Loading...
•
Dec 31, 2024
Knowles Q4 2024 Earnings Report
Knowles Corporation reported its financial results for the fourth quarter and full year ended December 31, 2024.
Key Takeaways
Knowles Corporation reported a 2% increase in fourth-quarter revenues from continuing operations year-over-year, reaching $142.5 million. Net earnings for the quarter were $18.5 million, with diluted EPS at $0.12. The company also generated $35.1 million in net cash from operations.
Fourth quarter revenues from continuing operations increased 2% year-over-year.
Full year revenues from continuing operations increased 21% year-over-year.
Generated $35.1 million in net cash from operations in Q4 and $130.1 million for the full year.
Board of Directors authorized an additional $150 million for the share repurchase program.
Knowles
Knowles
Forward Guidance
For the first quarter of 2025, Knowles expects revenues from continuing operations to be between $124 million and $134 million. Diluted earnings per share from continuing operations are projected to be between $0.06 and $0.10, with non-GAAP diluted earnings per share between $0.16 and $0.20. Net cash provided by operating activities is expected to be between $(15) million and $(5) million.
Positive Outlook
- New Specialty Film product line expected to provide new revenue growth area as manufacturing capacity ramps up through 2025 and 2026.
- Increased order activity and existing backlog in Medical and Defense markets add confidence in revenue and earnings growth resuming in Q2 2025.
- Large order received in Q1 in the Energy market provides confidence in organic revenue growth in 2026 and beyond.
- Exited 2024 with net debt leverage ratio well below one.
- 2025 expected to be another year of solid cash generation, providing flexibility for capital allocation.
Challenges Ahead
- Precision Devices revenues were lower than expected in Q4 2024 due to slower ramp-up of new Specialty Film product line.
- Q1 2025 Net cash provided by operating activities includes $12 million of cash used in settlement of supplier obligations related to the Consumer MEMS Microphone business.
- An additional $12 million of supplier obligations related to the Consumer MEMS Microphone business are expected to be settled in Q2 2025.
- GAAP results for Q1 2025 are expected to include approximately $0.06 per share in stock-based compensation expense.
- GAAP results for Q1 2025 are expected to include approximately $0.04 per share in intangibles amortization expense.