Knowles (KN) Investor presentation summary

Business profile and positioning

• 2025 revenue of $593M; segment mix was 55% Precision Devices and 45% MedTech, with market mix led by MedTech & Specialty Audio (45%), Industrial (30%), Defense & Aerospace (21%), and Electrification / Energy (4%).

• More than 5,000 global employees and 600+ engineers; differentiation centers on high-performance capacitors and RF / microwave filters, hearing health solutions, and customization at scale.

• Strategic focus on MedTech, Defense, Industrial, and Energy markets, supported by agility, innovation, and manufacturing scale.

Financial performance and outlook

• Continuing-operations revenue CAGR was 9% and adjusted EBITDA CAGR was 12% for 2017-2026; 2026E revenue was $688M and adjusted EBITDA was $174M.

• 2026-2029 targets: revenue CAGR of 8-10%, adjusted EBITDA CAGR of 10-14%, and cash from operations of 16-20% of revenue.

• Revenue growth components for 2026-2029 include 6-8% from Precision Devices, 2-4% from MedTech & Specialty Audio, and acquisitions; the slide indicates 4% organic growth alongside the 8-10% revenue CAGR target.

• Earnings growth levers include pricing and higher-value products, factory productivity, capacity utilization, disciplined SG&A, and accretive acquisitions targeted to contribute within the first 12 months.

Cash generation and capital allocation

• Cash generated by operating activities averaged 20% of revenue over 2022-2025; capital expenditures totaled $71M, or 3% of revenue, over the period.

• 2022-2025 capital deployment included $210M for share repurchases, representing 12M shares, and $263M for M&A, including Cornell Dubilier.

• Capital investment target is 3-5% of revenue over a cycle; M&A is a focal allocation priority, supported by a $340M+ liquidity position and a net leverage limit of 2.75x.

• $271M of the existing $400M share-repurchase program had been executed through Q4 2025; future repurchases are planned on an opportunistic, efficient basis, with targeted returns of 200-300 bps above cost of capital.