Knowles Corporation Reports 7.9% Revenue Increase to $145.9 Million in Q2 2025

Knowles Corporation reported a notable increase in financial performance for the second quarter of 2025, with revenues reaching $145.9 million, up 7.9% from $135.2 million in the same period last year. The company's gross profit also rose to $60.6 million, compared to $57.8 million in the prior year, reflecting a gross profit margin of 41.5%. Earnings from continuing operations improved to $7.8 million, or $0.09 per diluted share, compared to $4.8 million, or $0.05 per diluted share, in the second quarter of 2024. For the first half of 2025, Knowles reported revenues of $278.1 million, a 3.6% increase from $268.5 million in the first half of 2024, with net earnings from continuing operations of $7.4 million.

The company experienced several significant changes compared to the previous fiscal period, particularly following the divestiture of its Consumer MEMS Microphones (CMM) segment to Syntiant Corp. in December 2024. This strategic move has allowed Knowles to focus on its Precision Devices and MedTech & Specialty Audio segments, which have shown increased demand, particularly in the electrification and defense markets. The divestiture has also led to a reduction in operational size, prompting the company to implement restructuring measures to align its cost structure with its remaining business operations.

Operationally, Knowles has seen an increase in customer engagement, particularly in its MedTech & Specialty Audio segment, which reported a revenue increase of 10.3% to $67.4 million, driven by higher shipping volumes of metal cans sold to Syntiant. The Precision Devices segment also reported a revenue increase of 5.9% to $78.5 million, attributed to higher demand and pricing. The company’s total employee headcount has been adjusted in response to the restructuring efforts, although specific figures were not disclosed in the filing.

The financial results were impacted by various factors, including a $3.6 million impairment charge related to machinery and equipment, as well as increased costs associated with production inefficiencies and unfavorable product mix. Despite these challenges, Knowles has managed to maintain a strong cash position, ending the quarter with $103.2 million in cash and cash equivalents, although this was a decrease from $130.1 million at the end of 2024. The company also repurchased 2.2 million shares of common stock for $35 million during the first half of 2025, reflecting its ongoing commitment to returning value to shareholders.

Looking ahead, Knowles remains cautiously optimistic about its growth trajectory, particularly as inventory levels in industrial markets normalize and demand continues to rise. The company is focused on optimizing operations and leveraging existing programs to mitigate potential impacts from global economic conditions, including tariffs and market volatility. Management anticipates that the strategic focus on its core segments will support continued revenue growth and operational efficiency in the coming quarters.