Knowles Q1 Revenue Jumps 16% to $153M, Margins Expand to 53.5%
Knowles Corp reported Q1 revenue of $153 million, up 16% year-over-year, and EPS of $0.27, up 50%, driven by 14% MedTech and Specialty Audio and 17% Precision Devices growth. Gross margins rose to 53.5% in MSA and 39.2% in PD, and Q2 guidance targets EPS $0.28-$0.32 on $152-$162 million revenue.
1. Q1 Financial Results
Knowles reported Q1 revenue of $153 million, marking a 16% year-over-year increase, and delivered GAAP EPS of $0.27, a 50% rise over the prior year. Net income was $9.7 million, or $0.11 per share, with adjusted EPS aligning at $0.27.
2. Segment Performance & Margin Expansion
The MedTech and Specialty Audio segment posted 14% revenue growth, while Precision Devices grew 17%, driven by demand in medtech, defense and industrial markets. Gross margins improved to 53.5% in the MSA segment and 39.2% in Precision Devices, supported by higher capacity utilization and favorable pricing.
3. Q2 Outlook
For Q2, the company forecasts EPS between $0.28 and $0.32 and revenue from $152 million to $162 million, reflecting expectations for continued new product ramps and secular demand trends. Management highlighted a robust pipeline of design wins across medical, energy and defense applications.
4. Expense and Cash Flow Trends
Operating cash flow used $1 million, R&D spending increased by $1.4 million, and SG&A rose by $3 million due to higher commissions and headcount. Interest expense totaled $2 million, down $1 million year-over-year, as the company remains mindful of potential input cost pressures in resin-based products.