Atmus Filtration Technologies: A Strong Q4 and a Promising 2025

Atmus Filtration Technologies (NYSE: ATMU) wrapped up 2024 with a bang, reporting strong fourth-quarter and full-year results. The global leader in filtration and media solutions delivered a robust performance, driven by its four-pillar growth strategy and operational separation from Cummins. Let's dive into the key takeaways and what lies ahead for Atmus in 2025.



Strong Financial Performance

Atmus reported net sales of $407 million for the fourth quarter and $1,670 million for the full year, representing increases of 1.8% and 2.5% respectively, compared to the same periods in 2023. The company's adjusted EBITDA margin for the full year was 19.7%, up from 18.9% in 2023. Additionally, Atmus' adjusted earnings per share for the full year was $2.50, up from $2.28 in 2023.



Growth in First-Fit Market Share

Atmus' consistent growth in first-fit market share can be attributed to several key drivers. The company has realigned its organization and added resources to its account management teams to focus on growth in the first-fit market. This strategic move has allowed Atmus to better serve its customers and secure new business opportunities. Additionally, Atmus announced a new business win with a major European OEM for its industry-leading fuel filtration and crankcase ventilation content in 2024. The company has also expanded its technology leadership in fuel filtration with the launch of its next-generation media, NanoNet N3, which has wide-ranging applications and enables compact filter designs while delivering superior service life in harsh environments across various fuels.



Capital Allocation Program

Atmus initiated a capital allocation program in 2024, balancing share repurchases with a consistent dividend return. Since the announcement in July, the company has repurchased a total of $20 million of stock, with $10 million in both the third and fourth quarters. As of December 31, 2024, $130 million remained under the board authorization, indicating a continuation of capital return to shareholders in 2025. This program demonstrates Atmus' commitment to returning capital to shareholders while also reinvesting in the business to drive future growth.

Looking Ahead to 2025

Atmus' strong financial performance and growth in first-fit market share position the company well for a promising 2025. The company is providing guidance for 2025 as follows: revenue to be in the range of $1,670 million to $1,735 million, adjusted EBITDA margin to be in the range of 19.0% to 20.0%, and adjusted earnings per share in the range of $2.35 to $2.60.



In conclusion, Atmus Filtration Technologies' strong fourth-quarter and full-year results, driven by its four-pillar growth strategy and operational separation from Cummins, position the company for a promising 2025. With a focus on growing share in first-fit, expanding technology leadership, increasing aftermarket share, and driving operational excellence, Atmus is well-positioned to continue delivering value to shareholders. Keep an eye on Atmus in 2025 as the company continues to execute on its growth strategy and capitalize on market opportunities.