Atmus Filtration Technologies recently released its Form 10-Q for the quarter ended June 30, 2026. The Nashville-based company designs and sells filtration products under the Fleetguard brand, including fuel, lube, air, crankcase ventilation, hydraulic filters, and related coolants and chemicals. It also develops filtration media, filter systems integration, and digital diagnostic and analytics tools for commercial vehicles and off-highway equipment.
Item 2, Management’s Discussion and Analysis of Financial Condition and Results of Operations, shows second-quarter net sales rose to $527.9 million from $453.5 million a year earlier, up 16.4%. For the first six months, sales increased to $1.005 billion from $870.0 million. Gross margin climbed to $153.9 million from $131.0 million in the quarter and to $290.7 million from $241.5 million in the half-year period.
Operating income increased to $97.2 million in the quarter from $81.7 million, while six-month operating income rose to $173.5 million from $146.6 million. Selling, general and administrative expenses were $51.7 million in the quarter, up from $46.1 million, and research, development and engineering expense fell to $9.8 million from $10.7 million. Interest expense rose to $13.7 million from $8.5 million in the quarter and to $27.8 million from $16.9 million in the first half.
Net income was $63.9 million in the quarter, compared with $59.9 million a year earlier, and six-month net income reached $112.3 million versus $104.6 million. Diluted earnings per share were $0.78 in the quarter, up from $0.72, and $1.37 for the first half, compared with $1.26.
The balance sheet expanded sharply after the Koch Filter acquisition. Total assets were $1.890 billion at June 30, 2026, up from $1.351 billion at year-end 2025. Goodwill jumped to $302.6 million from $84.7 million, intangible assets rose to $209.3 million from zero, and long-term debt increased to $992.0 million from $540.0 million.
Atmus said it paid about $455.0 million in cash on January 7, 2026 to acquire Koch Filter Corporation, a U.S. maker of air filtration products for industrial and commercial HVAC, data centers, and power generation. The company recorded $215.0 million of acquired intangible assets and $218.0 million of goodwill, with the goodwill tied mainly to expansion into industrial filtration markets. Transaction-related expenses totaled about $6.3 million in the first half.
Cash from operations improved to $115.9 million for the first six months of 2026 from $73.1 million a year earlier. The company spent $25.6 million on capital expenditures and used $479.5 million in investing activities, largely because of the Koch Filter deal. Financing activities provided $384.8 million, driven by $995.6 million in net long-term debt proceeds, partly offset by $570.0 million of debt repayments, $20.3 million of share repurchases, and $9.0 million of dividends. Cash and cash equivalents ended the period at $259.0 million, up from $236.4 million at year-end 2025. As a result of these announcements, the company's shares have moved -3.3% on the market, and are now trading at a price of $52.71. For more information, read the company's full 10-Q submission here.
