Q2 2025 Knowles Corp Earnings Call Transcript
Key Points
- Knowles Corp (KN) reported strong Q2 2025 revenue of $146 million, up 8% year over year, exceeding the high end of their guidance range.
- EPS for Q2 2025 was $0.24, up 20% year over year, and above the midpoint of the guidance range.
- The MedTech & Specialty Audio segment saw a revenue increase of 10% year over year, driven by strong demand in Hearing Health and Specialty Audio.
- The Precision Devices segment reported a 6% year-over-year revenue increase, with improved pricing and higher production volumes enhancing factory capacity utilization.
- Knowles Corp (KN) repurchased $30 million in shares during Q2 2025, funded by robust cash generation from operations, indicating strong financial health and shareholder value focus.
- Gross margins in the MedTech & Specialty Audio segment decreased by 280 basis points year over year due to unfavorable product mix and higher factory costs.
- The Precision Devices segment faced higher scrap costs and factory inefficiencies as they ramped up the Specialty Film product line.
- R&D expenses increased slightly from Q2 2024 levels, and SG&A expenses rose by $2 million due to annual merit increases and higher incentive compensation costs.
- Interest expense, although reduced, still amounted to $3 million in the quarter, indicating ongoing financial obligations.
- The company faces potential volatility in Q4 2025 due to the absence of the MEMS business, which could impact revenue stability.
Good afternoon, ladies and gentlemen. Thank you for standing by.
My name is [Kelvin]. I will be your conference operator today.
At this time, I would like to welcome everyone to the Q2 2025 Knowles Corporation earnings conference call.
(Operator Instructions)
I would now like to turn the call over to Sarah Cook. Please go ahead.
Thank you. Welcome to our second -quarter 2025 earnings call.
I'm Sarah Cook, Vice President of Investor Relations. Presenting with me today are Jeffrey Niew, our President and CEO; and John Anderson, our Senior Vice President and CFO.
Our call today will include remarks about future expectations, plans, and prospects for Knowles, which constitute forward-looking statements for purposes of the Safe Harbor Provisions, under the applicable federal securities laws.
Forward-looking statements in this call will include comments about demand for company products, anticipated trends in company sales, expenses and
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