Knowles Reports Q2 2026 Financial Results and Provides Outlook for Q3 2026

About this update from Knowles Corporation

Q2 Revenues Increased 14% on a Year over Year Basis to $167 million Q2 Diluted EPS from Continuing Operations increased $0.12 on a Year over Year Basis to $0.21 Q2 Non-GAAP Diluted EPS from Continuing Operations Increased 38% on a Year over Year Basis to $0.33 Q2 Net Cash from Operations was $28 million ITASCA, Ill., July 23, 2026 --( BUSINESS WIRE )--Knowles Corporation (NYSE: KN), a leading manufacturer of specialty electronic components, including high performance capacitors, radio frequency ("RF") filters, advanced medtech microphones, and balanced armature speakers, today announced results for the quarter ended June 30, 2026. "We delivered second quarter revenues exceeding the high end of our guided range. Non-GAAP diluted EPS was above the high end of our guided range and cash from operations was within the guided range," commented Jeffrey Niew, President and CEO of Knowles. Mr. Niew continued, "I am very pleased with the Company's performance in the first half of 2026. Within the Precision Devices segment, we saw year over year revenue growth across all our end markets: Medtech, Defense, Industrial, and Electrification, as we execute our strategy of leveraging our unique technologies, creating custom products through our customer application intimacy, and then scaling into production with our world-class operational capabilities. Our total company revenue grew 14% on a year over year basis in the second quarter and this was our seventh consecutive quarter where the book to bill was greater than one." "With our bookings increasing every quarter over the past twelve months, numerous new design wins ramping across multiple end markets, and a very healthy backlog of existing orders, we now expect 2026 revenues will grow at a rate of 10-12% with adjusted EBITDA growth of more than 20%," stated Mr. Niew. Continuing, Mr. Niew said, "Looking ahead to 2027, given the magnitude of our bookings coupled with strong long-term secular growth trends in the markets we participate in, I expect we will exceed the organic growth targets we presented at our May 2025 Investor Day. I am excited about the growth opportunities that lie ahead and am confident in our ability to continue to drive long-term value for our shareholders." Financial Highlights The following table highlights the Company's financial performance on both a GAAP and supplemental non-GAAP basis for continuing operations* with the exception of Net cash provided by operating activities (in millions, except per share data): Third Quarter 2026 Outlook The forward looking guidance for the quarter ending September 30, 2026 on a continuing operations basis, with the exception of Net cash provided by operating activities, is as follows: Q3 2026 GAAP results from continuing operations are expected to include approximately $0.06 per share in stock-based compensation expense, $0.04 per share in intangibles amortization expense, and $0.02 per share for differences related to the GAAP effective tax rate. These items are excluded from non-GAAP results. Non-GAAP Financial Measures In addition to the GAAP results included in this press release, Knowles has presented supplemental non-GAAP gross profit, earnings before interest and income taxes, adjusted earnings before interest and income taxes, earnings before interest, income taxes, depreciation, and amortization, adjusted earnings before interest, income taxes, depreciation, and amortization, non-GAAP diluted earnings per share, free cash flow, as well as other metrics on a non-GAAP basis that exclude certain amounts that are included in the most directly comparable GAAP measure to facilitate evaluation of Knowles' operating performance. Non-GAAP results are not presented in accordance with GAAP. Non-GAAP information should be considered a supplement to, and not a substitute for, financial statements prepared in accordance with GAAP. In addition, the non-GAAP financial measures included in this press release do not have standard meanings and may vary from similarly titled non-GAAP financial measures used by other companies. Knowles believes that non-GAAP measures are useful as supplements to its GAAP results of operations to evaluate certain aspects of its operations and financial performance, and its management team primarily focuses on non-GAAP items in evaluating Knowles' performance for business planning purposes. Knowles also believes that these measures assist it with comparing its performance between various reporting periods on a consistent basis, as these measures remove from operating results the impact of items that, in Knowles' opinion, do not reflect its core operating performance including, for example, stock-based compensation, certain intangibles amortization expense, impairment charges, restructuring, production transfer costs, and other charges which management considers to be outside our core operating results. Knowles believes that its presentation of these non-GAAP financial measures is useful because it provides investors and securities analysts with the same information that Knowles uses internally for purposes of assessing its core operating performance. For a reconciliation of these non-GAAP financial measures to the most directly comparable GAAP financial measures, see the reconciliation table accompanying this release. Webcast and Conference Call Information Investors can listen to a live or replay webcast of the Company's quarterly financial conference call at http://investor.knowles.com . The live webcast will begin today at 3:30 p.m. Central time. The webcast replay will be available after 7:00 p.m. Central time today accessible via the Knowles website at http://investor.knowles.com for a limited time. About Knowles Knowles is a leading manufacturer of specialty electronic components. We design parts that perform unique, critical functions for innovative technologies. Through extreme reliability, custom engineering, and scalable manufacturing, we enable businesses to succeed in the most demanding applications across medtech, defense, and industrial markets. Our high-performance capacitors, RF microwave filters, advanced medtech microphones, balanced armature speakers, and miniaturization products enable and enhance the performance of technologies with the power to change, improve, and save lives. Founded in 1946 and headquartered in Itasca, Illinois, Knowles has grown into a global organization with employees spanning 11 countries. For more information, please visit knowles.com . Forward-Looking Statements This news release contains forward-looking statements within the meaning of the safe harbor provisions of the United States Private Securities Litigation Reform Act of 1995, such as statements about our future plans, objectives, expectations, financial performance, and continued business operations. The words "believe," "expect," "anticipate," "project," "estimate," "budget," "continue," "could," "intend," "may," "plan," "potential," "predict," "seek," "should," "will," "would," "objective," "forecast," "goal," "guidance," "outlook," "effort," "target," and similar expressions, among others, generally identify forward-looking statements, which speak only as of the date the statements were made. The statements in this presentation are based on currently available information and the current expectations, forecasts, and assumptions of Knowles' management concerning risks and uncertainties that could cause actual outcomes or results to differ materially from those outcomes or results that are projected, anticipated, or implied in these statements. Other risks and uncertainties include, but are not limited to: fluctuations in our stock's market price; fluctuations in operating results and cash flows; our ability to prevent or identify quality issues in our products or to promptly remedy any such issues that are identified; risks associated with increasing our inventories in advance of anticipated orders by customers; escalating international trade tensions, new or increased tariffs and trade wars among countries; the impact of changes to laws and regulations that affect the Company's ability to offer products or services to customers in different regions; our ability to achieve reductions in our operating expenses; the ability to qualify our products and facilities with customers; our ability to obtain, enforce, defend or monetize our intellectual property rights; disruption caused by a cybersecurity incident, including a cyber-attack, cyber breach, theft, or other unauthorized access (the risk of which could be exacerbated by geopolitical tensions); increases in the costs of critical raw materials and components; availability of raw materials and components; managing new product ramps and introductions for our customers; our dependence on a limited number of large customers; our ability to maintain and expand our existing relationships with leading OEMs in order to maintain and increase our revenue; increasing competition and new entrants in the market for our products; our ability to develop new or enhanced products or technologies in a timely manner that achieve market acceptance; global economic instability, including due to inflation, rising interest rates, or the impacts of geopolitical uncertainties (including the impact of the conflict with Iran); financial risks, including risks relating to currency fluctuations, credit risks and fluctuations in the market value of the Company; a sustained decline in our stock price and market capitalization may result in the impairment of certain intangible or long-lived assets; market risk associated with fluctuations in commodity prices, particularly for various precious metals used in our manufacturing operation, changes in tax laws, changes in tax rates and exposure to additional tax liabilities; and other risks, relevant factors, and uncertainties identified in our Annual Report on Form 10-K for the fiscal year ended December 31, 2025, subsequent Reports on Forms 10-Q and 8-K and our other filings we make with the U.S. Securities and Exchange Commission. Knowles disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law.

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