Company: ATMU
Filing Date: 2025-05-02
Form Type: 10-Q
Source: 0001921963-25-000075
Chunk: 63

Company: Atmus Filtration Technologies Inc.
Filing Date: 2025-05-02
Form: 10-Q
Item: Item 8
Chunk 63
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.7 million decrease in warranty costs. Gross margin as a percentage of Net sales was 26.5% for the three months ended March 31, 2025, an increase of 0.3 percentage points compared to 26.2% for the three months ended March 31, 2024. The increase in Gross margin as a percentage of Net sales was primarily driven by the items noted above decreasing at a higher rate in relation to the change in Net sales.

Selling, General and Administrative Expenses

Selling, general and administrative expenses were $45.9 million for the three months ended March 31, 2025, an increase of $2.6 million compared to $43.3 million for the three months ended March 31, 2024. The increase was primarily driven by increased people-related and consulting expenses of $2.6 million. Selling, general and administrative expenses as a percentage of Net sales were 11.0% for the three months ended March 31, 2025, an increase of 0.8 percentage points compared to 10.2% for the three months ended March 31, 2024. The increase 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 $9.1 million for the three months ended March 31, 2025, a decrease of $1.0 million compared to $10.1 million for the three months ended March 31, 2024. The decrease was primarily due to lower people-related expenses. Research, development and engineering expenses as a percentage of Net sales were 2.2% for the three months ended March 31, 2025, a decrease of 0.2 percentage points compared to 2.4% for the three months ended March 31, 2024. The decrease in Research, development and engineering expenses as a percentage of Net sales was mainly due to the item noted above.

Equity, Royalty and Interest Income From Investees

Equity, royalty and interest income from investees were $9.2 million for the three months ended March 31, 2025, a decrease of $1.2 million compared to $10.4 million for the three months ended March 31, 2024. The 

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decrease was due to lower earnings of $1.2 million from our joint ventures, primarily driven by market