Company: ATMU
Filing Date: 2025-11-07
Form Type: 10-Q
Source: 0001921963-25-000134
Chunk: 28

Company: Atmus Filtration Technologies Inc.
Filing Date: 2025-11-07
Form: 10-Q
Item: Item 1
Chunk 28
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 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 nine months of 2025. We continue to be in a period of slow growth in global aftermarkets, and this trend is expected to continue for the remainder of 2025. First-fit experienced reduced demand in the first nine months of 2025 reflecting depressed market conditions. First-fit demand is expected to remain at reduced levels through 2025 based on overall market cyclicality. 

Global supply chain

Overall supply chain conditions remained largely stable in the first nine months of 2025 with minimal disruptions being experienced. Logistics costs increased during the first nine months of 2025, primarily due to the transition to a standalone distribution network as part of the Separation and the impact of tariffs. Our 

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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 general variability in direct material costs through the first nine months of 2025. 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 they will broadly remain available.

During the first nine months of 2025, our Selling, general and administrative expenses decreased due to lower one-time separation expenses.

Additionally, the depreciation of the U.S. dollar against certain foreign currencies had an unfavorable impact on our condensed consolidated results of operations in the first nine months of 2025 due to translation impacts. We remain in a volatile currency environment and as such, there can be no assurances that this trend will continue for the remainder of 2025.

Standalone costs

We have incurred additional costs associated with becoming a standalone public company. During the three months ended September 30, 2025, we incurred approximately $3.7 million of one-time expenses including $2.5 million within Cost of sales and