Company: ATMU
Filing Date: 2025-08-08
Form Type: 10-Q
Source: 0001921963-25-000121
Chunk: 35

Company: Atmus Filtration Technologies Inc.
Filing Date: 2025-08-08
Form: 10-Q
Item: Item 1
Chunk 35
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2.4% for the three months ended June 30, 2025 consistent with 2.4% for the three months ended June 30, 2024. 

Interest Expense

Interest expense was $8.5 million for the three months ended June 30, 2025, a decrease of $2.0 million compared to $10.5 million for the three months ended June 30, 2024. The decrease 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 three months ended June 30, 2025 was 21.9%, an increase of 0.1 percentage points compared to 21.8% for the three months ended June 30, 2024. The increase 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 rates applicable to foreign subsidiaries, withholding taxes and state income taxes.

22

Six Months Ended June 30, 2025 Compared to the Six Months Ended June 30, 2024

For the Six Months Ended June 30,Favorable(Unfavorable)20252024Amount%(in millions)NET SALES$870.0 $859.2 $10.8 1.3 %Cost of sales628.5 615.5 (13.0)(2.1)%GROSS MARGIN241.5 243.7 (2.2)(0.9)%OPERATING EXPENSES AND INCOMESelling, general and administrative expenses92.0 92.4 0.4 0.4 %Research, development and engineering expenses19.8 20.5 0.7 3.4 %Equity, royalty and interest income from investees16.7 18.6 (1.9)(10.2)%Other operating (income) expense, net(0.2)1.0 (1.2)(120.0)%OPERATING INCOME146.6 148.4 (1.8)(1.2)%Interest expense16.9 21.0 4.1 19.5 %Other income, net3.8 2.8 1.0 35.7 %