Company: ATMU
Filing Date: 2025-08-08
Form Type: 10-Q
Source: 0001921963-25-000121
Chunk: 31

Company: Atmus Filtration Technologies Inc.
Filing Date: 2025-08-08
Form: 10-Q
Item: Item 1
Chunk 31
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 America (“U.S. GAAP”). Refer to Note 2, Basis of Presentation, to the Condensed Consolidated Financial Statements included elsewhere in this report for additional information.

For the period subsequent to our IPO on May 26, 2023, as a standalone public company, we present our financial statements on a consolidated basis. The condensed consolidated financial statements have been prepared in conformity with U.S. GAAP.

Factors Affecting Our Performance

Our financial performance depends, in large part, on varying conditions in the markets we serve. Demand in these markets tends to fluctuate in response to overall economic conditions. Our revenues may also be impacted by OEM inventory levels, production schedules, commodity prices, work stoppages and supply chain challenges. Economic downturns in markets we serve generally result in reduced sales of our products and can result in price reductions in certain products and/or markets. As a worldwide business, our operations are also affected by currency exchange rate changes, political and economic uncertainty (including tariffs and trade barriers), public health crises (epidemics or pandemics) and regulatory matters, including adoption and enforcement of environmental and emission standards in the countries we serve. Some of the more important factors affecting our performance are briefly discussed below.

Market demand

Aftermarket demand remained soft in the first six months of 2025. We continue to be in a period of slow growth in global aftermarkets, and this trend is expected to continue through the second half of 2025. First-fit experienced reduced demand in the first six months of 2025 reflecting depressed market conditions. First-fit demand is expected to remain at reduced levels through the second half of 2025 based on overall market cyclicality. 

Global supply chain

Overall supply chain conditions remained largely stable in the first six months of 2025 with minimal disruptions being experienced. Logistics costs increased during the first half of 2025, primarily due to the impact 

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of tariffs. Our management team continues to monitor and evaluate all of the factors affecting our supply chain condition and the related impacts on our business and operations, and we continue to minimize any supply chain impacts to our business and to our customers.

Commodity prices, labor, inflation and foreign currency exchange rates

We have experienced variability in direct material costs through the first half of 2025. Various key commodities have been exposed to inflationary pressures, primarily due to the impact of tariffs. While the costs of our principal materials fluctuate, generally we believe there will continue to be an adequate supply of the materials we use and that