What is the revenue and EPS growth rate for Knowles year over year?

What is the market's earnings forecast for Knowles next quarter?

Did Knowles beat or miss consensus estimates last quarter?

What factors drove the changes in Knowles's revenue and profit?

What is Knowles's gross profit margin?

What were the key takeaways from Knowles’s earnings call?

What guidance did Knowles's management provide for the next earnings period?

What does Knowles do and what are its main business segments?

- **Revenue & Profit Growth**: Q3 revenue up 7% YoY to $153 million, EPS up 22% to $0.33, driven by Precision Devices (12% YoY) and specialty film expansion.
- **Specialty Film Momentum**: 2025 revenue expected $55-60 million, with $25 million from new energy order. Sequential margin improvement Q3-Q4, full ramp in Q3 2026.
- **2026 Outlook**: Organic growth at high end of 4-6%, with Precision Devices targeting 6-8% growth. Medtech segment to grow 2-4%.
- **Cash Management**: $20 million share buyback and $15 million debt reduction, with net leverage ratio of 0.6x.
- **Strategic Initiatives**: Expanding specialty film capacity, pursuing accretive M&A, and maintaining disciplined cost management.

**【CEO Summary Section】**
- **Revenue Growth**: Q3 2025 revenue of $153 million, up 7% YoY, with EPS of $0.33, up 22% YoY. Cash from operations was $29 million.
- **Segment Performance**: 
  - Medtech & Specialty Audio: $65 million (2% YoY growth), driven by operational excellence and new product adoption.
  - Precision Devices: $88 million (12% YoY growth), with strong defense and EV market demand. Defense bookings outpaced other segments.
- **Specialty Film Expansion**: Q3 bookings exceeded $25 million, with expected 2025 revenue of $55-60 million. Capacity expansion underway to meet demand.
- **Cash Management**: $20 million share buyback and $15 million debt reduction. Net leverage ratio of 0.6x with $350 million liquidity.
- **2026 Outlook**: Organic growth at high end of 4-6% range, driven by defense, EV, and specialty film. Medtech segment expected to grow 2-4%, Precision Devices 6-8%.

**【CFO Financial Commentary】**
- **Financial Highlights**: GAAP EPS of $0.33, at high end of guidance. Medtech gross margin 53%, Precision Devices 41.5% (up 150bps YoY due to higher capacity utilization).
- **Cost Management**: R&D flat YoY at $9 million; SG&A up $2 million due to merit and incentive costs. Interest expense down $2 million YoY.
- **Q4 Guidance**: Revenue $151-161 million (9% YoY midpoint), EPS $0.33-0.37. Operating cash flow 16-20% of revenue. Capital spending ~5% of revenue for capacity expansion.
- **Tax Outlook**: 7-11% for Q4, rising to 15-19% in 2026.

**【Q&A Key Highlights】**
- **Specialty Film**: 2025 revenue expected $55-60 million, with $25 million from energy order ramping in Q2 2026. Sequential margin improvement Q3-Q4, full benefit in Q3 2026.
- **M&A Strategy**: Focused on accretive acquisitions with clear strategic fit. Pipeline active but disciplined in execution.
- **Palladium Impact**: Prebuy positions mitigate near-term cost increases. No immediate margin impact, but monitoring for 2026 discussions.
- **Book-to-Bill**: Q3 PD segment at 1.0, second-highest bookings in 4 quarters. Defense and distribution channels strong.
- **Gross Margin Leverage**: 35-40% drop-through on incremental revenue, with specialty film driving 2026 margin expansion.

Knowles Corporation (KN) Q3 2025 Earnings Call Transcript

Revenue

Sales and Services Revenue

Financing Services Revenue

Other Revenue

Cost of Revenue

Cost of Goods and Services

Cost of Financing Services

Other Cost

Gross Profit

Other Operating Income

Operating Expenses

Selling, General and Administrative Expenses

Selling and Marketing Expenses

General and Administrative Expenses

Research and Development Expenses

Loss on Bad Debts

Loss on Impairment of Other Assets

Loss on Disposal of Assets

Other Operating Expenses

Operating Income

Non-Operating Income (Loss)

Income (Loss) from Affiliates

Income (Loss) from Associates

Income (Loss) from Joint ventures

Gain (Loss) on Other Investment

Gain (Loss) on Change in Fair Value

Gain (Loss) on Foreign Currency Exchange

Other Non-Operating Income (Loss)

Net Interest Expense

Interest Expense

Interest Income

Pretax Income From Continuing Operations

Income Tax Expense

Current Income Tax

Deferred Income Tax

Income Tax Adjustments

Net Income from Continuing Operations

Income from Discontinued Operations

Other Items Before Net Income

Net Income

Net Income Attributable to Minority Interests

Net Income Attributable to Owners of the Company

Preferred Stock Dividends

Other Adjustments

Net Income Attributable to Common Stockholders

Other Comprehensive Income

Total Comprehensive Income

Total Comprehensive Income Attributable to Minority Interests

Total Comprehensive Income Attributable to Owners of the Company

Basic EPS

Basic EPS from Continuing Operations

Basic EPS from Discontinued Operations

Diluted EPS

Diluted EPS from Continuing Operations

Diluted EPS from Discontinued Operations

KN

KN fundamentals

You can ask Aime