Good morning, everybody. Thank you so much for joining us. Once again, I'm Jerry Revich, Wells Fargo Securities, thrilled to have with me here, from Atmus Filtration, Jack Kienzler, Chief Financial Officer. Jack, thanks so much for joining our conference. Thanks, Jerry, for having me, thank you everyone for your interest. It's great to be here. Jack, to kick off the conversation, just want to go back to the four pillar growth strategy that you folks outlined. You spoke about grow share and first-fit, accelerate aftermarket, transform the supply chain, and expand into industrial filtration. You've made progress on all four points. Let's start with first-fit share. What has been the key progress since the spin, do you have room to drive market share higher? Yeah, it's a great place to start. Let me just remind everybody what is all encompassed inside of that grow share and first-fit. There's really three, I would say, broad areas that we're focused on. The first is what we describe as win with the winners. Really what that means is I want to continue to capitalize on the strong partnerships that we have with the leaders in the commercial vehicle industry. Folks like PACCAR, folks like Cummins, et c, that we have strong relationships with. As they continue to grow market share in their own right, obviously that can pull through to our business. In addition to their own market share gains, we want to continue to expand our own penetration and share of wallet with each of those. That's been a nice catalyst for us. Last year, for example, as Cummins launched their new model year engine inside of the Stellantis product, we did have a bit of a step change in content. That not only pulsed first-fit gains through sales to Cummins, but also grew our installed base in our aftermarket through the Stellantis channel. The second piece of the first-fit market expansion is really trying to grow after customers that we historically haven't done business with. Driven by just the inherent ownership structure that we have had historically, and the fact that particularly in the large engine space, you don't generally see OEs source from their competitors' captive suppliers. Looking to cultivate those relationships now that we have an independent ownership structure, introduce Atmus and our capabilities to a number of different players, and look to grow our penetration with them. It's been pleasing to see the ongoing conversations. We feel like our technology leadership in these displacement ranges from a filtration standpoint can really open up opportunities for us. The third piece within the first-fit markets really is a number of other areas that didn't necessarily have a competitive dynamic with Cummins, but more just we didn't have the resources to really go after them. There's a number of different first-fit opportunities that we've been going after across a number of different OEs. Again, introducing them to Atmus and our technology opportunities and capabilities in opening up those avenues. I'm pleased with the progress thus far. I think as I look at our broader share, I think there's still plenty of room to run. It's really about, again, having people understand what we can bring and the quality of our product. Is Caterpillar at all a possibility as a customer? I would say Caterpillar is certainly in that first category or the second category of potential customers that we would target among others and want to continue to try to open up a number of different avenues. As you can imagine, it's not like you all of a sudden take every filtration opportunity. We want to really focus on, are there smaller pieces of the portfolio that we can go after and sort of open up the relationship. What kind of first-fit end market outgrowth do you think you folks can deliver if these share gains play out? Yeah. If you think about from a product family standpoint, where our strength has really been historically, it's on engine filtration. Obviously, that's driven by the historical relationship with Cummins and the deep, embedded application knowledge that we have on things like fuel filtration, lubricant filtration, so on and so forth. That's probably our technology leader in terms of our product family. Obviously, we do all sorts of different filtration as well as things like coolants and chemicals. From a technology standpoint, we'd really try to lead with that on-engine filtration with these customers. Got it. Another first-fit related question. Cummins genset business has grown dramatically. Can you just talk about Atmus content for both prime power and for backup? What's that look like from an opportunity standpoint for you folks? Yeah, absolutely. If you think about where our product is today, certainly just like in the on-highway space, we have essentially 100% share of wallet with Cummins in the power systems space as well. Most of that product today is going into various backup power applications. While we're on all of those gensets. Just like we're on, again, a 15 L in the on-highway space, the aftermarket generation, which really pulses our business, is relatively immaterial, just given the fact that it's backup. You do still change the filters every once in a while, but it doesn't have the same duty cycle as, say, a mining truck, for example. Obviously, we'll continue to support them as well as other potential customers in this space. It's great to see their ambitions and their intentions to expand their prime power exposure through the launch of different capabilities. We're excited to continue to support them. That's not a big piece today, at least for our business. I think it remains to be seen what that maintenance activity will be, how long those gensets are running, and what the inherent aftermarket content will be for us, but certainly an opportunity. What's your first-fit content? Is it similar to truck, $300 per unit, or does it scale up, considering these are pretty massive engines? Yeah. If you think about the ratio, it would be the same. It's just a much larger engine, therefore, instead of one, two fuel filters, et c, you've got a much larger amount. From a portfolio percentage perspective, it's the same. About $3,000 per unit, give or take. Yeah, roughly. Depends on the application and whatnot. If these units do truly run 24/7, how quickly do I generate $3,000 of aftermarket demand? One year, two years? What's that look like, assuming a mining-type, 24/7 operation? Yeah. Again, it's really about hours run in these spaces. In the on-highway space, you're talking about a change of filters every, what, 35,000 mi-40,000 mi. Then, as you move into the off-highway space, again, it would be hours driven. It just depends on how long. The percentage or the ratio, if you will, of aftermarket content relative to the first fit is quite substantial, as you can imagine, and over a very long period of time. I don't have the legacy notes, unfortunately, for obvious reasons, given my transition. Can you just remind us what timeframe do you folks generate aftermarket sales equivalent to the first-fit sales generally across the book? I believe that's a three year, four year type number, but can you just refresh me, Jack? Again, it depends on the duty cycle, but if you think about in the on-highway space, if you're talking about, on average, a fuel content of, what, $200 over the life of that vehicle, you could have $8,000, roughly, in aftermarket content over the life of the vehicle. Depends on how long it's driven, but you could get to that replacement of your first-fit content inside of three years, depending on the application. Super. Thank you. The aftermarket part of the growth strategy, can you update us on your view of progress so far? Is there more opportunity to continue to drive that part of the business? Absolutely. If I think about the second pillar, accelerating profitable growth in the aftermarket, really, we've been looking at a few different things. One of the big pieces there is to increase our penetration into independent distributors. Historically, we've been quite strong in the OE dealer networks, and we want to continue to build on that strength, certainly. We also want to ensure that Fleetguard products are available anytime and anywhere a service event is occurring. Those service events don't always occur within the OE dealer network. That's been one of our strategic priorities, and we want to continue to build that out. We've seen good traction, I would say, on that in areas where we had relatively low penetration. I think Latin America is a good example of that, where historically we've really only gone to market through the Cummins distribution channels. Now we've been able to continue to cultivate additional independent distributors, some of whom carried the Fleetguard product historically, but we just didn't focus on them in terms of commercial activity as much. As we've built and strengthened those relationships, we've been able to experience growth inside their portfolio, among other filtration brands. That's been a nice growth story, and really pleased to see that progress. I think underneath all of these different things in the aftermarket, which as you can imagine, is many different opportunities that are flowing through to our sales team to go after, is the ability to deliver. Kind of synonymous with our third pillar, which we'll get to in a moment, is the supply chain transformation has been a big focus on delivery capability. The ability to ensure that our product is available as and when our aftermarket channel partners need it and our end users need it. We've had a lot of actions and initiatives going on in the supply chain. Historically, our distribution centers were all co-located, for the most part, with Cummins. One of the big undertakings of our separation was the separation of those distribution centers into Atmus owned and operated locations. That's allowed us to really address our inventory levels and lift our inventory levels to hit the delivery metrics that we want to. We're really pleased with where that journey has been. It's been a lot of hard work from the supply chain team. A big kudos to them for all the undertakings that they've had. That comes with not only the physical movement of goods, but also an underlying IT initiative to separate systems. Each one presents its own challenge, but we're pleased with where we're at now. I would describe our delivery capabilities now as top quartile. Really what that does is, again, unlock many opportunities, not only with existing channel partners, but also with new channel partners. To shift gears on the industrial filtration part of the strategy. Yeah. Can you talk about the Koch acquisition for those that have spent less time with the company? Just remind people the size of the business, the multiple paid, and then just if you don't mind, update us on how the integration's going. Absolutely. Yeah. We were really pleased to close on the Koch acquisition here in January of this year. Signed it last year. Overall, when you include the expected synergies, not only from a tax perspective, but also from the ongoing operational synergies, expecting the multiple to be about 10- 11 times. An attractive entry point into these industrial sectors. The business, it's a great business. I'll talk a little bit about what we've found post diligence. But for perspective, in 2025, on their fiscal year, they generated about $156 million of revenue. They were on a September year-end. Now obviously we'll transition to our same fiscal year-end, which is calendar-based. Really looking forward to what the team can accomplish moving forward. If I think about what's been a pleasing factor, if you will, post-acquisition, has really been the cultural similarities that exist between the two organizations. If you think about it, they've been owned by a number of larger companies, Johnson Controls, and embedded within ADTi, which is the parent company that the private equity firm, whom we bought it from, had acquired. They had a similar mindset to what we had, which is embedded within a larger organization and perhaps not quite able to spread your wings in terms of all your different growth initiatives. Now that they're with a filtration-focused company, I think they're really excited about what they can unleash with some focus and investment. That cultural similarity has been fantastic to see and I think has really unlocked not only a fairly seamless integration, but also a lot of collaboration as we think about not only the synergies that we expected to get, but also other potential synergies moving forward. The synergies, as a reminder, was about $4 million of annualized synergies by the end of year three. Really, the bulk of those were supply chain initiatives. Leveraging our scale and capacity to get some better rates in different direct material areas, et c. What we've found, though, is that there's potentially some other areas of collaboration now as we move forward that could involve cross-selling through each other's distribution networks. Not only their products through our existing power solutions, as we call it, or commercial vehicle distributors, but also in reverse, potentially selling through some power solutions product, Fleetguard product, through some of the independent distributors that they already had relationships with. In addition, obviously, we're looking at, particularly in the high-efficiency space in the HVAC areas, what can we bring in terms of media capability into their products where there's a need for elevated filtration science capabilities. Excited about where we can take that. There's been a lot of different growth forums, as we call it, with them, where we bring the teams together, exchange ideas, and then really go out and trial a number of different things. Given the explosive growth in data centers, we're finding that companies had 1% sales exposure to data center, where all of a sudden become 7% exposure. Any opportunity for Atmus within data centers? Yeah. It's a great question. If I think about where our exposure is today, or historically, if you will, it's really in that backup power that we were just describing, alongside gensets. That's exposure but again, not a heavy-duty cycle from an aftermarket. Somewhat immaterial at the top line. Inside of the Koch business, they do provide HVAC filtration into data centers. That's about 8% of their business today. One of the things that we're focused on is how do we continue to lift the exposure to that end market, given the significant and robust growth rates that it's experiencing. That could come with not only the addition of new products, but really probably the cultivation of new distributor relationships to make sure that we're available through a number of different service avenues into data centers. That tends to be relatively focused, particularly here in North America, across a few different geographies. Today, the Koch business is really just North American centric, another opportunity that we're thinking about more globally is just how do we explore geographic expansion from an industrial HVAC perspective. $10 million-$15 million revenue data center today. Where could that go? I think it depends on, obviously, the longevity of this robust tailwind that we're experiencing today, and then how quickly we can kind of shift the portfolio, right? If you think about the revenue algorithm that we talk about in our core, it's really been about 4%-5% over a long period of time, 2% market, 1% price, 1%-2% share gains. There's not a lot we can do in the commercial vehicle market to address that 2% underlying market growth rate. If I then look at the industrial business, that revenue algorithm inherently lifts a bit, where you've got the traditional commercial and industrial HVAC sectors kind of growing at GDP levels. If you can expose more of the portfolio to higher growth markets like healthcare or data centers, you could really start to meaningfully shift that revenue algorithm up. That's a big area of focus, and I think we'll see what the art of the possible is in terms of top-line growth. In terms of M&A from here, since this is the first large deal as a public company, are you folks hitting pause to make sure you integrate, or is the team out there actively looking for the next one? Absolutely, integration was a big priority, but that hasn't slowed us down in terms of exploring other opportunities and continuing to cultivate the pipeline. I would say, as a reminder, the three broad areas that we've been looking at in terms of industrial expansion has been industrial air, which obviously the Koch business fits inside of, industrial water, and industrial liquid. One of the great things about the Koch business, I think, is frankly the size of it. It was kind of a perfect entry point, which allowed us to get an asset of scale that we can now build on, and potentially add on to in terms of bolt-on acquisitions that, by themselves might have been somewhat orphaned in the portfolio. It opens up that ability to focus on add-ons in the airspace while still exploring anchor platform potential in the industrial water and the industrial liquid space. The team is out there continuing to cultivate a number of different opportunities. I would say that we're excited about where we can take it in the future. From a debt perspective and a leverage perspective, obviously a little bit of a step up following this acquisition, but finished the first quarter right at kind of that 2x net debt to EBITDA level. I think that's about right for this business in an ongoing acquisitive standpoint, we'll continue to naturally de-lever from that, which really opens up the door for more M&A moving forward. In terms of the end market backdrop, really interesting to see strong aftermarket demand for you folks, in contrast to what we saw from PACCAR, 6% volume decline in their business. Replacement tire demand was down 6% in the quarter. Why isn't Filtration facing those headwinds? It sounds like trucks were taken out of operation based on the PACCAR telematics data. It's been an interesting backdrop, I would say, in the aftermarket. Really since we IPO'd back in 2023, pretty tepid market conditions. We haven't seen that overall growth per se, it's kind of been either declining or now bouncing along the bottom. Certainly, we've seen, as of late, an increase in some of the spot rates and whatnot. I think that's more driven by supply dynamics, driver shortages, and a bit of consolidation in the carrier space. It hasn't yet translated, I would say, to robust volume growth, just kind of steady along the bottom. What we've seen is some people taking trucks out of service, or pushing off larger maintenance events. That'll kind of limit some of the broader parts churn and activity of, say, an engine rebuild or overhaul. At the same time, you're still seeing trucks needing normal course maintenance. As and when they do that, generally filtration content is getting a changeover. That's kind of what we're experiencing. Again, I wouldn't say growth, but not that decline necessarily in underlying market. Obviously, we try to counterbalance these tepid market conditions with continued share gain activity. In terms of what's fascinating about the way the cadence played out this quarter, based on our checks with PACCAR dealers, April, first part of May, really weak because of the magnitude of diesel headwinds and for truckers that aren't well set up with surcharges. With the step change higher in spot rates in the back half of May, there was just the acceleration in orders. For one of the dealers, orders doubled between first half of May and back half of May as that played out. Is that consistent with the intensity of demand pickup in the market? It's been really interesting to see spot rates and the load-to-band ratio just get way out of whack in a really short period of time. It's been interesting. Obviously, our sales activity is generally pulsed by our channel partners, whether it's PACCAR or many other folks in the aftermarket. We do sometimes see some timing nuances in terms of stocking or de-stocking activity. Not to the levels that we had experienced back in 2022, 2023 timeframe. Certainly, I think we saw some of that inside of the fourth quarter with some pretty robust activity and probably indicative of some stocking up. Relatively slow out of the gates in the first quarter of this year in terms of some de-stocking as they sold through inventory levels. As we sit here right now inside of Q2, I think really in line with our guidance levels, which is an expectation of flat to slightly up from an overall aftermarket market perspective. We continue to expect 1%-2% market share gains. We'll continue to keep an eye on it, obviously continuing to take a pulse on the sentiment. Every time it feels like we start to get some green shoots or positive sentiment, a broader geopolitical/macroeconomic dynamic emerges. Hoping to get some stability on that front, and I think overall, that'll help lift overall miles driven, which really pulses our business. The shipper-to-truck ratio just really accelerated exiting May, which I think historically bodes really well for aftermarket demand anytime we need to drive uptime. Has that played out, the story of two halves in May? Is that the way it played out? I understand overall, more or less in line, but did we see that acceleration that we're hearing about? We can't see it with that level of precision necessarily because, again, this difference in terms of when they're stocking up inventory levels. When it's actually getting sold to the end user. I would say that the second quarter has tracked, again, in line with our expectations. Yeah. Super. Can we talk about China? They're transitioning to more EVs. What does that mean from an Atmus opportunity standpoint? What can you folks do to drive performance with that backdrop? Where do you see EV share in China going longer term? Yeah, absolutely. I think it's certainly the one area in the world where you're seeing pretty robust EV activity, which is contrary to every other region in the world which is going the opposite way. Inside of China, obviously, we're continuing to focus on supporting our customers in whatever fashion that we can. If I think about the broader EV transition, first and foremost, it's important, I think, to note just the significant aftermarket nature of our business and the longevity of that tail. Even if you're seeing robust increases in penetration of EV vehicles in China, for example, you still have a lot of activity in the aftermarket based on units on road. We are working to support our customers really who are all global in nature on their alternative fuel ambitions and support them in any way we can. We saw some catalysts of that a few years ago, now really that's kind of dried up. We'll be ready to support them and continue to collaborate with them however we can. If I think about the nature of different types of alternative fuels and impact to the business, I would describe alternative fuel-powered internal combustion engines as having a largely a similar look to what diesel does in terms of filtration content on a vehicle. I think, in terms of EV, it would be the most significant reduction relative to today. We're keeping a close eye on it, and we'll see what happens. I think you're just going to continue, if the current trend plays out, continue to see a pretty big disparity in terms of penetration of EV vehicles in China versus everywhere else in the world. Can you spend a minute on that? What are the specifications of the EV trucks in China? How big are the battery packs? Could the build-out in China drive other regions to take a look and see what they're doing? Yeah. I think the various powertrain providers are probably better equipped to speak to the nuances in terms of size of battery packs and payload and charging infrastructure, et c. I think it would be interesting to see. Certainly, I think the Chinese battery pack suppliers have a lead in terms of capabilities from a technology standpoint. I think it remains to be seen how successful they'll be in terms of dropping that capability into other markets. I think obviously the various OEs and powertrain providers will certainly look to retain their existing shares in those spaces. I think it remains to be seen at this point. If we shift gears, talk about tariffs. The tariff rate declined from 25%- 15% for ag and construction equipment. Any nuances within that that might benefit Atmus? Trade policy, super complex. What do you think? I wouldn't say anything that necessarily benefits us relative to others. It's kind of been, as you note, a moving target, if you will. Maybe it's best to kind of describe what our approach to tariffs has been, which has remained consistent regardless of the underlying shifting policies and rates. First and foremost, we look to avail ourselves of any exemptions available, the largest of which has been the USMCA exemption, which has allowed us to continue to mitigate our customers from tariff pricing increases by leveraging and certifying as much of our products that are coming out of Mexico under that exemption. The second has been exploring different supply chain changes and things that we can do. We have not done a lot of reshoring of production, just given the changing landscape, and you might make a long-term fix, and then all of a sudden the rates change amongst countries, which is not necessarily fast or easy to unwind. That hasn't been a big thing. We have done a few different creative initiatives, such as establishing a free trade zone in our U.S. distribution center outside of Cincinnati that allows us to import/export product without incurring the tariffs. The last lever that we look to pull is via pricing. Obviously, there's a competitive dynamic with that we try to ensure that we're mitigating and insulating our customers from that impact wherever we can. At the same time, we have to protect our own profitability levels. We've moved, I would say, quite swiftly, and the team's done an excellent job to navigate in an ever-changing environment, put pricing through as and when we're incurring those tariff costs, and then adjusting that pricing as and when the tariff landscape changes. We'll continue to do so moving forward. I think, obviously, the second piece of tariffs is just what happens in terms of refunds and whatnot. Certainly we are working through the various reconciliation processes that you inherently do in the customs landscape, and then looking to file for refunds through the CAPE system. The rulings of that continue to evolve and will continue to evolve with that. I think it remains to be seen how and when tariff refunds effectively flow through the market. There's a lot of different partners there. You've got our channel partners who we sell to in the aftermarket, who ultimately sell that on to the end users. That will be a little bit interesting to see how we navigate through that, whereas the OE is a little more straightforward. USMCA up for renewal. Yeah. Let's say we lose the USMCA exemption, costs become 15%, 20% higher. Does that change, in that scenario, your manufacturing footprint at all? Yeah. I think obviously we'd have to look at longer term changes, if you will, if we had confidence that that's going to be the new environment that we're working under. I think you saw many people, including us, with the onset of NAFTA and then USMCA, set up their supply chains in one way. If that's going to change, then perhaps over the long term our supply chains would change. I think it's really important that we continue to have strong trade agreements with important partners like Mexico. I think what you see is the benefit of that accruing to end users ultimately, right? Because we've been able to take advantage of that exemption, and again, mitigate the impact to end users, owner-operators of trucks, and we want to continue to do that to partner with our end users. That's what we're looking at. Obviously, we're closely looking at that. We'll continue to navigate our supply chain environment as needed. At the risk of leading the witness, 15%-25% type increase on a cost of goods sold basis, given the supply chain's already set up in Mexico, feels like the most likely outcome would be the price moves a little bit higher to pay for that as opposed to resetting up the supply chain, would be my guess. Yeah, I think that's certainly what you should expect in the short term. Again, it's not a quick endeavor to shift and reestablish your entire supply base. We would continue to evaluate that over time, but in the near term, you would expect to see it flow through in price. Last question. What's the most significant supply chain opportunity for you folks? That was one of the pillars that we didn't double-click on until this moment. Absolutely. First of all, I would just again thank the broader supply chain organization for all the hard work that they did during our initial supply chain transformation that was really focused on some of the lower hanging fruit in the procurement space, trying to get more of our supply base under contract, establish multiple different sources of supply. As we move into our next horizon of supply chain transformation, certainly want to continue our strong delivery capabilities as well as then look at efficiency opportunities. Really looking at our conversion costs and how we kind of streamline our operations. Excited about that and certainly we'll provide more details on that as time elapses. Super. Please join me in thanking Jack for coming out for a conference. Jack, thank you. Thank you, Jerry. Thanks, everybody.