Company: ATMU
Filing Date: 2025-08-08
Form Type: 10-Q
Source: 0001921963-25-000121
Chunk: 70

Company: Atmus Filtration Technologies Inc.
Filing Date: 2025-08-08
Form: 10-Q
Item: Item 8
Chunk 70
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Net Sales

Net sales were $453.5 million for the three months ended June 30, 2025, an increase of $20.9 million compared to $432.6 million for the three months ended June 30, 2024. The increase in Net sales was mainly due to favorable volumes of $15.0 million and pricing of $10.2 million, offset by unfavorable impacts of currency of $4.3 million. 

Gross Margin

Gross margin was $131.0 million for the three months ended June 30, 2025, a decrease of $0.9 million compared to $131.9 million for the three months ended June 30, 2024. The decrease in Gross margin was mainly due to unfavorable logistics costs of $10.7 million, a $2.1 million increase in one-time separation costs, unfavorable manufacturing and other costs of $2.0 million and $1.5 million in unfavorable currency impacts, partially offset by favorable pricing of $10.2 million as described above, and favorable volumes of $5.2 million. 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.