Company: ATMU
Filing Date: 2025-08-08
Form Type: 10-Q
Source: 0001921963-25-000121
Chunk: 98

Company: Atmus Filtration Technologies Inc.
Filing Date: 2025-08-08
Form: 10-Q
Item: Item 2
Chunk 98
---
 Engineering Expenses

Research, development and engineering expenses were $19.8 million for the six months ended June 30, 2025, a decrease of $0.7 million compared to $20.5 million for the six months ended June 30, 2024. The decrease was primarily due to timing of engineering projects. Research, development and engineering expenses as a percentage of Net sales were 2.3% for the six months ended June 30, 2025, a decrease of 0.1 percentage points compared to 2.4% for the six months ended June 30, 2024. The decrease in Research, development and engineering expenses as a percentage of Net sales was mainly due to the items noted above.

Equity, Royalty and Interest Income from Investees

Equity, royalty and interest income from investees was $16.7 million for the six months ended June 30, 2025, a decrease of $1.9 million compared to $18.6 million for the six months ended June 30, 2024. The decrease was primarily due to lower earnings of $1.9 million from our joint ventures in India and China.

Other Operating (Income) Expense, Net

Other operating (income) expense, net was $(0.2) million for the six months ended June 30, 2025, a decrease of $1.2 million compared to $1.0 million for the six months ended June 30, 2024. The change was primarily due to prior year asset write-offs in 2024 that did not recur.

Interest Expense

Interest expense was $16.9 million for the six months ended June 30, 2025, a decrease of $4.1 million compared to $21.0 million for the six months ended June 30, 2024. The decrease in Interest expense was primarily driven by a reduction to the interest rate on our borrowings and lower outstanding borrowings on our Credit Agreement as principal payments were made.

Income Tax Expense

Our effective tax rate for the six months ended June 30, 2025 was 21.6%, a decrease of 0.3 percent percentage points compared to 21.9% for the six months ended June 30, 2024. The decrease in the effective tax rate was driven by a change in the mix of earnings among tax jurisdictions and discrete tax items. Our effective tax rate differs from the U.S. statutory rate primarily due to differences in