ATMU - Earnings call transcript Q1 2024 | Atmus Filtration Technologies Inc.

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Operator

Hello, and thank you for standing by. At this time, I would like to welcome everyone to Atmus Filtration Technologies' First Quarter 2024 Earnings Call. [Operator Instructions] I would now like to turn the conference over to Todd Chirillo, Executive Director of Investor Relations. Please go ahead.

Todd Chirillo

Thank you, operator. welcome Call. Atmus and Quarter Technologies everyone, Earnings XXXX morning, to Filtration the First Good

on on to any and the for call we Certain reconciliation website the of disclosure and Jack will On our today, forward-looking affect uncertainties of Hensler, Officer; expected results. Please Chief our be affect could Chief and that Executive could Financial involve Officer. results refer and the information materially today measures our to have presented referred risks Steph non-GAAP call. our slides for risks that a Disher,

For and our additional pages information, website please Investor on see our SEC available the filings at atmos.com. Relations

to Now I'll over Steph. call turn the

Stephanie Disher

Thank the you, strong morning, delivered We performance first Todd, in and good everyone. quarter.

our the the performance in I call update On today, quarter. will provide on an

some details financial regarding Jack delivery and for our of outlook strategy. our additional year the will Our provide comments on then provide performance. growth

Before independent a February I significant whereby performance, Atmus the quarterly exchange or an could of becoming common would on of acknowledge to offer, shareholders company exchange I like discuss Cummins announced the all a portion March fully milestone oversubscribed. on XX, stock divestiture by in Atmos. for shares XXx significant Atmos of showed in of the offer March Atmos. completed XX common separation with and transaction Cummins full approximately Investors was the shares the Cummins interest of The resulted XX. On

new Directors have Board. X former directors Taylor have appointed to and the offer, directors, resigned and Cummins successful Atmus the all the the Board of appointed With of exchange completion Diego been from Stuart independent Donoso,

deliver value Board accelerate to of I'm as for be the our Directors with of is long-term Board shareholders. and now excited A to majority we growth continue and the working Atmus independent,

to results current first the for and turn XXXX. our financial let's Now outlook quarter

X%. compared $XX to strong financial EBITDA approximately XX.X% the million million or an XX.X% in during the $XX first $XXX period costs for compared were Adjusted free first and delivered million prior to increase last excludes per Sales EBITDA of the quarter million quarter performance was Adjusted first in Adjusted million period. year, same stand-alone We same $XXX the quarter. the the for in flow share onetime million. last flow free quarter of earnings in onetime of adjusted million period $X $XX negative $X.XX cash was the was $X separation-related items. excludes $X million XXXX and cash of or year. Adjusted

provide insight some Now our me market. let global into

we saw expected, the quarter. freight As softer during activity first

in the of in However, of our has to continued started some market markets first-fit U.S., while in rerobust the China, Demand slowness India the gains share the weakness. to fall markets offsetting are in of expectations. short signs market continues show market

quarter our prior first will the down Looking quarter ahead with outlook to March global the for off-highway. index start year-over-year. both North down America, of freight month slowed year. with X% the on-highway X.X% for in we markets, rate The saw I and cash the of to aftermarket the decline In compared through

infrastructure X%. a activity year, and compared end nonresidential during up year, key of to be for are experiencing And rates depressed markets, X% the to we across in number conditions activity. flat our of see by continue expecting and construction have markets. Overall, both seeing in we aftermarket expect previous to on-highway and weakness construction utilization be are Pacific slightly prior freight aided seen off-highway flat Europe yet from our year-over-year the continue down global low to in in off-highway guidance spending. up we Asia government for with activity While to year-over-year region, not declines gradually to American North we we the freight through balance the residential of construction, still positive strength improve Economic the period. In partially are to

second the we our are markets. primarily to half of fleet turn U.S., the In declines first XXXX. Let's impact anticipating to

our and XX% We demand U.S. raising previous is remain our strong In truck, full for of XX% trucks year outlook to from are down to India China, down expected our XX%. remains for guidance the unchanged for truck at modestly persist be by weakness to to we heavy-duty X% outlook to down robust, driven in X%. flat on-highway to In performance. expect medium-duty

for mixed, first While expand our fleet. in the outlook on we market markets aftermarket plans execute continue to growth and share our and is our both

billion Our to X% global to up with of range revenue the is X%, unchanged in $X.XXX at down guidance sales billion. $X.XX

strong XX.XX% XX.XX%, continued expect adjusted deliver prior performance and unchanged to to operational of EBITDA We margins from guidance.

range Additionally, and a anticipated be adjusted $X.XX. of from to in is to prior outlook EPS $X.XX our unchanged

impacts from estimated impact onetime our separation relation and This XXXX. are in cash of of and our $XX business. In have outflow, a separated capital. have to we stand-alone and nature. our processed transparent is a I to establishing we in be Cummins, associated behalf, incurred and understanding company. performance to generation highlight we outlook, a arises in to those want cash cash items XX-day million cash We of clear which want enable flows a on cash As a with costs costs payroll result the to and change received highlight ongoing be onetime previously working flow Cummins as terms. These

flow our to managing directly, payment payroll As we this upon employees. will transition innately to own cash

on a have implementing made I progress growth moment would to to take strategy. share we Now like our the

X pillars reminder, are of a our As growth strategy. there

share first Our first step. in pillar is to grow

ventilation We OEM growing global are and this and leader position crankcase leadership fuel filtration focused are with we on customers. a products, in

growth leading with have continued winners also OEMs. other We and are winning Cummins platforms, vehicle secure to global new accelerating are the we with

American recently reach we Cummins. global new were who their for business have customers North OEM a business, to won out are and European and We part as of pursuing of of actively fuel us filtration the

interrelated focus in Our the our second profitable chain. and supply third growth and pillar are on aftermarket and transforming accelerating

on relentlessly our right is the when are and where providing it We focused customers product needed. and

our aftermarket world-class in fleet Guard Our agility the continue with gaining us products. to allows share

recently distribution our customers is volume and a being transformation now facility our component opened our with near XX% As coverage newest distribution global facilities. we warehouse Singapore. to availability. Earlier dedicated Atmus center provide product industry-leading our southern through distributed our our for inaugurated agility year, of have of we key We Dallas, of this over capabilities the continued in Texas, distribution

additional Europe We to establish throughout are centers XXXX. track in on

are will also operating focused manufacturing on of purchasing We our our automation driving our continued and investing efficiencies in areas through reduction costs. These in focus organization operations. support

adjusted of demonstrated EBITDA initiatives have of delivery during XXX We through margin our XXXX. expansion points basis our transformation

for continued Our execute on reflects as we guidance strategy. XXXX momentum our

a team is industrial opportunities, of growth pipeline our continuously this to Our intend filtration We fourth inorganically, which to pillar evaluating. expand pursue markets. into we is see and strong

disciplined with a on take will a We value. creating programmatic approach focus long-term shareholder

and priorities inorganically. Our our reflect capital continue both business, allocation will our growing on to focus organically

assessing strong who approach Atmus now quarter to We an performance. delivered our shareholders are am we to cash of are team, that independent another company. returning also of our proud I

company, independent XXXX. will growth fully a move we As we strategy through as our accelerate

financial Now more I will turn the discuss call over results to in will Jack, detail. our who

Jack Kienzler

morning, Steph, everyone. you, and Thank good

margin deliver market and of compared driven gains in an in the We Sales a increase by $XXX quarter. to $XXX volume continued impact for pricing to approximately strong quarter across increase X% same the first $XXX decrease The $X as million counterbalance sales million first X%. year, in first financial to the an of increase continued was during last million, partially performance of approximately was primarily to were period of favorable compared currency, modest the share of offset our conditions many challenging the by quarter markets. Gross XXXX. of million

research million higher will in an of EBITDA last as resulted an venture costs continue primarily in stand-alone from the impact excludes $XX onetime for offset XXXX $X costs to in from of million the million with commodities, $X be the increase year. distribution million, the from increase or million in technologies, $X $X human believe in India. and to at was XX.X% co-mingled costs we of venture information by resources. costs higher in for onetime in than up people-related expenses quarter increase Cummins, these $XX primarily of quarter These our establishment million from which more a EBITDA such $XX first an lower performance stand also prior compared to year. We with of XX.X% million to administrative the consulting to team centers period million first was we for functions period our and of prior million In $XX the same manufacturing This the driven first quarter, over or same and income costs, functions due strong excludes the quarter previously adjusted million were Adjusted period. to million. Cummins. Joint guidance range $XX of primarily joint along volumes. Selling, $X and separate million of to and the benefited related pricing, the increase freight XXXX, The and our addition $XX our in lower as $XX prior

$X Adjusted Adjusted earnings was primarily related flow in higher million of $X.XX cash separation debt last was capital to at the interest in at performance million our issued $XX per incentive achieved related our for of compared decrease previous in to share the the has first usage in payment XXXX. incurred free was quarter adjusted IPO to of was to capital Free due increased expense XXXX negative compared for primarily Cummins from million been year. The and The year. compensation $X.XX compared cash this to the cash in working higher strong to May from prior quarter XXXX. $XX year. flow $X million requirements expenditures

we are to the adjustment we the with capital behalf relates associated intercompany In As practices. on full in working XX-day and Steph with adjusting processing inefficiencies consistent with the flow historical is terms $X and prior to Cummins the payroll practices. earlier terms free on quarter, move this to our them stand-alone for cash mentioned call, separation million reimburse from also first Cummins settlement

funded incurred. As these process, cash we payroll the take obligations are as over

the the the change was expect XXXX. The compared of U.S. in earnings impact The us in for of through of of effective inefficiencies year. quarter between by to the end to tax rate XXXX third driven mix was We foreign XX.X% and these quarter XX% decrease operations. first this a

available Now to with liquidity. balance million we full strength $XXX availability our of our of million sheet. facility, hand, revolving cash combined the with the $XXX on the have continued of ended turn million let's We $XXX credit of quarter

first for position performance ended the debt months net the in Our EBITDA to during ratio of a trailing continued cash adjusted and XXXX has March quarter XX. of resulted strong XX X.Xx

strategy provides our to capital on continued and by sheet value strategic initiatives. In our their company. to focus for us a on as looking operational deploying continuing for we year work throughout shareholder our closing, first balance momentum I want flexibility year. independent organic team begin delivering Our as the thank forward inorganic fully total we as am hard and with global our and dedication I value and growth delivering creation,

Now we questions. will take your

Operator

Instructions] [Operator

from the question from The Rob comes Tami Mason. line first JPMorgan. the second And the Zakaria, of line comes of question

Tami Zakaria

gain increase new customers wallet the is share on that on quarter, some or So it you gains? you coming color? gain through side from Any OE the Is made? share in mentioned provide can the aftermarket comments you color side, the of share or in

Stephanie Disher

in I conditions. that share gains saw more there in offset market we coming our in the aftermarket, share than would say aftermarket the any the headwinds gains are primarily

that's share the where So primarily seen we've gain.

Tami Zakaria

you data side, my in the market second current require? question that cooling the used centers helpful. the liquid comment data you technology any coolant center your of is, on these That's opportunity it. to in in light for whether be And especially then end can products, Got see

Stephanie Disher

Yes.

it in strong Tami, Cummins So gen call, their see power we markets certainly we answer centers. product both strongly opportunities, the talked to think, about growth, opportunity coolant I broadly, a week this opportunities we to that data growth see market. And the question I filtration growth market. and your significant on across Certainly, have guess, linked for as

range that strong I say much would in those certainly, of drive market applications avail are coolant. that direct we and many We just think recurring in will both we that product I tailwinds standby filtration as see saw our ourselves revenue applications. of But opportunities.

Operator

comes the Baird Rob . from Our with next line question Mason of

Robert Mason

but curious if quarter. first how any you into have just I'm guidance, the internal compared just about quarterly on seasonality how may was us we plan. plan? start provide you second maybe it thoughts I can -- first I know to to And how think give you Just compared your the there's as quarter curious don't internal formal or

Stephanie Disher

Absolutely. Thanks, Rob.

overall So broadly quarter. broadly in expectations ahead share of about. the encapsulate our slightly market expectations firstly, aftermarket were market quarter that first think, how growth of driven be I'd by our slightly ahead would price our first in say in I line in mostly the share I'd would say I on expectations I aftermarket line. But gains spoke certainly, the because

in As just I to markets given outline last first in XX%, playing aligned guidance from a I've to we markets where XXXX start it our an down the truck the our of with look how guidance is see only with bit up to the heavy-duty of X.X%. to a moved customers our seeing moment. Really up ahead, the and really bit XX% X% a -- -- for change XX% U.S. out. I'll on the increase markets, are XX% midpoint with since down

Europe, It's see First Europe. in would First little So less exposure change market. Fit that's we're Fit only declining starting -- in in second got than the impact half. say earlier impact I we really in but that to we've really First in markets markets on less Fit the a that of the

And so throughout was down I the quarter, I the the is the month the I talked Fit guess, talked year-over-year. We side. regard. through I heavy freight that cash X% in the saw -- If X%. first certainly First a quarter U.S. for predominantly moderate about aftermarket, us this more to index is and this turn that's like -- down about market March

freight So for the in starting and because much improve the on significant destocking the certainly you comparables second seeing XXXX of activity through half we know, the of year, are are year-over-year. aftermarket as us. lower to

full X%. the X% to at through around aftermarket see we So year

quarter the the of describe it. with to year it is best second gradually rest how then here to I starting market, way a So lift trend the the I and guess, moderate through would is flattish describe through the

Robert Mason

helpful. That's

was all through might I completing revision went the what XXXX, go thinking or a a How those -- year, up we outlook about year. for this the you cost the as extend follow-up, just Just maybe separation there are to noticed as year. reason beyond this activities cost the

Stephanie Disher

ahead some Yes. separation, on we Thanks, and cost costs. sequential of give see that just on us. separation and then overall And Jack of to Rob. sort journey where about the context I'll story let talk we are I'll the expense what

ownership Cummins. a significant the unstacking XXXX just perspective just IPO completed of we here been of So full I an it's May -- as approach from continue months place of to step the in in XXXX, quarter. IPO. Obviously, we -- have out the we of level in And they was those services number longer agreements run a to transition service provide from a with Cummins that original no services. The to would separation XX than

of first XX% We agreements the them off, effectively. be you of winding to we those in Jack are timing about the this. of drove the significant the XXXX or done the let to that the A talk And just amount expect majorly by through revision end like. what -- for if the of cost I'll and XXXX way through quarter happened XXXX. of transition services

Jack Kienzler

Steph. Thanks, Yes.

the systems obviously, are And with of and projects, but I terms to associated IT the those make timing there, the switching systems in live balancing it's revision, transition go right In optimize want a the to certain ensuring this cost moving in risk case, we on forward. business sure Rob, by with we largely there's of really -- mitigation. settlement order pulsed get

onetime XXXX should was last again, center to one it the indicates of $X we that million anticipated of be standpoint, year say quarter, we moderation that million, the a through compares XX% that XXXX. the of terms majority as incurred -- inside with quarter, the highlighted. that from here about kind you incurred I comparison $XX the to or the the go were first range a move by were largely million, which $XX that a would distribution with our anticipate do end to say, which just We really XXXX $XX would first a tapering and substantially of more million in the year. And stuff of sequential as I see expenses progress in costs noted, of sequentially to of coincides, move, through As in we and that

Operator

from our Goldman Revich next question with Sachs. line Jerry of comes the

Jerry Revich

probably the M&A I wonder can landscape. if get I update on an

on what coming over up look what's based pipeline I'm the you like next, you range work wondering a call it, are of for company, on here year your sit folks and months how the that M&A opportunities You to you a as XX as to of public folks terms XX to and much today? capital in put might expect

Stephanie Disher

Jerry. Thanks,

expanding of As know, our part filtration markets. industrial into important strategy is you an

of working markets strong significantly. those established an a of all conducted assessing analysis are We've pipeline that that have targets. We of we're our as team

Our continuously approach out itself. to I X the get on doing assessment when right as to far. we discussed million, X $XXX acquisition a assessing numbers those. step filtration. a is programmatic terms the speak. We've not of that sort It our with And a really, really I you forward, so out consistent have way with for that present number at a year in us price, that $XXX see that footprint we as first of to The in with I've difficult team cadence this acquisitions that decided see million could each the capital going of as proceed transaction industrial guess, always, important to really we playing underway. And exactly are build outlay around will previously. opportunity through is what and worked M&A, predict

whilst balancing the specifically through landscape, balancing, strong to growth We're strong into our it, shareholders. markets on returns focused that's So to a yet. very pipeline targets pivoting of working nothing as I report attractive see company

Jerry Revich

you for that's point. on engine think at to Can good of X-year you the about U.S. regulations warranty that then this specifications. range what And the increases XXXX visibility type you have on platforms program part And your it then be Super. business, included, will warranty as essentially talk engine going mean we the expect new a about could Okay. content see platform. entire be to of the on

see share to on essentially higher as market warranty of So extent truck. could what you result every that a extended

Stephanie Disher

Yes. Thanks, Gary.

pursuing new big fuel to been we OE of expect, all the certainly you platforms gives with emissions, We're of secured a and crankcase filtration regulations, leader look XXXX details the for we into specific on sales all rising more ventilation. team, our think in would in in move without ahead those products as a to change actively opportunities to us those We've are platforms. Cummins. And of content the focus filtration And to needs. because I that's that's required going rise filtration our as for team. this emissions significant complexity sales

certainly we So platforms space. really strong XXXX with in that had and on, see filtration we're crankcase and we've the the ventilation wins that fuel

really we In high a terms about that of ownership, retention warranty first . [indiscernible] your we see in -- question very and aftermarket

So would about certainly, be would see way is I the of associated warranty, would of extended the I would think aftermarket periods as expect trend I we extend to capture this have our see you with that.

Operator

question Fargo. Joseph next Our of Wells with from the line comes O'Dea

Joseph O'Dea

bit. aftermarket incumbent of terms touch Just think the in approach talk that has advantage. a natural little about replacement, share your like-for-like sort wanted the the I of on to to and would gains

pricing to picking of sort And there, doing of you what whether the what on efforts how so quantification much you're products gaining been And side? any new on more when you're have introducing compete share that's broadly going the up. think share aftermarket, in you're

Stephanie Disher

Yes.

as those in underneath the about we're that would of profitable aftermarket it growth working things I a would of initiatives, number we've very say, that driving in has starting accelerating think our focus see been disciplined come say of And to I there's share. fruition. many strategy on. a number areas aftermarket, pillar, And you So to

is is we first just that and the where aftermarket it. on highly got very availability having need a sure so we've And making distribution capable focused product customers network

before, management, chain common mentioned times this our market. supply our intermingled is several were first-fit previously, I predominantly distribution think I've Cummins centers with

product. right able in to And where our was on their weren't have putting And customers weren't that's way so been prefer It the customers terms actually to to that of because we've availability just just capture they be. we meant in needed needs we our it it our in focusing products. gains

driving the markets across in also So share a part that It's other our that's of but been would world. predominantly U.S., seen gain. the we've been across big I say,

first with seeing come out the that's in successful say share gains is that are the of as thing I their those say This strategy So our to aftermarket that with in market would playing well. in growing winning share. partnered would I life. and that's winners

and see well, flow-on we're capturing the really that. So that seeing partnered with that we we're as those benefits of are share

there's front. addition, been pushing other would a that the I say In initiatives of aftermarket number on we've

our Guard revamped not to have and see aftermarket. able We in across that flowing capability through the as starting that that awareness the marketing see we around filtration our science are have to brand, match. And of branding to Fleet that our benefits starting competitors we're increases

aftermarket. This of and to link our well. is But I So wouldn't things it's outcomes to ever to customers. that network tailoring most for thing in about distribution really was one I from, drive doing where lot to a it availability of is coming it point

Joseph O'Dea

ask anticipated. for what that in year. you're the even and what But rest the on details. of seeing quarter then of wanted aftermarket And revenues in can outlook if did comment just for in the also the than quarter? better of it's on to then trended you point It sort I And lead outlook. terms year than you previously what maybe of lower think terms you in that had the aftermarket would appreciate line, the to a that all you maybe like seems

Stephanie Disher

Yes.

without share I gains aftermarket due I talked So than I largely expected, the was the quarter in we about. stronger that think laboring, guess to

reliable closely a correlated U.S. us freight heavily that's with as predictor to of As market the on aftermarket the and cash the ahead pretty are, source of market really revenues. we We've guess, our relying pretty we index. I pretty for the external a outlook, source look seen market

we that. to increase, we see activity as freight So aftermarket see our revenues tend follow

slightly -- for And QX from way that revised QX down so a kind index memory. year, the softer have the they freight out cash of is softer played a that have slightly their and outlook the

think we hopefully the here. And future, as interesting be move QX positive then activity guidance will I see QX freight more we for monitor watch to outlook our territory year-over-year. and into

so we And for important health the us that the will aftermarket an as the of be look to sign throughout XXXX. of rest

Operator

next of comes Our Brooks with Gartland Bob from line Securities. question the

Robert Brooks

still So just because from trying talk progressed as in just to winning they you've inroads share at gains split you bid who with got the how looked off you could that starting almost -- some to of road that production ownership? a broadly, with discuss you you the about sorry about that prepared willing engage in in that Cummins. I the to wanted mentioned year first market we the switching know, used it previously have to since it your maybe remarks. within contract and the be Steph, post talk exchange to first-fit I'm those Maybe more up or maybe now initial but fit helping made could map And first felt interrupt, not have X ahead. are OEMs weren't pre-share larger go competitor? Were

Stephanie Disher

it. appreciate for Bobby, the I Thank question. No. you,

a sensitive I in Firstly, advance, sense of call this work always whilst obviously, noted give you my out, you information. it's managing out prepared commercially I remarks, in tricky would as how to

have where Cummins. and seeing my I on straddle wins customers seeing are fit on first emphasize more that. is [indiscernible] wins to will filtration where filtration with client technology beyond do advantage, that we're clear we I'll side the side, on our best here side, more right? And so fuel we the So

referenced I us in in gains we've so driven for that has North Europe. one American market won And that recently and the

of target are say So progress then discussions other based, initial a win parts I we really great would good growth customers. not world, been in other making also we've but the very made only say good with And I'd here. And with they're the U.S. progress. that's

and focused consciously our team resources We deliberately increase on to have winning and business. invested there, in carbon the this sales

to be of And them, ahead unfortunately. also able I'll to the here, so those we hopefully, as share see not of in effort be profits move probably with and you, able advance that

Robert Brooks

maybe interested Atmus aftermarket definitely Yes. people discussions in aftermarket drops I works. appreciate high how exposures. my But with and flip just that obviously, positive is No, your most of I think I aftermarket things just the with while to you with while investors, necessarily And could high aftermarket in I that right that keeping that with sticking that XX%, mean job am first first-fit new first-fit on notable new fit, doesn't can can win the are know, XX%, to one winning still weighting, keeping wins to thinking notable XX% that, like make your you that exposure to, exposure? don't make say, wins back

Stephanie Disher

significant aftermarket base installed Yes. make that we're in comments on growth. couple We're focused impact. the further grow I'd very our out just first to technology drive aftermarket continues also anyway installed our that wear there. vehicle that. a a that a that have doing where We base we that where which advantage flywheel We from naturally see certainly already of activity is have

So I our that, think XX-XX of is And for mix the whilst grow that sides holds. the to about I both think right business. mix we're certainly, looking

Robert Brooks

just line question stores of maybe exciting of awesome. me the I years exciting Cummins France automated the a previously in some talked of fully about the your in Terrific. one And is, my part -- you've one of facility. the able in last most then that cow. the being so most to cash reinvestment view, for being after business reinvest as That's -- mean manufacturing initiatives in such

and programs just And that reinvestment So this maybe generally, discuss expectations? to as could learnings you early from on any overall curious more progressed how learning have thoughts broadly, versus well. the specifically them. you just hear maybe maybe early and But discuss just Jack's

Stephanie Disher

Jack, this do take you want to one?

Jack Kienzler

Yes, sure.

So I question, think Bobby. for -- the thanks

both Cummins targeted I to to and initiatives capacity of to the us of outside growth as sales and the for their meet increase key we initiatives move is customers, expectations. make with teams engage capital environment one our we work as accommodate think absolutely to expenditures

so fully It the automated our And you highlighted in. have cartridge is is those, in of green line. first compare which put France automated one line facility, that we fully

continue course, there, X% markets expenditure some really largely to do which opportunities, see largely to leverage all we'll learnings to the But inorganic learnings think then as need identify and now of -- the what to to -- come as needs our growth. space. been standpoint initiatives into in that invest continue standpoint. is assess other potentially a new to production, that capital it's X% into of us an allowed we we those customers' that On business. I So has of into meet are but continue full to there win then we've to good still top of accommodate line discussed we we're from the from where range top thinking new organic

Operator

line from comes of Andrew next our of Bank question the Obin with America.

David Ridley-Lane

This Ridley-Lane for is Andrew. David on

wanted independent stats has some market the you this within about quarter? share are initiatives signing just last You see I you. Is could relevant growth in had very of the the for to distributor about new grow if first channel here share good year. most you gain getting distributors? How that to continued kind in share kind as the this up of distributors of this

Stephanie Disher

got I question. that U.S. describe that. is is see a best Yes. our particular, the established the by how different I bit customers the our on-highway it to in really, say, different best for we've today. service, with footprint We region Thanks, in would partners David, would

partnered their that say a consequence would well I the a flow-on capable U.S. has how and mature, that network, about very distributors. I that So being are winners with in talked growing aftermarket. distribution operating very the share also established,

think some expansion better with like customers, those although So those about see growing coming whereas network largely is other Latin I an that's the doing the that of markets there for really benefits it distributors consciously. And aftermarket expanding well. that. America, through opportunity, of significant we on seen we've in example, emphasis really as

be partnered how doing with that distributors to in distribution growth aftermarket. region would to in it well. and those looking a looking by really growth about emerging think way region mature, would quickly established, regions, the capable it winners is the tailored other The really our regions So the to are support is expand network you. And that to really we've we're I capable where focus. profitable then I is got describe

David Ridley-Lane

separated And return on you updated shareholders? now you priorities Board, to the have or update free cash do formally from cash and an possible any flow are with Cummins that of sort for

Stephanie Disher

through I in of markets capital I both our our funding first form still where into is, way for is and look The did growth our allocation the strategy prepared on focus remarks. make that's and a inorganically organically opportunity significant expand about assessing think in industrial Obviously, what core growth our decision a see markets. After some we certainly my dividend mention Board. foremost, filtration independent we to our both like, return of shareholders new would in as that, buybacks. we are this now share and

on as returns when and working through with we're is So provide appropriate be updates to able shareholders. to those discussions we'll and them,

Operator

this time. are questions at There no further

turn over Todd I'll the to So back Chirillo. call

Todd Chirillo

concludes for participating interest. today. you all our your That and continued for Thank teleconference

call. be the Relations the available will for team As after you. always, Thank questions Investor

Operator

today's Concludes call. conference

You may now disconnect.

Atmus Filtration (ATMU) 3 May 242024 Q1 Earnings call transcript