Cash generation remains inconsistent, evidenced by an OCF/NI ratio that fluctuated from a low of -0.18 in 2024Q1 to a peak of 1.61 in 2024Q3, complicating the assessment of core operational efficiency.
| Cash from Operations | 212.1M | 202.7M | 105.4M | 189M | 165.7M | 209.9M | 213.1M |
| Operating CF Margin % | - | 11.49% | 6.31% | 11.61% | 10.61% | 14.59% | 17.29% |
| Operating CF Growth % | 280.26% | 92.31% | -44.23% | 14.06% | -21.06% | -1.5% | - |
| Net Income | 211.1M | 207.4M | 185.6M | 171.3M | 170.4M | 170.1M | 142.8M |
| Depreciation & Amortization | 34.6M | 30M | 24.8M | 21.5M | 21.6M | 21.6M | 21.1M |
| Stock-Based Compensation | 13.5M | 12.4M | 11.9M | 7.2M | 0 | 0 | 0 |
| Deferred Taxes | 1.3M | 18.7M | -7.7M | -10M | -12.7M | -2.7M | 3.4M |
| Other Non-Cash Items | -28.3M | -2.1M | -11.1M | -12.6M | 6.9M | -9.6M | -21M |
| Working Capital Changes | -20.1M | -63.7M | -98.1M | 11.6M | -20.5M | 30.5M | 66.8M |
| Change in Receivables | -30.3M | -55.2M | -16.8M | -10.1M | -18.3M | -7.8M | -6.8M |
| Change in Inventory | -10.3M | -7.1M | -25.4M | -4.3M | -9.7M | -43.5M | 6.1M |
| Change in Payables | 11.1M | -2.3M | -39.3M | 4.4M | 18.5M | 20.5M | 21.5M |
| Cash from Investing | -509.4M | -53.9M | -48.6M | -45.8M | -37.5M | -33.4M | -26.5M |
| Capital Expenditures | -54.1M | -53.9M | -48.6M | -45.8M | -37.5M | -33.4M | -26.5M |
| CapEx % of Revenue | 4.01% | 3.06% | 2.91% | 2.81% | 2.4% | 2.32% | 2.15% |
| Acquisitions | -455.3M | 0 | 0 | 0 | 0 | 0 | 0 |
| Investments | - | - | - | - | - | - | - |
| Other Investing | 0 | 0 | 0 | 0 | 0 | 0 | 1M |
| Cash from Financing | 318.8M | -101.7M | -35.8M | 24.8M | -128.2M | -176.5M | -186.6M |
| Debt Issued (Net) | -18.7M | -22.5M | -7.5M | 20.5M | 0 | -176.5M | 0 |
| Equity Issued (Net) | -50.7M | -60.7M | -20M | 0 | 0 | -170.4M | -186.6M |
| Dividends Paid | -17.6M | -17.3M | -8.3M | 0 | 0 | 0 | 0 |
| Share Repurchases | -58M | -60.7M | -20M | 0 | 0 | -170.4M | -186.6M |
| Other Financing | 405.8M | -1.2M | 0 | 4.3M | -128.2M | 170.4M | 0 |
| Net Change in Cash | 26.3M | 52.1M | 16.3M | 168M | 0 | 0 | 0 |
| Free Cash Flow | 158M | 148.8M | 56.8M | 143.2M | 128.2M | 176.5M | 186.6M |
| FCF Margin % | 11.72% | 8.43% | 3.4% | 8.8% | 8.21% | 12.27% | 15.14% |
| FCF Growth % | 71.93% | 161.97% | -60.34% | 11.7% | -27.37% | -5.41% | - |
| FCF per Share | 1.93 | 1.80 | 0.68 | 1.72 | 1.54 | 2.12 | 2.24 |
| FCF Conversion (FCF/Net Income) | 0.75x | 0.98x | 0.57x | 1.10x | 0.97x | 1.23x | 1.49x |
| Interest Paid | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Taxes Paid | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
Working capital volatility
According to the provided cash flow data, Atmus Filtration Technologies exhibits significant volatility in its OCF/NI ratio, which fluctuated from a low of -0.18 in 2024Q1 to a peak of 1.61 in 2024Q3, indicating that reported net income is frequently decoupled from actual cash generation.
The wide variance in the conversion of net income to operating cash flow suggests that accrual-based accounting adjustments, particularly those related to working capital, are heavily influencing the bottom line. Investors should monitor whether this inconsistency is a structural byproduct of the recent separation from Cummins or a sign of underlying challenges in cash collection efficiency.
As reported in financial statements, Atmus's FCF margins have demonstrated extreme sensitivity to operational cycles, ranging from a negative 4.4% in 2024Q1 to a high of 15.4% in 2025Q3, highlighting the difficulty in maintaining consistent cash flow generation during the company's early independent phase.
The erratic trajectory of free cash flow suggests that the business remains highly susceptible to timing differences in revenue recognition and operational expenditures. This lack of predictability may complicate valuation models that rely on stable cash flow growth to justify current market multiples.
Based on the quarterly cash flow statements, Atmus experienced substantial working capital outflows, including a $61.1 million drain in 2024Q1, which suggests that inventory management and accounts receivable cycles are currently acting as a significant drag on the company's ability to convert sales into liquid cash.
The recurring negative working capital adjustments indicate that the company may be struggling to optimize its supply chain or is facing pressure to extend payment terms to distributors. This volatility warrants further investigation into whether these outflows are temporary transition-related issues or a permanent feature of the company's independent operating model.
As evidenced by the $455.3 million acquisition net outflow in 2026Q1, Atmus is aggressively utilizing its balance sheet to pursue inorganic growth, a marked shift from the more conservative capital return profile observed in previous quarters where share repurchases were limited to smaller, incremental amounts.
This pivot toward significant acquisition activity suggests that management is attempting to rapidly diversify the product portfolio, potentially to mitigate long-term ICE exposure. However, the scale of this deployment relative to historical cash flow generation may increase the company's risk profile if these investments fail to yield immediate accretive returns.
Quick answers to the most common questions about buying ATMU stock.
Atmus Filtration Technologies Inc. (ATMU) generated $202.7M in net cash from operating activities in 2025. This reflects the cash generated directly from core business operations.
Atmus Filtration Technologies Inc. (ATMU) generated $148.8M in free cash flow in 2025. Free cash flow is the cash left over after capital expenditures, which can be used to pay dividends, repurchase shares, or pay down debt.
Atmus Filtration Technologies Inc. (ATMU) spent $53.9M on capital expenditures in 2025. CapEx represents the cash invested in physical assets like property, plant, and equipment to maintain or grow the business.
In 2025, Atmus Filtration Technologies Inc. (ATMU) returned $17.3M to shareholders via cash dividends and spent $60.7M on share repurchases. This shows the company's commitment to returning capital to its equity investors.