Bob Labick

Christopher Rolland

Anthony Stoss

Tristan Gerra

- Knowles Corporation has completed a strategic transformation, divesting consumer electronics and crystal oscillator businesses (totaling almost **$400 million** in revenue) to focus on higher-margin products and markets like medtech, defense, and industrial.  **[1587523_tx_375193_1]** **[1587523_tx_375193_2]** **[1587523_tx_375193_5]** 
- The company reported **$554 million** in revenue for the last year and expects **$585 million** for **2025**, with gross margins around **45%** and EBITDA in the mid-20s.  **[1587523_tx_375193_1]** **[1587523_tx_375193_2]** 
- Historically (2017-2024), Knowles achieved an **8%** revenue CAGR and **11%** EBITDA CAGR, improving EBITDA margins by **400 basis points**.  **[1587523_tx_375193_2]**  For the next five years, they target **8% to 10%** revenue CAGR and further **400 basis points** of EBITDA margin improvement.  **[1587523_tx_375193_3]** 
- The balance sheet is strong with very low leverage (currently **0.7**), and the company generates significant cash, with **$36 million** of free cash flow in Q2.  **[1587523_tx_375193_1]** **[1587523_tx_375193_5]** **[1587523_tx_375193_6]**  Capital allocation priorities include CapEx, accretive M&A (like the **$260 million** acquisition of Cornell DuBlier), and share repurchases.  **[1587523_tx_375193_4]** **[1587523_tx_375193_5]** **[1587523_tx_375193_6]**

Knowles (KN)