Knowles Corporation Reports 21.2% Revenue Growth to $553.5 Million for Fiscal Year 2024

Knowles Corporation reported a significant increase in its financial performance for the fiscal year ending December 31, 2024, with revenues reaching $553.5 million, a 21.2% increase from $456.8 million in 2023. The growth was primarily driven by the acquisition of Cornell Dubilier Electronics, which contributed $78.6 million to the Precision Devices (PD) segment. However, the MedTech & Specialty Audio (MSA) segment saw a more modest increase of $18.1 million, attributed to higher shipping volumes in the hearing health market, despite lower volumes in the specialty audio market. The company's gross profit also rose to $234.8 million, up from $203.8 million in the previous year, although the gross profit margin decreased from 44.6% to 42.4%.

In terms of profitability, Knowles experienced a decline in earnings from continuing operations, which fell to $23.4 million from $65.6 million in 2023. This decrease was largely due to a significant tax provision of $11.3 million in 2024 compared to a tax benefit of $28.3 million in the prior year. The company also faced increased operating expenses, particularly in the PD segment, which included higher intangible amortization expenses following the acquisition. Adjusted earnings before interest and taxes rose to $107.9 million, reflecting a 22.3% increase from $88.2 million in 2023.

Strategically, Knowles completed the divestiture of its Consumer MEMS Microphones (CMM) business to Syntiant Corp. on December 27, 2024, for approximately $150 million. This sale is part of the company's strategy to focus on higher-value markets, and the results of the CMM segment have been reclassified to discontinued operations. The company also made a significant acquisition of Kaplan Electronics and Cornell Dubilier for $259.8 million, enhancing its capabilities in the PD segment.

Operationally, Knowles maintained a workforce of approximately 5,500 employees across 11 countries. The company reported a notable increase in cash and cash equivalents, totaling $130.1 million at year-end, compared to $87.3 million in 2023. The company’s cash flow from operating activities was strong, amounting to $130.1 million, which reflects the positive impact of higher revenues and gross profit. Looking ahead, Knowles anticipates continued growth driven by its strategic focus on the PD and MSA segments, although it may face challenges related to market conditions and integration of recent acquisitions.