Knowles Q2 Earnings Call Highlights

Knowles beat Q2 guidance with revenue of $167 million, up 14% year over year, and non-GAAP EPS of $0.33, up 38%. Management said demand was broad-based, with strength in both Precision Devices and MedTech & Specialty Audio. Precision Devices was the main growth driver , posting $98 million in revenue, up 25%, and a book-to-bill ratio of 1.4 for the seventh straight quarter above 1. The company highlighted strong defense, industrial, MedTech and electrification demand, including a more than $15 million radar order expected to ship over 36 months. Guidance was raised above prior targets , with full-year 2026 revenue now expected to grow 10% to 12% and adjusted EBITDA 20% to 24%. Knowles also pointed to improving margins, strong cash flow, and increased defense demand visibility as reasons for optimism.

Knowles NYSE: KN reported second-quarter 2026 results above its guidance range, with management pointing to broad-based demand across its Precision Devices business and steady performance in MedTech & Specialty Audio. President and CEO Jeffrey Niew said the company delivered “another quarter of strong, broad-based organic growth” and is seeing momentum in newer growth platforms that could support expansion in 2027 and beyond. The company reported second-quarter revenue of $167 million, up 14% from the prior year, and non-GAAP earnings per share of $0.33, up 38% year over year. Cash generated from operations was $28 million.

All financial references on the call were presented on a non-GAAP continuing operations basis, except for cash from operations, according to Sarah Cook, vice president of investor relations.

Knowles’ Precision Devices segment posted revenue of $98 million, up 25% from the year-earlier period. Niew said all of the segment’s end markets — MedTech, defense, industrial and electrification — grew year over year. In MedTech, growth was supported by sales across applications including defibrillators and MRI machines. In defense, Niew said RF microwave products continued to support growth across communications applications. He also noted that more defense customers are seeking multi-year orders to secure capacity. As one example, Niew said the company received an order of more than $15 million in early July for a radar application, expected to ship over 36 months starting in 2027. He said Knowles intends to continue identifying large multi-year orders as they are received. The company also reported significant growth in industrial sales, with demand from both distribution partners and original equipment manufacturers. Niew cited strong sales tied to a new product introduction in the HVAC repair market. In electrification, Knowles delivered more than $5 million against a previously announced energy order and said it was fully ramped heading into the third quarter, with yields better than planned. Precision Devices posted a book-to-bill ratio of 1.4, marking the seventh consecutive quarter above 1. Niew said orders in the segment were nearly $140 million in the quarter, above first-quarter bookings.

The MedTech & Specialty Audio segment generated second-quarter revenue of $69 million, up 2% year over year and slightly better than expected. Niew said Knowles continues to expect the hearing health market to grow at historical rates in 2026. He said the company remains positioned to win next-generation designs for MEMS microphones and balanced armature speakers, and he expects Knowles to increase content per device in future hearing health products.