Q2 2026 Knowles Corp Earnings Call Transcript
Key Points
- Knowles Corp (KN) reported a 14% year-over-year increase in revenue for Q2, reaching $167 million, which exceeded the high end of their guidance range.
- Earnings per share (EPS) rose by 38% year-over-year to $0.33, surpassing the high end of the guidance range.
- The Precision Devices segment saw a significant 25% year-over-year revenue growth, driven by increased demand across medtech, defense, industrial, and electrification markets.
- The company reported strong cash generation from operations, totaling $28 million, which was above the midpoint of their guidance range.
- Knowles Corp (KN) has a healthy backlog and strong order activity, with a book-to-bill ratio of 1.4, marking the seventh consecutive quarter with a ratio greater than 1.
- The Medtech and Specialty Audio segment only grew by 2% year-over-year, which is relatively modest compared to other segments.
- There is a potential headwind in the Medtech and Specialty Audio segment for Q4 due to inventory building in the first half of the year.
- The company faces risks and uncertainties that could cause actual results to differ materially from current expectations, as highlighted in their forward-looking statements.
- Interest expense for the quarter was $2 million, although it was down from the previous year, it still represents a cost burden.
- The company has $131 million of borrowings outstanding under their revolving credit facility, which could impact financial flexibility.
Hello, everyone. Thank you for joining us, and welcome to the Q2 Knowles Corporation earnings conference call. (Operator Instructions)
I will now hand the conference over to Sarah Cook, Vice President of Investor Relations. Sarah, please go ahead.
Thank you, and welcome to our second quarter '26 earnings call. I'm Sarah Cook, Vice President of Investor Relations, and 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 our expectations, plans, and prospects for Knowles, which constitute forward-looking statements for purposes of the safe harbor provisions under 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 profits; and involve a number of risks and uncertainties that could cause actual results to differ materially from current
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