Knowles Corp
For the period ended Sep 30, 2025. Filed Oct 28, 2025.
View on SEC.govAbout this filing
A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Sep 30, 2025 · Filed Oct 28, 2025
KN$31.27+3.1%Stored close · as of Nov 6, 2026
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-Q
Period ended 2025-06-30; filed 2025-07-29.
0001587523-25-000066
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2025-09-30; filed 2025-10-28.
0001587523-25-000079
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsThe baseline is this issuer’s latest earlier reporting period of the same form that was filed before the current report. A previous 10-Q is a different quarter, not a year-over-year comparison. Amendments are excluded.
Compared 133 previous paragraphs and 131 current paragraphs.
63 unchanged; 47 reworded; 21 added; 22 removed; 1 previous and 0 current paragraphs rearranged.
Tables are not compared: 9 previous and 9 current tables excluded. Dates, whitespace, punctuation and numbering changes are ignored; changes to financial figures remain significant.
A changed paragraph is not evidence that risk increased or decreased. An unchanged paragraph does not establish that risk stayed the same.
Added paragraphs (21)
Current report
Gross profit for the third quarter of 2025 was $69.9 million, compared with $62.9 million for the third quarter of 2024, an increase of $7.0 million or 11.1%. Gross profit margin (gross profit as a percentage of revenues) for the third quarter of 2025 was 45.7%, compared with 44.1% for the third quarter of 2024. The increases in gross profit and gross profit margin were primarily due to higher shipping volumes, company-wide product cost reductions, increased factory capacity utilization in our ceramic capacitor and RF filter businesses, partially offset by unfavorable product mix and lower than expected yields in our CD business as we ramp up our specialty film product line.
Current report
Non-GAAP gross profit for the third quarter of 2025 was $70.7 million, compared with $64.8 million for the third quarter of 2024, an increase of $5.9 million or 9.1%. Non-GAAP gross profit margin (non-GAAP gross profit as a percentage of revenues) for the third quarter of 2025 was 46.2% compared with 45.5% for the third quarter of 2024. The increases in non-GAAP gross profit and non-GAAP gross profit margin were primarily due to higher shipping volumes, company-wide product cost reductions, increased factory capacity utilization in our ceramic capacitor and RF filter businesses, partially offset by unfavorable product mix and lower than expected yields in our CD business as we ramp up our specialty film product line.
Current report
Research and development expenses for the third quarter of 2025 were $10.0 million, compared with $10.2 million for the third quarter of 2024, a decrease of $0.2 million or 2.0%. Research and development expenses as a percentage of revenues for the third quarter of 2025 and 2024 were 6.5% and 7.2%, respectively. The decreases in expenses were primarily driven by the timing of some development activities. The decrease in expenses as a percentage of revenues was driven by higher revenues.
Current report
Non-GAAP ETR for the third quarter of 2025 and 2024 was 10.2% and 7.3%, respectively. The non-GAAP ETR includes discrete items totaling $0.1 million of tax expense and $0.9 million of tax benefit for the three months ended September 30, 2025 and 2024, respectively. Absent the discrete items, the non-GAAP ETR for the third quarter of 2025 and 2024 was 9.9% and 10.7%, respectively. The change in the non-GAAP ETR was mainly due to the mix of earnings and losses by taxing jurisdictions and net discrete items.
Current report
Earnings from continuing operations for the third quarter of 2025 was $18.0 million, compared with $9.2 million for the third quarter of 2024, an improvement of $8.8 million. As described above, the improvement is primarily due to higher gross profit and lower interest expense, partially offset by higher income tax expense.
Current report
We recorded a loss of $0.6 million for the third quarter of 2025, primarily driven by a change in tax expense. We recorded a loss of $8.7 million for the third quarter of 2024, primarily driven by our goodwill impairment and loss on disposal of business related to the divestiture of CMM, partially offset by favorable income tax changes. For additional information, refer to Note 3. Discontinued Operations to our Consolidated Financial Statements.
Current report
Diluted earnings per share from continuing operations was $0.21 for the third quarter of 2025, compared with $0.10 for the third quarter of 2024, an improvementof $0.11. As described above, the improvement is primarily due to higher gross profit, lower interest expense and reduced share count, partially offset by higher income tax expense.
Current report
Results of Operations for the Nine Months Ended September 30, 2025 compared with the Nine Months Ended September 30, 2024
Current report
Gross profit for the nine months ended September 30, 2025 was $183.8 million, compared with $173.9 million for the nine months ended September 30, 2024, an increase of $9.9 million or 5.7%. Gross profit margin for the nine months ended September 30, 2025 was 42.6%, compared with 42.3% for the nine months ended September 30, 2024. The increases in gross profit and gross profit margin were primarily due to higher shipping volumes, company-wide product cost reductions, increased factory capacity utilization in our ceramic capacitor and RF filter businesses, a reduction of CD related acquisition and production transfer costs, lower precious metal costs and restructuring charges, partially offset by unfavorable product mix, lower than expected yields in our CD business as we ramp up our specialty film product line, lower average pricing on mature products in the MSA business, impairment charges in 2025, and unfavorable inventory reserve adjustments.
Current report
Non-GAAP gross profit for the nine months ended September 30, 2025 was $190.2 million, compared with $182.5 million for the nine months ended September 30, 2024, an increase of $7.7 million or 4.2%. Non-GAAP gross profit margin for the nine months ended September 30, 2025 was 44.1%, compared with 44.4% for the nine months ended September 30, 2024. The increase in non-GAAP gross profit was primarily due to higher shipping volumes, company-wide product cost reductions, increased factory capacity utilization in our ceramic capacitor and RF filter businesses, and lower precious metal costs, partially offset by unfavorable product mix, lower than expected yields in our CD business as we ramp up our specialty film product line, lower average pricing on mature products in the MSA business, and unfavorable inventory reserve adjustments. The decrease in non-GAAP gross profit margin is primarily due to unfavorable product mix, lower than expected yields in our CD business as we ramp up our specialty film product line, lower average pricing on our mature products in the MSA business, and unfavorable inventory reserve adjustments, partially offset by company-wide product cost reductions, increased factory capacity utilization in our ceramic capacitor and RF filter businesses, and lower precious metals costs.
Current report
Other Expense, net
Current report
Other expense for the nine months ended September 30, 2025 was $2.6 million, compared with expense of $2.5 million for the nine months ended September 30, 2024, a change of $0.1 million. The change is primarily due to unfavorable foreign currency exchange rate changes.
Current report
Non-GAAP ETR for the nine months ended September 30, 2025 and 2024 was 13.2% and 9.1%, respectively. The non-GAAP ETR includes discrete items totaling $0.1 million of tax expense and $0.9 million of tax benefit for the nine months ended September 30, 2025 and 2024, respectively. Absent the discrete items, the non-GAAP ETR for the nine months ended September 30, 2025 and 2024 was 13.1% and 10.5%, respectively. The change in the non-GAAP ETR was mainly due to the mix of earnings and losses by taxing jurisdictions and net discrete items.
Current report
Earnings from continuing operations for the nine months ended September 30, 2025 was $25.4 million, compared with $13.0 million for the nine months ended September 30, 2024, an improvement of $12.4 million. As described above, the improvement is primarily due to higher gross profit and lower interest expense, partially offset by higher operating expenses and income tax expense.
Current report
EBIT for the nine months ended September 30, 2025 was $41.9 million, compared with $33.9 million for the nine months ended September 30, 2024, an increase of $8.0 million. EBIT margin for the nine months ended September 30, 2025 was 9.7%, compared with 8.2% for the nine months ended September 30, 2024. The increase in EBIT and EBIT margin was primarily due to higher gross profit, partially offset by higher operating expenses.
Current report
Adjusted EBIT from continuing operations for the nine months ended September 30, 2025 was $83.9 million, compared with $78.5 million for the nine months ended September 30, 2024, an increase of $5.4 million. Adjusted EBIT margin for the nine months ended September 30, 2025 was 19.5%, compared with 19.1% for the nine months ended September 30, 2024. The increase in Adjusted EBIT and Adjusted EBIT margin was primarily due to higher non-GAAP gross profit, partially offset by higher non-GAAP operating expenses.
Current report
Loss from discontinued operations for the nine months ended September 30, 2025 was $2.2 million, compared with a loss of $269.3 million for the nine months ended September 30, 2024. Loss from discontinued operations for the nine months ended September 30, 2025 was primarily driven by an unfavorable working capital adjustment and tax expense. Loss from discontinued operations for the nine months ended September 30, 2024 was primarily driven by goodwill impairment and loss on disposal of business related to the divestiture of CMM, partially offset by favorable income tax changes. For additional information, refer to Note 3. Discontinued Operations to our Consolidated Financial Statements.
Current report
Diluted earnings per share from continuing operations was$0.29 for thenine months ended September 30, 2025, compared with$0.14 for thenine months ended September 30, 2024, an improvementof $0.15. As described above, the improvement is primarily due to higher gross profit, lower interest expense and reduced share count, partially offset by by higher operating expenses and income tax expense.
Current report
(8) In the third quarter of 2025, the Company modified its calculation method of Non-GAAP diluted average shares outstanding to exclude the potential dilution impact from performance share units ("PSUs") as these equity awards have not yet been earned. Our PSUs are market-based awards and have fluctuated based on the Company's total shareholder return performance relative to the Russell 2000 during the measurement period. The calculation methodology change in Non-GAAP diluted average shares outstanding increased Non-GAAP diluted earnings per share by $0.01 for both the three months ended September 30, 2025 and 2024, $0.02 for the nine months ended September 30, 2025, and $0.01 for the nine months ended September 30, 2024.
Current report
MSA EBIT was $25.0 million for both the third quarter of 2025 and the third quarter of 2024. EBIT margin for the third quarter of 2025 was 38.6%, compared with 39.2% for the third quarter of 2024. The EBIT margin decrease is primarily due to unfavorable product mix and the impact of higher shipping volumes of our lower margin metal can products to Syntiant, partially offset by product cost reductions.
Current report
Segment Results of Operations for the Nine Months Ended September 30, 2025 compared with the Nine Months Ended September 30, 2024
Removed paragraphs (22)
Previous report
Gross profit for the second quarter of 2025 was $60.6 million, compared with $57.8 million for the second quarter of 2024, an increase of $2.8 million or 4.8%. Gross profit margin (gross profit as a percentage of revenues) for the second quarter of 2025 was 41.5%, compared with 42.8% for the second quarter of 2024. The increase in gross profit was primarily due to higher shipping volumes, company-wide product cost reductions, a reduction of CD related acquisition and production transfer costs, and higher factory capacity utilization in our legacy PD business, partially offset by impairment charges in 2025, unfavorable product mix, unfavorable inventory reserve adjustments, and production inefficiencies in our CD business as we ramp up our specialty film product line. The decrease in gross profit margin is primarily due to impairment charges in 2025, unfavorable product mix, unfavorable inventory reserve adjustments, and production inefficiencies in our CD business as we ramp up our specialty film product line, partially offset by company-wide product cost reductions, a reduction of CD related acquisition and production transfer costs, and higher factory capacity utilization in our legacy PD business.
Previous report
Non-GAAP gross profit for the second quarter of 2025 was $64.5 million, compared with $59.8 million for the second quarter of 2024, an increase of $4.7 million or 7.9%. Non-GAAP gross profit margin (non-GAAP gross profit as a percentage of revenues) for the second quarter of 2025 and 2024 was 44.2%. The increase in non-GAAP gross profit was primarily due to higher shipping volumes, company-wide product cost reductions, and higher factory capacity utilization in our legacy PD business, partially offset by unfavorable product mix, unfavorable inventory reserve adjustments, and production inefficiencies in our CD business as we ramp up our specialty film product line.
Previous report
The non-GAAP ETR from continuing operations for the second quarter of 2025 and 2024 was 15.9% and 10.7%, respectively. The non-GAAP ETR from continuing operations includes no discrete impact for the second quarter of 2025 or 2024. The change in the non-GAAP ETR was primarily due to decreased utilization of foreign tax credits compared to the prior year.
Previous report
Earnings from continuing operations for the second quarter of 2025 was $7.8 million, compared with $4.8 million for the second quarter of 2024, an improvement of $3.0 million. As described above, the improvement is primarily due to higher gross profit and lower interest expense, partially offset by higher operating expenses, other expense, and income tax expense.
Previous report
There was no activity for the second quarter of 2025. We recorded a loss of $264.1 million for the second quarter of 2024, primarily driven by goodwill impairment, income tax expense, and additional expenses in connection with the sale of the CMM business, partially offset by a gain on sale of fixed assets. For additional information, refer to Note 3. Discontinued Operations to our Consolidated Financial Statements.
Previous report
Diluted earnings per share from continuing operations was $0.09 for the second quarter of 2025, compared with $0.05 for the second quarter of 2024, an improvementof $0.04. As described above, the improvement is primarily due to higher gross profit and lower interest expense, partially offset by higher operating expenses, other expense, and income tax expense.
Previous report
Results of Operations for the Six Months Ended June 30, 2025 compared with the Six Months Ended June 30, 2024
Previous report
Impairment Charges
Previous report
Gross profit for the six months ended June 30, 2025 was $113.9 million, compared with $111.0 million for the six months ended June 30, 2024, an increase of $2.9 million or 2.6%. Gross profit margin (gross profit as a percentage of revenues) for the six months ended June 30, 2025 was 41.0%, compared with 41.3% for the six months ended June 30, 2024. The increase in gross profit was primarily due to higher shipping volumes, company-wide product cost reductions, a reduction of CD related acquisition and production transfer costs, and lower restructuring charges, partially offset by impairment charges in 2025, unfavorable product mix, unfavorable inventory reserve adjustments, and production inefficiencies in our CD business as we ramp up our specialty film product line. The decrease in gross profit margin is primarily due to impairment charges in 2025, unfavorable product mix, unfavorable inventory reserve adjustments, and production inefficiencies in our CD business as we ramp up our specialty film product line, partially offset by company-wide product cost reductions, a reduction of CD related acquisition and production transfer costs, and lower restructuring charges.
Previous report
Non-GAAP gross profit for the six months ended June 30, 2025 was $119.5 million, compared with $117.7 million for the six months ended June 30, 2024, an increase of $1.8 million or 1.5%. Non-GAAP gross profit margin (non-GAAP gross profit as a percentage of revenues) for the six months ended June 30, 2025 was 43.0%, compared with 43.8% for the six months ended June 30, 2024. The increase in non-GAAP gross profit was primarily due to higher shipping volumes and company-wide product cost reductions, partially offset by unfavorable product mix, unfavorable inventory reserve adjustments, and production inefficiencies in our CD business as we ramp up our specialty film product line. The decrease in non-GAAP gross profit margin is primarily due to unfavorable product mix, unfavorable inventory reserve adjustments, and production inefficiencies in our CD business as we ramp up our specialty film product line, partially offset by company-wide product cost reductions.
Previous report
Research and development expenses for the six months ended June 30, 2025 were $19.7 million, compared with $19.0 million for the six months ended June 30, 2024, an increase of $0.7 million or 3.7%. Research and development expenses as a percentage of revenues for the six months ended June 30, 2025 and 2024 was 7.1%. The increase in expenses was primarily driven by increased development activities in both our MSA and PD segments as we continue to invest in our businesses.
Previous report
Other Expense (Income), net
Previous report
Other expense for the six months ended June 30, 2025 was $1.4 million, compared with income of $0.1 million for the six months ended June 30, 2024, a change of $1.5 million. Expense for the six months ended June 30, 2025 primarily represents unfavorable foreign currency changes, partially offset by unrealized gains in our investment balances. Income in the six months ended June 30, 2024 primarily represents unrealized gains in our investment balances, partially offset by unfavorable foreign currency changes.
Previous report
The non-GAAP ETR from continuing operations for the six months ended June 30, 2025 and 2024 was 15.4% and 10.4%, respectively. The non-GAAP ETR from continuing operations includes no discrete impact for the six months ended June 30, 2025 and 2024. The change in the non-GAAP ETR was primarily due to decreased utilization of foreign tax credits compared to the prior year.
Previous report
Earnings from continuing operations for the six months ended June 30, 2025 was $7.4 million, compared with $3.8 million for the six months ended June 30, 2024, an improvement of $3.6 million. As described above, the improvement is primarily due to lower interest expense and higher gross profit, partially offset by higher operating expenses and other expense in the six months ended June 30, 2025 compared to other income for the six months ended June 30, 2024.
Previous report
EBIT for the six months ended June 30, 2025 was $17.3 million, compared with $17.8 million for the six months ended June 30, 2024, a decrease of $0.5 million. EBIT margin for the six months ended June 30, 2025 was 6.2%, compared with 6.6% for the six months ended June 30, 2024. The decrease in EBIT was primarily due to higher operating and other expenses, partially offset by higher gross profit. The decrease in EBIT margin was primarily due to higher operating expenses, increased other expenses, and lower gross profit margin.
Previous report
Adjusted EBIT from continuing operations for the six months ended June 30, 2025 was $49.4 million, compared with $48.5 million for the six months ended June 30, 2024, an increase of $0.9 million. Adjusted EBIT margin for the six months ended June 30, 2025 was 17.8%, compared with 18.1% for the six months ended June 30, 2024. The increase in Adjusted EBIT was primarily due to higher non-GAAP gross profit, partially offset by higher non-GAAP operating expenses. The decrease in Adjusted EBIT margin was primarily driven by higher non-GAAP operating expenses and lower gross profit margin.
Previous report
Loss from discontinued operations for the six months ended June 30, 2025 was $1.6 million, compared with a loss of $260.6 million for the six months ended June 30, 2024, an increase of $259.0 million. Loss from discontinued operations for the six months ended June 30, 2025 was primarily driven by unfavorable working capital adjustments. Loss from discontinued operations for the six months ended June 30, 2024 was primarily driven by goodwill impairment, income tax expense, and additional expenses in connection with the sale of the CMM business, partially offset by the gain on sale of technology and gain on sale of fixed assets. For additional information, refer to Note 3. Discontinued Operations to our Consolidated Financial Statements.
Previous report
Diluted earnings per share from continuing operations was$0.08 for thesix months ended June 30, 2025, compared with earnings of$0.04 for thesix months ended June 30, 2024, an improvementof $0.04. As described above, the improvement is primarily due to lower interest and income tax expense, partially offset by higher operating expenses and other expense in the six months ended June 30, 2025 compared to other income for the six months ended June 30, 2024.
Previous report
(8) Non-GAAP diluted earnings per share includes reconciling adjustments on non-GAAP net earnings.
Previous report
MSA EBIT was $21.0 million for the second quarter of 2025, compared with $24.1 million for the second quarter of 2024, a decrease of $3.1 million. EBIT margin for the second quarter of 2025 was 31.2%, compared with 39.4% for the second quarter of 2024. The decreases were primarily due to lower gross profit and higher operating expenses. The gross profit decrease was primarily due to impairment charges recorded in the second quarter of 2025, lower average pricing on mature products, unfavorable product mix, higher factory costs, and the impact of higher shipping volumes of our lower margin metal can products to Syntiant, partially offset by higher shipping volumes. The increase in operating expenses was primarily driven by higher stock-based compensation and legal costs.
Previous report
Segment Results of Operations for the Six Months Ended June 30, 2025 compared with the Six Months Ended June 30, 2024
Reworded paragraphs (47)
Previous wording
We are a leading manufacturer of specialty electronic components. We design parts that perform unique and critical functions for innovative technologies. Through extreme reliability, custom engineering, and scalable manufacturing, we enable businesses to succeed in the most demanding applications across medtech, defense, and industrial markets. Our high performance capacitors, radio frequency ("RF") and microwave filters, advanced medtech microphones, and balanced armature speakers, enhance the performance of our customers products to change, improve, and save lives. Our focus on the customer, combined with unique technology, proprietary manufacturing techniques, and global operational expertise, enables us to deliver innovative solutions across multiple applications. References to "Knowles," the "Company," "we," "our," or "us" refer to Knowles Corporation and its consolidated subsidiaries, unless the context otherwise requires.
Current wording
We are a leading manufacturer of specialty electronic components. We design parts that perform unique and critical functions for innovative technologies. Through extreme reliability, custom engineering, and scalable manufacturing, we enable businesses to succeed in the most demanding applications across medtech, defense, industrial, and electrification markets. Our high performance capacitors, radio frequency ("RF") and microwave filters, advanced medtech microphones, and balanced armature speakers, enhance the performance of our customers products to change, improve, and save lives. Our focus on the customer, combined with unique technology, proprietary manufacturing techniques, and global operational expertise, enables us to deliver innovative solutions across multiple applications. References to "Knowles," the "Company," "we," "our," or "us" refer to Knowles Corporation and its consolidated subsidiaries, unless the context otherwise requires.
Previous wording
On April 2, 2025, the U.S. announced a new universal baseline tariff of 10%, plus an additional country-specific tariff for select trading partners, on all U.S. imports. These actions, and retaliatory tariffs imposed by foreign jurisdictions, have resulted in market volatility and uncertainty regarding the ultimate effect of the tariffs on global economic conditions. Based on a preliminary analysis, we do not anticipate that these factors will have a material impact on our operations; however, we continue to monitor changes in international trade relations and trade policy, including those related to tariffs, which could adversely impact our results. We are optimizing operations and leveraging existing programs and strategies to reduce the impact from tariffs. Additionally, we are taking measures to control costs and implementing pricing actions designed to mitigate the risk these policies may have on our revenues and operations.
Current wording
On April 2, 2025, the U.S. announced a new universal baseline tariff of 10%, plus an additional country-specific tariff for select trading partners, on all U.S. imports. These actions, and retaliatory tariffs imposed by foreign jurisdictions, have resulted in market volatility and uncertainty regarding the ultimate effect of the tariffs on global economic conditions. We do not anticipate that these factors will have a material impact on our operations; however, we continue to monitor changes in international trade relations and trade policy, including those related to tariffs, which could adversely impact our results. We are optimizing operations and leveraging existing programs and strategies to reduce the impact from tariffs. Additionally, we are taking measures to control costs and implementing pricing actions designed to mitigate the risk these policies may have on our revenues and operations.
Previous wording
On December 27, 2024, the Company consummated the sale and assignment of certain assets and liabilities of the Company’s Consumer MEMS Microphones ("CMM") business to Syntiant Corp. ("Syntiant") for approximately $150.0 million in total consideration, consisting of $70.0 million cash ($58.0 million in net cash received) as adjusted for agreed deductions for indebtedness, and working capital and $80.0 million in Syntiant Series D-2 preferred stock (with a fair value of $77.2 million), par value $0.0001. The Company provided $6.4 million in financing, which was utilized to fund Syntiant's requirement to have $40.0 million of cash on its balance sheet at closing. The Company will also share in certain separation costs pursuant to a credit, which Syntiant may apply to specified separation costs post-closing. For additional information, refer to Note 3. Discontinued Operations to our Consolidated Financial Statements under Part I, Item 1, "Financial Statements."
Current wording
On December 27, 2024, the Company consummated the sale and assignment of certain assets and liabilities of the Company’s Consumer MEMS Microphones ("CMM") segment to Syntiant Corp. ("Syntiant") for approximately $150.0 million in total consideration, consisting of $70.0 million cash ($58.0 million in net cash received) as adjusted for agreed deductions for indebtedness, and working capital and $80.0 million in Syntiant Series D-2 preferred stock (with a fair value of $77.2 million), par value $0.0001. The Company provided $6.4 million in financing, which was utilized to fund Syntiant's requirement to have $40.0 million of cash on its balance sheet at closing. The Company will also share in certain separation costs pursuant to a credit, which Syntiant may apply to specified separation costs post-closing. For additional information, refer to Note 3. Discontinued Operations to our Consolidated Financial Statements under Part I, Item 1, "Financial Statements."
Previous wording
This divestiture supports Knowles' continued transformation into an industrial technology company, consisting of its Precision Devices ("PD") and MedTech & Specialty Audio ("MSA") segments, primarily serving the defense, medtech, industrial, and electrification markets. We have incurred some amount of dis-synergies following the sale of the CMM business due to the reduced size of our company and, as a result, we have undertaken actions to help ensure that our cost structure is appropriate to support our remaining businesses.
Current wording
This divestiture supports Knowles' continued transformation into an industrial technology company, consisting of its Precision Devices ("PD") and MedTech & Specialty Audio ("MSA") segments, primarily serving the defense, medtech, industrial, and electrification markets. We have incurred some amount of dis-synergies following the sale of CMM due to the reduced size of our company and, as a result, we have undertaken actions to help ensure that our cost structure is appropriate to support our remaining businesses.
Previous wording
As inventory levels in the industrial markets have recently begun to normalize, our Precision Devices segment has experienced increased bookings for the past three quarters. In addition, with bookings increasing we have seen backlog across our capacitor products increase for the past three quarters.
Current wording
As inventory levels in the industrial markets have recently begun to normalize, our Precision Devices segment has experienced increased bookings for the past four quarters. In addition, with bookings increasing we have seen backlog across our capacitor products increase for the past four quarters.
Previous wording
Revenues for the second quarter of 2025 were $145.9 million, compared with $135.2 million for the second quarter of 2024, an increase of $10.7 million or 7.9%. MSA revenues increased $6.3 million, primarily due to higher shipping volumes of metal cans within the specialty audio market that we manufacture and sell to Syntiant as part of our supply agreement associated with the sale of CMM and additional higher shipping volumes into the specialty audio and hearing health markets, partially offset by lower average pricing on mature products. PD revenues increased $4.4 million due to higher demand in the electrification and defense markets, as well as higher average pricing.
Current wording
Revenues for the third quarter of 2025 were $152.9 million, compared with $142.5 million for the third quarter of 2024, an increase of $10.4 million or 7.3%. PD revenues increased $9.4 million due to higher demand in the defense, electrification, medtech, and industrial markets, as well as higher average pricing. MSA revenues increased $1.0 million, primarily due to higher shipping volumes of metal cans within the specialty audio market that we manufacture and sell to Syntiant as part of our supply agreement associated with the sale of CMM and higher shipping volumes into the specialty audio market, partially offset by lower shipping volumes into the hearing health market.
Previous wording
Cost of goods sold ("COGS") for the second quarter of 2025 was $81.7 million, compared with $77.1 million for the second quarter of 2024, an increase of $4.6 million or 6.0%. This increase was primarily due to higher shipping volumes, unfavorable product mix, production inefficiencies in our CD business as we ramp up our specialty film product line, and unfavorable inventory reserve adjustments, partially offset by company-wide product cost reductions and a reduction of CD related acquisition and production transfer costs.
Current wording
Cost of goods sold ("COGS") for the third quarter of 2025 was $82.8 million, compared with $79.5 million for the third quarter of 2024, an increase of $3.3 million or 4.2%. This increase was primarily due to higher shipping volumes, unfavorable product mix, and lower than expected yields in our CD business as we ramp up our specialty film product line, partially offset by company-wide product cost reductions, increased factory capacity utilization in our ceramic capacitor and RF filter businesses, favorable inventory reserve adjustments, a reduction of CD related production transfer costs, and lower precious metal costs.
Previous wording
During the second quarter of 2024, we recorded restructuring charges of $0.3 million within Gross profit for costs associated with transferring certain capacitors manufacturing to existing facilities to further optimize operations, and a credit of $0.1 million within Operating expenses related to previous headcount reductions, all within the PD segment. No restructuring charges were recorded during the second quarter of 2025. For additional information, refer to Note 7. Restructuring and Related Activities to our Consolidated Financial Statements.
Current wording
During the third quarter of 2025, we recorded restructuring charges of $0.3 million related primarily to headcount reductions across the Company to rightsize expenses subsequent to the sale of CMM. During the third quarter of 2024, we recorded restructuring charges of $0.2 million for headcount reductions and costs to transfer certain capacitors manufacturing to existing facilities to further optimize operations. For additional information, refer to Note 8. Restructuring and Related Activities to our Consolidated Financial Statements.
Previous wording
Selling and administrative expenses for the second quarter of 2025 were $35.9 million, compared with $35.6 million for the second quarter of 2024, an increase of $0.3 million or 0.8%. Selling and administrative expenses as a percentage of revenues for the second quarter of 2025 and 2024 were 24.6% and 26.3%, respectively. The increase in expenses was primarily driven by a change in our deferred compensation liability and higher incentive compensation, partially offset by a reduction of CD related acquisition costs and the benefits of restructuring actions. The decrease in expenses as a percentage of revenues was driven by higher revenues.
Current wording
Selling and administrative expenses for the third quarter of 2025 were $34.0 million, compared with $33.9 million for the third quarter of 2024, an increase of $0.1 million or 0.3%. Selling and administrative expenses as a percentage of revenues for the third quarter of 2025 and 2024 were 22.2% and 23.8%, respectively. The increase in expenses was primarily driven by higher incentive compensation, partially offset by a reduction of CD related acquisition costs and the benefits of restructuring actions. The decrease in expenses as a percentage of revenues was driven by higher revenues.
Previous wording
Interest expense for the second quarter of 2025 was $2.5 million, compared with $4.6 million for the second quarter of 2024, a decrease of $2.1 million. The decrease is due to a lower outstanding revolving credit facility balance during the second quarter of 2025 and lower imputed interest expense on our Seller Note from the CD acquisition. For additional information on borrowings and interest expense, refer to Note 8. Borrowings to our Consolidated Financial Statements.
Current wording
Interest expense for the third quarter of 2025 was $2.3 million, compared with $3.9 million for the third quarter of 2024, a decrease of $1.6 million. The decrease is due to a lower outstanding revolving credit facility balance during the third quarter of 2025 and lower imputed interest expense on our Seller Note from the CD acquisition. For additional information on borrowings and interest expense, refer to Note 9. Borrowings to our Consolidated Financial Statements.
Previous wording
Other expense for the second quarter of 2025 was $0.9 million, compared with expense of $0.3 million for the second quarter of 2024, a change of $0.6 million. Expense in 2025 and 2024 is primarily due to unfavorable foreign currency exchange rate changes, partially offset by unrealized gains in our investment balances.
Current wording
Other expense for the third quarter of 2025 was $1.2 million, compared with expense of $2.6 million for the third quarter of 2024, a change of $1.4 million. Expense in both 2025 and 2024 is primarily due to unfavorable foreign currency exchange rate changes.
Previous wording
The effective tax rate ("ETR") from continuing operations for the second quarter of 2025 and 2024 was 31.0% and 38.5%, respectively. The ETR from continuing operations for the second quarter of 2025 and 2024 includes discrete items totaling $0.1 million of tax expense. The discrete items impacting the tax provision for 2025 and 2024 are primarily attributable to stock-based compensation. Absent the discrete items, the ETR from continuing operations for the second quarter of 2025 and 2024 was 30.1% and 37.2%, respectively. The Company accrues taxes in various countries where it generates income and applies a valuation allowance in other jurisdictions, which resulted in the provision for the second quarter of 2025 and 2024. The change in the ETR was due to the mix of earnings and losses by taxing jurisdictions and net discrete items.
Current wording
Effective tax rate ("ETR") for the third quarter of 2025 and 2024 was 19.3% and 24.6%, respectively. The ETR for the third quarter of 2025 and 2024 includes discrete items totaling $0.2 million of tax expense and $0.7 million of tax benefit, respectively. The discrete items impacting the tax provision for 2025 and 2024 are primarily attributable to stock-based compensation and the deferred tax impact of a tax rate change. Absent the discrete items, the ETR for the third quarter of 2025 and 2024 was 18.4% and 30.3%, respectively. The Company accrues taxes in various countries where it generates income and applies a valuation allowance in other jurisdictions, which resulted in the provisions for the third quarter of 2025 and 2024, respectively. The change in the ETR was due to the mix of earnings and losses by taxing jurisdictions and net discrete items.
Previous wording
On July 4, 2025, the One Big Beautiful Bill Act was signed into U.S. federal law. As the law was enacted in the third quarter, there is no tax accounting that was recorded in the second quarter. Based on our initial analysis of the law, we do not anticipate the One Big Beautiful Bill Act having a material impact on the financial statements of Knowles in 2025 or subsequent years, but we will continue to assess and model its impact as the year progresses.
Current wording
On July 4, 2025, the One Big Beautiful Bill Act was signed into U.S. federal law. Based on our analysis of the law, we do not anticipate the One Big Beautiful Bill Act having a material impact on the financial statements of Knowles in 2025 or subsequent years.
Previous wording
Earnings from continuing operations before interest and income taxes ("EBIT") for the second quarter of 2025 was $13.8 million, compared with $12.4 million for the second quarter of 2024, an increase of $1.4 million. EBIT margin (EBIT as a percentage of revenues) for the second quarter of 2025 was 9.5%, compared with 9.2% for the second quarter of 2024. The increase in EBIT and EBIT margin was primarily due to higher gross profit, partially offset by higher operating expenses.
Current wording
Earnings from continuing operations before interest and income taxes ("EBIT") for the third quarter of 2025 was $24.6 million, compared with $16.1 million for the third quarter of 2024, an increase of $8.5 million. EBIT margin (EBIT as a percentage of revenues) for the third quarter of 2025 was 16.1%, compared with 11.3% for the third quarter of 2024. The increase in EBIT and EBIT margin was primarily due to higher gross profit.
Previous wording
Adjusted earnings before interest and income taxes ("Adjusted EBIT") from continuing operations for the second quarter of 2025 was $27.7 million, compared with $25.2 million for the second quarter of 2024, an increase of $2.5 million. Adjusted EBIT margin (Adjusted EBIT from continuing operations as a percentage of revenues) for the second quarter of 2025 was 19.0%, compared with 18.6% for the second quarter of 2024. The increase in Adjusted EBIT and Adjusted EBIT margin was primarily due to higher non-GAAP gross profit, partially offset by higher non-GAAP operating expenses.
Current wording
Adjusted earnings before interest and income taxes ("Adjusted EBIT") from continuing operations for the third quarter of 2025 was $34.5 million, compared with $30.0 million for the third quarter of 2024, an increase of $4.5 million. Adjusted EBIT margin (Adjusted EBIT from continuing operations as a percentage of revenues) for the third quarter of 2025 was 22.6%, compared with 21.1% for the third quarter of 2024. The increase in Adjusted EBIT and Adjusted EBIT margin was primarily due to higher non-GAAP gross profit, partially offset by higher non-GAAP operating expenses.
Previous wording
Non-GAAP diluted earnings per share from continuing operations was $0.24 for the second quarter of 2025, compared with $0.20 for the second quarter of 2024, an improvement of $0.04. As described above, the improvement is primarily due to higher non-GAAP gross profit and lower interest expense, partially offset by higher non-GAAP operating expenses and higher non-GAAP income tax expense.
Current wording
Non-GAAP diluted earnings per share from continuing operations was $0.33 for the third quarter of 2025, compared with $0.27 for the third quarter of 2024, an improvement of $0.06. As described above, the improvement is primarily due to higher non-GAAP gross profit, lower interest expense, and reduced share count, partially offset by higher non-GAAP operating expenses and higher non-GAAP income tax expense.
Previous wording
Revenues for the six months ended June 30, 2025 were $278.1 million, compared with $268.5 million for the six months ended June 30, 2024, an increase of $9.6 million or 3.6%. MSA revenues increased $7.0 million, primarily due to higher shipping volumes of metal cans within the specialty audio market that we manufacture and sell to Syntiant as part of our supply agreement associated with the sale of CMM and additional higher shipping volumes into the specialty audio and hearing health markets, partially offset by lower average pricing on mature products. PD revenues increased $2.6 million due to higher demand from the medtech and electrification markets as well as higher average pricing, partially offset by lower demand from the industrial and defense markets.
Current wording
Revenues for the nine months ended September 30, 2025 were $431.0 million, compared with $411.0 million for the nine months ended September 30, 2024, an increase of $20.0 million or 4.9%. PD revenues increased $12.0 million due to higher demand from the medtech, electrification, and defense markets, as well as higher average pricing, partially offset by lower demand from the industrial market. MSA revenues increased $8.0 million, primarily due to higher shipping volumes of metal cans within the specialty audio market that we manufacture and sell to Syntiant as part of our supply agreement associated with the sale of CMM and additional higher shipping volumes into the specialty audio market, partially offset by lower average pricing on mature products and lower shipping volumes into the hearing health market.
Previous wording
COGS for the six months ended June 30, 2025 was $160.1 million, compared with $156.2 million for the six months ended June 30, 2024, an increase of $3.9 million or 2.5%. This increase was primarily due to higher shipping volumes, unfavorable product mix, production inefficiencies in our CD business as we ramp up our specialty film product line, and unfavorable inventory reserve adjustments, partially offset by company-wide product cost reductions and a reduction of CD related acquisition and production transfer costs.
Current wording
COGS for the nine months ended September 30, 2025 was $242.9 million, compared with $235.7 million for the nine months ended September 30, 2024, an increase of $7.2 million or 3.1%. This increase was primarily due to higher shipping volumes, unfavorable product mix, lower than expected yields in our CD business as we ramp up our specialty film product line, and unfavorable inventory reserve adjustments, partially offset by company-wide product cost reductions, increased factory capacity utilization in our ceramic capacitor and RF filter businesses, a reduction of CD related acquisition and production transfer costs, and lower precious metal costs.
Previous wording
During the six months ended June 30, 2025, we recorded an impairment charge of $3.6 million to write down the carrying value of certain machinery and equipment to fair value. For additional information, refer to Note 1. Basis of Presentation to our Consolidated Financial Statements.
Current wording
During the nine months ended September 30, 2025, we recorded an impairment charge of $3.6 million to write down the carrying value of certain machinery and equipment to fair value. For additional information, refer to Note 1. Basis of Presentation to our Consolidated Financial Statements.
Previous wording
During the six months ended June 30, 2025, we recorded restructuring charges of $0.5 million within Gross profit and $2.4 million within Operating expenses related to headcount reductions across the Company to rightsize operating expenses subsequent to the sale of the CMM business. For additional information, refer to Note 7. Restructuring and Related Activities to our Consolidated Financial Statements.
Current wording
During the nine months ended September 30, 2025, we recorded restructuring charges of $0.7 million within Gross profit and $2.5 million within Operating expenses primarily related to headcount reductions across the Company to rightsize operating expenses subsequent to the sale of CMM. For additional information, refer to Note 8. Restructuring and Related Activities to our Consolidated Financial Statements.
Previous wording
During the six months ended June 30, 2024, we recorded restructuring charges of $1.3 million within Gross profit and $1.4 million within Operating expenses related to transferring certain capacitors manufacturing to existing facilities to further optimize operations, all within our PD segment. For additional information, refer to Note 7. Restructuring and Related Activities to our Consolidated Financial Statements.
Current wording
During the nine months ended September 30, 2024, we recorded restructuring charges of $1.8 million related to headcount reductions and $1.1 million for costs associated with transferring certain capacitors manufacturing to existing facilities to further optimize operations within our PD segment. These actions resulted in restructuring charges of $1.4 million within Gross profit and $1.5 million within Operating expenses. For additional information, refer to Note 8. Restructuring and Related Activities to our Consolidated Financial Statements.
Previous wording
Research and development expenses for the second quarter of 2025 were $10.0 million, compared with $9.6 million for the second quarter of 2024, an increase of $0.4 million or 4.2%. Research and development expenses as a percentage of revenues for the second quarter of 2025 and 2024 were 6.9% and 7.1%, respectively. The increase in expenses was primarily driven by increased development activities in both our PD and MSA segments as we continue to invest in our businesses. The decrease in expenses as a percentage of revenues was driven by higher revenues.
Current wording
Research and development expenses for the nine months ended September 30, 2025 were $29.7 million, compared with $29.2 million for the nine months ended September 30, 2024, an increase of $0.5 million or 1.7%. Research and development expenses as a percentage of revenues for the nine months ended September 30, 2025 and 2024 were 6.9% and 7.1%, respectively. The increase in expenses was primarily driven by increased development activities as we continue to invest in our businesses. The decrease in expenses as a percentage of revenues was driven by higher revenues.
Previous wording
Selling and administrative expenses for the six months ended June 30, 2025 were $73.1 million, compared with $72.9 million for the six months ended June 30, 2024, an increase of $0.2 million or 0.3%. Selling and administrative expenses as a percentage of revenues for the six months ended June 30, 2025 and 2024 were 26.3% and 27.2%, respectively. The increase in expenses was primarily driven by the acceleration of stock-based compensation expense for employees who are nearing or have reached retirement eligibility and higher incentive compensation, partially offset by the benefits of restructuring actions, a reduction of CD related acquisition costs, and reduced intangible amortization costs. The decrease in expenses as a percentage of revenues was driven by higher revenues.
Current wording
Selling and administrative expenses for the nine months ended September 30, 2025 were $107.1 million, compared with $106.8 million for the nine months ended September 30, 2024, an increase of $0.3 million or 0.3%. Selling and administrative expenses as a percentage of revenues for the nine months ended September 30, 2025 and 2024 were 24.8% and 26.0%, respectively. The increase in expenses was primarily driven by the acceleration of stock-based compensation expense for employees who are nearing or have reached retirement eligibility and higher incentive compensation, partially offset by a reduction of CD related acquisition costs, the benefits of restructuring actions, and reduced intangible amortization costs. The decrease in expenses as a percentage of revenues was driven by higher revenues.
Previous wording
Interest expense for the six months ended June 30, 2025 was $5.2 million, compared with $9.0 million for the six months ended June 30, 2024, a decrease of $3.8 million. The decrease is due to a lower outstanding revolving credit facility balance during the six months ended June 30, 2025 and lower imputed interest expense on our Seller Note from the CD acquisition. For additional information on borrowings and interest expense, refer to Note 8. Borrowings to our Consolidated Financial Statements.
Current wording
Interest expense for the nine months ended September 30, 2025 was $7.5 million, compared with $12.9 million for the nine months ended September 30, 2024, a decrease of $5.4 million. The decrease is due to a lower outstanding revolving credit facility balance during the nine months ended September 30, 2025 and lower imputed interest expense on our Seller Note from the CD acquisition. For additional information on borrowings and interest expense, refer to Note 9. Borrowings to our Consolidated Financial Statements.
Previous wording
The ETR from continuing operations for the six months ended June 30, 2025 and 2024 was 38.8% and 56.8%, respectively. The ETR from continuing operations for the six months ended June 30, 2025 and 2024 includes discrete items totaling $0.3 million of tax benefit and $0.5 million of tax expense, respectively. The discrete items impacting the tax provision for 2025 and 2024 are primarily attributable to stock-based compensation. Absent the discrete items, the ETR from continuing operations for the six months ended June 30, 2025 and 2024 was 41.3% and 51.1%, respectively. The Company accrues taxes in various countries where it generates income and applies a valuation allowance in other jurisdictions, which resulted in the provision for the six months ended June 30, 2025 and 2024. The change in the ETR was mainly due to the mix of earnings and losses by taxing jurisdictions and net discrete items.
Current wording
ETR for the nine months ended September 30, 2025 and 2024 was 26.2% and 38.1%, respectively. The ETR for the nine months ended September 30, 2025 and 2024 includes discrete items totaling $0.1 million and $0.3 million of tax benefit, respectively. The discrete items impacting the tax provision for the nine months ended September 30, 2024 are primarily attributable to stock-based compensation and the deferred tax impact of a tax rate change. Absent the discrete items, the ETR for the nine months ended September 30, 2025 and 2024 was 26.5% and 39.5%, respectively. The Company accrues taxes in various countries where it generates income and applies a valuation allowance in other jurisdictions, which resulted in the provision for the nine months ended September 30, 2025 and 2024. The change in the ETR was mainly due to the mix of earnings and losses by taxing jurisdictions and net discrete items.
Previous wording
Non-GAAP diluted earnings per share from continuing operations was $0.41 for the six months ended June 30, 2025 and $0.38 for the six months ended June 30, 2024, an improvement of $0.03. As described above, the improvement is primarily due to lower interest expense and higher non-GAAP gross profit, partially offset by higher non-GAAP income tax expense and non-GAAP operating expenses.
Current wording
Non-GAAP diluted earnings per share from continuing operations was $0.75 for the nine months ended September 30, 2025 and $0.65 for the nine months ended September 30, 2024, an improvement of $0.10. As described above, the improvement is primarily due to higher non-GAAP gross profit, lower interest expense, and reduced share count, partially offset by higher non-GAAP income tax expense and non-GAAP operating expenses.
Previous wording
(2) Production transfer costs represent duplicate costs incurred to migrate manufacturing to facilities primarily within the United States. These amounts are included in the corresponding Gross profit and Earnings from continuing operations before interest and income taxes for each period presented.
Current wording
(2) Production transfer costs represent duplicate costs incurred to migrate manufacturing to existing facilities. These amounts are included in the corresponding Gross profit and Earnings from continuing operations before interest and income taxes for each period presented.
Previous wording
(7) The non-GAAP reconciling adjustments to reconcile Earnings from continuing operations before interest and income taxes to Adjusted earnings from continuing operations before interest and income taxes include stock-based compensation expense, intangibles amortization expense, restructuring charges, production transfer costs, acquisition-related costs, and other expenses, partially offset by a credit to transition services.
Current wording
(7) The non-GAAP reconciling adjustments include stock-based compensation expense, intangibles amortization expense, restructuring charges, production transfer costs, acquisition-related costs, and other expenses, partially offset by a credit to transition services.
Previous wording
(9) The number of shares used in the diluted per share calculations on a non-GAAP basis excludes the impact of stock-based compensation expense expected to be incurred in future periods and not yet recognized in the financial statements, which would otherwise be assumed to be used to repurchase shares under the GAAP treasury stock method.
Current wording
(9) The number of shares used in the diluted average shares outstanding calculations on a non-GAAP basis excludes the impact of stock-based compensation expense expected to be incurred in future periods and not yet recognized in the financial statements, which would otherwise be assumed to be used to repurchase shares under the GAAP treasury stock method. Non-GAAP diluted average shares outstanding also excludes the impact of certain equity awards that are not yet earned.
Previous wording
PD revenues were $78.5 million for the second quarter of 2025, compared with $74.1 million for the second quarter of 2024, an increase of $4.4 million or 5.9%. Revenues increaseddue to higher demand in the electrification and defense markets, as well as higher average pricing.
Current wording
PD revenues were $88.2 million for the third quarter of 2025, compared with $78.8 million for the third quarter of 2024, an increase of $9.4 million or 11.9%. Revenues increaseddue to higher demand in the defense, electrification, medtech, and industrial markets, as well as higher average pricing.
Previous wording
PD EBIT was $8.2 million for the second quarter of 2025, compared with $4.2 million for the second quarter of 2024, an increase of $4.0 million. EBIT margin for the second quarter of 2025 was 10.4%, compared to 5.7% for the second quarter of 2024. The increases were due to higher gross profit primarily driven by higher shipping volumes, increased factory capacity utilization in our legacy PD business, product cost reductions, a reduction of CD related acquisition and production transfer costs, and higher average pricing, partially offset by production inefficiencies in our CD business as we ramp up our specialty film product line, unfavorable product mix, and unfavorable inventory reserve adjustments.
Current wording
PD EBIT was $14.3 million for the third quarter of 2025, compared with $8.4 million for the third quarter of 2024, an increase of $5.9 million. EBIT margin for the third quarter of 2025 was 16.2%, compared to 10.7% for the third quarter of 2024. The increases were due to higher gross profit primarily driven by higher shipping volumes, product cost reductions and increased factory capacity utilization in our ceramic capacitor and RF filter businesses, partially offset by unfavorable product mix and lower than expected yields in our CD business as we ramp up our specialty film product line.
Previous wording
PD Adjusted EBIT was $13.9 million for the second quarter of 2025, compared with $11.8 million for the second quarter of 2024, an increase of $2.1 million. Adjusted EBIT margin for the second quarter of 2025 was 17.7%, compared with 15.9% for the second quarter of 2024. The increases were due to higher non-GAAP gross profit. The non-GAAP gross profit increase was driven by higher shipping volumes, increased factory capacity utilization in our legacy PD business, product cost reductions, and higher average pricing, partially offset by production inefficiencies in our CD business as we ramp up our specialty film product line, unfavorable product mix, and unfavorable inventory reserve adjustments.
Current wording
PD Adjusted EBIT was $20.2 million for the third quarter of 2025, compared with $16.1 million for the third quarter of 2024, an increase of $4.1 million. Adjusted EBIT margin for the third quarter of 2025 was 22.9%, compared with 20.4% for the third quarter of 2024. The increases were due to higher non-GAAP gross profit. The non-GAAP gross profit increase was driven by higher shipping volumes, product cost reductions and increased factory capacity utilization in our ceramic capacitor and RF filter businesses, partially offset by unfavorable product mix and lower than expected yields in our CD business as we ramp up our specialty film product line.
Previous wording
MSA revenues were $67.4 million for the second quarter of 2025, compared with $61.1 million for the second quarter of 2024, an increase of $6.3 million or 10.3%. Revenues increased primarily due to higher shipping volumes of metal cans within the specialty audio market that we manufacture and sell to Syntiant as part of our supply agreement associated with the sale of CMM and additional higher shipping volumes into the specialty audio and hearing health markets, partially offset by lower average pricing on mature products.
Current wording
MSA revenues were $64.7 million for the third quarter of 2025, compared with $63.7 million for the third quarter of 2024, an increase of $1.0 million or 1.6%. Revenues increased primarily due to higher shipping volumes of metal cans within the specialty audio market that we manufacture and sell to Syntiant as part of our supply agreement associated with the sale of CMM and higher shipping volumes into the specialty audio market, partially offset by lower shipping volumes into the hearing health market.
Previous wording
MSA Adjusted EBIT was $26.1 million for the second quarter of 2025, compared with $25.1 million for the second quarter of 2024, an increase of $1.0 million. Adjusted EBIT margin for the second quarter of 2025 was 38.7%, compared to 41.1% for the second quarter of 2024. The increase in adjusted EBIT was primarily due to higher non-GAAP gross profit driven by higher shipping volumes, partially offset by lower average pricing on mature products, unfavorable product mix, and higher factory costs. The decrease in Adjusted EBIT margin was primarily due to lower average pricing on mature products, unfavorable product mix, higher factory costs, and the impact of higher shipping volumes of our lower margin metal can products to Syntiant.
Current wording
MSA Adjusted EBIT was $26.2 million for the third quarter of 2025, compared with $26.1 million for the third quarter of 2024, an increase of $0.1 million. Adjusted EBIT margin for the third quarter of 2025 was 40.5%, compared to 41.0% for the third quarter of 2024. The increase in adjusted EBIT was primarily due to higher non-GAAP gross profit, partially offset by higher non-GAAP operating expenses. Higher non-GAAP gross profit was driven by product cost reductions and higher shipping volumes, partially offset by unfavorable product mix. The decrease in Adjusted EBIT margin was primarily due to unfavorable product mix and the impact of higher shipping volumes of our lower margin metal can products to Syntiant.
Previous wording
PD revenues were $151.0 million for the six months ended June 30, 2025, compared with $148.4 million for the six months ended June 30, 2024, an increase of $2.6 million or 1.8%. Revenues increased due to higher demand from the medtech and electrification markets, as well as higher average pricing, partially offset by lower demand from the industrial and defense markets.
Current wording
PD revenues were $239.2 million for the nine months ended September 30, 2025, compared with $227.2 million for the nine months ended September 30, 2024, an increase of $12.0 million or 5.3%. Revenues increased due to higher demand from the medtech, electrification, and defense markets, as well as higher average pricing, partially offset by lower demand from the industrial market.
Previous wording
PD EBIT was $11.4 million for the six months ended June 30, 2025, compared with $2.1 million for the six months ended June 30, 2024, an increase of $9.3 million. EBIT margin for the six months ended June 30, 2025 was 7.5%, compared to 1.4% for six months ended June 30, 2024. The increases were primarily due to higher gross profit and lower operating expenses. The gross profit increase was primarily driven by product cost reductions, lower CD related acquisition and production transfer costs, increased factory capacity utilization in our legacy PD business, reduced restructuring charges, and higher average pricing, partially offset by production inefficiencies in our CD business as we ramp up our specialty film product line, unfavorable product mix, and unfavorable inventory reserve adjustments. The decrease in operating expenses was primarily driven by the benefits of restructuring actions, a reduction of CD acquisition related costs, and lower intangible amortization costs, partially offset by higher stock-based compensation.
Current wording
PD EBIT was $25.7 million for the nine months ended September 30, 2025, compared with $10.5 million for the nine months ended September 30, 2024, an increase of $15.2 million. EBIT margin for the nine months ended September 30, 2025 was 10.7%, compared to 4.6% for nine months ended September 30, 2024. The increases were primarily due to higher gross profit and lower operating expenses. The gross profit increase was primarily driven by product cost reductions, higher shipping volumes, increased factory capacity utilization in our ceramic capacitor and RF filter businesses, lower CD related acquisition and production transfer costs, higher average pricing, lower precious metal costs, and reduced restructuring charges, partially offset by lower than expected yields in our CD business as we ramp up our specialty film product line, unfavorable product mix, and unfavorable inventory reserve adjustments. The decrease in operating expenses was primarily driven by a reduction of CD acquisition related costs, the benefits of restructuring actions, and lower intangible amortization costs, partially offset by higher stock-based compensation.
Previous wording
PD Adjusted EBIT was $24.6 million for the six months ended June 30, 2025, compared with $21.6 million for the six months ended June 30, 2024, an increase of $3.0 million. Adjusted EBIT margin for the six months ended June 30, 2025 was 16.3%, compared with 14.6% for the six months ended June 30, 2024. The increases were primarily due to higher non-GAAP gross profit and lower non-GAAP operating expenses. The non-GAAP gross profit increase was primarily driven by product cost reductions, increased factory capacity utilization in our legacy PD business, and higher average pricing, partially offset by production inefficiencies in our CD business as we ramp up our specialty film product line, unfavorable product mix, and unfavorable inventory reserve adjustments. The decrease in non-GAAP operating expenses was primarily driven by the benefits of restructuring actions.
Current wording
PD Adjusted EBIT was $44.8 million for the nine months ended September 30, 2025, compared with $37.7 million for the nine months ended September 30, 2024, an increase of $7.1 million. Adjusted EBIT margin for the nine months ended September 30, 2025 was 18.7%, compared with 16.6% for the nine months ended September 30, 2024. The increases were primarily due to higher non-GAAP gross profit and lower non-GAAP operating expenses. The non-GAAP gross profit increase was primarily driven by product cost reductions, higher shipping volumes, increased factory capacity utilization in our ceramic capacitor and RF filter businesses, higher average pricing, and lower precious metal costs, partially offset by unfavorable product mix, lower than expected yields in our CD business as we ramp up our specialty film product line, and unfavorable inventory reserve adjustments.
Previous wording
MSA revenues were $127.1 million for the six months ended June 30, 2025, compared with $120.1 million for the six months ended June 30, 2024, an increase of $7.0 million or 5.8%. Revenues increased primarily due to higher shipping volumes of metal cans within the specialty audio market that we manufacture and sell to Syntiant as part of our supply agreement associated with the sale of CMM and additional higher shipping volumes into the specialty audio and hearing health markets, partially offset by lower average pricing on mature products.
Current wording
MSA revenues were $191.8 million for the nine months ended September 30, 2025, compared with $183.8 million for the nine months ended September 30, 2024, an increase of $8.0 million or 4.4%. Revenues increased primarily due to higher shipping volumes of metal cans within the specialty audio market that we manufacture and sell to Syntiant as part of our supply agreement associated with the sale of CMM and additional higher shipping volumes into the specialty audio market, partially offset by lower average pricing on mature products and lower shipping volumes into the hearing health market.
Previous wording
MSA EBIT was $40.3 million for the six months ended June 30, 2025, compared with $46.9 million for the six months ended June 30, 2024, a decrease of $6.6 million or 14.1%. EBIT margin for the six months ended June 30, 2025 was 31.7%, compared with 39.1% for the six months ended June 30, 2024. The decreases were primarily due to lower gross profit and higher operating expenses. The gross profit decrease was primarily due to impairment charges recorded in the second quarter of 2025, lower average pricing on mature products, unfavorable product mix, higher factory costs, and the impact of higher shipping volumes of our lower margin metal can products to Syntiant, partially offset by higher shipping volumes. The increase in operating expenses was primarily driven by higher stock-based compensation and legal costs.
Current wording
MSA EBIT was $65.3 million for the nine months ended September 30, 2025, compared with $71.9 million for the nine months ended September 30, 2024, a decrease of $6.6 million or 9.2%. EBIT margin for the nine months ended September 30, 2025 was 34.0%, compared with 39.1% for the nine months ended September 30, 2024. The decreases were primarily due to lower gross profit and higher operating expenses. The gross profit decrease was primarily due to higher factory costs, lower average pricing on mature products, impairment charges recorded in the second quarter of 2025, unfavorable product mix, and the impact of higher shipping volumes of our lower margin metal can products to Syntiant, partially offset by higher shipping volumes and product cost reductions. The increase in operating expenses was primarily driven by higher stock-based compensation and legal costs.
Previous wording
MSA Adjusted EBIT was $47.4 million for the six months ended June 30, 2025, compared with $48.9 million for the six months ended June 30, 2024, a decrease of $1.5 million. Adjusted EBIT margin for the six months ended June 30, 2025 was 37.3%, compared to 40.7% for the six months ended June 30, 2024. The decreases were primarily due to lower non-GAAP gross profit and higher non-GAAP operating expenses. The decrease in non-GAAP gross profit was primarily due to lower average pricing on mature products, unfavorable product mix, higher factory costs, and the impact of higher shipping volumes of our lower margin metal can products to Syntiant, partially offset by higher shipping volumes. The increase in non-GAAP operating expenses was primarily driven by higher legal costs.
Current wording
MSA Adjusted EBIT was $73.6 million for the nine months ended September 30, 2025, compared with $75.0 million for the nine months ended September 30, 2024, a decrease of $1.4 million. Adjusted EBIT margin for the nine months ended September 30, 2025 was 38.4%, compared to 40.8% for the nine months ended September 30, 2024. The decreases were primarily due to higher non-GAAP operating expenses and lower non-GAAP gross profit. The increase in non-GAAP operating expenses was primarily driven by higher legal costs. The decrease in non-GAAP gross profit was primarily due to higher factory costs, lower average pricing on mature products, unfavorable product mix, and the impact of higher shipping volumes of our lower margin metal can products to Syntiant, partially offset by higher shipping volumes and product cost reductions.
Showing the first 40 of 47 pairs. Open the source sections for the rest.
Rearranged previous paragraphs (1)
Previous report — wording carried elsewhere
During the second quarter of 2025, we recorded an impairment charge of $3.6 million to write down the carrying value of certain machinery and equipment to fair value. For additional information, refer to Note 1. Basis of Presentation to our Consolidated Financial Statements.