Revenue growth remains cyclically sensitive, with the company reporting a 9.8% expansion in 2025Q4 while struggling to consistently exceed a 30% gross margin threshold.
| Sales/Revenue | 1.35B | 1.76B | 1.67B | 1.63B | 1.56B | 1.44B | 1.23B |
| Revenue Growth % | -18.78% | 5.67% | 2.55% | 4.23% | 8.57% | 16.73% | - |
| Cost of Goods Sold | 955.6M | 1.25B | 1.2B | 1.19B | 1.2B | 1.09B | 923.2M |
| COGS % of Revenue | - | 71.12% | 71.6% | 72.86% | 77.01% | 75.72% | 74.9% |
| Gross Profit | 529M | 509.5M | 474.2M | 441.9M | 359.2M | 349.3M | 309.4M |
| Gross Margin % | 39.25% | 28.88% | 28.4% | 27.14% | 22.99% | 24.28% | 25.1% |
| Gross Profit Growth % | - | 7.44% | 7.31% | 23.02% | 2.83% | 12.9% | - |
| Operating Expenses | 217.6M | 220.7M | 208M | 193.5M | 155.3M | 135.8M | 110.4M |
| OpEx % of Revenue | - | 12.51% | 12.46% | 11.88% | 9.94% | 9.44% | 8.96% |
| Selling, General & Admin | 143.5M | 184.3M | 0 | 0 | 0 | 0 | 112.1M |
| SG&A % of Revenue | - | 10.45% | - | - | - | - | 9.09% |
| Research & Development | 39.7M | 40.7M | 40.6M | 42.5M | 38.6M | 42M | 39M |
| R&D % of Revenue | - | 2.31% | 2.43% | 2.61% | 2.47% | 2.92% | 3.16% |
| Other Operating Expenses | 0 | -4.3M | 167.4M | 151M | 116.7M | 93.8M | -40.7M |
| Operating Income | 310M | 288.8M | 266.2M | 248.4M | 203.9M | 213.5M | 199M |
| Operating Margin % | 23% | 16.37% | 15.94% | 15.26% | 13.05% | 14.84% | 16.14% |
| Operating Income Growth % | - | 8.49% | 7.17% | 21.82% | -4.5% | 7.29% | - |
| EBITDA | 332.8M | 318.8M | 291M | 269.9M | 225.5M | 235.1M | 219.7M |
| EBITDA Margin % | 24.69% | 18.07% | 17.43% | 16.58% | 14.44% | 16.34% | 17.82% |
| EBITDA Growth % | 15.12% | 9.55% | 7.82% | 19.69% | -4.08% | 7.01% | - |
| D&A (Non-Cash Add-back) | 22.8M | 30M | 24.8M | 21.5M | 21.6M | 21.6M | 20.7M |
| EBIT | 235.5M | 288.8M | 261.2M | 233.8M | 175.9M | 183.8M | 201M |
| Net Interest Income | -21.8M | -27.1M | -40.6M | -25.8M | -700K | -800K | -400K |
| Interest Income | 3.2M | 6.3M | 0 | 0 | 0 | 0 | 0 |
| Interest Expense | 39.1M | 33.4M | 40.6M | 25.8M | 700K | 800K | 400K |
| Other Income/Expense | -39.4M | -22.6M | -31.4M | -22M | 8.1M | 3.1M | 1.6M |
| Pretax Income | 270.6M | 266.2M | 234.8M | 226.4M | 212M | 216.6M | 200.6M |
| Pretax Margin % | 20.08% | 15.09% | 14.06% | 13.91% | 13.57% | 15.05% | 16.27% |
| Income Tax | 59.5M | 58.8M | 49.2M | 55.1M | 41.6M | 46.5M | 57.8M |
| Effective Tax Rate % | 21.99% | 22.09% | 20.95% | 24.34% | 19.62% | 21.47% | 28.81% |
| Net Income | 211.1M | 207.4M | 185.6M | 171.3M | 170.4M | 170.1M | 142.8M |
| Net Margin % | 15.66% | 11.76% | 11.12% | 10.52% | 10.91% | 11.82% | 11.59% |
| Net Income Growth % | 14.23% | 11.75% | 8.35% | 0.53% | 0.18% | 19.12% | - |
| Net Income (Continuing) | 211.1M | 207.4M | 185.6M | 171.3M | 170.4M | 170.1M | 142.8M |
| Discontinued Operations | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Minority Interest | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| EPS (Diluted) | 2.57 | 2.50 | 2.22 | 2.05 | 2.05 | 2.04 | 1.71 |
| EPS Growth % | 15.38% | 12.61% | 8.29% | 0% | 0.49% | 19.3% | - |
| EPS (Basic) | - | 2.52 | 2.23 | 2.06 | 2.05 | 2.04 | 1.71 |
| Diluted Shares Outstanding | 82M | 82.8M | 83.6M | 83.4M | 83.3M | 83.3M | 83.3M |
| Basic Shares Outstanding | 81.6M | 82.2M | 83.2M | 83.3M | 83.3M | 83.3M | 83.3M |
| Dividend Payout Ratio | - | 8.34% | 4.47% | - | - | - | - |
ICE market transition exposure
As reported in recent financial statements, Atmus Filtration Technologies experienced a revenue growth rate of 9.8% in 2025Q4, following a period of inconsistent performance where quarterly growth fluctuated between a 2.4% contraction and a 10.9% expansion, suggesting sensitivity to broader industrial equipment demand cycles.
The revenue trajectory appears heavily influenced by the replacement cycle of heavy-duty engine components, which may be masking underlying volume trends. Investors should monitor whether the recent growth acceleration is sustainable or merely a reflection of inventory restocking within the distributor network.
Based on reported figures, Atmus maintained a gross margin of 28.5% in 2025Q4, which remains below the 30% threshold seen in previous periods, indicating that the company faces persistent pricing pressure and potential cost volatility in its core filtration product lines compared to broader industrial peers.
The margin profile suggests that while the Fleetguard brand provides some defensive moat, the company lacks the pricing power of larger, more diversified industrial competitors. Future margin expansion likely depends on the successful adoption of high-performance synthetic media to offset commodity-driven cost inputs.
According to the income statement data, operating margins reached 15.7% in 2025Q4, demonstrating that the company is still navigating the transition to a standalone cost structure following its separation from Cummins, which has introduced variability in SG&A expenses and overall operational efficiency metrics.
The absence of consistent SG&A reporting in earlier periods complicates a clear assessment of operating leverage. It appears that management is currently prioritizing the establishment of independent corporate functions, which may temporarily suppress operating income scaling until these structural costs normalize.
As indicated by the provided financial data, Atmus recorded $3.8 million in stock-based compensation during 2025Q4, a recurring expense that warrants close scrutiny as it continues to impact net income and dilute the quality of reported earnings for shareholders in the post-separation environment.
The consistency of stock-based compensation suggests it is a structural component of the company's compensation strategy rather than a one-time event. Investors should evaluate whether these non-cash charges are appropriately aligned with long-term value creation or if they represent an ongoing drag on net margins.
Based on an analysis of the competitive landscape, the primary risk to the income statement is the potential for margin compression if generic aftermarket competitors successfully erode the Fleetguard brand's market share, particularly as the industry shifts toward alternative propulsion technologies that require different filtration needs.
Short-term performance may look stable, but the long-term narrative faces significant headwinds if the company cannot pivot its R&D focus toward non-ICE filtration applications. The reliance on legacy engine maintenance cycles may prove to be a diminishing asset if regulatory mandates accelerate the transition away from traditional heavy-duty engines.
Quick answers to the most common questions about buying ATMU stock.
For fiscal year 2025, Atmus Filtration Technologies Inc. (ATMU) reported total revenue of $1.76B. This represents a 43.1% increase compared to $1.23B in 2020.
Atmus Filtration Technologies Inc. (ATMU) is profitable, generating $207.4M in net income for the fiscal year ending 2025 with a net profit margin of 11.8%.
Atmus Filtration Technologies Inc. (ATMU) reported an operating income of $288.8M, resulting in an operating profit margin of 16.4%. This margin reflects the operational efficiency of the business before interest and taxes.
Atmus Filtration Technologies Inc. (ATMU) generated $509.5M in gross profit for the year, representing a gross profit margin of 28.9%. This demonstrates the company's core pricing power and production efficiency.