Company: ATMU
Filing Date: 2025-08-08
Form Type: 10-Q
Source: 0001921963-25-000121
Chunk: 42

Company: Atmus Filtration Technologies Inc.
Filing Date: 2025-08-08
Form: 10-Q
Item: Item 1
Chunk 42
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 for) operating activities less capital expenditures and “Adjusted free cash flow” is defined as Free cash flow after adding back certain one-

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time capital expenditures and other separation related costs associated with becoming a standalone public company. We believe Free cash flow and Adjusted free cash flow are useful metrics used by management and investors to analyze our ability to service and repay debt and return value to shareholders.

The metrics defined above are not in accordance with, or alternatives for, U.S. GAAP financial measures and may not be consistent with measures used by other companies. The metrics should be considered supplemental data; however, the amounts included in the EBITDA, EBITDA margin, Adjusted EBITDA, Adjusted EBITDA margin, Adjusted earnings per share, Free cash flow and Adjusted free cash flow calculations are derived from amounts included in the consolidated statements of net income and cash flows. We do not consider our non-GAAP financial measures as superior to, or a substitute for, the equivalent measures calculated and presented in accordance with GAAP. Some of the limitations are:

•such measures do not reflect our cash expenditures, or future requirements for capital expenditures or contractual commitments;

•such measures do not reflect changes in, or cash requirements for, our working capital needs;

•such measures do not reflect the interest expense or the cash requirements necessary to service interest or principal payments on our debt;

•although depreciation and amortization are non-cash charges, the assets being depreciated and amortized will often have to be replaced in the future and such measures do not reflect any cash requirements for such replacements; and

•other companies in our industry may calculate such measures differently than we do, limiting their usefulness as comparative measures.

To properly and prudently evaluate our business, we encourage you to review the unaudited condensed consolidated financial statements included elsewhere in this report and not rely on a single financial measure to evaluate our business.

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 A reconciliation of Net income to EBITDA and Adjusted EBITDA is shown in the table below:

For the Three Months Ended June 30,For the Six Months Ended June 30,2025202420252024(in millions)NET INCOME$59.9 $56.2 $104.6 $101.7 Plus:Interest expense8.5 10.5 16.9 21.0 Income tax expense16.8 15.7 28.9 28.5 Depreciation and amortization7.4 6.