Knowles Corporation

speaker's remarks there will be a question and answer session if you would like to ask a question during this time simply press star followed by the number one on your telephone keypad if you would like to withdraw your question press star one again thank you i would now like to turn the call over to sarah cook please go ahead thank you and welcome to our third quarter 2025 earnings call i'm sarah cook vice president of investor relations and presenting with me today are jeffrey new our president and ceo

and John Anderson, our Senior Vice President and CFO. Our call today will include remarks about future expectations, plans, and prospects for NOLS, which constitute forward-looking statements for purposes of the safe harbor provisions under applicable federal security laws. Forward-looking statements in this call will include comments about demand for company products, anticipated trends in company sales, expenses, and profits, and involve a number of risks and uncertainties that could cause actual results to differ materially from current expectations. The company urges investors to review the risks and uncertainties in the company's SEC filings, included but not limited to the annual report on Form 10-K for the fiscal year ended December 31, 2024, periodic reports filed from time to time with the SEC, and the risks and uncertainties identified in today's earnings release. All forward-looking statements are made as of the date of his call, and Knowles disclaims any duty to update such statements except as required by law. In addition, pursuant to Reg G, any non-GAAP financial measures referenced during today's conference call can be found in our press release posted on our website at knolls.com and in our current report on Form 8K filed today with the SEC. This will include a reconciliation to the most directly comparable GAAP measure. All financial references on this call will be on a non-GAAP continuing operations basis with the exception of cash from operations or unless otherwise indicated. We've made selected financial information available in webcast slides, which can be found in the investor relations section of our website. With that, let me turn the call over to Jeff, who will provide details on our results. Jeff?

Thanks, Sarah, and thanks to all of you for joining us today. As we continue to execute our strategy of leveraging our unique technologies to design custom engineered solutions and then deliver them at scale for customers and markets that value our solutions, We achieved strong results in the third quarter of 2025. Revenue was up $153 million, up 7% year-over-year. EPS of $0.33, up 22% year-over-year. And cash from operations was $29 million, all of which were above the midpoint of our guided range. I believe our results continue to demonstrate that our focus on the markets and products where we have significant competitive advantage is paying dividends and positions as well for future growth. Now turning to the segment results. In Q3, MedTech and Specialty Audio revenue was $65 million, up 2% year-over-year. Our continued operational excellence, sustained success of new product adoption, and cutting-edge technology is evidence with our strong gross margins. I expect that MedTech and Specialty Audio will have revenue growth within the range of 2% to 4% over the year in 2025, and we are optimistic about our future growth opportunities we detailed at our investor day. In the precision device segment, Q3 revenue was $88 million, up 12% year-over-year. We saw revenue growth across all our end markets, MedTech, Defense, Industrial, and EV and Energy. Our strong intimacy with our customers' applications has led to accelerating design widths. Coupled with robust secular trends in our end markets, I am confident in our ability to continue to grow revenue in the fourth quarter and beyond. While we're seeing growth across all our end markets, I would like to highlight the defense market as it was particularly strong with design wins and bookings outpacing other end markets. Our capacitors and RF microwave solutions serve a wide variety of military applications. We have a compelling product offering of RF filters being used in next generation of defense systems, serving a broad base of applications from radar, detection and jamming to ground communications, ensuring reliable, and secure military communications. Our capacitors provide the electrical energy source needed for extremely harsh applications like munitions and detonation devices. Dispense spending is increasing and shifting towards spending on electronic warfare where our products are in high demand. In Q3, bookings in the PD segment remained strong, particularly in defense and with our distribution partners. We continue to believe that channel inventories are now at normalized levels as they are now matching orders to end market demand. We continue to collaborate with our customers leading to a robust pipeline of new design wins as our customers continue to choose our innovative and differentiated solutions across all the markets we serve. We are positioned well for organic growth and I expect the precision device segment will grow at the high end of our stated growth range of six to 8% in 2025. I would like to reiterate the strategy we are executing across both of our business units. We are leveraging our unique technologies, creating custom products through our customer application intimacy, and then scaling into production with our world-class operational capabilities for end markets with strong secular growth trends. It is proving to be a winning combination, leading to year-to-date revenue growth of 5% and EPS growth of 15% on a year-over-year basis. John will go through our Q4 guidance shortly, but as we stated on previous calls, we are expecting to finish the year strong with revenue and EPS growth accelerating in the second half of 2025. As we look to next year, with new design winds ramping and a very healthy backlog of existing orders, we expect to see organic growth rates at the high of an end of our stated range of 4% to 6% for the total company. This is an increase from historical levels supported by strong secular growth trends in our end markets and new initiatives, such as the expansion of our specialty film production coming online. Cash generation from operations continue to be robust in the third quarter, allowing those to purchase 20 million in shares and reduce outstanding bank borrowings by 15 million. We have a very strong balance sheet that will continue to support our growth as we pursue synergistic acquisitions and buyback shares will continue to keep our debt at very manageable levels. In summary, as I said last quarter, I am excited by the momentum and strength the business demonstrated and the growth opportunities that we have in front of us, both in the near and longer term. Our design wants to continue to be strong across our product portfolio. This is driving increased demand for our products, which gives me confidence that we have entered a period of accelerated organic growth from historical levels. We are laser-focused on what we do best, designing custom engineered products and delivering them at scale for customers and markets that value our solutions, positioning as well for growth in 2025 and beyond. Now let me turn the call over to John to detail our quarter results and provide guidance for Q4.