What Atmus Filtration Technologies Inc. told the SEC could break it.

Rapidly changing U.S. and European export controls and sanctions on China (and Russia) could impair Atmus' ability to collect receivables, provide aftermarket and warranty support, and sell products in those markets — a direct concern given its Shanghai Fleetguard China JV and China sales.

“Embargoes, sanctions, and export control laws are changing rapidly for certain geographies, including with respect to China and Russia. In particular, changing U.S. and European export controls and sanctions on China, as well as other restrictions affecting transactions involving China and Chinese parties and Russia and Russian parties, could affect our ability to collect receivables, provide aftermarket and warranty support for our products, sell products.”

Atmus' global manufacturing footprint and China/India joint ventures expose it to the new and substantial U.S. tariff increases announced since February 2025 on imports from China, Mexico, Canada and India, plus sector-specific measures and retaliatory tariffs that raise input/import costs and disrupt cross-border supply.

“since February 2025, the U.S. presidential administration has announced new and substantial tariff increases on imports to the United States from China, Mexico, Canada and India. Since then, various modifications and delays to these tariffs have been implemented, with further changes anticipated.”

Atmus' principal manufacturing inputs are steel, filter media and petrochemical-based products (plastic, rubber, adhesives), and material costs were roughly 60% of cost of sales in 2025 — so steel and petrochemical price inflation (or tariffs on those inputs) materially pressures margins, even though the company believes the materials are available from numerous sources.

“The principal materials that Atmus uses directly in manufacturing its products are steel, filter media and petrochemical-based products, including plastic, rubber and adhesives products. Atmus expects these materials to be available from numerous sources in quantities sufficient to meet our requirements. In 2025, material costs represented approximately 60% of Atmus' cost of sales”