Knowles: The Next Big Thing in Tech?

Ladies and gentlemen, buckle up! We're diving headfirst into the world of Knowles Corporation, a company that's been making waves in the tech industry. On April 24, 2025, Knowles is set to release its first-quarter 2025 financial results, and if you're not paying attention, you're missing out on a potential goldmine!



First things first, let's talk about the elephant in the room: the divestiture of the Consumer MEMS Microphone business. This move has been a game-changer for Knowles, allowing them to focus on higher-value markets and products. The results speak for themselves: a 21% increase in full-year revenue and a 32% growth in non-GAAP diluted EPS. That's what I call a strategic transformation!

Now, let's break down the key factors driving Knowles' revenue growth in the Medtech & Specialty Audio and Precision Devices segments for the first quarter of 2025:

1. Strong Backlog of Orders: Knowles has a significant backlog of orders, particularly in the specialty film capacitor product line. This backlog is expected to drive growth in 2025 and beyond. The new Specialty Film product line, an exciting part of the Cornell acquisition, is expected to provide a new revenue growth area for us, as we ramp up its manufacturing capacity through 2025 and into 2026.

2. Increased Order Activity in Medical and Defense Markets: The company has seen increased order activity and an existing backlog in the Medical and Defense markets. This adds to the confidence in revenue and earnings growth resuming in the second quarter of 2025. Further, increased order activity and our existing backlog in Medical and Defense markets adds to our confidence in revenue and earnings growth resuming in the second quarter of 2025.

3. Large Order in the Energy Market: Knowles received a multi-year, order for high-performance capacitors in the Energy market, which is expected to contribute to organic revenue growth in 2026 and beyond. This order gives the company confidence in future growth. Knowles received $75M+, multi-year, order for high-performance capacitors in Energy market.

4. Strategic Transformation: The successful completion of the divestiture of the Consumer MEMS Microphone business has allowed Knowles to focus on higher value markets, which is expected to drive revenue growth. With the successful completion of the divestiture of the Consumer MEMS Microphone business at the end of 2024, we took another significant step to further the Company’s strategic transformation into a premier industrial technology company focusing on higher value markets.

5. Ramp-Up of New Product Lines: The ramp-up of new product lines, such as the specialty film product line, is expected to drive revenue growth. However, the ramp-up is taking longer than expected, with full resolution anticipated by the end of the first half of 2025. We anticipate sequential improvement in output, but it will likely take until the end of the first half of 2025 to fully catch up.



Now, let's talk about the elephant in the room: the divestiture of the Consumer MEMS Microphone business. This move has been a game-changer for Knowles, allowing them to focus on higher-value markets and products. The results speak for themselves: a 21% increase in full-year revenue and a 32% growth in non-GAAP diluted EPS. That's what I call a strategic transformation!

But wait, there's more! Knowles has also authorized an additional $150 million for share repurchases, indicating confidence in the company's financial health and future prospects. This is a clear sign that Knowles is serious about enhancing shareholder value.

So, what's the bottom line? Knowles is a company on the move, with a strong backlog of orders, increased order activity in key markets, and a strategic focus on higher-value products. If you're not already invested in Knowles, now is the time to act! Don't miss out on this potential goldmine!