Atmus (NYSE: ATMU) raises its full-year outlook and authorizes a $300 million buyback

What happened

Atmus Filtration Technologies Inc. (NYSE: ATMU) raised its 2026 guidance, authorized a new share buyback and reported third-quarter sales up 13.9%. Holders got a stronger quarter, a higher full-year bar and a much larger buyback ceiling in one release.

Net sales reached $510 million in the quarter ended Sept. 30, up from $447.7 million a year earlier. Net income was $61 million, or $0.74 per diluted share, against $55 million, or $0.66, in the third quarter of 2025. Adjusted earnings per share were $0.77 versus $0.69.

The company said the sales increase came mainly from the acquisition of Koch Filter Corporation, along with higher volumes, currency gains and higher prices. Tariff refunds owed to customers offset part of the gain.

Key numbers

Metric	Latest	Change	Source
Third-quarter net sales	$510 million	from $447.7 million, +13.9%	SEC 8-K, Exhibit 99.1
Adjusted earnings per share	$0.77	from $0.69, +$0.08	Calculated from SEC 8-K, Exhibit 99.1
Adjusted EBITDA margin	20.4%	from 20.4%, +0.0 percentage points	SEC 8-K, Exhibit 99.1
2026 total net sales guidance	$2.01 billion to $2.04 billion		SEC 8-K, Exhibit 99.1
New share repurchase authorization (cap)	$300 million		SEC 8-K
Long-term debt (Sept. 30, 2026 vs Dec. 31, 2025)	$948.3 million	from $540.0 million, +$408.3 million	Calculated from SEC 8-K, Exhibit 99.1

Read more: Atmus Filtration Technologies (ATMU) company research

Growth, margins and cash in the quarter

Power Solutions, which serves on- and off-highway equipment through the Fleetguard brand, had external sales of $468.1 million. By OptimistFi's calculation, that is 4.6% above the company's total a year earlier, when Atmus reported only that segment. Industrial Solutions, the Koch Filter brand, added $41.9 million. The headline growth rate therefore runs well ahead of the legacy segment's.

Gross margin widened to 30.3% from 28.9%. The release credits added margin from Koch Filter, volume, pricing, manufacturing costs and currency. It also credits lower warranty costs and lower one-time costs of separating from Cummins Inc. Higher material and freight costs offset part of the gain.

Adjusted EBITDA rose to $104 million from $92 million, but the margin held at 20.4%, the same as a year earlier. More sales brought more dollars, not a wider margin. The 2025 figure excludes $4 million of one-time separation costs.

Cash from operations was $98 million against $82 million a year earlier. Adjusted free cash flow was $88 million against $72 million. The 2026 adjusted figure excludes $1 million of one-time capital spending tied to the Koch Filter acquisition.

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What the raised outlook covers

Atmus now expects 2026 total net sales of $2.01 billion to $2.04 billion. It guides Power Solutions to $1.85 billion to $1.87 billion and Industrial Solutions to $160 million to $165 million.

The company expects an adjusted EBITDA margin of 19.75% to 20.25% and adjusted earnings per share of $2.90 to $3.05. The third-quarter adjusted EBITDA margin sits above the top of that full-year margin range.

What the new buyback allows

The board authorized the new program on Nov. 4. It allows purchases of up to $300 million and replaces a program that had $28.9 million left. By OptimistFi's calculation, the new ceiling is 10.4 times the old remainder.

Under the earlier $150 million program, authorized in July 2024, Atmus bought back $20 million of stock in the third quarter. The company expects to pay for new purchases with cash from operations and cash on hand. It can buy in the open market or in private deals, including under Rule 10b5-1 plans.

The program does not require Atmus to buy any amount, has no expiration date and can be suspended or ended at any time. The quarterly dividend was $0.06 per share, up 9% from the prior quarter.

Why it matters

OptimistFi has argued that Atmus can compound value if its installed-base aftermarket and pricing power outlast diesel-cycle, electrification and post-spin cost risks. The release lists higher volumes and pricing among the sales drivers and cites lower separation costs in gross margin. That supports the view, so the quarter strengthens the case.

The caveat is how much of the gain came from the acquisition or from one-time items. The release lists the Koch Filter acquisition first among growth drivers, and lower separation costs helped gross margin. Long-term debt stood at $948.3 million on Sept. 30 against $540.0 million on Dec. 31, 2025, a $408.3 million increase by OptimistFi's calculation. Another $30.0 million is due within a year.

Interest expense was $13.1 million in the quarter against $8.5 million a year earlier. Over nine months, Atmus spent $453.9 million on acquisitions, net of cash acquired, took in $995.6 million of long-term debt and repaid $620.0 million. It ended September with $273.3 million of cash.

What's next

Atmus hosts a conference call and webcast on Friday, Nov. 6, at 10 a.m. CT to discuss the quarter. The next quarterly report is the real test of the raised outlook.

Full-year net sales and adjusted EPS inside the guided ranges would back the raise. So would an adjusted EBITDA margin that stays in its range despite higher interest costs. A shortfall on sales or margin would weaken it. The pace of buybacks against the new ceiling is the other item to track.

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