Atmus Filtration Technologies, Inc. (ATMU)
NYSE:ATMU
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Atmus Filtration Technologies, Inc.
(NYSE:ATMU)
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Rating:63Neutral
Price Target:
$61.00
▼(-3.76% Downside)
Action:DowngradedDate:02/14/26
The score is held back primarily by elevated leverage and a significant inconsistency in the latest income statement data, despite solid free cash flow. Technicals are constructive with strong trend/momentum, and the earnings call provided supportive 2026 growth and EPS guidance (helped by the Cook Filter expansion), but valuation looks somewhat expensive with only a modest dividend yield.
Positive Factors
Free Cash Flow Strength
Sustained, growing FCF provides durable internal funding for buybacks, dividends, capex and debt reduction. Robust cash generation supports deleveraging and capital returns through cyclical OEM and aftermarket cycles, improving long-term financial flexibility and strategic optionality.
Negative Factors
Elevated Leverage
Material rise in debt-to-equity meaningfully increases financial risk and interest/covenant sensitivity. Higher leverage constrains flexibility for M&A, capex and dividends, making earnings and cash flows more vulnerable in downturns despite positive FCF and planned deleveraging efforts.
Read all positive and negative factors
Positive Factors
Negative Factors
Free Cash Flow Strength
Sustained, growing FCF provides durable internal funding for buybacks, dividends, capex and debt reduction. Robust cash generation supports deleveraging and capital returns through cyclical OEM and aftermarket cycles, improving long-term financial flexibility and strategic optionality.
Read all positive factors
Atmus Filtration Technologies, Inc. (ATMU) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$5.07B
Dividend Yield0.39%
Average Volume (3M)1.37M
Price to Earnings (P/E)20.6
Beta (1Y)1.13
Revenue Growth3.72%
EPS Growth11.71%
CountryUS
Employees4,500
SectorConsumer Cyclical
Sector Strength84
IndustryIndustrial - Pollution & Treatment Controls
Share Statistics
EPS (TTM)0.66
Shares Outstanding81,508,590
10 Day Avg. Volume2,552,764
30 Day Avg. Volume1,370,821
Financial Highlights & Ratios
PEG Ratio1.58
Price to Book (P/B)11.27
Price to Sales (P/S)2.42
P/FCF Ratio28.68
Enterprise Value/Market Cap1.08
Enterprise Value/Revenue3.12
Enterprise Value/Gross Profit10.79
Enterprise Value/Ebitda16.64
Forecast
1Y Price Target
$68.60Price Target Upside8.24% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering5
EPS Forecast (FY)2.92
Revenue Forecast (FY)$1.99B
Atmus Filtration Technologies, Inc. Business Overview & Revenue Model
Company Description
Atmus Filtration Technologies Inc. designs, manufactures, and sells filtration products under the Fleetguard brand name in North America, Europe, South America, Asia, Australia, Africa, and internationally. It offers fuel filters, lube filters, ai...
How the Company Makes Money
Atmus makes money by selling filtration products and related components to two primary customer channels: (1) OEM sales, where its filtration systems are supplied for installation on new engines/vehicles/equipment, and (2) aftermarket sales, where...
Atmus Filtration Technologies, Inc. Key Performance Indicators (KPIs)
Any
Revenue by Segment
Analyzes revenue from different business segments, highlighting which areas drive growth and profitability, and indicating strategic focus or diversification within Atmus Filtration Technologies, Inc.
Analyzes revenue from different business segments, highlighting which areas drive growth and profitability, and indicating strategic focus or diversification within Atmus Filtration Technologies, Inc.
Data provided by:
The Fly
The FlyAtmus Filtration Technologies, Inc. Earnings Call Summary
Earnings Call Date:Feb 13, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:May 01, 2026
Earnings Call Sentiment Positive
The call presented a predominantly positive picture: solid top-line growth (Q4 +9.8%, FY +5.7%), improved profitability and free cash flow, strategic expansion via the Cook Filter acquisition, product recognition (NanoNet N3), and strong liquidity post-transaction. Headwinds include soft end markets (flat freight and aftermarket), tariff normalization reducing 2026 pricing benefit, one-time impairment and separation costs, higher logistics/duties, and a largely flat adjusted EBITDA midpoint despite revenue guidance. On balance, the strengths (acquisition, revenue and EPS growth, cash flow, product awards, and clear guidance for 10%–14% revenue growth) outweigh the identified challenges.Positive Updates
Acquisition of Cook Filter and Industrial Solutions Launch
Closed acquisition of Cook Filter in early January, creating a new Industrial Solutions segment and expanding into industrial air filtration. Cook adds exposure to commercial/industrial HVAC and ~8% data center-related business growing at a high-teens rate; integration and procurement synergies already identified.
Negative Updates
Soft End-Market Conditions and Freight Activity
Management noted challenging global markets and no sustained improvement in freight activity; aftermarket expected to be relatively flat year-over-year and heavy-duty first-fit weakness expected in H1 with recovery in back half.
Read all updates
Q4-2025 Updates
Positive
Negative
Acquisition of Cook Filter and Industrial Solutions Launch
Closed acquisition of Cook Filter in early January, creating a new Industrial Solutions segment and expanding into industrial air filtration. Cook adds exposure to commercial/industrial HVAC and ~8% data center-related business growing at a high-teens rate; integration and procurement synergies already identified.
Read all positive updates
Company Guidance
The company guided 2026 total revenue of $1,945,000,000 to $2,015,000,000 (up ~10%–14% vs. 2025), with Power Solutions revenue of $1,790,000,000 to $1,850,000,000 (≈3% growth at the midpoint) and Industrial Solutions (including Cook Filter from the Jan. 7 close, noting a $3,000,000 one‑week stub) of $155,000,000 to $165,000,000; management expects overall pricing to contribute ~1% of revenue, FX (weaker U.S. dollar) to add ~1%, Industrial markets to contribute 1%–4%, and an additional 1%–2% of share growth, while U.S. heavy- and medium-duty first‑fit markets are expected to be flat to up 10% and aftermarket activity to be relatively flat; they expect no additional tariff pricing (price‑cost neutral on tariffs), total company adjusted EBITDA margin of 19.5%–20.5%, adjusted EPS of $2.75–$3.00, share repurchases of $20,000,000–$40,000,000 in 2026 with $69,000,000 remaining authorization, and a post‑Close leverage ratio of ~2.1x with estimated liquidity of ~$701,000,000.Atmus Filtration Technologies, Inc. Financial Statement Overview
Summary
Income Statement
54
Neutral
Balance Sheet
41
Neutral
Cash Flow
63
Positive
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 1.76B | 1.67B | 1.63B | 1.56B | 1.44B |
| Gross Profit | 509.50M | 474.20M | 432.70M | 359.20M | 349.30M |
| EBITDA | 318.80M | 286.00M | 273.70M | 197.50M | 205.40M |
| Net Income | 207.40M | 185.60M | 171.30M | 170.40M | 170.10M |
Balance Sheet | |||||
| Total Assets | 1.35B | 1.19B | 1.09B | 867.40M | 848.30M |
| Cash, Cash Equivalents and Short-Term Investments | 236.40M | 184.30M | 168.00M | 0.00 | 0.00 |
| Total Debt | 570.00M | 631.60M | 625.90M | 32.60M | 9.80M |
| Total Liabilities | 972.20M | 962.90M | 1.01B | 411.80M | 411.10M |
| Stockholders Equity | 378.50M | 227.40M | 80.70M | 455.60M | 437.20M |
Cash Flow | |||||
| Free Cash Flow | 148.80M | 56.80M | 143.20M | 128.20M | 176.50M |
| Operating Cash Flow | 202.70M | 105.40M | 189.00M | 165.70M | 209.90M |
| Investing Cash Flow | -53.90M | -48.60M | -45.80M | -37.50M | -33.40M |
| Financing Cash Flow | -101.70M | -35.80M | 24.80M | -128.20M | -176.50M |
Atmus Filtration Technologies, Inc. Technical Analysis
Positive
63.38
Price Trends
60.92
Positive
57.46
Positive
50.38
Positive
Market Momentum
1.00
Negative
58.72
Neutral
66.71
Neutral
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 63.38 is above the 20-day moving average (MA) of 60.13, above the 50-day MA of 60.92, and above the 200-day MA of 50.38, indicating a bullish trend. The MACD of 1.00 indicates Negative momentum. The RSI at 58.72 is Neutral, neither overbought nor oversold. The STOCH value of 66.71 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
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
67 Neutral | $2.13B | 42.25 | 16.53% | ― | 29.86% | 331.33% | |
63 Neutral | $5.07B | 20.57 | 63.97% | 0.39% | 3.72% | 11.71% | |
61 Neutral | $18.38B | 12.79 | -2.54% | 3.03% | 1.52% | -15.83% | |
61 Neutral | $561.04M | 31.61 | 11.92% | ― | 0.10% | 1.50% | |
56 Neutral | $42.38M | -20.77 | -5.70% | ― | -5.66% | -397.46% | |
50 Neutral | $101.12M | -2.58 | -25.66% | ― | 7.20% | -2951.61% | |
46 Neutral | $18.40M | -1.35 | -73.79% | ― | 10.97% | 44.99% |
* Consumer Cyclical Sector Average
ATMU
Atmus Filtration Technologies, Inc.
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Atmus Filtration Technologies, Inc. Corporate Events
Dividends
Atmus Filtration Technologies Declares Quarterly Cash Dividend
Positive
Feb 9, 2026
On February 9, 2026, Atmus Filtration Technologies Inc. announced that its Board of Directors declared a quarterly cash dividend of $0.055 per common share. The dividend is scheduled to be paid on March 4, 2026, to shareholders of record as of the...
Executive/Board Changes
Atmus Filtration Adds Heath Sharp to Board of Directors
Positive
Feb 6, 2026
On February 5, 2026, Atmus Filtration Technologies Inc. expanded its Board of Directors from seven to eight members and appointed industrial executive Heath Sharp as an independent Class III director, with his term set to expire at the companyR...
Business Operations and StrategyM&A TransactionsPrivate Placements and Financing
Atmus Completes Koch Filter Deal, Expands Industrial Platform
Positive
Jan 7, 2026
On January 7, 2026, Atmus Filtration Technologies closed its $450 million cash acquisition of Koch Filter Corporation from Air Distribution Technologies, Inc., establishing an industrial air filtration platform that extends Atmus’ portfolio ...
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.