Atmus Filtration Technologies Inc.
For the period ended Jun 30, 2025. Filed Aug 8, 2025.
View on SEC.govAbout this filing
A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Jun 30, 2025 · Filed Aug 8, 2025
ATMU$50.60+9.6%Stored close · as of Nov 6, 2026
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-Q
Period ended 2025-03-31; filed 2025-05-02.
0001921963-25-000075
Item 2. Management's Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2025-06-30; filed 2025-08-08.
0001921963-25-000121
Item 2. Management's Discussion and Analysis of Financial Condition and Results of OperationsThe baseline is this issuer’s latest earlier reporting period of the same form that was filed before the current report. A previous 10-Q is a different quarter, not a year-over-year comparison. Amendments are excluded.
Compared 133 previous paragraphs and 149 current paragraphs.
108 unchanged; 22 reworded; 17 added; 3 removed; 0 previous and 2 current paragraphs rearranged.
Tables are not compared: 6 previous and 8 current tables excluded. Dates, whitespace, punctuation and numbering changes are ignored; changes to financial figures remain significant.
A changed paragraph is not evidence that risk increased or decreased. An unchanged paragraph does not establish that risk stayed the same.
Added paragraphs (17)
Current report
Aftermarket demand remained soft in the first six months of 2025. We continue to be in a period of slow growth in global aftermarkets, and this trend is expected to continue through the second half of 2025. First-fit experienced reduced demand in the first six months of 2025 reflecting depressed market conditions. First-fit demand is expected to remain at reduced levels through the second half of 2025 based on overall market cyclicality.
Current report
We have experienced variability in direct material costs through the first half of 2025. Various key commodities have been exposed to inflationary pressures, primarily due to the impact of tariffs. While the costs of our principal materials fluctuate, generally we believe there will continue to be an adequate supply of the materials we use and that they will broadly remain available.
Current report
During the first six months of 2025, our Selling, general and administrative expenses decreased due to lower one-time separation expenses.
Current report
Net sales were$453.5 million for the three months ended June 30, 2025, an increase of$20.9 million compared to$432.6 million for the three months ended June 30, 2024. The increase in Net sales was mainly due to favorable volumes of $15.0 million and pricing of $10.2 million, offset by unfavorable impacts of currency of $4.3 million.
Current report
Selling, general and administrative expenses were$46.1 million for the three months ended June 30, 2025, a decrease of$3.0 million compared to$49.1 million for the three months ended June 30, 2024. The decrease was primarily driven by lower one-time separation costs of $3.5 million, partially offset by higher consulting expenses. Selling, general and administrative expenses as a percentage of Net sales were 10.2% for the three months ended June 30, 2025, a decrease of 1.1 percentage points compared to 11.3% for the three months ended June 30, 2024. The decrease in Selling, general and administrative expenses as a percentage of Net sales was primarily driven by the items noted above.
Current report
Research, development and engineering expenses were$10.7 million for the three months ended June 30, 2025, an increase of$0.3 million compared to$10.4 million for the three months ended June 30, 2024. The increase was primarily due to timing of engineering projects. Research, development and engineering expenses as a percentage of Net sales were 2.4% for the three months ended June 30, 2025 consistent with 2.4% for the three months ended June 30, 2024.
Current report
Six Months Ended June 30, 2025 Compared to the Six Months Ended June 30, 2024
Current report
Net Sales
Current report
Gross Margin
Current report
Gross margin was$241.5 million for thesix months ended June 30, 2025, a decrease of$2.2 million compared to$243.7 million for thesix months ended June 30, 2024. The decrease in Gross margin was mainly due to unfavorable logistics costs of $12.9 million, $6.3 million in unfavorable currency impacts and a $5.6 million increase in one-time separation costs, partially offset by favorable pricing of $15.0 million as described above, favorable volumes of $4.0 million, a $2.3 million decrease in warranty costs and a $1.3 million decrease in manufacturing and other costs. Gross margin as a percentage of Net sales was 27.8% for thesix months ended June 30, 2025, a decrease of 0.6 percentage points compared to 28.4% for thesix months ended June 30, 2024. The decrease in Gross margin as a percentage of Net sales was primarily due to the items noted above.
Current report
Selling, General and Administrative Expenses
Current report
Research, Development and Engineering Expenses
Current report
Other Operating (Income) Expense, Net
Current report
Other operating (income) expense, net was$(0.2) million for thesix months ended June 30, 2025, a decrease of$1.2 million compared to$1.0 million for thesix months ended June 30, 2024. The change was primarily due to prior year asset write-offs in 2024 that did not recur.
Current report
Interest Expense
Current report
Interest expense was$16.9 million for thesix months ended June 30, 2025, a decrease of$4.1 million compared to$21.0 million for thesix 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.
Current report
Income Tax Expense
Removed paragraphs (3)
Previous report
Aftermarket and first-fit demand continued to soften in the first three months of 2025 reflecting depressed market conditions across many of our key markets. These market conditions reflect the general economic uncertainties attributable to the recent U.S. government tariff announcement and the retaliatory measures of certain other countries.
Previous report
Direct material cost pressures, driven largely by steel, resin and other petrochemical products, have generally stabilized, though rising costs were observed in the latter portions of the period.
Previous report
During the first three months of 2025, our Selling, general and administrative expenses increased as a result of increased people-related and consulting expenses.
Reworded paragraphs (22)
Previous wording
The following is our discussion and analysis of changes in our financial condition and results of operations for thethree months ended March 31, 2025 compared to thethree months ended March 31, 2024.
Current wording
The following is our discussion and analysis of changes in our financial condition and results of operations for thethree and six months ended June 30, 2025 compared to thethree and six months ended June 30, 2024.
Previous wording
Additional information about these future factors and the material factors or assumptions underlying such forward-looking statements may be found under the section entitled Risk Factors in our Annual Report on Form 10-K for the year ended December 31, 2024 and the section entitled Risk Factorsin this Quarterly Report on Form 10-Q. It is not possible to predict or identify all such factors, and the risks described above should not be considered a complete statement of all potential risks and uncertainties.
Current wording
Additional information about these future factors and the material factors or assumptions underlying such forward-looking statements may be found under the section entitled Risk Factors in our Annual Report on Form 10-K for the year ended December 31, 2024, as such factors may be updated from time to time in Atmus’ periodic filings with the Securities and Exchange Commission. It is not possible to predict or identify all such factors, and the risks described above should not be considered a complete statement of all potential risks and uncertainties.
Previous wording
The United States has recently announced changes to U.S. trade policy, including increasing tariffs on imports, in some cases significantly, and potentially negotiating or terminating existing trade agreements. For example, on April 2, 2025, the United States announced a new universal baseline tariff of 10%, plus an additional country-specific tariff for select trading partners, most notably, a 145% tariff on substantially all products of Chinese origin, on all U.S. imports. These actions, and retaliatory tariffs imposed by other countries on U.S. exports, have led to significant volatility and uncertainty in global demand in both aftermarket and first-fit. We are continuing to evaluate demand for our products in affected markets, along with these developments, and our ability to offset a portion of these costs to mitigate the impact on our business, consolidated results of operations, and financial condition. For more information, see Item 1A, Risk Factors.
Current wording
During the first half of 2025, the United States announced changes to U.S. trade policy, including increasing tariffs on imports, in some cases significantly, and potentially negotiating or terminating existing trade agreements. The United States also indicated that tariffs may change and that additional measures are under consideration to be introduced. These tariff and tariff-related measures include potential impacts to the industry in which we operate and the commodities to which our products are exposed. These actions, along with corresponding retaliatory tariffs imposed by other countries on U.S. exports, have led to significant volatility and uncertainty in global demand in both aftermarket and first-fit. In response to these developments, we mitigated the cost impact on our business by employing any exemptions for which we were eligible, such as compliance under the United States-Mexico-Canada Agreement (“USMCA”), adjustment to our supply chain, and select price adjustments. We will continue to evaluate opportunities to offset these costs and mitigate the impact on our business, consolidated results of operations and financial condition. Given the uncertainties, it is difficult to estimate the evolving tariff and policy landscape which may have a material impact on our profitability going forward.
Previous wording
Our Registration Statement on Form S-1, as amended, filed on May 16, 2023, was declared effective on May 25, 2023, and our common shares began trading on the New York Stock Exchange under the symbol “ATMU” on May 26, 2023. On May 30, 2023, the IPO was completed through Cummins’ exchange of 16,243,070 shares of our common stock, including the underwriters’ full exercise of their option to purchase an additional 2,118,661 shares to cover over-allotments. None of the proceeds of the IPO were for the benefit of Atmus. As of the closing of the IPO, Cummins owned approximately 80.5% of the outstanding shares of our common stock.
Current wording
Our Registration Statement on Form S-1, as amended, filed on May 16, 2023, was declared effective on May 25, 2023, and our common shares began trading on the New York Stock Exchange under the symbol “ATMU” on May 26, 2023. On May 30, 2023, the IPO was completed through Cummins’ exchange of 16,243,070 shares of our common stock, including the underwriters’ full exercise of their option to purchase an additional 2,118,661 shares to cover over-allotments. None of the proceeds of the IPO were for the benefit of
Previous wording
While overall supply chain conditions continue to affect inventory and backlog levels, they have largely stabilized with minimal disruptions now being experienced and backorders largely recovered. Our management team continues to monitor and evaluate all of these factors and the related impacts on our business and operations, and we are diligently working to continue to minimize any supply chain impacts to our business and to our customers.
Current wording
Overall supply chain conditions remained largely stable in the first six months of 2025 with minimal disruptions being experienced. Logistics costs increased during the first half of 2025, primarily due to the impact of tariffs. Our management team continues to monitor and evaluate all of the factors affecting our supply chain condition and the related impacts on our business and operations, and we continue to minimize any supply chain impacts to our business and to our customers.
Previous wording
Additionally, the appreciation of the U.S. dollar against foreign currencies had an unfavorable impact on our condensed consolidated results of operations in the first three months of 2025 due to translation impacts. We remain in a volatile currency environment and as such, there can be no assurances that this trend will continue for the remainder of 2025.
Current wording
Additionally, the appreciation of the U.S. dollar against certain foreign currencies had an unfavorable impact on our condensed consolidated results of operations in the first six months of 2025 due to translation impacts. We remain in a volatile currency environment and as such, there can be no assurances that this trend will continue for the remainder of 2025.
Previous wording
We have incurred, and expect to continue to incur, additional costs associated with becoming a standalone public company. During the three months ended March 31, 2025, we incurred approximately $9.3 million of one-time expenses including $6.8 million within Cost of sales and $2.5 million within Selling, general and administrative expenses. We expect to incur one-time expenses of approximately $10 million to $15 million in 2025 in connection with becoming a standalone public company. In addition, we expect to incur capital expenditures in connection with the Separation of approximately $5 million to $10 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 March 31, 2025, were primarily associated with establishing our own standalone warehouse in Belgium as we worked to ensure we were supporting customer needs. These expenses and capital expenditures are expected to be complete by the end of 2025. The actual amount of the expenses and capital expenditures we will incur as a stand-alone public company may be higher, perhaps significantly, from our current estimates for a number of reasons, including, among others, the final terms we are able to negotiate with service providers, as well as additional costs we may incur that we have not currently anticipated. Additionally, the actual timing of when we incur these incremental expenses may be different, perhaps significantly, from our current estimates for a number of reasons, including, among others, unforeseen events that may cause delays or interruptions in our plans or our service providers’ ability to provide their services.
Current wording
We have incurred, and expect to continue to incur, additional costs associated with becoming a standalone public company. During the three months ended June 30, 2025, we incurred approximately $2.5 million of one-time expenses including $1.9 million within Cost of sales and $0.6 million within Selling, general and administrative expenses. During the six months ended June 30, 2025, we incurred approximately$11.8 million of one-time expenses including $8.7 million within Cost of sales and $3.1 million within Selling, general and administrative expenses. We expect to incur one-time expenses of approximately $10 million to $15 million in 2025 in connection with becoming a standalone public company. In addition, we expect to incur capital expenditures in connection with the Separation of approximately $10 million to $15 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 six months ended June 30, 2025, were primarily associated with establishing our own standalone warehouse in Belgium as we worked to ensure we were supporting customer needs and our technology transformation and modernization project. These expenses and capital expenditures are expected to be complete by the end of 2025. The actual amount of the expenses and capital expenditures we will incur as a stand-alone public company may be higher, perhaps significantly, from our current estimates for a number of reasons, including, among others, the final terms we are able to negotiate with service providers, as well as additional costs we may incur that we have not currently anticipated. Additionally, the actual timing of when we incur these incremental expenses may be different, perhaps significantly, from our current estimates for a number of reasons, including, among others, unforeseen events that may cause delays or interruptions in our plans or our service providers’ ability to provide their services.
Previous wording
Gross margin was$110.5 million for the three months ended March 31, 2025, a decrease of$1.3 million compared to$111.8 million for the three months ended March 31, 2024. The decrease in Gross margin was mainly due to $4.8 million in unfavorable currency impacts, a $3.5 million increase in one-time separation costs, $2.2 million of unfavorable logistic costs and lower volumes of approximately $1.2 million, partially offset by $4.8 million of favorable pricing impacts as described above, a $3.9 million decrease in manufacturing and other costs and a $1.7 million decrease in warranty costs. Gross margin as a percentage of Net sales was 26.5% for the three months ended March 31, 2025, an increase of 0.3 percentage points compared to 26.2%for the three months ended March 31, 2024. The increase in Gross margin as a percentage of Net sales was primarily driven by the items noted above decreasing at a higher rate in relation to the change in Net sales.
Current wording
Gross margin was$131.0 million for the three months ended June 30, 2025, a decrease of$0.9 million compared to$131.9 million for the three months ended June 30, 2024. The decrease in Gross margin was mainly due to unfavorable logistics costs of $10.7 million, a $2.1 million increase in one-time separation costs, unfavorable manufacturing and other costs of $2.0 million and $1.5 million in unfavorable currency impacts, partially offset by favorable pricing of $10.2 million as described above, and favorable volumes of $5.2 million. Gross margin as a percentage of Net sales was 28.9% for the three months ended June 30, 2025, a decrease of 1.6 percentage points compared to 30.5%for the three months ended June 30, 2024. The decrease in Gross margin as a percentage of Net sales was primarily driven by the items noted above.
Previous wording
Interest expense was$8.4 million for the three months ended March 31, 2025, a decrease of$2.1 million compared to$10.5 million for the three months ended March 31, 2024. The decrease was primarily driven by lower outstanding borrowings on our Credit Agreement as principal payments are made.
Current wording
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.
Previous wording
Our effective tax rate for the three months ended March 31, 2025 was 21.3%, a decrease of 0.7 percentage points compared to 22.0% for the three months ended March 31, 2024. The decrease in the effective tax rate was driven by a change in the mix of earnings among tax jurisdictions. 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.
Current wording
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.
Previous wording
Net sales were$416.5 million for the three months ended March 31, 2025, a decrease of$10.1 million compared to$426.6 million for the three months ended March 31, 2024. The decrease in Net sales was mainly due to unfavorable impacts of currency of $11.4 million and lower volumes of approximately $3.5 million, partially offset by $4.8 million of favorable pricing impacts.
Current wording
Net sales were$870.0 million for thesix months ended June 30, 2025, an increase of$10.8 million compared to$859.2 million for thesix months ended June 30, 2024. The increase in Net sales was mainly due to $15.0 million of favorable pricing impacts and higher volumes of $11.5 million, partially offset by the unfavorable impacts of currency of $15.6 million.
Previous wording
Selling, general and administrative expenses were$45.9 million for the three months ended March 31, 2025, an increase of$2.6 million compared to$43.3 million for the three months ended March 31, 2024. The increase was primarily driven by increased people-related and consulting expenses of $2.6 million. Selling, general and administrative expenses as a percentage of Net sales were 11.0% for the three months ended March 31, 2025, an increase of 0.8 percentage points compared to 10.2% for the three months ended March 31, 2024. The increase in Selling, general and administrative expenses as a percentage of Net sales was primarily driven by the items noted above.
Current wording
Selling, general and administrative expenses were$92.0 million for thesix months ended June 30, 2025, a decrease of$0.4 million compared to$92.4 million for thesix months ended June 30, 2024. The decrease was primarily driven by lower one-time separation costs of $3.7 million, partially offset by increased people-related and consulting expenses. Selling, general and administrative expenses as a percentage of Net sales were 10.6% for thesix months ended June 30, 2025, a decrease of 0.2 percentage points compared to 10.8% for thesix months ended June 30, 2024. The decrease in Selling, general and administrative expenses as a percentage of Net sales was primarily driven by the items noted above.
Previous wording
Research, development and engineering expenses were$9.1 million for the three months ended March 31, 2025, a decrease of$1.0 million compared to$10.1 million for the three months ended March 31, 2024. The decrease was primarily due to lower people-related expenses. Research, development and engineering expenses as a percentage of Net sales were 2.2% for the three months ended March 31, 2025, a decrease of 0.2 percentage points compared to 2.4% for the three months ended March 31, 2024. The decrease in Research, development and engineering expenses as a percentage of Net sales was mainly due to the item noted above.
Current wording
Research, development and engineering expenses were$19.8 million for thesix months ended June 30, 2025, a decrease of$0.7 million compared to$20.5 million for thesix 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 thesix months ended June 30, 2025, a decrease of 0.1 percentage points compared to 2.4% for thesix 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.
Previous wording
Equity, royalty and interest income from investees were$9.2 million for the three months ended March 31, 2025, a decrease of$1.2 million compared to$10.4 million for the three months ended March 31, 2024. The decrease was due to lower earnings of$1.2 million from our joint ventures, primarily driven by market conditions in India.
Current wording
Equity, royalty and interest income from investees was$16.7 million for thesix months ended June 30, 2025, a decrease of$1.9 million compared to$18.6 million for thesix 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.
Previous wording
Our facilities under the Credit Agreement provide for $1.0 billion in total availability, which includes a $600 million term loan and a $400 million revolving credit facility. As of March 31, 2025, we have outstanding borrowings of $588.8 million on the term loan and zero on the revolving credit facility. As a result, we had capacity under our revolving credit facility of $400 million as of March 31, 2025.
Current wording
Our facilities under the Credit Agreement provide for $1.0 billion in total availability, which includes a $600 million term loan and a $400 million revolving credit facility. As of June 30, 2025, we have outstanding borrowings of $585.0 million on the term loan and zero on the revolving credit facility. As a result, we had capacity under our revolving credit facility of $400 million as of June 30, 2025.
Previous wording
Net cash provided by operating activities was$28.7 million for thethree months ended March 31, 2025, an increase of$36.9 million compared to Net cash used in operating activities of$8.2 million for thethree months ended March 31, 2024. The increase was driven primarily by lower working capital requirements of$37.0 million, partially offset by lower income from equity method investees of $2.7 million. During thethree months ended March 31, 2025, lower working capital requirements resulted in a cash outflow of$22.1 million compared to a cash outflow of$59.1 million for thethree months ended March 31, 2024, mainly due to higher trade payables, lower inventory and lower prepaids.
Current wording
Net cash provided by operating activities was$73.1 million for thesix months ended June 30, 2025, an increase of$58.4 million compared to$14.7 million for thesix months ended June 30, 2024. The increase was driven primarily by lower working capital requirements of$50.4 million. During thesix months ended June 30, 2025, lower working capital requirements resulted in a cash outflow of$41.3 million compared to a cash outflow of$91.7 million for thesix months ended June 30, 2024, mainly due to higher trade payables, lower inventory and lower prepaids, partially offset by higher trade receivables.
Previous wording
Dividends received from our unconsolidated equity investees were$5.7 million and$9.6 million for thethree months ended March 31, 2025 and March 31, 2024, respectively.
Current wording
Dividends received from our unconsolidated equity investees were$5.7 million and$9.6 million for thesix months ended June 30, 2025 and June 30, 2024, respectively.
Previous wording
Net cash used in investing activities for thethree months ended March 31, 2025 and March 31, 2024 was primarily used for capital expenditures. Our capital expenditures were$12.4 million (of which approximately$3.5 million related to one-time separation costs) and$10.6 million (of which approximately$2.8 million related to one-time separation costs) for thethree months ended March 31, 2025 and March 31, 2024, respectively, corresponding to approximately 3.0% and 2.5% of Net sales for thethree months ended March 31, 2025 and March 31, 2024, respectively.
Current wording
Net cash used in investing activities for thesix months ended June 30, 2025 and June 30, 2024 was primarily used for capital expenditures. Our capital expenditures were$24.4 million (of which approximately$6.6 million related to one-time separation capital expenditures) and$22.2 million (of which approximately$7.3 million related to one-time separation capital expenditures) for thesix months ended June 30, 2025 and June 30, 2024, respectively, corresponding to approximately 2.8% and 2.6% of Net sales for thesix months ended June 30, 2025 and June 30, 2024, respectively.
Previous wording
Net cash used in financing activities for thethree months ended March 31, 2025 was$17.9 million compared to$0.0 millionfor thethree months ended March 31, 2024. Net cash used in financing activities for thethree months ended March 31, 2025 consisted primarily of repurchases of common stock, dividends paid and payments made on our term loan.
Current wording
Net cash used in financing activities for thesix months ended June 30, 2025 was$45.9 million compared to$0.0 millionfor thesix months ended June 30, 2024. Net cash used in financing activities for thesix months ended June 30, 2025 consisted primarily of repurchases of common stock, dividends paid and payments made on our term loan.
Previous wording
We paid dividends of$4.1 million in the first three months of 2025 and none in the first three months of 2024. The first quarter 2025 dividend of $0.05 per share, declared on February 19, 2025 for shareholders of record as of March 4, 2025, was paid on March 19, 2025. The declaration of dividends is subject to the discretion of our Board of Directors and depends on various factors, including our net earnings, financial condition, cash requirements, future prospects and other factors that our Board of Directors deems relevant to its analysis and decision making.
Current wording
We paid dividends of$8.3 million in the first six months of 2025 and none in the first six months of 2024. The first quarter 2025 dividend of $0.05 per share, declared on February 19, 2025 for shareholders of record as of March 4, 2025, was paid on March 19, 2025. The second quarter of 2025 dividend of $0.05 per share, declared on May 21, 2025 for shareholders of record as of June 3, 2025, was paid on June 18, 2025. The declaration of dividends is subject to the discretion of our Board of Directors and depends on various factors, including our net earnings, financial condition, cash requirements, future prospects and other factors that our Board of Directors deems relevant to its analysis and decision making.
Previous wording
Our total debt was$588.8 million at March 31, 2025 and $600 million at December 31, 2024. At March 31, 2025, the weighted-average term of our outstanding long-term debt was 2.6 years. Refer to Note 9, Debt and Borrowing Arrangements, to the Condensed Consolidated Financial Statements for more information on our debt and debt covenants.
Current wording
Our total debt was$585.0 million at June 30, 2025 and$592.5 million at December 31, 2024. At June 30, 2025, the weighted-average term of our outstanding long-term debt was 2.4 years. Refer to Note 9, Debt and Borrowing Arrangements, to the Condensed Consolidated Financial Statements for more information on our debt and debt covenants.
Previous wording
(a)Primarily comprised of one-time expenses related to Information Technology, warehousing, manufacturing and Human Resources separation costs and the related tax impact of those expenses. The tax impact of one-time separation costs for the three months ended March 31, 2025 and 2024 were $2.0 million and $1.3 million, respectively.
Current wording
(a)Primarily comprised of one-time expenses related to Information Technology, warehousing, manufacturing and Human Resources separation costs and the related tax impact of those expenses. The tax impact of one-time separation costs for the three months ended June 30, 2025 and 2024 were $0.5 million and $0.8 million, respectively, and for the six months ended June 30, 2025 and 2024 were $2.5 million and $2.1 million, respectively.
Rearranged current paragraphs (2)
Current report — wording carried from elsewhere
Atmus. As of the closing of the IPO, Cummins owned approximately 80.5% of the outstanding shares of our common stock.
Current report — wording carried from elsewhere
Our effective tax rate for thesix months ended June 30, 2025 was 21.6%, a decrease of 0.3 percent percentage points compared to 21.9% for thesix 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 rates applicable to foreign subsidiaries, withholding taxes and state income taxes.