Financial Performance - Atmus reported net sales of $447 million for Q4 2025, a 9.8% increase from $407 million in Q4 2024, and full-year sales of $1,764 million, up 5.7% from the prior year[7][13]. - GAAP net income for Q4 2025 was $48 million, or $0.58 diluted earnings per share, compared to $40 million, or $0.48 per share in Q4 2024; full-year net income was $207 million, or $2.50 per share, up from $186 million, or $2.22 per share in 2024[10][17]. - Adjusted EBITDA for Q4 2025 was $85 million with a margin of 19.1%, and for the full year, it was $354 million with a margin of 20.0%, compared to $330 million and 19.7% in 2024[5][15]. - Adjusted earnings per share for Q4 2025 was $0.66, compared to $0.58 in Q4 2024; for the full year, it was $2.73, up from $2.50 in 2024[10][18]. - Operating income for the year ended December 31, 2025, rose to $299.0 million, a 12.3% increase from $266.2 million in 2024[31]. - Net income for the year ended December 31, 2025, was $207.4 million, reflecting an 11.0% increase from $185.6 million in 2024[31]. - Basic earnings per share for the year ended December 31, 2025, increased to $2.52, compared to $2.23 in 2024, marking a 13.0% growth[31]. Cash Flow and Capital Expenditures - Adjusted free cash flow for Q4 2025 was $31 million, up from $28 million in Q4 2024; full-year adjusted free cash flow was $158 million, compared to $115 million in 2024[12][20]. - Cash provided by operating activities for Q4 2025 was $47.5 million, significantly up from $20.0 million in Q4 2024[45]. - Free cash flow (non-GAAP) for Q4 2025 reached $31.2 million, compared to $10.0 million in Q4 2024[45]. - Capital expenditures for Q4 2025 were $16.3 million, up from $10.0 million in Q4 2024[45]. - Adjusted free cash flow (non-GAAP) for the year 2025 was $158.3 million, compared to $114.5 million in 2024[45]. Guidance and Future Outlook - The company provided guidance for 2026, expecting total revenue between $1,945 million and $2,015 million, with Power Solutions segment revenue projected at $1,790 million to $1,850 million and Industrial Solutions segment revenue at $155 million to $165 million[6]. Shareholder Returns - Atmus returned $78 million to investors in 2025, including $61 million in stock repurchases and $17 million in dividends; a $150 million share repurchase program was authorized in July 2024[4]. Margins and Profitability - Gross margin for Q4 2025 was $127 million, representing 28.5% of net sales, compared to $107 million and 26.3% in Q4 2024; full-year gross margin was $498 million, or 28.2% of net sales[8][14]. - Gross margin for the year ended December 31, 2025, improved to $498.3 million, representing a gross margin percentage of 28.2%, compared to 27.7% in 2024[31]. - The effective tax rate for Q4 2025 was 21.3%, and for the full year, it was 22.1%[11][19]. Acquisitions and Corporate Actions - The company completed the acquisition of Koch Filter Corporation on January 7, 2026, establishing the Industrial Solutions segment[3]. Impairments and Restructuring Costs - The company recognized fixed asset impairment charges of $8.4 million during 2025, which are not expected to materially affect financial position or cash flows[39]. - The company recognized fixed asset impairment charges of $1.9 million for the year ended December 31, 2025[42]. - The company incurred one-time restructuring costs of $0.05 per share in 2024 and $0.19 per share in 2025[42]. - The tax impact of one-time separation costs for 2025 was $3.4 million, compared to $5.3 million in 2024[43]. - The tax impact of one-time restructuring costs for 2024 was $0.9 million[43]. Balance Sheet Highlights - Cash and cash equivalents at the end of the period increased to $236.4 million, up from $184.3 million at the end of 2024[35]. - Total assets as of December 31, 2025, reached $1,350.7 million, a 13.5% increase from $1,190.3 million in 2024[33]. - Total liabilities as of December 31, 2025, were $972.2 million, slightly up from $962.9 million in 2024[33].

Core Insights - Atmus Filtration Technologies Inc. reported financial results for Q4 and the full year ending December 31, 2025, highlighting strong performance in net sales and income [1] Financial Performance - Net sales reached $447 million for the fourth quarter and $1,764 million for the full year [1] - GAAP net income was $48 million for the fourth quarter and $207 million for the full year [1] - Diluted earnings per share stood at $0.58 for the fourth quarter [1]

Core Viewpoint - Atmus Filtration Technologies Inc. has appointed Heath Sharp to its Board of Directors, highlighting his extensive experience in scaling industrial businesses internationally [1] Company Summary - Atmus Filtration Technologies Inc. is recognized as a global leader in the filtration industry [1] - The CEO and President of Atmus, Steph Disher, emphasized Sharp's over 30 years of leadership experience in manufacturing, product development, and commercial execution [1] Leadership Impact - Heath Sharp's appointment is expected to enhance Atmus's strategic direction and operational execution due to his seasoned background in the industrial sector [1]

Core Viewpoint - The comparison between Strattec Security (STRT) and Atmus Filtration Technologies (ATMU) indicates that STRT is currently a more attractive option for value investors due to its stronger earnings outlook and better valuation metrics [1][3][6]. Group 1: Zacks Rank and Earnings Outlook - Strattec Security has a Zacks Rank of 2 (Buy), while Atmus Filtration Technologies has a Zacks Rank of 3 (Hold), suggesting a more favorable earnings outlook for STRT [3]. - The Zacks Rank system emphasizes companies with positive earnings estimate revisions, which STRT currently benefits from [3]. Group 2: Valuation Metrics - STRT has a forward P/E ratio of 14.65, significantly lower than ATMU's forward P/E of 20.68, indicating that STRT may be undervalued relative to ATMU [5]. - STRT's PEG ratio is 1.47, while ATMU's PEG ratio is 2.55, further supporting STRT's position as a better value investment [5]. - STRT's P/B ratio stands at 1.29 compared to ATMU's P/B of 14.14, highlighting STRT's superior valuation metrics [6]. Group 3: Value Grades - STRT has a Value grade of A, while ATMU has a Value grade of C, reinforcing the conclusion that STRT is the superior value option at this time [6].

Company Overview - Atmus Filtration Technologies Inc. is a global leader in the filtration industry, operating for over 65 years with a focus on high-performance filtration solutions [3] - The company has two main business segments: Power Solutions, serving global on-and-off highway equipment markets through the Fleetguard® brand, and Industrial Solutions, targeting high-growth markets such as commercial and industrial HVAC, data centers, and power generation through the Koch Filter® brand [3] - Atmus is headquartered in Nashville, Tennessee, and employs nearly 5,000 people worldwide [3] Financial Reporting - Atmus will report its financial results for the fourth quarter and full year 2025 before market open on February 13, 2026 [1] - A conference call will be held on the same day at 10:00 a.m. CT to discuss the financial results with the investment community [1]

Core Viewpoint - Investors in the Automotive - Original Equipment sector may find Aptiv PLC (APTV) and Atmus Filtration Technologies (ATMU) to be attractive options, with APTV appearing to be the superior value choice based on various valuation metrics [1][6]. Group 1: Company Overview - Both APTV and ATMU currently hold a Zacks Rank of 2 (Buy), indicating positive revisions to their earnings estimates and improving earnings outlooks [3]. - APTV has a forward P/E ratio of 10.30, while ATMU has a forward P/E of 19.42, suggesting APTV may be undervalued compared to ATMU [5]. - APTV's PEG ratio is 1.00, indicating a favorable growth outlook relative to its price, whereas ATMU's PEG ratio is significantly higher at 3.35 [5]. Group 2: Valuation Metrics - APTV has a P/B ratio of 1.97, which is considerably lower than ATMU's P/B ratio of 13.24, further supporting APTV's position as a more attractive value investment [6]. - Based on the valuation metrics analyzed, APTV receives a Value grade of A, while ATMU is rated C, highlighting APTV's stronger value proposition [6]. - Traditional valuation figures such as P/E ratio, P/S ratio, earnings yield, and cash flow per share are essential for value investors in assessing stock potential [4].

Core Insights - Truelink Capital has completed the sale of Koch Filter Corporation to Atmus Filtration Technologies for $450 million in cash [1] Company Overview - Koch Filter, founded in 1966, designs and manufactures air filtration products for various commercial markets, offering a comprehensive portfolio including pleated filters, high efficiency filters, and HEPA filters [2][8] - Koch Filter operates manufacturing facilities in Louisville, KY, East Greenville, PA, Houston, TX, and Mira Loma, CA, making it one of the few independent scaled platforms in the air filtration industry [2] Leadership Transition - Azam Owaisi has been appointed as the new CEO of Air Distribution Technologies, effective immediately, bringing extensive experience from previous roles at GEA Group, Dover Corporation, Pall Corporation, IDEX Corporation, and Illinois Tool Works [3] - Doug Schuster will gradually transition from day-to-day leadership while remaining involved in the business through the first half of 2026 [3] Strategic Focus Post-Divestiture - Following the divestiture of Koch Filter, Truelink and Air Distribution Technologies will concentrate on enhancing the core ADTi platform by driving efficiencies and growth through both organic initiatives and mergers & acquisitions across three key business units: Air Control Solutions, Air Movement Solutions, and Air Distribution Solutions [4][5]

Core Viewpoint - Atmus Filtration Technologies Inc. has successfully completed the acquisition of Koch Filter Corporation for approximately $450 million, enhancing its position in the filtration and media solutions market [1] Group 1: Acquisition Details - The acquisition of Koch Filter Corporation was finalized with a total cash consideration of around $450 million, which is subject to customary purchase price adjustments [1] - Koch Filter Corporation was acquired from Air Distribution Technologies, Inc., a portfolio company of Truelink Capital [1] Group 2: Strategic Implications - The completion of this acquisition is expected to strengthen Atmus Filtration's market presence and capabilities in the filtration sector [1]

Group 1: Company Overview - Atmus Filtration Technologies (ATMU) is a notable stock in the Auto-Tires-Trucks sector, which consists of 99 individual stocks [2] - The company currently holds a Zacks Rank of 2 (Buy), indicating a favorable outlook based on earnings estimate revisions [3] Group 2: Performance Metrics - Over the past year, Atmus Filtration Technologies has gained approximately 36.7%, significantly outperforming the average gain of 17.8% in the Auto-Tires-Trucks group [4] - The Zacks Consensus Estimate for ATMU's full-year earnings has increased by 2.6% over the last 90 days, reflecting improved analyst sentiment [4] Group 3: Industry Context - Atmus Filtration Technologies is part of the Automotive - Original Equipment industry, which includes 51 companies and is currently ranked 76 in the Zacks Industry Rank [6] - In contrast, Cummins (CMI), another stock in the Auto-Tires-Trucks sector, has seen a year-to-date increase of 45.4% and belongs to the Automotive - Internal Combustion Engines industry, ranked 7 [5][7]

Core Insights - The article compares Atmus Filtration Technologies (ATMU) and Ferrari (RACE) to determine which stock is a better undervalued investment option for investors in the Automotive - Original Equipment sector [1] Group 1: Zacks Rank and Earnings Estimates - Atmus Filtration Technologies has a Zacks Rank of 2 (Buy), indicating a positive earnings outlook, while Ferrari has a Zacks Rank of 3 (Hold) [3] - The Zacks Rank system emphasizes companies with strong earnings estimate revisions, suggesting that ATMU is likely experiencing a more favorable earnings outlook compared to RACE [3] Group 2: Valuation Metrics - ATMU has a forward P/E ratio of 20.03, significantly lower than RACE's forward P/E of 37.25, indicating that ATMU may be undervalued relative to RACE [5] - The PEG ratio for ATMU is 3.46, while RACE has a PEG ratio of 4.20, suggesting that ATMU offers better value when considering expected earnings growth [5] - ATMU's P/B ratio is 12.9, compared to RACE's P/B of 21.57, further indicating that ATMU is more attractively valued [6] Group 3: Value Grades - Based on various valuation metrics, ATMU holds a Value grade of B, while RACE has a Value grade of D, reinforcing the notion that ATMU is the better investment option for value investors at this time [6]