Company: ATMU
Filing Date: 2025-11-07
Form Type: 10-Q
Source: 0001921963-25-000134
Chunk: 94

Company: Atmus Filtration Technologies Inc.
Filing Date: 2025-11-07
Form: 10-Q
Item: Item 2
Chunk 94
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 of one-time expenses including $11.2 million within Cost of sales and $4.3 million within Selling, general and administrative expenses. In addition, we have incurred capital expenditures in connection with the Separation of approximately $9.5 million in 2025. These expenses and capital expenditures primarily relate to the establishment of functions previously co-mingled with Cummins, such as information technologies, distribution centers, manufacturing and human resources. The one-time costs incurred during the three months ended September 30, 2025, were primarily associated with our technology transformation and modernization project. The transition services agreement under which Cummins had continued to provide certain services related primarily to administrative services ended in September 2025. With the conclusion of this agreement, we do not expect to incur any additional one-time expenses or capital expenditures in 2025 or in future periods in connection with becoming a standalone public company.

20

Results of Operations

Three Months Ended September 30, 2025 Compared to the Three Months Ended September 30, 2024

For the Three Months Ended September 30,Favorable(Unfavorable)20252024Amount%(in millions)NET SALES$447.7 $403.7 $44.0 10.9 %Cost of sales318.3 292.4 (25.9)(8.9)%GROSS MARGIN129.4 111.3 18.1 16.3 %OPERATING EXPENSES AND INCOMESelling, general and administrative expenses45.9 46.4 0.5 1.1 %Research, development and engineering expenses10.0 9.7 (0.3)(3.1)%Equity, royalty and interest income from investees8.4 8.1 0.3 3.7 %Other operating expense, net— 0.1 0.1 100.0 %OPERATING INCOME81.9 63.2 18.7 29.6 %Interest expense8.5 10.4 1.9 18.3 %Other (expense) income, net(1.7)0.9 (2.6)(288.9)%INCOME BEFORE INCOME TAXES71.7 53.7 18.0 33.5 %Income tax expense16.9 9.9 (7.0)(70.7)%NET IN