Atmus Filtration Technologies Inc. has reported its financial results for the first quarter of 2025, showing a mixed performance compared to the same period in 2024.
Net sales for the first quarter of 2025 were $417 million, down 2.4% from the $427 million reported in the first quarter of 2024. Gross margin was $111 million, compared to $112 million in the same period last year, with a gross margin as a percent of net sales at 26.5% compared to 26.2% in 2024.
Adjusted EBITDA for the first quarter of 2025 was $82 million, up from $80 million in the first quarter of 2024, and the adjusted EBITDA margin was 19.6% compared to 18.8% in the same period last year. Adjusted EBITDA in the first quarter of 2025 excluded $9 million of one-time costs associated with the separation of the business from Cummins Inc., compared to $6 million of one-time costs in the prior year quarter.
GAAP net income for the first quarter of 2025 was $45 million, slightly down from $46 million in the same period in 2024. Diluted earnings per share were reported at $0.54 for the first quarter of 2025, unchanged from the first quarter of 2024. Adjusted earnings per share showed an increase, reaching $0.63 in the first quarter of 2025, compared to $0.60 in the same period last year.
Cash provided by operating activities improved significantly, reaching $29 million in the first quarter of 2025, compared to cash used in operating activities of $8 million in the first quarter of 2024. Adjusted free cash flow also showed improvement, totaling $20 million in the first quarter of 2025, compared to $(13) million in the first quarter of 2024.
The effective tax rate for the first quarter of 2025 was 21.3%.
Looking forward, Atmus is reaffirming its guidance for the year 2025, with revenue expected to be in the range of $1,670 million to $1,735 million, adjusted EBITDA margin in the range of 19.0% to 20.0%, and adjusted earnings per share in the range of $2.35 to $2.60.
During the quarter, Atmus repurchased $10 million of common stock under the $150 million share repurchase program authorized by the board of directors in July 2024, with $120 million remaining under the authorization. Additionally, Atmus paid a quarterly cash dividend of $0.05 per share of common stock.
The market has reacted to these announcements by moving the company's shares 4.4% to a price of $36.8. For the full picture, make sure to review Atmus Filtration Technologies's 8-K report.
