On November 3, 2023, Atmus Filtration Technologies Inc (ATMU, Financial), a global leader in filtration and media solutions, announced its financial results for the third quarter ending September 30, 2023. Despite a slight decrease in net sales, the company demonstrated robust cash generation and solid operating results.
Financial Highlights
For Q3 2023, Atmus reported net sales of $396 million, a decrease of approximately 1% compared to $401 million in Q3 2022. This decrease was primarily driven by a decrease in volume, partially offset by increases in pricing and favorable impacts of currency.
The company's gross margin increased by approximately 3% to $103 million, compared to $100 million in Q3 2022. The increase in gross margin was driven by an increase in pricing, favorable freight and commodities costs, partially offset by lower volumes and unfavorable manufacturing and other costs.
Adjusted EBITDA for the quarter was $73 million, compared to $72 million in Q3 2022. The company's adjusted EBITDA margin was 18.3%, a slight increase from 17.9% in the same period last year.
Atmus's net income for Q3 2023 was $38 million, or $0.45 of diluted earnings per share, compared to $50 million, or $0.61 of diluted earnings per share in Q3 2022. The company's adjusted earnings per share was $0.52 in Q3 2023, compared to $0.62 in Q3 2022.
Financial Position and Liquidity
During Q3 2023, Atmus repaid the $50 million borrowed under the Revolving Credit Facility at the May 30 IPO launch. With full availability under the $400 million facility and $139 million of cash on hand, Atmus had $539 million of liquidity on September 30.
2023 Outlook
Atmus updated its guidance for 2023, expecting revenue to be in the range of $1,600 million to $1,625 million. The company also expects its adjusted EBITDA margin to be in the range of 18.00 percent to 18.50 percent and adjusted earnings per share in the range of $2.20 to $2.30.
About Atmus Filtration Technologies Inc
Atmus Filtration Technologies Inc is a global leader in filtration and media solutions. The company serves customers across various markets, including truck, bus, agriculture, construction, mining, marine, and power generation vehicle and equipment markets. Atmus is headquartered in Nashville, Tennessee, and employs approximately 4,250 people globally.
Explore the complete 8-K earnings release (here) from Atmus Filtration Technologies Inc for further details.
