Knowles Corporation (NYSE: KN): Corporate Profile & Financials

Source: Form 10-K Annual Report for the Fiscal Year Ended December 31, 2025

Quick Facts / Company Snapshot

Company Overview

Knowles Corporation (NYSE: KN) is a leading global market manufacturer of specialty electronic components. Founded in 1946 and headquartered in Itasca, Illinois, Knowles designs parts that perform critical, unique functions for innovative technologies. Through custom engineering, scalability, and high reliability, the Company’s high-performance capacitors, radio frequency (“RF”) filters, advanced medtech microphones, and balanced armature speakers enable demanding applications across medtech, defense, industrial, and electrification/energy markets. As of December 31, 2025, Knowles employed approximately 5,200 employees across facilities located in 11 countries worldwide. The Company markets and distributes its products directly to original equipment manufacturers (“OEMs”), to contract manufacturers and suppliers, and through a network of external sales representatives and distributors globally. Its worldwide distribution operations are supported by a global distribution center located in Penang, Malaysia. Knowles operates through two primary reportable business segments aligned around key product applications and end-market growth strategies: Precision Devices (“PD”) and MedTech & Specialty Audio (“MSA”). The Company previously operated a Consumer MEMS Microphones (“CMM”) business, which was sold to Syntiant Corp. on December 27, 2024, and is reported as discontinued operations in all presented financial periods.

Business Segments

Knowles operates and manages its business through two reportable segments determined under Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) Topic 280 — Segment Reporting:

Precision Devices (“PD”)

The Precision Devices segment specializes in the custom design and delivery of high-performance capacitor products and RF filtering solutions. The segment’s capacitor portfolio includes specialty film and ceramic products designed for specialized high-voltage, high-temperature, and high-reliability requirements. Its RF filtering solutions serve a broad range of frequencies and applications primarily within the defense sector. PD maintains engineering, support, and sales facilities across North America, Europe, and Asia, as well as manufacturing plants in North America and Asia. For the fiscal year ended December 31, 2025, the PD segment generated revenues of $328.9 million (representing approximately 55% of consolidated revenues), compared to $300.0 million in 2024 and $221.4 million in 2023. Segment adjusted earnings before interest and income taxes (“Adjusted EBIT”) reached $63.3 million in 2025, up from $50.0 million in 2024 and $40.5 million in 2023.

MedTech & Specialty Audio (“MSA”)

The MedTech & Specialty Audio segment designs and manufactures micro-acoustic technology, including high-reliability balanced armature speakers and advanced microphones used in hearing health and specialty audio applications. Serving medtech and industrial markets, MSA collaborates closely with hearing aid manufacturers to meet custom acoustic module, low-power, and compact size demands. MSA operates sales, engineering, and customer support offices in North America, Europe, and Asia, with manufacturing facilities in Asia. For the fiscal year ended December 31, 2025, the MSA segment generated revenues of $264.3 million (representing approximately 45% of consolidated revenues), compared to $253.5 million in 2024 and $235.4 million in 2023. Segment Adjusted EBIT was $102.4 million in 2025, compared to $102.3 million in 2024 and $89.8 million in 2023.

History and Evolution

Knowles was founded in 1946 as a pioneer in miniature acoustic components for hearing health. Over its multi-decade history, the Company expanded its technology footprint into high-reliability electronic components, specialty audio, and defense applications. Incorporated in Delaware, Knowles Corporation became an independent publicly traded company following its spin-off from Dover Corporation in 2014. In recent years, the Company executed a multi-year strategic transformation to pivot away from lower-margin consumer technology markets and focus on higher-margin, growth-oriented industrial technology sectors, including medtech, defense, industrial, and electrification/energy:

• Acquisition of Cornell Dubilier (2023): On November 1, 2023, Knowles acquired Kaplan Electronics, Inc., along with specific assets of Cornell Dubilier Electronics, Inc. and CD Aero, LLC (collectively, “Cornell Dubilier” or “CD”) for total purchase consideration of $259.8 million (fair value of $246.8 million). CD manufactures film, electrolytic, and mica capacitors, significantly broadening the PD segment’s electrification and defense capabilities.
• Divestiture of Consumer MEMS Microphones (2024): On December 27, 2024, Knowles completed the sale of its CMM business to Syntiant Corp. for total consideration of approximately $141.9 million, consisting of $63.6 million in cash ($58.0 million net of cash sold), Syntiant Series D-2 preferred stock valued at $77.2 million, and $1.1 million in estimated purchase price adjustments. This completed Knowles’ exit from the mobile consumer market.
• Investor Day & Transformation Strategy (2025): In May 2025, Knowles hosted an investor day detailing its evolution into a premier industrial technology company focused on high-reliability, custom-engineered components.
• Share Repurchase Program: The Company’s Board of Directors expanded its stock repurchase authorization over time, increasing capacity by $150.0 million on April 28, 2022, and adding another $150.0 million authorization on February 13, 2025. In 2025, Knowles repurchased 3,571,865 common shares for $65.0 million.

Products and Services

Knowles offers specialized electronic component categories categorized by business segment:

Precision Devices Portfolio

• High-Performance Capacitors: Custom-engineered specialty film, ceramic, and mica capacitors characterized by high-voltage capability, extreme temperature tolerance, and high reliability for power management, electrification, medical devices, and defense applications.
• Radio Frequency (RF) Solutions: Customized RF filters, microwave components, and equalizers designed for complex signal-processing environments in electronic warfare and defense systems.

MedTech & Specialty Audio Portfolio

• Balanced Armature Speakers: High-efficiency micro-speakers engineered for exceptional audio fidelity, compact form factors, and minimal power consumption in hearing aids and premium audio monitors.
• Advanced Medtech Microphones: Highly reliable acoustic sensors specifically designed for medical-grade hearing health instruments and critical communications.
• Custom Acoustic Modules & Components: Integrated acoustic assemblies tailored to OEM product constraints, as well as metal cans manufactured and supplied to commercial partners.

Brand Portfolio

Knowles maintains intellectual property protection for its primary corporate brands and product families. The Company holds registered trademarks for KNOWLES and the Knowles corporate logo in the United States and multiple international jurisdictions. Following the acquisition of Cornell Dubilier in November 2023, the Company’s brand portfolio also encompasses the Cornell Dubilier trademark and product branding associated with specialty film and power capacitors.

Geographical Presence

Knowles operates an international network of owned and leased facilities supporting manufacturing, research and development, sales, and administration. The Company’s primary operational footprint includes: Geographically, consolidated revenues attributable to direct customer shipping locations for the fiscal year ended December 31, 2025 were distributed as follows:

• United States: $248.8 million (41.9% of total revenues)
• Asia: $226.1 million (38.1% of total revenues)
• Europe: $95.4 million (16.1% of total revenues)
• Other Americas: $12.0 million (2.0% of total revenues)
• Other Regions: $10.9 million (1.8% of total revenues)

Competitor Analysis

Success in specialty electronic components is primarily driven by technological innovation, custom engineering capabilities, reliability, and manufacturing scale. Knowles competes in specialized product markets characterized by demanding technical specifications rather than broad commodity competition. The principal competitors identified in the Company’s filing include:

• Precision Devices Segment: Competes against Kyocera AVX, Yageo Corporation’s Kemet brand, Vishay Intertechnology, and a fragmented market of niche specialty capacitor and RF component producers. Knowles differentiates through high-voltage/high-temperature customization and domestic manufacturing footprints required by defense customers.
• MedTech & Specialty Audio Segment: Primary direct competitor is Sonion. Knowles competes on acoustic performance, ultra-low power consumption, miniaturization, custom module engineering, and high manufacturing yields.

Operating Performance and Business Drivers

For the fiscal year ended December 31, 2025, Knowles achieved revenues of $593.2 million, an increase of $39.7 million or 7.2% compared to $553.5 million in 2024. Revenue expansion was led by the Precision Devices segment, where revenue grew $28.9 million (+9.6%) due to robust demand across medtech, defense, industrial, and electrification/energy markets along with improved average pricing. MedTech & Specialty Audio segment revenues increased $10.8 million (+4.3%), driven by higher shipments of metal cans under the Syntiant supply agreement and growth in specialty audio, partially offset by price declines on mature hearing health products. Gross profit for 2025 reached $256.3 million, up 9.2% from $234.8 million in 2024. Gross profit margin expanded to 43.2% compared to 42.4% in 2024. Margin improvements were realized through higher production volumes, enterprise-wide product cost reductions, increased factory capacity utilization in ceramic capacitors and RF filters, lower precious metal costs, and reduced Cornell Dubilier integration expenses. These gains were partially offset by lower yields in the CD business during the ramp-up of specialty film product lines, unfavorable product mix, and a $3.6 million impairment charge on certain equipment sold to Syntiant in 2025. Operating expenses for 2025 totaled $186.0 million compared to $183.0 million in 2024. Research and development expenses were $40.2 million (6.8% of revenues), while selling and administrative expenses were $142.8 million (24.1% of revenues). Restructuring charges were $3.8 million ($0.8 million in cost of goods sold, $3.0 million in operating expenses), driven by corporate rightsizing following the sale of CMM. Operating earnings rose 35.7% to $70.3 million in 2025 from $51.8 million in 2024. Net interest expense decreased to $9.3 million in 2025 from $16.3 million in 2024 due to lower revolving credit balances, lower interest rates, and reduced imputed interest on the Cornell Dubilier Seller Note. The Company also recognized $6.2 million in dividend income via additional Syntiant Series D-2 preferred shares. Income tax expense was $13.1 million (effective tax rate of 20.5%). Earnings from continuing operations were $50.9 million ($0.58 per diluted share) in 2025, compared to $23.4 million ($0.26 per diluted share) in 2024. Discontinued operations posted a net loss of $(6.7) million in 2025 compared to a net loss of $(261.2) million in 2024 (which included $262.5 million in CMM goodwill impairment). Consolidated net earnings for 2025 were $44.2 million ($0.50 per diluted share), compared to a net loss of $(237.8) million ($(2.64) per diluted share) in 2024.

Board of Directors and Leadership Team

As of February 9, 2026, the executive officers and Board of Directors of Knowles Corporation were as follows:

Executive Management

• Jeffrey S. Niew: President, Chief Executive Officer, and Director (Age 59)
• John S. Anderson: Senior Vice President and Chief Financial Officer (Age 62)
• Raymond D. Cabrera: Senior Vice President and Chief Human Resources Officer (Age 59)
• Daniel J. Giesecke: Senior Vice President and Chief Operating Officer (Age 58)
• Robert J. Perna: Senior Vice President, General Counsel and Secretary (Age 62)
• Air A. Bastarrica, Jr.: Vice President and Controller (Principal Accounting Officer)

Board of Directors

• Keith L. Barnes: Chairman of the Board of Directors
• Jeffrey S. Niew: President, CEO, and Director
• Laura Angelini: Director
• Jason M. Cardew: Director
• Daniel J. Crowley: Director
• Didier Hirsch: Director
• Ye Jane Li: Director
• Cheryl Shavers: Director
• Michael S. Wishart: Director

Future Strategy and Business Priorities

Knowles is executing a focused strategic strategy centered on leveraged technologies, high-reliability designs, and custom-engineered component manufacturing for growth markets:

• Precision Devices Expansion: Capitalizing on secular tailwinds in defense electronics (electronic warfare), industrial automation, medical equipment, and renewable energy/electrification. Strategy emphasizes expanding market share in high-voltage, high-reliability capacitors and specialty film, backed by planned capital investments in capacity expansion (expected to equal 4% to 5% of revenues in 2026).
• MedTech & Specialty Audio Optimization: Maintaining market position in hearing health through R&D innovations in miniaturization, power efficiency, and acoustic fidelity. Growth strategies focus on expanding over-the-counter (“OTC”) hearing aid opportunities, specialty audio markets, and driving production yield enhancements to protect margins against mature product price erosion.
• Portfolio Pruning & Capital Disciplined Allocation: Maintaining focus on core competencies by divesting lower-margin consumer lines (e.g., CMM exit in 2024), paying down credit facility obligations, and executing disciplined share repurchases under the $129.0 million remaining repurchase program.

Key Strengths

• Custom Engineering & Extreme Reliability: Proprietary designs and custom acoustic and high-voltage component engineering tailored to high-reliability applications where component failure is unacceptable.
• Favorable End-Market Tailwinds: Portfolio alignment with expanding long-term markets, including global defense electronic upgrades, aging demographics driving hearing health care, and industrial power electrification.
• Global Manufacturing Infrastructure: Combined domestic U.S. production facilities (supporting ITAR/defense requirements) and efficient low-cost Asian and Mexican operations.
• Robust Intellectual Property: Strong technological portfolio protected by trade secrets, proprietary processes, and U.S. patents expiring between 2026 and 2045.

Key Challenges and Risks

• Customer & Distributor Concentration: In 2025, hearing health manufacturer WS Audiology A/S accounted for 11% of consolidated revenues (24% of MSA segment sales), while distributor TTI, Inc. represented 10% of consolidated revenues (19% of PD segment sales). Top five MSA customers generated 76% of segment sales.
• Sole-Source & Specialized Suppliers: Reliance on sole-source foundries and specialized suppliers for MEMS and ASIC components creates vulnerability to supply chain or operational disruptions.
• Raw Material Volatility & Tariffs: Exposure to price fluctuations in precious metals (palladium, gold, copper, brass) and international trade restrictions, tariffs, and export regulations across U.S., Chinese, and foreign jurisdictions.
• Foreign Currency Exposures: Operations in foreign jurisdictions expose cost structures to exchange rate fluctuations in the Malaysian ringgit, Chinese renminbi, Philippine peso, and Mexican peso.

Conclusion and Strategic Outlook

Knowles Corporation has completed a strategic pivot into a high-reliability industrial technology leader. By divesting legacy mobile consumer businesses and expanding high-value capacitor, RF filter, and medtech acoustic capabilities, Knowles has strengthened its margin profile, operational focus, and cash flow generation. Backed by solid balance sheet liquidity, a disciplined capital allocation structure, and secular growth across defense, medtech, and electrification sectors, the Company is positioned to execute its long-term growth plan.

Official Site

The official corporate website of Knowles Corporation can be accessed at https://www.knowles.com.

Financial Statements

The consolidated financial statements are presented in U.S. Dollars (in millions, except per share amounts) for the years ended December 31, 2025, December 31, 2024, and December 31, 2023.

Income Statement

Balance Sheet

Cash Flow Statement

Subsidiaries & Joint Ventures

The filing does not disclose a complete itemized list of all material legal subsidiaries and joint ventures with individual ownership percentages beyond referencing consolidated subsidiaries and operating segments (Precision Devices and MedTech & Specialty Audio) and the investment in affiliate (Syntiant Corp.).

Other Investments & Holdings

Physical Properties

Investments and Capital Expenditure

Share Capital and Outstanding Shares

Frequently Asked Questions

What are Knowles Corporation’s primary business segments?

Knowles operates through two primary reportable segments: Precision Devices (“PD”), which produces high-performance capacitors and RF filters for defense, medtech, electrification, and industrial applications; and MedTech & Specialty Audio (“MSA”), which designs and manufactures balanced armature speakers and advanced microphones for hearing health and specialty audio markets.

What was Knowles’ financial performance in fiscal year 2025?

In fiscal year 2025, Knowles reported consolidated revenues of $593.2 million (a 7.2% increase from 2024), operating income of $70.3 million (+35.7%), and earnings from continuing operations of $50.9 million ($0.58 per diluted share). Consolidated net earnings were $44.2 million ($0.50 per diluted share), compared to a net loss of $(237.8) million in 2024.

Why did Knowles sell its Consumer MEMS Microphones (CMM) business?

Knowles completed the sale of its CMM business to Syntiant Corp. on December 27, 2024 for approximately $141.9 million in total consideration. The sale marked Knowles’ strategic exit from volatile, lower-margin mobile consumer technology markets, enabling the Company to transform into a high-margin premier industrial technology company focused on defense, medtech, and electrification.

Who are Knowles Corporation’s largest customers and distributors?

In fiscal year 2025, WS Audiology A/S (a hearing health OEM) accounted for 11% of total consolidated revenues and 24% of MSA segment sales. TTI, Inc. (an electromechanical component distributor) represented 10% of total consolidated revenues and 19% of PD segment sales.

Where are Knowles’ primary manufacturing facilities located?

Knowles operates major owned and leased manufacturing facilities in Suzhou, China; Cebu, Philippines; Penang, Malaysia; Mexicali, Mexico; and U.S. plants in Liberty, South Carolina; Cazenovia, New York; and New Bedford, Massachusetts.