Knowles Reports Strong Q4 & Full Year 2025 Results, Exceeding Guidance and Raising Long-Term Growth Targets
KN has more than doubled off its 52-week low of $12.19.
Summary
Knowles Corporation announced strong Q4 and full year 2025 financial results, exceeding revenue, EPS, and cash flow guidance, and provided an optimistic outlook for Q1 2026 and long-term growth.
Key Events · Earnings and Guidance · KN
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Q4 2025 Performance Exceeds Guidance
Fourth quarter revenues from continuing operations increased 14% year-over-year to $162.2 million, exceeding the high end of the guided range. Non-GAAP diluted EPS of $0.36 was above the mid-point of guidance, and net cash from operations of $47.2 million also surpassed the high end of the guided range.
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Full Year 2025 Revenue Growth Exceeds Target
Full year revenues from continuing operations grew 7% year-over-year to $593.2 million, exceeding the high end of the company's five-year organic growth target. Non-GAAP diluted EPS for the full year was $1.11, a 21% increase from the prior year.
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Strong Cash Generation and Debt Reduction
The company generated $114.0 million in net cash from operations for the full year 2025, representing 19.2% of revenues, which contributed to debt reduction and share repurchases.
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Positive Q1 2026 Outlook and Long-Term Targets
Knowles provided Q1 2026 guidance with revenues expected between $143 million and $153 million, and non-GAAP diluted EPS between $0.22 and $0.26. The company also set ambitious 2026-2029 targets, including an 8-10% revenue CAGR and 10-14% Adjusted EBITDA CAGR.
Analysis · KN · Manufacturing
Knowles Corporation delivered a robust financial performance for Q4 and full year 2025, surpassing its own guidance and organic growth targets. The company's strategic transformation into a high-margin Industrial Technology company appears to be yielding positive results, with significant year-over-year growth in key metrics. The positive Q1 2026 outlook and ambitious long-term growth targets (8-10% revenue CAGR, 10-14% Adjusted EBITDA CAGR for 2026-2029) suggest continued momentum. Investors should monitor the company's ability to execute on these growth initiatives and maintain margin expansion, especially as the stock trades near its 52-week high.
At the time of this filing, KN was trading at $24.74 on NYSE in the Manufacturing sector, with a market capitalization of approximately $2.1B. The 52-week trading range was $12.19 to $25.57. This filing was assessed with positive market sentiment and an importance score of 7 out of 10.