Company: ATMU
Filing Date: 2025-11-07
Form Type: 10-Q
Source: 0001921963-25-000134
Chunk: 72

Company: Atmus Filtration Technologies Inc.
Filing Date: 2025-11-07
Form: 10-Q
Item: Item 8
Chunk 72
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.3% for the three months ended September 30, 2025, a decrease of 1.2 percentage points compared to 11.5% for the three months ended September 30, 2024. The decrease in Selling, general and administrative expenses as a percentage of Net sales was primarily driven by the items noted above.

Interest Expense

Interest expense was $8.5 million for the three months ended September 30, 2025, a decrease of $1.9 million compared to $10.4 million for the three months ended September 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.

Other (Expense) Income, Net

Other (expense) income, net was $(1.7) million for the three months ended September 30, 2025, a decrease of $2.6 million compared to $0.9 million for the three months ended September 30, 2024. The decrease in Other (expense) income, net was due to an increase in the net loss on foreign exchange rate hedging.

Income Tax Expense

Our effective tax rate for the three months ended September 30, 2025 was 23.6%, an increase of 5.2 percentage points compared to 18.4% for the three months ended September 30, 2024. The increase in the effective tax rate was driven by an unfavorable change in the mix of earnings among tax jurisdictions and reductions to U.S. tax incentives and credits due to the adoption of the OBBBA, partially offset by discrete tax items. Our effective tax rate differs from the U.S. statutory rate primarily due to differences in rates applicable to foreign subsidiaries, withholding taxes and state income taxes.

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Nine Months Ended September 30, 2025 Compared to the Nine Months Ended September 30, 2024

For the Nine Months Ended September 30,Favorable(Unfavorable)20252024Amount%(in millions)NET SALES$1,317.7 $1,262.9 $54.8 4.3 %Cost of sales946.8 907.9 (38.9)(4.3)%GROSS MARGIN370.9 355.0 15.9 4.5 %OPERATING EXPENSES AND INCOMESelling, general and administrative expenses137.9 138.