Atmus Filtration Technologies spent its second full quarter as a stand-alone public company doing the thing stand-alone companies do: it bought a business, financed the purchase with a $1.0 billion term loan, and reported record sales without breaking a sweat. Net sales of $527.9 million were the highest in the company's 65-year history, up 16.4% from a year ago, and the beat arrived not from one driver but from four - Koch Filter contributing $42.4 million of incremental sales, pricing adding $12.9 million, currency adding $10.8 million, and volumes adding $8.3 million. Every line of that bridge came from the company, every line checked against the source, and every line tells the same story: the integration is the quarter, and the integration is working.
The two ways to read this print flip on what one calls organic. Reported, the company is growing twice as fast as the year-ago quarter - 16.4% on the top line, 9.3% on adjusted earnings per share to $0.82 GAAP-adjusted, and adjusted EBITDA up 14.7% to $109.1 million. Stripping out Koch Filter, the business grew about 7% organically, with pricing, currency, and volume each carrying weight. Both numbers are real. The first is what the company reported; the second is what the company actually delivered outside the deal it closed in January. The market is paying $49.79 for a stock that traded above $65 in March and as low as $42 in late summer 2025 - a roughly 25% drawdown from the high that says the integration risk was real, and a roughly 19% premium to the low that says the print did not erase it.
The balance sheet absorbed the deal. Total long-term debt rose from $570 million at year-end 2025 to roughly $1.0 billion at June 30, 2026, with the new term loan carrying a 2031 maturity and a $500 million undrawn revolver still standing behind it. Interest expense jumped 61% to $13.7 million for the quarter, and that is the cleanest read on the cost of being a $4.1 billion-market-cap company that just bought a $455 million air-filtration business. Net income was still $63.9 million, up from $59.9 million; operating cash flow was $77.8 million, up 75% from a year ago. The acquisition is on the books, the term loan is on the books, the covenant compliance is confirmed in the company's own disclosure, and the dividend - $0.055 per share quarterly - is being paid. The quarter's question is whether Koch Filter's industrial air-filtration platform earns its way into a higher multiple. The next two quarters answer it.