Knowles Corporation reported significant financial growth in its latest quarterly results, with revenues reaching $166.8 million for the three months ended June 30, 2026, a 14.3% increase from $145.9 million in the same period last year. The company's gross profit also saw a notable rise, climbing to $74.6 million, up 23.1% from $60.6 million in the prior year. This growth translated into net earnings of $19.4 million, or $0.23 per share, compared to $7.8 million, or $0.09 per share, in the second quarter of 2025. For the first half of 2026, Knowles reported revenues of $319.9 million, a 15.0% increase from $278.1 million in the first half of 2025, with net earnings rising to $29.1 million from $5.8 million.
The company attributed its revenue growth primarily to increased demand in the Precision Devices segment, which benefited from higher average pricing and shipping volumes across industrial, electrification, medtech, and defense markets. The MedTech & Specialty Audio segment also contributed to the growth, albeit at a slower pace, with revenues increasing by $1.1 million due to higher shipping volumes in the hearing health market. However, the segment faced challenges with lower shipping volumes in the specialty audio market. Cost of goods sold increased to $92.1 million in the second quarter, reflecting higher shipping volumes and production transfer costs.
In terms of operational developments, Knowles has been actively managing its workforce and restructuring its operations. The company recorded restructuring charges of $0.1 million in the second quarter of 2026, primarily related to headcount reductions in the Precision Devices segment. The total employee headcount remains stable, with strategic hiring to support growth initiatives. Additionally, Knowles continues to focus on its share repurchase program, having repurchased 692,369 shares for $22.5 million in the first half of 2026, with $106.5 million remaining under the current authorization.
Looking ahead, Knowles remains optimistic about its growth trajectory, driven by strong demand across its key markets and ongoing investments in research and development. The company plans to continue expanding its product offerings and enhancing operational efficiencies. However, it also acknowledges potential risks, including fluctuations in market conditions, supply chain challenges, and the impact of international trade policies. The management expects to maintain compliance with its debt covenants and anticipates generating positive cash flow to support its strategic initiatives.
About Knowles Corp
Knowles Corporation is a global manufacturer of specialty electronic components, including high-performance capacitors, RF filters, microphones, and speakers. Serving markets such as medtech, defense, and industrial, it provides custom-engineered solutions that enable advanced technologies. With a focus on innovation, reliability, and scalable manufacturing, Knowles supports original equipment manufacturers worldwide, emphasizing product quality, intellectual property protection, and strategic growth through R&D and acquisitions.
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