Company: ATMU
Filing Date: 2025-11-07
Form Type: 10-Q
Source: 0001921963-25-000134
Chunk: 40

Company: Atmus Filtration Technologies Inc.
Filing Date: 2025-11-07
Form: 10-Q
Item: Item 1
Chunk 40
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iluted earnings per share$0.66 $0.52 $1.91 $1.74 Plus:One-time separation costs(a)$0.04 $0.11 $0.17 $0.22 Less:Tax impact of one-time separation costs(a)$0.01 $0.02 $0.04 $0.04 Adjusted earnings per share$0.69 $0.61 $2.04 $1.92 

(a)Primarily comprised of one-time expenses related to Information Technology, warehousing, manufacturing and Human Resources separation costs and the related tax impact of those expenses. The tax impact of one-time separation costs for the three months ended September 30, 2025 and 2024 were $0.9 million and $1.6 million, respectively, and for the nine months ended September 30, 2025 and 2024 were $3.4 million and $3.8 million, respectively.

28

A reconciliation of Net cash provided by operating activities to Free cash flow and Adjusted free cash flow is shown in the table below:

For the Three Months Ended September 30,For the Nine Months Ended September 30,2025202420252024(in millions)Cash provided by operating activities$82.1 $70.7 $155.2 $85.4 Less:Capital expenditures13.2 16.4 37.6 38.6 Free cash flow (non-GAAP)$68.9 $54.3 $117.6 $46.8 Plus:One-time separation capital expenditures$2.9 $5.1 $9.5 $12.4 Other one-time separation related(a)— 5.3 — 26.9 Adjusted free cash flow (non-GAAP)$71.8 $64.7 $127.1 $86.1 

(a)Primarily comprised of one-time working capital inefficiencies associated with the move from intercompany settlement terms with Cummins to standalone practices.

Critical Accounting Policies and Estimates

We prepare our condensed consolidated financial statements in conformity with U.S. GAAP. The preparation of our financial statements requires the use of estimates, judgments and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and reported amounts of revenues and expenses during the periods presented. Actual results could differ from those estimates and