Atmus Filtration Technologies Inc. Q4 FY2025 earnings call

• Acquired Cook Filter in the fourth quarter, which closed in early January, establishing the Industrial Solutions segment. - In 2025, returned $78,000,000 to shareholders, with $69,000,000 remaining on share repurchase authorization and expect $20,000,000 to $40,000,000 in share repurchases in 2026. - Introduced Atmus Way with a customer-focused mindset shift. - Four-pillar growth strategy: 1. Launched next generation NanoNet N3 media in first fit market, awarded Product of the Year. 2. Expanded aftermarket through new distributors. 3. Completed transition to global distribution network for supply chain transformation. 4. Entered industrial filtration market via Cook Filter acquisition. - Fourth quarter sales increased 9.8%, adjusted EBITDA $85,000,000 or 19.1%. Full year 2025 sales $1,764,000,000, adjusted EBITDA $354,000,000 with 20% margin.

In the fourth quarter, sales were $447,000,000 compared to $407,000,000 in the same period of 2024, an increase of 9.8%. For the full year 2025, sales were $1,764,000,000, an increase of 5.7% from 2024. After the acquisition of Cook Filter, in 2026, Atmus will report on two business segments: Power Solutions and Industrial Solutions. For Power Solutions, the aftermarket freight activity has not seen sustained improvement and is expected to be relatively flat year over year. In the first fit market, the U.S. heavy and medium-duty markets are expected to be in a range of flat to up 10% compared to 2025. For Industrial Solutions, favorable market conditions are expected, contributing 1% to 4% of 2026 growth, with an additional 1% to 2% of share growth expected, and pricing expected to provide approximately 1% of revenue growth.

• Power Solutions aftermarket expected to be relatively flat year over year. - U.S. heavy and medium-duty first fit markets expected flat to up 10% in 2026. - Industrial Solutions expected to contribute 1%-4% of 2026 growth, with 1%-2% share growth expected, pricing to provide ~1% revenue growth, dollar weakness expected to provide ~1% revenue tailwind. - Power Solutions total revenue expected $1,790,000,000 - $1,850,000,000. - Industrial Solutions revenue expected $155,000,000 - $165,000,000. - Total company revenue expected $1,945,000,000 - $2,015,000,000. - Adjusted EBITDA margin expected 19.5%-20.5%, adjusted EPS expected $2.75 - $3.

• Tariff environment change could affect pricing. - Regulatory changes such as EPA-related regulations may impact the business, e.g., implications of EPA greenhouse gas rule changes on product development and market dynamics.

Q: Asked about growth of Cook Filter acquisition, specifically in data center market and filter types.

A: Industrial Solutions guide range 1%-8% excluding $3M stub period, most business in commercial and industrial HVAC, 8% in data center market growing at high teens rate, 1% is base pricing not related to tariffs.

Q: Asked about opportunity to insource filtration media at Cook.

A: First six months focused on integration, procurement synergies identified, innovation workshops started combining filtration expertise for future products.

Q: Asked about first fit markets off-highway.

A: Off-highway markets largely expected flat year over year, first fit business more weighted to on-highway.

Q: Asked about guidance for Industrial Solutions and EPA regulation impact.

A: Industrial Solutions guide conservative but 1%-4% market growth expected, EPA regulation change eliminates legal foundation for federal vehicle GHG standards, near-term NOx standards expected to hold for 2027 engine launch, longer term implications for electrification.

Q: Asked about adjusted EBITDA guidance and self-help levers.

A: Adjusted EBITDA midpoint flat year over year, continuously evaluating cost reduction opportunities through supply chain transformation.