Atmus filtration sets sights on $2B revenue after post-spin-off growth

Atmus Filtration Technologies (NYSE:ATMU) reported fourth-quarter earnings that surpassed analyst estimates, capping a transformational year for the Cummins spin-off as it pivots toward high-growth industrial and data center markets.

The Nashville-based company posted net sales of $447 million for the quarter ended Dec. 31, 2025, bringing its full-year revenue to $1.76 billion.

Net income for the year hit $207 million, or $2.50 per diluted share.

On an adjusted basis, the company delivered full-year earnings of $2.73 per share, comfortably beating the Zacks consensus estimate of $2.58.

The performance was bolstered by a resilient 20% adjusted EBITDA margin for the year, reflecting pricing strength and operational efficiencies in its core Power Solutions business.

The earnings release comes just weeks after Atmus completed its $450 million acquisition of Koch Filter Corporation on Jan. 7, 2026.

The deal is the cornerstone of a new reporting structure; starting in 2026, Atmus will operate through two segments: Power Solutions, serving the traditional on-and-off-highway markets, and Industrial Solutions, a new high-growth arm focused on commercial HVAC, data centers, and power generation environments.

Meanwhile, management provided a bullish 2026 outlook that reflects this strategic shift.

The company expects total revenue to range between $1.945 billion and $2.015 billion—flirting with the $2 billion milestone for the first time.

The Industrial Solutions segment alone is projected to contribute up to $165 million in its inaugural year.

Atmus also guided for 2026 adjusted EPS between $2.75 and $3, signaling confidence in its ability to integrate Koch Filter while maintaining margins in its legacy business.