Atmus Filtration Technologies Inc. reported a solid performance for the third quarter and the first nine months of 2024, reflecting growth in revenue and profitability compared to the same periods in 2023. For Q3 2024, net sales reached $403.7 million, a 1.9% increase from $396.2 million in Q3 2023. For the nine months ended September 30, 2024, net sales totaled $1,262.9 million, up 2.8% from $1,228.4 million in the prior year.

Gross margin for Q3 2024 was $111.3 million, an increase of $8.4 million from $102.9 million in Q3 2023, resulting in a gross margin percentage of 27.6%, up from 26.0%. Operating income also rose to $63.2 million in Q3 2024, a 7.5% increase from $58.8 million in Q3 2023. Net income for the quarter was $43.8 million, reflecting a 16.5% increase from $37.6 million in the same quarter last year. Basic earnings per share improved to $0.53, up from $0.45 in Q3 2023.

For the nine-month period, gross margin increased to $355.0 million, an 8.5% rise from $327.1 million in 2023. Operating income for the nine months was $211.6 million, a 10.1% increase from $192.2 million. Net income for this period reached $145.5 million, up 6.6% from $136.5 million in 2023, with basic earnings per share rising to $1.75 from $1.64.

Atmus has been navigating a challenging market environment, with aftermarket demand remaining subdued and first-fit demand softening across key markets. The company has also incurred one-time expenses related to its transition to a standalone public entity, totaling approximately $18.7 million for the nine months ended September 30, 2024. These expenses are expected to continue, with estimates of $20 million to $25 million for the full year.

The company’s financial position has strengthened, with cash and cash equivalents increasing to $196.8 million as of September 30, 2024, compared to $168.0 million at the end of 2023. Total assets rose to $1,218.1 million from $1,088.6 million, and total equity increased significantly to $221.2 million from $80.7 million.

Atmus has also initiated a share repurchase program, authorizing $150 million, with approximately $10 million spent on repurchases as of September 30, 2024. The company remains compliant with its credit agreement, which includes a $600 million term loan and a $400 million revolving credit facility, with $596.2 million drawn on the term loan as of the reporting date.