Company: ATMU
Filing Date: 2025-08-08
Form Type: 10-Q
Source: 0001921963-25-000121
Chunk: 95

Company: Atmus Filtration Technologies Inc.
Filing Date: 2025-08-08
Form: 10-Q
Item: Item 2
Chunk 95
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 Gross margin as a percentage of Net sales was 28.9% for the three months ended June 30, 2025, a decrease of 1.6 percentage points compared to 30.5% for the three months ended June 30, 2024. The decrease in Gross margin as a percentage of Net sales was primarily driven by the items noted above.

21

Selling, General and Administrative Expenses

Selling, general and administrative expenses were $46.1 million for the three months ended June 30, 2025, a decrease of $3.0 million compared to $49.1 million for the three months ended June 30, 2024. The decrease was primarily driven by lower one-time separation costs of $3.5 million, partially offset by higher consulting expenses. Selling, general and administrative expenses as a percentage of Net sales were 10.2% for the three months ended June 30, 2025, a decrease of 1.1 percentage points compared to 11.3% for the three months ended June 30, 2024. The decrease in Selling, general and administrative expenses as a percentage of Net sales was primarily driven by the items noted above.

Research, Development and Engineering Expenses

Research, development and engineering expenses were $10.7 million for the three months ended June 30, 2025, an increase of $0.3 million compared to $10.4 million for the three months ended June 30, 2024. The increase was primarily due to timing of engineering projects. Research, development and engineering expenses as a percentage of Net sales were 2.4% for the three months ended June 30, 2025 consistent with 2.4% for the three months ended June 30, 2024. 

Interest Expense

Interest expense was $8.5 million for the three months ended June 30, 2025, a decrease of $2.0 million compared to $10.5 million for the three months ended June 30, 2024. The decrease was primarily driven by a reduction to the interest rate on our borrowings and lower outstanding borrowings on our Credit Agreement as principal payments were made.

Income Tax Expense

Our effective tax rate for the three months ended June 30, 2025 was 21.9%, an increase of 0.1 percentage points compared to 21.8% for the three months ended June 30, 2024. The increase in