Knowles (KN) investor relations material

Executive summary

• Q1 2026 revenue reached $153.1 million, up 16% year-over-year, driven by strong demand, new design wins, and secular growth in MedTech, Defense, Industrial, and Electrification markets.

• Non-GAAP diluted EPS increased 50% to $0.27, reflecting higher volume, margin expansion, and lower interest expense.

• Strong organic growth and robust backlog, with increased order activity and healthy pipeline for continued 2026 growth.

• Cash generated by operating activities was $1.3 million, seasonally low but expected to improve for the full year.

Financial highlights

• Q1 2026 gross profit was $67.1 million (43.8% of revenues), up from $53.3 million (40.3%) in Q1 2025; non-GAAP gross profit was $69.7 million (45.5%).

• Adjusted EBITDA for Q1 2026 was $35.3 million (23.1% margin), up from $26.7 million (20.2%).

• Net earnings from continuing operations were $11.3 million, compared to a loss of $0.4 million in Q1 2025.

• Cash utilized in operations was $1 million; capital spending was $10.8 million.

• Net leverage ratio was 0.6x trailing 12-month adjusted EBITDA, with liquidity over $310 million.

Outlook and guidance

• Q2 2026 revenue expected between $152 million and $162 million.

• Q2 non-GAAP diluted EPS projected at $0.28–$0.32; GAAP EPS at $0.18–$0.22.

• Net cash from operating activities for Q2 projected at $20–$30 million.

• Full-year capital spending to be 4%-5% of revenues, focused on capacity expansion.

• 2026 adjusted EBITDA expected to exceed annual growth target of 10%-14%.