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Knowles Q1 2025 Earnings Report
Knowles reported Q1 2025 financial results with revenues at the high-end of the guided range and net cash from operations exceeding the high-end of the guided range.
Key Takeaways
Knowles Corporation reported Q1 2025 revenues of $132.2 million, which was at the high end of their guided range. Net cash provided by operating activities also exceeded the high end of the guided range, and non-GAAP diluted EPS from continuing operations was at the mid-point of their guided range. The company repurchased $5 million of shares and reduced debt by $15 million in Q1.
Q1 2025 revenues reached $132.2 million, aligning with the high end of the company's guidance.
Net cash from operations surpassed the guided range, indicating strong cash generation.
Non-GAAP diluted EPS from continuing operations was $0.18, meeting the mid-point of expectations.
The company repurchased $5 million in shares and reduced debt by $15 million during the quarter, demonstrating a commitment to capital management.
Knowles
Knowles
Forward Guidance
For Q2 2025, Knowles expects revenues from continuing operations to be between $135 million and $145 million, representing sequential and year-over-year growth of 6% and 4% respectively. Non-GAAP diluted earnings per share are projected to be between $0.21 and $0.25, and net cash provided by operating activities is expected to be between $10 million and $20 million.
Positive Outlook
- Revenues are expected to grow sequentially by 6% and year-over-year by 4%.
- Precision Devices segment continues to see increased order activity and backlog.
- MedTech and Specialty Audio businesses are performing as expected.
- The company is increasingly confident in year-over-year growth for 2025 across all businesses.
- Strong cash generation is anticipated to continue in 2025.
Challenges Ahead
- Macro-level uncertainty due to tariffs is noted, though currently not impacting demand.
- GAAP diluted earnings per share are projected to be lower than non-GAAP diluted earnings per share.
- Q2 2025 GAAP results are expected to include approximately $0.06 per share in stock-based compensation expense.
- Q2 2025 GAAP results are expected to include approximately $0.04 per share in intangibles amortization expense.
- Net cash provided by operating activities in Q2 2025 is expected to include $9 million of cash used in settlement of supplier obligations related to the Consumer MEMS Microphone business.