Knowles (KN) Q4 2024 earnings summary

Executive summary

• Full-year 2024 revenue grew 21% year-over-year to $553.5M, driven by MedTech, Specialty Audio, and the Cornell acquisition; Q4 revenue was $143M, up 2% year-over-year and within guidance.

• Non-GAAP diluted EPS rose 32% year-over-year to $0.91 for FY24; Q4 non-GAAP diluted EPS was $0.27, up 23% from Q4 2023.

• Sale of the Consumer MEMS Microphones business was completed in late December 2024, marking a strategic shift and reducing China exposure.

• Net cash from operating activities for FY24 was $130.1M, supporting share buybacks and debt reduction.

• Secured a $75M+ multi-year order for specialty film capacitors in the energy sector, supporting future growth.

Financial highlights

• FY24 revenue: $553.5M (up 21% from $456.8M in FY23); Q4 revenue: $142.5M–$143M (up 2% year-over-year).

• FY24 non-GAAP diluted EPS: $0.91 (up from $0.69 in FY23); Q4 non-GAAP diluted EPS: $0.27 (up 23% year-over-year).

• FY24 net cash from operations: $130.1M; Q4 net cash: $35.1M.

• Five-year revenue CAGR: 12%; five-year adjusted EBITDA CAGR: 36%.

• FY24 adjusted EBIT: $107.9M (19.5% margin); adjusted EBITDA: $128.5M (23.2% margin).

Outlook and guidance

• Q1 2025 revenue expected between $124M–$134M; non-GAAP diluted EPS guidance: $0.16–$0.20.

• Q1 2025 net cash from operations expected between $(15)M and $(5)M, including $12M in supplier obligation settlements.

• Revenue and earnings growth expected to resume in Q2 2025, with operating cash flow for 2025 projected at over 15% of revenues.

• Specialty film capacitor shipments expected to improve through H1 2025, with significant growth in 2025 and a major order driving 2026 growth.