Knowles (KN) Q1 2026 earnings summary

Executive summary

• Q1 2026 revenue reached $153.1 million, up 16% year-over-year, at the high end of guidance, driven by strong demand, new product introductions, and design wins in both Precision Devices and MedTech & Specialty Audio segments.

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

• Cash utilized in operations was $1.3 million, seasonally low but within guidance.

• Strong organic growth and secular trends in MedTech, Defense, Industrial, and Electrification markets supported performance.

• Numerous new design wins and a healthy backlog position the company for continued growth in 2026.

Financial highlights

• Gross profit for Q1 2026 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% of revenues), up from $26.7 million (20.2%) in Q1 2025.

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

• MedTech & Specialty Audio revenue was $68 million, up 14% year-over-year; Precision Devices revenue was $85.1 million, up 17.4%.

• R&D expense was $10 million, up $1.4 million year-over-year; SG&A was $28 million, up $3 million.

Outlook and guidance

• Q2 2026 revenue expected between $152 million and $162 million, with non-GAAP diluted EPS projected at $0.28–$0.32 and GAAP EPS at $0.18–$0.22.

• Adjusted EBIT margin for Q2 expected at 20%–22%.

• Net cash from operating activities projected at $20 million to $30 million for Q2 2026.

• Full year 2026 revenue growth expected above the high end of the 4%–6% organic target; adjusted EBITDA expected to exceed 10%–14% cumulative annual growth target.

• Full year capital spending to be 4%–5% of revenues.