Knowles Projects Q4 Non-GAAP EPS of 39 to 43 Cents From Continuing Operations

Knowles Corporation forecast fourth-quarter 2026 non-GAAP diluted earnings of $0.39 to $0.43 per share from continuing operations and expects higher capital spending in 2027 to expand Precision Devices capacity. Knowles makes specialty electronic components, including capacitors, RF filters, microphones and speakers.

The company expects 2027 capital spending to reach 5% to 7% of revenue, above its historical range of 3% to 5%. Chief Financial Officer John Anderson described the increase as “increasing to 5% to 7% of revenues in 2027.” The added investment supports capacity expansion in Precision Devices.

For the quarter ending Dec. 31, 2026, Knowles forecast GAAP diluted earnings of $0.31 to $0.35 per share from continuing operations and revenue of $180 million to $190 million from continuing operations. It expects operating cash flow of $60 million to $70 million.

President and CEO Jeffrey Niew said capacity is being added across most Precision Devices product lines. Niew said the company expects initial capacity to come online near the end of Q1 2027, with the full expansion ready in H2 2027.

Precision Devices generated $117 million in third-quarter revenue, up 33% from a year earlier. The segment recorded a 1.5 book-to-bill ratio and nearly $180 million in orders. “Our book-to-bill ratio in Precision Devices remained above one for the eighth consecutive quarter,” Niew said.

For the quarter ended Sept. 30, 2026, Knowles posted $184 million in revenue from continuing operations and non-GAAP diluted EPS of $0.38 from continuing operations. Operating cash flow was $44.6 million.