earnings Call Transcript was originally published by The Motley Fool

Filtration products manufacturer Atmus Filtration Technologies (NYSE:ATMU) beat Wall Street’s revenue expectations in Q2 CY2026, with sales up 16.4% year on year to $527.9 million. Its non-GAAP profit of $0.82 per share was 5.2% above analysts’ consensus estimates. Is now the time to buy ATMU? Find out in our full research report (it’s free). Revenue: $527.9 million vs analyst estimates of $508.3 million (16.4% year-on-year growth, 3.8% beat) Adjusted EPS: $0.82 vs analyst estimates of $0.78 (5.2% beat) Adjusted EBITDA: $109.1 million vs analyst estimates of $105 million (20.7% margin, 3.9% beat) Operating Margin: 18.4%, in line with the same quarter last year Market Capitalization: $4.18 billion Atmus Filtration Technologies delivered a stronger-than-expected second quarter, with management attributing revenue growth to the successful integration of its recent Koch Filter acquisition and solid performance in the Power Solutions segment. CEO Stephanie Disher highlighted the company’s progress executing its four-pillar growth strategy, emphasizing advancements in both first-fit and aftermarket channels. The company’s margin performance benefited from ongoing supply chain improvements and increased pricing, though these gains were partially offset by higher material and manufacturing costs. Management also cited resilient demand in North America and progress in Lean manufacturing initiatives as supporting factors this quarter. Looking ahead, Atmus Filtration Technologies expects continued momentum from its industrial filtration platform and sees opportunities for further market share gains in both first-fit and aftermarket channels. Management flagged ongoing challenges from inflationary pressures and the Middle East conflict, but expects pricing actions and operational improvements to help mitigate these headwinds. CFO Jack Kienzler noted that the company’s balanced capital allocation strategy—prioritizing investment in growth while continuing to pay down debt—will remain central. Disher emphasized, “We remain confident in our ability to deliver for all stakeholders through disciplined execution of our strategy.” Management attributed the quarter’s outperformance to the Koch Filter integration, robust Power Solutions results, and ongoing supply chain transformation, while highlighting continued challenges in certain international markets. Koch Filter integration progress: The company reported that 95% of transition activities related to the Koch Filter acquisition have been completed, with full integration expected by next quarter. Management sees ongoing value creation from combining Koch’s industrial filtration expertise with Atmus’s global reach. Power Solutions segment growth: Strong performance in the Power Solutions business was driven by both price increases and volume gains, particularly in North America. Management noted early signs of cyclical recovery in first-fit markets, as well as sustained share gains. Aftermarket business stability: The aftermarket segment, which represents 85% of Power Solutions revenue, remained stable overall. While the U.S. and Mexico showed improved sentiment, Europe and Asia Pacific (excluding China) continued to experience subdued demand, leading to a flat overall aftermarket outlook. Lean supply chain initiatives: Atmus advanced its Lean the Atmus Way program, leading to higher productivity and better on-shelf product availability. The company’s Mexico facility became the first to achieve full certification, supporting sustainable margin improvement. International market challenges: Results in India and the Middle East remained impacted by the ongoing conflict in the region, contributing to weaker joint venture income and creating headwinds for sales and margins in those geographies. Management’s outlook is guided by ongoing integration of acquired businesses, supply chain improvements, and mixed end-market signals, with inflationary pressures and geopolitical risks presenting key uncertainties. Integration and industrial expansion: The company expects continued benefits from the Koch Filter acquisition, targeting new industrial air and, opportunistically, water filtration markets. Management believes these efforts will drive incremental growth and position Atmus as a leader in diversified filtration solutions. Supply chain and operational efficiency: Ongoing Lean manufacturing initiatives are projected to raise productivity and support margin stability. However, management warned that continued inflation in raw materials and supply chain disruptions—particularly from the Middle East conflict—could pressure margins in the second half of the year. End-market recovery and pricing actions: While North American freight markets show signs of improvement, management maintains a cautious outlook for the aftermarket and international markets. The company plans to offset cost headwinds through disciplined pricing strategies, though expects price realization to moderate compared to the first half. In upcoming quarters, the StockStory team will focus on (1) monitoring the complete integration and growth trajectory of the Koch Filter business, (2) tracking the pace of recovery in North American and international aftermarket demand, and (3) assessing the effectiveness of ongoing Lean supply chain initiatives in supporting margins. Additionally, we will watch for further expansion into industrial air and water filtration markets as potential contributors to long-term growth. Atmus Filtration Technologies currently trades at $52.38, down from $54.50 just before the earnings. Is the company at an inflection point that warrants a buy or sell? See for yourself in our full research report (it’s free for active Edge members). ONE MORE THING: Top 6 Stocks for This Week. This market is separating quality stocks from expensive ones fast. AI is taking down whole sectors with no warning. In a rotation this fast, you need more than a list of good companies. Our AI system flagged Palantir before it ran 1,662% between October 2022 and February 2026. AppLovin before it ran 753% between February 2024 and February 2026. Nvidia before it ran 1,178% between January 2023 and February 2026. Each week it produces 6 new names that pass the same tests. Get Our Top 6 Stocks for Free HERE. Stocks that have made our list include now familiar names such as Nvidia (+1,460% between June 2020 and June 2025) as well as under-the-radar businesses like the once-small-cap company Exlservice (+271% between June 2020 and June 2025). Find your next big winner with StockStory today.

Atmus Filtration Technologies Inc. reported past second-quarter 2026 results with record sales of US$527.9 million and net income of US$63.9 million, and raised its full-year 2026 net sales guidance to a range of US$1.98 billion to US$2.03 billion. The quarter highlighted the contribution from the Koch Filter acquisition and Power Solutions growth, alongside active capital returns through share repurchases and dividends while the company continued to integrate Koch Filter and pursue industrial filtration expansion. We’ll now examine how the raised full-year guidance and Koch Filter-driven growth affect Atmus Filtration Technologies’ broader investment narrative. Invest in the nuclear renaissance through our list of 89 elite nuclear energy infrastructure plays powering the global AI revolution. To own Atmus, you generally need to believe its filtration know‑how can stay relevant as engines and industrial needs change, while it gradually reduces dependence on Cummins and the internal combustion aftermarket. The latest record quarter and raised 2026 sales guidance support the near term catalyst around Koch Filter and Power Solutions growth, but do not remove the longer term risk that structurally lower replacement rates and electrification could weigh on its core aftermarket exposure. The most relevant recent announcement here is Atmus raising its full year 2026 net sales outlook to US$1.98 billion to US$2.03 billion, following record Q2 revenue of US$527.9 million. That update ties directly into the nearer term catalyst of Koch Filter driven industrial filtration expansion and Power Solutions momentum, which management is using to offset a weaker U.S. first fit market and uncertainty around emissions and tariff policies. Yet, against this stronger guidance, investors should be aware that high aftermarket dependence still leaves Atmus exposed if replacement cycles shorten and electrification accelerates... Read the full narrative on Atmus Filtration Technologies (it's free!) Atmus Filtration Technologies' narrative projects $2.2 billion revenue and $295.2 million earnings by 2029. Uncover how Atmus Filtration Technologies' forecasts yield a $66.40 fair value, a 30% upside to its current price. Four fair value estimates from the Simply Wall St Community currently span roughly US$35 to US$72 per share, showing how differently individual investors are sizing up Atmus. When you set those views against the company’s raised 2026 sales guidance and the ongoing risk from a potentially shrinking engine replacement aftermarket, it underlines why checking several perspectives on the stock’s prospects can be useful. Explore 4 other fair value estimates on Atmus Filtration Technologies - why the stock might be worth 32% less than the current price! Don't just follow the ticker - dig into the data and build a conviction that's truly your own. A great starting point for your Atmus Filtration Technologies research is our analysis highlighting 3 key rewards and 2 important warning signs that could impact your investment decision. Our free Atmus Filtration Technologies research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate Atmus Filtration Technologies' overall financial health at a glance. The market won't wait. These fast-moving stocks are hot now. Grab the list before they run: The future of work is here. Discover the 36 top robotics and automation stocks leading the charge in AI-driven automation and industrial transformation. Find 51 companies with promising cash flow potential yet trading below their fair value. Uncover the next big thing with 20 elite penny stocks that balance risk and reward. This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Companies discussed in this article include ATMU. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email [email protected]

Interested in Atmus Filtration Technologies Inc.? Here are five stocks we like better. Record Q2 performance: Atmus Filtration Technologies reported sales of $528 million, up 16.4% year over year, with adjusted EBITDA of $109 million and adjusted EPS of $0.82. Growth was driven by the Koch Filter acquisition and a 7% increase in Power Solutions revenue. Koch Filter integration is nearly complete: Atmus has exited more than 95% of related transition-service activities, while the new Industrial Solutions segment generated $42 million in sales and $8 million in adjusted EBITDA. The company is now evaluating additional industrial filtration acquisitions, particularly in industrial air. 2026 outlook maintained but margins narrowed: Atmus kept its total revenue guidance at $1.975 billion to $2.03 billion and adjusted EPS guidance at $2.85 to $3, while narrowing adjusted EBITDA margin expectations to 19.75%–20.25%. The company plans to repurchase $20 million to $40 million of shares and reduce debt using surplus cash. Atmus Filtration Technologies (NYSE:ATMU) reported record second-quarter sales of $528 million, up 16.4% from $454 million a year earlier, driven by the acquisition of Koch Filter and growth in its Power Solutions business. The company also reported adjusted EBITDA of $109 million, adjusted earnings per share of $0.82, and adjusted free cash flow of $67 million. Chief Executive Officer Steph Disher said the company’s results reflected progress across its four-pillar growth strategy: expanding first-fit market share, accelerating profitable aftermarket growth, transforming the supply chain, and building an industrial filtration platform. → Meta’s Earnings Drop Shows Wall Street Wants More Than Ad Growth “We achieved record sales in the second quarter and delivered strong results among our key metrics, including adjusted EBITDA, free cash flow, and EPS,” Disher said. Atmus said it has exited more than 95% of the transition service agreement activities associated with its Koch Filter acquisition, which closed earlier in 2026. The company expects to complete the remaining integration work during the third quarter. → 4 Oil and Gas ETF Plays as Prices Stay Sky-High The acquisition established Atmus’ Industrial Solutions segment, which recorded $42 million in second-quarter sales and $8 million in adjusted EBITDA, representing an 18.9% margin. The company said Industrial Solutions is performing in line with expectations, and it continues to target full-year revenue of $155 million to $165 million for the segment. Disher said Atmus is shifting attention toward growth initiatives in industrial filtration, particularly industrial air. The company is evaluating bolt-on acquisition opportunities to build scale around Koch Filter while remaining open to potential industrial water and liquid-filtration investments that could provide an anchor for a broader platform. → Sandisk Just Delivered a Blowout Quarter—Here's Why the Stock Is Falling Chief Financial Officer Jack Kienzler said the company sees opportunities to expand Koch Filter’s distributor relationships, introduce products to address coverage gaps, and target higher-growth end markets including data centers and healthcare. Power Solutions, Atmus’ larger operating segment, generated $486 million in second-quarter revenue, up 7% from the prior-year period. Kienzler attributed the increase to 3% higher pricing, 2% volume growth and a 2% favorable foreign-exchange effect. Disher said the company’s aftermarket conditions remained broadly flat during the quarter, though it is seeing stronger sentiment in the U.S. and Mexico. The aftermarket represents approximately 85% of Power Solutions revenue, with roughly half of that business located in the U.S., according to Disher. Markets in Europe, the Middle East and Asia-Pacific excluding China remained subdued, she said. Atmus continues to expect market-share gains of roughly 1% to 2%, supported by its multi-channel distribution strategy, product availability and customer relationships. In first-fit markets, the company began seeing the cyclical recovery it had anticipated at the end of the second quarter. Disher said Atmus tends to see changes in its supply-chain activity about four to six weeks ahead of vehicle production data. The first-fit improvement reflected a mix of stronger market conditions and share gains, she said. The U.S. Environmental Protection Agency has also provided more clarity around 2027 emissions standards, the company said. The agency has proposed allowing current engines to be sold into 2027 with a non-conformance penalty, a development Atmus expects could reduce some pre-buy pressure. Still, customers have indicated a stronger second half as market conditions improve and the industry moves through a cyclical recovery. Second-quarter gross margin increased to 29.2% from 28.9% a year earlier. Atmus cited favorable pricing, Koch Filter’s incremental margin contribution, foreign exchange, higher volumes and the end of one-time separation costs. Those benefits were partly offset by higher material and manufacturing expenses. Adjusted EBITDA margin was 20.7%, compared with 21% in the year-earlier quarter. Power Solutions adjusted EBITDA totaled $101 million, or 20.8% of segment sales. Kienzler said the company expects margin comparisons to moderate in the second half as pricing and foreign-exchange benefits become less favorable than in the first half. Atmus also expects continued commodity-cost pressure tied to the Middle East conflict, particularly in chemicals and plastics. The conflict has also affected business conditions in India and the Middle East. Joint venture income was $8 million, unchanged from the prior-year quarter, as strong performance in China offset weaker conditions in India. Disher said the company did not fully recover lost Middle East sales during the second quarter and expects recovery during the second half. The Middle East represents about 2% of overall revenue, she said. Atmus received an immaterial amount of tariff refunds through the end of the second quarter, Kienzler said. The company has applied for refunds it believes it is entitled to receive and continues to expect the overall tariff impact on EBITDA to be substantially neutral. Atmus maintained its Power Solutions revenue outlook of $1.82 billion to $1.865 billion for 2026. The company expects Power Solutions volume to range from flat to up 2%, with pricing contributing about 1.5% and foreign exchange providing an approximately 2% tailwind. The company expects total 2026 revenue of $1.975 billion to $2.03 billion, representing approximately 13.5% growth at the midpoint. It narrowed its adjusted EBITDA margin outlook to 19.75% to 20.25% and maintained adjusted EPS guidance of $2.85 to $3. During the quarter, Atmus invested $13 million in capital expenditures and returned $18 million to shareholders, including $13 million in share repurchases and $5 million in dividends. The company said it expects 2026 share repurchases of $20 million to $40 million and intends to direct surplus cash toward reducing gross debt. Atmus estimated its net-debt-to-adjusted-EBITDA ratio at 1.9 times for the trailing 12 months ended June 30. Disher said the company’s cash generation provides flexibility to fund growth investments, return capital to shareholders and reduce debt over time. Atmus Filtration Technologies is a global developer and manufacturer of high-performance filter media and filtration solutions. The company designs and produces advanced materials that capture airborne particles across a range of applications, from heating, ventilation and air-conditioning (HVAC) systems to industrial and cleanroom environments. By focusing on proprietary meltblown and nanofiber technologies, Atmus delivers media that balances efficiency, airflow and durability for both original equipment manufacturers (OEMs) and aftermarket customers. The company’s product portfolio encompasses pleated and panel filter media, depth filtration products and specialty laminates used in industries such as commercial buildings, healthcare, transportation and power generation. This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected]. The article "Atmus Filtration Technologies Q2 Earnings Call Highlights" was originally published by MarketBeat. View MarketBeat's top stocks for August 2026.

Our analysts just identified a stock with the potential to be the next Nvidia. Tell us how you invest and we'll show you why it's our #1 pick. Tap here. Achieved record quarterly sales of $528 million, a 16.4% increase driven by the Koch Filter acquisition and strong Power Solutions performance. Successfully exited more than 95% of transition services agreements (TSAs) for Koch Filter, with full integration expected by the third quarter. Observed a cyclical recovery in first-fit markets starting in late Q2, with Atmus seeing demand upticks 4 to 6 weeks ahead of vehicle OEM builds. Maintained a flat outlook for the global aftermarket as stronger sentiment in the U.S. and Mexico is offset by subdued conditions in Europe, the Middle East, and Asia Pacific. Launched 'Lean the Atmus Way' production system to standardize management and improve productivity, with the Mexico site being the first to achieve certification. Attributed Power Solutions growth of 7.1% to a balanced mix of 3% pricing, 2% volume, and 2% favorable foreign exchange. Anticipates total company revenue between $1.975 billion and $2.03 billion for 2026, representing approximately 13.5% growth at the midpoint. Expects Power Solutions volume growth to remain flat to 2%, assuming continued market share gains despite a lack of significant inflection in the freight market. Assumes a moderating pricing environment in the second half of the year, with full-year price realization expected at approximately 1.5%. Projects second-half margins will be pressured by persistent Middle East conflict impacts on raw material costs (chemicals, plastics) and lower joint venture income from India. Intends to allocate surplus cash toward paying down gross debt to enhance balance sheet flexibility for future industrial filtration M&A. Identified the ongoing Middle East conflict as a primary headwind, impacting both supply chain costs and joint venture performance in India. Noted that U.S. EPA regulatory clarity regarding 2027 emission standards may ease some pre-buy pressure by allowing current engines to be sold with penalties. Reported that Industrial Solutions margins dipped to 18.9% in Q2 due to one-time operational inefficiencies and redundant expenses during the TSA transition. Confirmed that the net impact of tariffs on EBITDA remains substantially neutral, with the company seeking refunds and adjusting pricing to offset costs. One stock. Nvidia-level potential. 30M+ investors trust Moby to find it first. Get the pick. Tap here. Aftermarket remains flattish globally, representing 85% of Power Solutions revenue, while first-fit is seeing a cyclical upturn. Management confirmed they are maintaining their target of 1% to 2% for annual market share gains. Price realization is expected to moderate to just over 0.5% in Q3 and Q4 compared to the 2%+ seen in the first half. Inflationary pressures from the Middle East conflict are affecting chemicals and plastics, which will impact the second-half margin profile. The sequential margin drop was attributed to non-repeating transition costs and volume shifts; full-year margins are still targeted at 20%. Growth focus for Koch Filter includes expanding distributor relationships and targeting high-growth end markets like data centers and healthcare.

This article first appeared on GuruFocus. Release Date: August 07, 2026 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Record second-quarter sales of $528 million, up 16.4% year-over-year, driven by the Cook Filter acquisition and strong Power Solutions performance. Adjusted EBITDA reached $109 million (20.7% margin), with adjusted EPS of $0.82 and strong free cash flow of $67 million. Successful integration of Cook Filter, with over 95% of transition services agreements exited and completion expected in Q3, positioning for growth in industrial filtration. Continued market share gains in both aftermarket and first fit, supported by the multi-channel distribution strategy and improved on-shelf availability. Positive outlook for Power Solutions with expected volume growth of flat to 2%, pricing tailwinds of 1.5%, and favorable FX of 2%, leading to revenue growth of ~4.5% at the midpoint. Strong balance sheet with net debt to adjusted EBITDA of 1.9x, allowing for balanced capital allocation including share repurchases and debt reduction. Aftermarket conditions remain flat year-over-year, with subdued demand in Europe, Middle East, and Asia Pacific outside China, despite improving US sentiment. Ongoing Middle East conflict is driving inflationary pressures on raw materials (chemicals, plastics) and negatively impacting joint venture income, particularly in India. Second-half margins are expected to soften due to moderating pricing, higher commodity costs, and weaker JV income, leading to a narrowed EBITDA margin guidance of 19.75%-20.25%. Industrial Solutions segment EBITDA margin declined sequentially to 18.9% due to one-time operational inefficiencies and redundant expenses from TSA transition. Tariff-related pricing rollbacks and an immaterial amount of tariff refunds received create uncertainty, with net tariff impact expected to be substantially neutral but requiring ongoing management. First fit market recovery is only beginning, with customers indicating a stronger second half, but the company has yet to see a significant inflection in freight activity. Warning! GuruFocus has detected 6 Warning Signs with MSIF. Is ATMU fairly valued? Test your thesis with our free DCF calculator. Q: Could you discuss how aftermarket and first-fit revenues performed in the quarter and give an estimate for how much share gains contributed in Power Solutions?A: Steph Fisher, CEO: In Power Solutions, we delivered revenue growth of 7.1%, broken down between 3% price, 2% volume, and 2% FX. Aftermarket conditions remain flattish globally, with stronger sentiment in the US and Mexico but subdued conditions in Europe, the Middle East, and Asia Pacific outside China. We continue to deliver strong share gains within our 1% to 2% outlook. In first-fit, we started to see the anticipated cyclical recovery in the second quarter, with a balanced performance between market improvement and share gains through our "winning with the winners" strategy. Q: Could we get an updated view on price-cost expectations for the year, and is 2% price the right way to think about it for the full year?A: Jack Hinsler, CFO: We saw good price realization through the first half at just over 2%, but our full-year guide is 1.5%, reflecting a mix of carryover pricing and anticipated moderating price realization in the third and fourth quarters. We continue to see some elevation in our cost base associated with commodities, largely driven by the ongoing Middle East conflict, which is the biggest headwind embedded in our second-half outlook. This, along with lower joint venture income from India, contributes to the implied softening in second-half margins compared to the first half. Q: Did you catch up on any of the lost sales from the first quarter related to the Middle East, and what's embedded in the guide for the second half?A: Steph Fisher, CEO: We didn't fully catch up the Middle East in the second quarter as the conflict is ongoing. We're still seeing underperformance in our Middle East business driven by market conditions, and we anticipate it recovering into the second half. It's a smaller proportion of our business at about 2% of overall revenues. We're also seeing subdued conditions in Europe that may be related to the conflict, and challenges in our India business through the joint venture line. Q: Can you confirm there's no tariff refunds in second-quarter results, and how much of a drag is the rollback of tariff pricing in the second half?A: Jack Hinsler, CFO: As of the end of the second quarter of 2026, we received an immaterial amount of tariff refunds. We continue to expect the net impact on EBITDA from a tariff perspective to be substantially neutral. Our strategy remains unchanged: availing ourselves of exemptions, optimizing our supply chain, and passing on the impact through pricing. From a pricing perspective, it's hard to parse out given the moving pieces, but price realization is moderating in the third and fourth quarters to just over 0.5% compared to prior year periods. Q: Is the Industrial Solutions quarterly sales run rate versus Cook Filter's 2025 flows a good overlay, and is there any seasonality to consider?A: Steph Fisher, CEO: Industrial Solutions is performing right where we would expect it. We've talked about 1% price, 1% to 2% market share, and overall market impact closely linked to GDP at around 3%. The guide remains at $155 to $165 million for the full year, and we think it's pretty steady over the quarters without any specific cyclicality. We're confident and pleased with the ongoing performance relative to our original business case assumptions. Q: Can you provide an update on the Cook Filter integration and speak to some of the exciting growth initiatives for Industrial Solutions?A: Jack Hinsler, CFO: We're through about 95% of the transition services agreements and plan to fully exit those in the third quarter. We're very excited about the growth prospects for the business, including cultivating new market share opportunities through distributor relationships, launching new products to fill coverage gaps, and exposing the business to high-growth end markets such as data centers and healthcare. The team has a lot of energy around complementing the strong attributes Cook Filter brings to the table. Q: You narrowed the EBITDA margin guide with the top end coming down by 25 basis points. Is that because first-fit expectations are now better, creating a mix headwind?A: Jack Hinsler, CFO: We've seen strong operational execution through the first half with year-to-date margins at about 20.3%. The guidance implies more favorability in the first half from pricing and FX than in the second half. We expect the ancillary effects of the Middle East conflict to persist longer than anticipated, driving inflationary pressures on raw materials like chemicals and plastics. We also lowered our joint venture income outlook due to the conflict impacting India. There is a little bit of a mix dynamic with strengthening first-fit relative to aftermarket, but it's a combination of factors. Q: The Industrial Solutions EBITDA margin was sequentially down almost 200 basis points. Is that seasonality, and how should we think about the back half?A: Jack Hinsler, CFO: Year-to-date margin performance is about 20%, which continues to be our guide for the third and fourth quarters. The second-quarter sequential step down to 18.9% was driven by some one-off impacts that caused inefficiencies, including operational efficiencies as volumes moved around and some redundant expenses associated with the transition off the TSA. We expect these to be one-time and not repeating in nature, and we remain confident in our full-year guide for that business. Q: How have your expectations for the North America truck aftermarket changed from the beginning of the year, and what are you seeing currently?A: Steph Fisher, CEO: Our guide remains the same as we came out from a market perspective on aftermarket in the US. We're reading improving sentiment, which gives us optimism, but we are not yet seeing that translate into an uptick in market conditions based on the visibility we have. We don't have a lot of forward visibility in aftermarket orders, but at this stage, we see it as really flat year-over-year. We'll continue to deliver share gains as previously guided, but it's not significantly changed from where we started the year. Q: Is there a way to help us think about the margin impact from the Middle East conflict on the quarter and the moving pieces?A: Jack Hinsler, CFO: The commodity cost impacts take a little while to work through the system, so it's more of a second-half dynamic than For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Atmus Filtration Technologies (ATMU) came out with quarterly earnings of $0.82 per share, beating the Zacks Consensus Estimate of $0.79 per share. This compares to earnings of $0.75 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of +3.80%. A quarter ago, it was expected that this industrial filtration product company would post earnings of $0.65 per share when it actually produced earnings of $0.69, delivering a surprise of +6.15%. Over the last four quarters, the company has surpassed consensus EPS estimates four times. Atmus Filtration, which belongs to the Zacks Automotive - Original Equipment industry, posted revenues of $527.9 million for the quarter ended June 2026, surpassing the Zacks Consensus Estimate by 3.41%. This compares to year-ago revenues of $453.5 million. The company has topped consensus revenue estimates three times over the last four quarters. The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call. Atmus Filtration shares have added about 5% since the beginning of the year versus the S&P 500's gain of 12.6%. While Atmus Filtration has underperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock? There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately. Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions. Ahead of this earnings release, the estimate revisions trend for Atmus Filtration was favorable. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #2 (Buy) for the stock. So, the shares are expected to outperform the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $0.77 on $511.55 million in revenues for the coming quarter and $2.97 on $2.01 billion in revenues for the current fiscal year. Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Automotive - Original Equipment is currently in the bottom 31% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1. ChargePoint Holdings, Inc. (CHPT), another stock in the same industry, has yet to report results for the quarter ended July 2026. This company is expected to post quarterly loss of $0.80 per share in its upcoming report, which represents a year-over-year change of +43.7%. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days. ChargePoint Holdings, Inc.'s revenues are expected to be $104.38 million, up 5.9% from the year-ago quarter. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Atmus Filtration Technologies Inc. (ATMU) : Free Stock Analysis Report ChargePoint Holdings, Inc. (CHPT) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research