Knowles(NYSE) KN

Knowles Corporation makes tiny parts for hearing and electronics. These precision pieces help hearing aids and defense systems work. The company solves sound and power problems in small spaces.

What Is in the Box?

• Precision Devices: High-performance capacitors that store energy and radio frequency filters that manage signals; generated $98.3 million in revenue in the second quarter of 2026.
• MedTech & Specialty Audio: Micro-acoustic microphones and balanced armature speakers for hearing health and premium audio; generated $68.5 million in revenue in the second quarter of 2026.

Moving Into New Markets

• Completed the sale of the Consumer MEMS (CMM) business to Syntiant on Dec. 27, 2024, for approximately $140.8 million in total consideration.
• Acquired CD to expand the Precision Devices segment, incurring ongoing integration costs through the second quarter of 2026.
• Increased the share repurchase authorization to a total of $400.0 million in Feb. 2025.
• Expanded production capacity in the first half of 2026 for specialty film product lines within the Precision Devices segment.

Engineering the Invisible

Knowles uses proprietary manufacturing techniques and global operational expertise to create customized solutions for demanding industrial and medical environments. Its focus on specialized parts like balanced armature speakers, which are micro-speakers used in hearing aids, provides technology used across the medical and high-end audio sectors.

A Look at the Books

• Revenues were $166.8 million in the second quarter of 2026, up 14.3% year over year.
• Net earnings from continuing operations reached $18.4 million in the second quarter of 2026.
• Adjusted free cash flow was $19.8 million for the six months ended June 30, 2026.
• Gross profit margin reached 44.3% for the six months ended June 30, 2026, up from 41.0% year over year.
• Capital expenditures are expected to be approximately 5% of revenues for the full year of 2026.

Evolution Into Precision

Knowles has shifted its focus from general consumer electronics toward higher-margin industrial, medical, and defense markets. This transition toward specialized precision devices and life-enhancing audio technology supports its long-term growth in critical applications.