Knowles (KN) Q4 2025 earnings summary

Executive summary

• Achieved a breakthrough year, completing the transformation into an industrial technology leader focused on MedTech, Defense, Industrial, and Energy markets, with a proven M&A strategy and strong organic growth driven by custom-engineered solutions.

• Revenue and EPS both surpassed the high end of guidance for Q4 and full year 2025, with robust margin expansion and a differentiated competitive advantage through customization at scale.

• Strong backlog, new design wins, and robust bookings position the company for continued above-trend growth in 2026.

Financial highlights

• Q4 2025 revenue: $162.2M, up 13.8% year-over-year, above guidance; full year 2025 revenue: $593.2M, up 7.2% year-over-year.

• Q4 2025 non-GAAP diluted EPS: $0.36, up 33.3% year-over-year; full year 2025 non-GAAP diluted EPS: $1.11, up 20.7%.

• Q4 2025 gross margin: 51.9% (non-GAAP: 45.3%); full year 2025 non-GAAP gross margin: 44.5%.

• Adjusted EBITDA for 2025 was $140.2M, 23.6% of revenues.

• Net cash from operations was $114M for the year, representing 19.2% of revenues.

Outlook and guidance

• Q1 2026 revenue guidance: $143M–$153M; non-GAAP diluted EPS expected between $0.22 and $0.26.

• Adjusted EBIT margin for Q1 projected at 18%–20%.

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

• Full year capital spending expected to support capacity expansion for large energy orders.

• Positioned for continued strong organic revenue growth above historic levels in 2026.