Knowles Corp SEC 10-Q Report
Knowles Corp, a leading provider of advanced micro-acoustic microphones, speakers, audio processing, and precision device solutions, has released its Form 10-Q report for the second quarter of 2025. The report highlights significant financial improvements and operational advancements, reflecting the company's strategic focus on the specialty audio, medtech, industrial, and defense markets.
Financial Highlights
Revenues: $145.9 million, increased by 7.9% from the second quarter of 2024 due to higher shipping volumes in the specialty audio market and increased demand in the electrification and defense markets.
Gross Profit: $60.6 million, increased by 4.8% from the second quarter of 2024, driven by higher shipping volumes and company-wide product cost reductions, despite impairment charges and production inefficiencies.
Operating Earnings: $14.7 million, increased from $12.7 million in the second quarter of 2024, reflecting higher gross profit and lower interest expense.
Net Earnings: $7.8 million, improved from a loss of $259.3 million in the second quarter of 2024, primarily due to the absence of goodwill impairment charges and improved gross profit.
Earnings per Share from Continuing Operations - Diluted: $0.09, up from $0.05 in the second quarter of 2024, reflecting improved net earnings from continuing operations.
Business Highlights
Revenue Segments: The MedTech & Specialty Audio (MSA) segment saw an increase in revenues by $6.3 million, driven by higher shipping volumes of metal cans within the specialty audio market and additional volumes in the hearing health markets. The Precision Devices (PD) segment experienced a $4.4 million increase in revenues due to higher demand in the electrification and defense markets.
Geographical Performance: The United States and Asia were key regions, with the U.S. contributing $58.7 million and Asia $58.5 million to the total revenues for the second quarter of 2025. Asia showed significant growth compared to the previous year, indicating a strong market presence.
Sales Units: Increased bookings and backlog in the Precision Devices segment, particularly for capacitor products, have been noted over the past three quarters, indicating a positive trend in sales units.
New Production Launches: The company is ramping up its specialty film product line within the CD business, which has led to production inefficiencies but is expected to enhance future production capacity.
Future Outlook: The company is optimistic about its transformation into an industrial technology company, focusing on the defense, medtech, industrial, and electrification markets. The recent divestiture of the CMM business is expected to support this strategic shift.
Operational Efficiency: The company is implementing measures to control costs and optimize operations, including leveraging existing programs to mitigate the impact of tariffs and restructuring actions to align with the reduced company size post-CMM divestiture.
SEC Filing: Knowles Corp [ KN ] - 10-Q - Jul. 29, 2025