Financial Data and Key Metrics Changes - Revenue for Q4 was $162 million, up 14% year-over-year, exceeding the high end of the guidance range [4][10] - EPS for Q4 was $0.36, up 33% from the previous year [4][10] - Full year revenue was $593 million, up 7% year-over-year, also above the high end of the guidance range [10][14] - Adjusted EBITDA from continuing operations was $140 million, up 9% from 2024 [14] Business Segment Data and Key Metrics Changes - MedTech and Specialty Audio revenue for Q4 was $73 million, up 4% year-over-year, with full year revenue at $264 million, also up 4% [5][10] - Precision Devices segment revenue for Q4 was $90 million, up 23% year-over-year, with full year revenue growing 10% [6][10] - Gross margins for MedTech and Specialty Audio were 51.9% for Q4, while Precision Devices had gross margins of 40.1% [10][11] Market Data and Key Metrics Changes - The company reported strong demand across key end markets including MedTech, Defense, Industrial, EV, and Energy, with revenue growth in all segments [6][8] - Book-to-bill ratio was greater than 1x, indicating healthy bookings and demand [8] Company Strategy and Development Direction - The company is focused on leveraging unique technologies to design custom-engineered solutions for high-growth markets [4] - There is a strong emphasis on organic growth and potential acquisitions to enhance market position [9][22] - The company aims to maintain strong organic revenue growth above historic levels, with expectations for continued growth in 2026 and beyond [9][16] Management Comments on Operating Environment and Future Outlook - Management expressed confidence in the ability to achieve revenue, earnings, and cash flow growth, supported by a robust backlog and increased order activity [16] - The company anticipates strong year-over-year growth in the first quarter of 2025, despite it being seasonally low [9] - Management highlighted the importance of collaboration with customers to drive new design wins and revenue growth [8] Other Important Information - Cash generated from operations was $47 million in Q4, with capital spending at $15 million [13] - The company exited the quarter with $54 million in cash and $114 million in borrowings under its revolving credit facility [13] Q&A Session Summary Question: Update on energy order and thin-film capacitor products - Management expects the energy order ramp-up to fully commence by the end of Q2 2025, with revenue expectations in the $50 million-$65 million range for 2026 [18][21] Question: Prospects for future organic growth and acquisitions - Management indicated a positive outlook for organic growth opportunities and a strong pipeline for potential acquisitions [22] Question: Gross margin guidance for March and June quarters - Management moved away from specific gross margin guidance, focusing instead on revenue, but indicated potential for margin expansion in the back half of 2026 [29] Question: Supply-demand dynamics in Industrial - Management expects strong Industrial shipments in the first half of 2026, with overall growth anticipated for the full year [46][48] Question: Impact of component shortages on demand - Management acknowledged concerns about capacity and pricing dynamics but noted strong bookings and demand [49]

Financial Data and Key Metrics Changes - In Q4 2025, revenue was $162 million, up 14% year-over-year, exceeding the high end of the guidance range [4][11] - EPS for Q4 was $0.36, up 33% from the previous year [4][11] - Full year revenue reached $593 million, a 7% increase year-over-year, surpassing the high end of the organic growth target [11][14] - Adjusted EBITDA from continuing operations was $140 million, up 9% from 2024 [14] Business Segment Data and Key Metrics Changes - MedTech and specialty audio revenue in Q4 was $73 million, up 4% year-over-year, with full year revenue at $264 million, also up 4% [5][11] - Precision devices segment revenue in Q4 was $90 million, up 23% year-over-year, with full year revenue growing 10% [6][11] - Segment gross margins for MedTech and specialty audio were 51.9%, while precision devices had gross margins of 40.1% [11][12] Market Data and Key Metrics Changes - The defense market is experiencing increased order volumes, with a focus on electronic warfare applications [8][9] - The energy market is identified as a significant growth opportunity for 2026 and beyond [9] - Industrial markets are seeing a rebound, with expectations of strong shipments in the first half of 2026 [45][48] Company Strategy and Development Direction - The company is focused on leveraging unique technologies to design custom-engineered solutions for high-growth markets [4][10] - There is a commitment to pursuing synergistic acquisitions and share buybacks to enhance shareholder value [10][14] - The company aims to maintain strong organic revenue growth above historic levels, with a target of 4%-6% organic growth [10][24] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the ability to achieve revenue, earnings, and cash flow growth, supported by a robust backlog and increased order activity [16] - The first quarter of 2026 is expected to show strong year-over-year growth despite being seasonally low [10] - Management highlighted the positive momentum in defense spending and the potential for margin expansion in the second half of 2026 [30][32] Other Important Information - Cash generated from operations in Q4 was $47 million, with capital spending at $15 million [13] - The company exited the quarter with $54 million in cash and $114 million in borrowings under its revolving credit facility [13] Q&A Session Summary Question: Update on energy order and thin-film capacitor products - Management expects the energy order ramp-up to be fully operational by the end of Q2 2026, with projected revenue in the $50-$65 million range for this product category [20][38] Question: Prospects for future organic growth and acquisitions - Management indicated a promising pipeline for organic growth and acquisitions, with a focus on expanding into new medical applications and defense spending [22][24] Question: Gross margin guidance for upcoming quarters - Management moved away from specific gross margin guidance, focusing instead on revenue, but indicated potential for margin expansion in the back half of 2026 [29] Question: Supply-demand dynamics in industrial markets - Management expects strong industrial shipments in the first half of 2026, with growth anticipated for the full year [45][48] Question: Component shortages impacting demand - Management acknowledged concerns about capacity and pricing dynamics but noted strong bookings and demand trends [49]

Core Viewpoint - Knowles Corporation, a leading manufacturer of specialty electronic components, has announced the date for the release of its fourth quarter and full year 2025 financial results, which will be on February 5, 2026 [1] Company Summary - Knowles Corporation specializes in high performance capacitors, radio frequency filters, advanced medtech microphones, and balanced armature speakers [1]

Core Insights - Ariel Investments reported a strong performance for its Mid Cap Value Strategy in Q3 2025, with a return of +9.62% gross of fees, outperforming both the Russell Midcap Value Index (+6.18%) and the Russell Midcap Index (+5.33%) [1] Company Performance - Knowles Corporation (NYSE:KN) experienced a one-month return of -4.95% but saw a 52-week gain of 16.68%, closing at $22.45 per share with a market capitalization of $1.928 billion as of November 27, 2025 [2] - In Q3 2025, Knowles Corporation reported revenue of $153 million, reflecting a 7% year-over-year increase [4] Market Position and Strategy - Knowles Corporation is recognized for its strong quarterly results, with healthy demand across key markets and a return to growth in its Precision Devices segment due to normalized channel inventories and improved operational efficiency [3] - The company has been returning capital to shareholders through share repurchases and is positioned to benefit from its focus on niche markets in hearing health and precision devices [3] Hedge Fund Interest - Knowles Corporation was held by 21 hedge fund portfolios at the end of Q3 2025, an increase from 17 in the previous quarter, indicating growing interest among institutional investors [4]