Overview

* Atmus Q3 net sales rise 10.9% yr/yr, beating analyst expectations

* Adjusted EPS for Q3 beats analyst expectations

* Company completed operational separation from Cummins, gaining full operational control

Outlook

* Atmus raises 2025 revenue guidance to $1,720 mln-$1,745 mln

* Company expects 2025 adjusted EBITDA margin of 19.50%-20.0%

* Atmus projects 2025 adjusted EPS between $2.50 and $2.65

Result Drivers

* SALES GROWTH - Higher volume, pricing increases, and favorable currency impacts drove a 10.9% increase in net sales

* GROSS MARGIN IMPROVEMENT - Gross margin increased due to lower manufacturing costs and reduced one-time separation costs

* OPERATIONAL SEPARATION - Completion of separation from Cummins gives Atmus full operational control

Key Details

Metric Beat/Mis Actual Consensu

s s

Estimate

Q3 Sales Beat $447.70 $415.23

mln mln (5

Analysts

)

Q3 Beat $0.69 $0.60 (5

Adjusted Analysts

EPS )

Q3 Net $54.80

Income mln

Q3 Beat $81.90 $72.29

Operatin mln mln (5

g Income Analysts

)

Q3 Beat $71.70 $63.33

Pretax mln mln (4

Profit Analysts

)

Q3 Basic $0.67

EPS

Analyst Coverage

* The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 3 "strong buy" or "buy", 2 "hold" and no "sell" or "strong sell"

* The average consensus recommendation for the auto, truck & motorcycle parts peer group is "buy"

* Wall Street's median 12-month price target for Atmus Filtration Technologies Inc ( ATMU ) is $47.00, about 1% above its November 6 closing price of $46.51

* The stock recently traded at 17 times the next 12-month earnings vs. a P/E of 15 three months ago

Press Release:

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)