Knowles Corporation (NYSE: KN) Q2 2025 Earnings | 07/25/2025

About this video

Knowles Corporation delivered a robust Q2 2025, with revenue rising 8% year-over-year to $145.9 million—beating both internal and analyst expectations and signaling strong operational momentum. The quarter’s performance was powered by healthy demand across its Precision Devices segment and a solid rebound in the MedTech & Specialty Audio business, where hearing health and specialty audio solutions benefitted from returning end-market demand after a softer Q1. Non-GAAP diluted earnings per share reached $0.24, up 20% from the prior year and above the midpoint of company guidance, while cash flow from operations jumped to $36 million, a 46% increase over last year, supporting $30 million in share repurchases during the period. Segment-wise, MedTech & Specialty Audio generated $67 million in revenue, increasing 10% year-over-year despite a less favorable product mix that impacted margins. Margins in this segment improved sequentially, reflecting efficiency gains and stronger mix as specialty audio and hearing health orders rebounded. Precision Devices, meanwhile, delivered $79 million in revenue (up 6% year-over-year) as higher production volumes and strong demand in core medical, industrial, and defense markets led to improved factory capacity utilization and higher adjusted EBITDA margins. Management highlighted ongoing investments in new product introductions and expanded specialty film production as supporting drivers for continued sequential and year-over-year growth in the second half of 2025. The company ended Q2 with $103 million in cash, $190 million of debt, and a net leverage ratio of 0.7x trailing adjusted EBITDA, offering substantial room for further strategic flexibility. Looking ahead, Knowles guided for Q3 revenue of $144–154 million and non-GAAP diluted EPS of $0.29–0.33, expecting continued growth and stable gross margins in the low 50% range. Leadership emphasized confidence in the company’s order backlog, margin improvement initiatives, and expanding exposure to long-term growth themes in medical technology, defense, and industrial electronics, positioning Knowles for sustained value creation and operational excellence through 2025 and beyond. About Inside Ticker: For more expert analysis and real-time updates on Knowles Corporation (NYSE: KN) and other market movers, follow Inside Ticker and visit http://www.insideticker.com/ for in-depth reports, financial insights, and the latest news on leading companies. #Knowles #KN #Q22025 #Earnings #FinancialResults #RevenueGrowth #NetIncome #PrecisionDevices #MedTech #SpecialtyAudio #HearingHealth #FactoryUtilization #CashFlow #ShareRepurchase #IndustrialElectronics #OperationalExcellence #StockMarket #InsideTicker #MarginExpansion #Guidance #2025Outlook #SegmentGrowth #OrderBacklog #StrongBalanceSheet #CapitalAllocation #Innovation