Knowles Q1 2025 Earnings Call Transcript

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Provided by Quartr
April 24, 2025

Key Takeaways

  • Minimal tariff exposure: Direct exposure is under 5% and indirect under 3%, with pricing power and insulated end markets—medtech, defense, and industrial—to mitigate tariff impacts.
  • Q1 results exceed guidance: Revenue of $132 million came in at the high end of the guided range, EPS of $0.18 was at the midpoint, and cash from operations surpassed expectations.
  • Gross margin pressure in MedTech & Specialty Audio: Q1 gross margins fell 450 basis points year-over-year to 48.7% due to cost-plus metal can supply and an unfavorable customer mix.
  • Strong Precision Devices momentum: Book-to-bill was above 1.15, specialty film yields are improving with prototype line uptime, and YoY growth is expected to resume in Q2.
  • Robust cash generation and capital allocation: The company repurchased $5 million of shares, paid down $15 million of debt, and plans to fund future acquisitions, buybacks, and debt management.
AI Generated. May Contain Errors.
Earnings Conference Call
Knowles Q1 2025
00:00 / 00:00

Transcript Sections

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Operator

Well, good day, everyone, and welcome to the Q1 twenty twenty five Knowles Corporation Earnings Call. This call is being recorded. At this time, I would like to hand things over to Ms. Sarah Cook. Please go ahead, ma'am.

Sarah Cook
Sarah Cook
Vice President, Investor Relations at Knowles

Thank you, and welcome to our first quarter twenty twenty five 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 Knowles, which constitute forward looking statements for purposes of the Safe Harbor provisions under applicable federal securities 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, including but not limited to the annual report on Form 10 ks for the fiscal year ended 12/31/2024 periodic reports filed from time to time with the SEC and the risks and uncertainties identified in today's earnings release.

Sarah Cook
Sarah Cook
Vice President, Investor Relations at Knowles

All forward looking statements are made as of the date of this 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 knowles.com and in our current report on Form eight ks filed today with the SEC. This will include a reconciliation to the most directable comparable GAAP measure. All financial references on this call will be on a non GAAP continuing operations basis 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.

Sarah Cook
Sarah Cook
Vice President, Investor Relations at Knowles

With that, let me turn the call over to Jeff, who will provide details on our results. Jeff?

Jeffrey Niew
Jeffrey Niew
President and Chief Executive Officer at Knowles

Thanks, Sarah, and thanks to all of you for joining us today. Before I provide our commentary on the Q1 results and report on what we are seeing in our markets for Q2 and beyond, I would like to touch on the tariff situation we are all hearing so much about. Obviously, there's a lot going on in the markets over the last few weeks. It has been and continues to be fluid. And while I'm being cautious about how it could impact our business, I believe Knowles is well positioned to continue to deliver growth in earnings and revenue despite the current tariff environment. The tariff situation can be easily explained by breaking things into three major areas that could affect Knowles. First, and most simply, our direct tariff exposure.

Jeffrey Niew
Jeffrey Niew
President and Chief Executive Officer at Knowles

That is our revenue that could be subject to tariffs. Generally speaking, Knowles is a proximity manufacturer, meaning the vast majority of product built in The U. S. Is shipped within The U. S.

Jeffrey Niew
Jeffrey Niew
President and Chief Executive Officer at Knowles

And product built in Asia ships to customers in Asia. Based on this proximity manufacturing strategy and our associated footprint, we estimate that less than 5% of revenue are subject to the current tariffs. In our markets of medtech, defense and industrial, our expectation is we can pass these tariffs on to our customers without significant loss of business. Second, there is an indirect tariff exposure or impact on our sourcing of raw materials for our different manufacturing locations. We have a world class global supply chain team that, when possible, procures materials geographically close to our production facilities.

Jeffrey Niew
Jeffrey Niew
President and Chief Executive Officer at Knowles

We believe that less than 3% of our cost of goods sold will be impacted by current tariffs. We also anticipate being able to recover substantially all tariff impacts through price increases and surcharges. Finally, there is an impact on our customers' end market demand. This is the most difficult to predict at this moment. And while no company will be immune to the effect of tariffs, I believe the markets we serve in medtech, defense and industrial sectors will be relatively insulated from tariff impacts.

Jeffrey Niew
Jeffrey Niew
President and Chief Executive Officer at Knowles

Let me explain a bit. The applications that our products serve in medtech in the medtech market have traditionally been considered essential. Our capacitors are in implantable devices, imaging and ventilators, to name a few. Hearing aids have also been considered essential devices. Our historical experience shows economic shocks and subsequent recessions can have modest short term impacts on these markets but tend to have very little impact over across the course of a year.

Jeffrey Niew
Jeffrey Niew
President and Chief Executive Officer at Knowles

I also believe that the defense programs we participate in are secure. In the past, the RF filters and capacitors that we sell in the defense space have generally been insulated from economic downturns. Lastly, in the industrial market, it has it is and has been more sensitive than medtech and defense to recessions, but we are not currently seeing any impact on demand. We are obviously monitoring this closely as this could change based on the macroeconomic environment. Now I'll turn to our results.

Jeffrey Niew
Jeffrey Niew
President and Chief Executive Officer at Knowles

We started 2025 on solid footing in Q1, delivering revenue of $132,000,000 at the high end of our guided range. EPS of $0.18 was at the midpoint of the guided range, and we delivered cash from operations exceeding the high end of the guided range. Turning to our segments. In Q1, MedTech and Specialty Audio revenue was $60,000,000 up slightly on a year over year basis and seasonally down from Q4. Hearing Health revenue was seasonally down, which was offset by strength in our specialty audio business and our supply of metal cans in connection with the sale of the consumer MEMS microphone business.

Jeffrey Niew
Jeffrey Niew
President and Chief Executive Officer at Knowles

As it relates to the current tariff environment, our historical experience shows that during times of economic uncertainty, there is often a short term decline followed by a rebound in demand in our Hearing Health business. By the way of example, in February during the dot com bubble burst, in 02/2008 during the financial crisis, and in 2020 during COVID, the market contracted for one or two quarters in response to the economic uncertainty with demand returning quickly to normalized levels. This is evidenced by hearing health markets growing 2% to 3% annually over the last twenty years. That all being said, our backlog for the medtech and specialty audio segment for Q2 is strong. Our partnership with our customers is leading to continued innovations, innovative solutions, enhancing the performance of their products. This, coupled with our strong performance in the specialty audio business and new opportunities utilizing core competencies and medical markets, leads us to continue to believe in our ability to grow throughout 2025 with year over year revenue growth accelerating in the second quarter. In the Precision Device segment, Q1 revenues was $73,000,000 flat to Q4. This was expected while we continue to work through production challenges in our specialty film line. Progress is being made.

Jeffrey Niew
Jeffrey Niew
President and Chief Executive Officer at Knowles

Our new prototype production line is up and running, improving the production flow. Yields are improving, and I have confidence in the team to continue to incrementally improve shipments throughout the first half of the year with a larger ramp up coming in the second half of the year. We are well positioned for growth in 2025 as the specialty film line ramps to full production. Additionally, we have strong design and coating activity, especially in medtech, defense and EV markets with our ceramic capacitors. In Q1, bookings trends for Precision Device segment, independent of our previously announced $75,000,000 plus energy order, was strong for the second consecutive quarter.

Jeffrey Niew
Jeffrey Niew
President and Chief Executive Officer at Knowles

The bookings strength was broad based across most of our end markets as we believe inventory levels are normalizing. It's noteworthy that bookings and shipments to our distribution partners across all our capacitor products were favorable as we continue to see their inventory levels reducing. This gives me confidence in the Precision Device segment expected return to year over year growth in the second quarter of twenty twenty five. In the first quarter, we purchased $5,000,000 in shares and reduced our debt level by $15,000,000 as our cash generation from operations exceeds the high end of our guided range. We expect to generate robust cash from operations throughout 2025.

Jeffrey Niew
Jeffrey Niew
President and Chief Executive Officer at Knowles

This will allow us to continue to explore acquisition opportunities, buy back shares and keep our debt at manageable levels. As we close out the first quarter of twenty twenty five, I'm excited about the opportunities we have in front of us. We continue to see strong design wins across our product portfolio. With distribution orders increasing and inventory levels normalizing in the industrial markets, coupled with increasing backlog and demand for our products, I have greater confidence that we will see year over year growth for 2025. On May 13, we will be hosting our Investor Day, where we will have the opportunity to lay out our plans for future growth in detail.

Jeffrey Niew
Jeffrey Niew
President and Chief Executive Officer at Knowles

I'm excited you will have the opportunity to hear from several members of our senior leadership team as they will discuss our competitive advantages and why we win across the markets we serve. Now let me turn the call over to John to detail our quarterly results and provide our Q2 guidance.

John Anderson
John Anderson
SVP & CFO at Knowles

Thanks, John. We reported fourth quarter revenue of $132,000,000 down 1% from the year ago period and at the high end of our guided range. EPS was $0.18 in the quarter, flat from the year ago period and at the midpoint of our guidance range. In the MedTech and Specialty Audio segment, Q1 revenue was $60,000,000 up slightly compared with the year ago period. Q1 gross margins were 48.7%, down four fifty basis points versus the year ago period.

John Anderson
John Anderson
SVP & CFO at Knowles

As part of our supply agreement with Syntient, we produced and supplied metal cans on a cost plus basis, which negatively impacted gross margins by nearly 200 basis points in the quarter. The remainder of the year over year decline in gross margin was driven by unfavorable customer mix and the absence of a onetime benefit, which was recorded in Q1 twenty twenty. While the supply agreement with Centient is expected to continue through the remainder of 2025, we expect MSA gross margins to improve sequentially, driven by mix improvements and higher capacity utilization, resulting in full year gross margins in the low 50% range. The Precision Devices segment delivered first quarter revenues of $73,000,000 down 2% from the year ago period and slightly above our expectations going into the quarter. Segment gross margins were 35.7%, flat from the first quarter of twenty twenty four as factory productivity improvements in our legacy Precision Device business were partially offset by factory inefficiencies as we ramp up the specialty film product line.

John Anderson
John Anderson
SVP & CFO at Knowles

On a total company basis, R and D expense in the quarter was $8,000,000 flat with Q1 twenty twenty four levels. SG and A expenses were $25,000,000 down $2,000,000 from prior year levels driven by cost reduction actions taken to rightsize spending in connection with the sale of the consumer microphone business. Interest expense was $3,000,000 in the quarter and down $2,000,000 from the year ago period as we continue to reduce our debt levels. Now I'll turn to our balance sheet and cash flow. In the first quarter, we generated $1,000,000 in cash from operating activities, exceeding the high end of our guided range, driven by higher than expected customer prepayments.

John Anderson
John Anderson
SVP & CFO at Knowles

It is important to note that cash from operations for the three months ended March 31 includes $21,000,000 in cash used to settle supplier obligations related to the consumer MEMS microphone business, which was sold last year. Capital spending was $4,000,000 in the quarter. During the first quarter, we repurchased 300,000 shares at a total cost of $5,000,000 and reduced outstanding borrowings under our revolving credit facility by 15,000,000 We exited the quarter with cash of $102,000,000 and $189,000,000 of debt. That includes borrowings under our revolving credit facility and an interest free seller note issued in connection with the Cornell acquisition. Lastly, our net leverage ratio based on trailing twelve months adjusted EBITDA was 0.7x, and we have liquidity in excess of three fifty million dollars as measured by cash on hand plus unused capacity under our revolving credit facility.

John Anderson
John Anderson
SVP & CFO at Knowles

Moving to our guidance. For the second quarter of twenty twenty five, revenues are expected to be between 135,000,000 and 145,000,000 R and D expenses are expected to be between 8,000,000 and $10,000,000 Selling and administrative expenses are expected to be within the range of 23,000,000 to $25,000,000 We're projecting adjusted EBIT margin for the quarter to be within a range of 19% to 21. Interest expense in Q2 is estimated at $3,000,000 and includes noncash imputed interest. We expect an effective tax rate of 13% to 17%. We're projecting EPS to be within a range of $0.21 to $0.25 per share.

John Anderson
John Anderson
SVP & CFO at Knowles

This assumes weighted average shares outstanding during the quarter of 90,100,000.0 on a fully diluted basis. We're projecting cash generated by operating activities to be within the range of 10,000,000 to $20,000,000 which includes $9,000,000 to settle supplier obligations related to consumer MEMS microphone business. Capital spending is expected to be $7,000,000 We expect full year capital spending to be 5% of revenues as we increase our investments associated with capacity expansion relating to our specialty film line. In conclusion, based on increasing order activity and our growing backlog, we expect to resume year over year revenue and earnings growth in the second quarter. Additionally, we expect another year of strong cash generation in 2025.

John Anderson
John Anderson
SVP & CFO at Knowles

With that, we'll move to the Q and A portion of the call.

Operator

Thank you, sir. We'll take our first question today from Bob Lavik, CJS Securities.

Bob Labick
President at CJS Securities

Good afternoon. Thanks for taking our questions.

John Anderson
John Anderson
SVP & CFO at Knowles

Hey, Bob. We can barely hear you, Bob. Okay. Much better. Much better.

Bob Labick
President at CJS Securities

Better? Okay, great. Sorry about that. Thank you. Well, first, on a nice quarter and obviously good outlook as well.

Bob Labick
President at CJS Securities

I think you hit a really important part with the minimal tariff exposure. Appreciate that color, the 5% direct and 3% kind of indirect. Just sticking on the theme for a minute though, maybe talk about your you talked a little bit about medtech, but overall end market customer exposure, how are you thinking about that? What are you hearing from your customers in this uncertain time right now around their outlooks and how it may impact you in the back half of this year?

Jeffrey Niew
Jeffrey Niew
President and Chief Executive Officer at Knowles

Yes. So first, I would say, Bob, as I kind of said, we've not seen any change in demand. In fact, obviously, our expectations for Q2 are incrementally higher than they say were a quarter ago for Q2. I don't think any of this we've been kind of debating.

Jeffrey Niew
Jeffrey Niew
President and Chief Executive Officer at Knowles

We talked to a number of customers. Is pull forward? I don't think it is. A lot of our product is custom, a lot of new designs, especially in medtech and in defense. So I think in the medtech space let me take that first.

Jeffrey Niew
Jeffrey Niew
President and Chief Executive Officer at Knowles

I think if you think about most of the devices we sell to, they're essential devices. And maybe you can, like with COVID, put off a medical device for a quarter. But ultimately, if you need a pacemaker, you need a pacemaker. Right? And I think this falls in the same category.

Jeffrey Niew
Jeffrey Niew
President and Chief Executive Officer at Knowles

A large percentage of hearing aids that are sold are actually customers that already have them, and they need new ones because they're either very old or they're not working anymore. And if you become reliant, you know you need hearing aids to have either moderate to severe hearing loss, you're going to go buy your hearing aids. So generally speaking, med, I don't think we see that there's a lot of exposure. Defense, I think most of the programs we're on are very insulated. We're not seeing any change in our defense.

Jeffrey Niew
Jeffrey Niew
President and Chief Executive Officer at Knowles

Now that being said, I think the one area that we do probably have a little bit more exposure, like generally, is industrial. Now here's what I would say about that. I've talked over the last few quarters about the inventory levels at our distributors, which service the majority of our industrial customers. A few quarters ago,

Jeffrey Niew
Jeffrey Niew
President and Chief Executive Officer at Knowles

I was talking about there was six months of inventory, then I said there was four to five, then I said four, four point five. We're seeing that inventory now level get to the three to three point five month level, which is normalized inventory. And we're starting to see, again, because of that, an increase in order activity because as they see the demand, they're going to start falling into a dangerously low position on inventory. So I think from our perspective, right now, as we look through the rest of the year, we feel pretty good right now about the rest of the year. Now all things being said, somebody could wake up tomorrow.

Jeffrey Niew
Jeffrey Niew
President and Chief Executive Officer at Knowles

There could be something new. But the way the tariffs are today and how it's impacting our business, it feels like there's, like, very minimal impact to us right now.

Bob Labick
President at CJS Securities

Okay. Great. Appreciate the extra color. That's wonderful. And then in terms of the growth drivers of the business, obviously, have this you talked about last quarter, the $75,000,000 plus capacitor order starting next year into an energy end market.

Bob Labick
President at CJS Securities

Any updates there? Any changes? Any impact from that since it's a little bit vague to us from the macro environment? Or is that still strong and you're confident in that as well?

Jeffrey Niew
Jeffrey Niew
President and Chief Executive Officer at Knowles

Well, I mean, we received a pretty substantial prepayment in the first quarter, which drove our cash flow to be above the high end of the guided range. So this customer is fully committed, and we don't see any impact on delivery starting in 2026. I think we've said in the past, expect something in the neighborhood of about $25,000,000 of shipments on this debt order in 2026.

Bob Labick
President at CJS Securities

The

Operator

next question is from Anthony Stoss, Craig Hallum Capital Group.

Anthony Stoss
Analyst at Craig-Hallum Capital Group LLC

Hi, guys. Nice results. Let me just get a housekeeping one out of the way. John, can you maybe I missed it. Can you talk about kind of gross margin trajectory starting with Q2 and where you think it ends up in Q4?

John Anderson
John Anderson
SVP & CFO at Knowles

Yes, Tony. You're talking about for the total business, total company?

Jeffrey Niew
Jeffrey Niew
President and Chief Executive Officer at Knowles

Yes, total company, yes. Yes.

John Anderson
John Anderson
SVP & CFO at Knowles

So if you think about the results that we just issued, just above just slightly above 41% in gross margins, We're going to see pretty significant sequential improvement in that, and you really have to look business by business. But the main drivers are going to be, again, with demand moving up, our capacity utilization is going to improve both in the PD business as well as the MSA business. Both are increasing capacity. In addition, there's some mix improvement that is going to benefit us going into beginning in Q2. And really, we expect sequential improvement.

John Anderson
John Anderson
SVP & CFO at Knowles

Jeff mentioned this. We expect a stronger given the uncertainty out there, we still expect a stronger back half than front half. And again, that's going to drive sequential we expect it to drive sequential gross margin improvement throughout 2025.

Jeffrey Niew
Jeffrey Niew
President and Chief Executive Officer at Knowles

Yes. I just would add one piece. I think we've talked about this in the past, Tony, about how capacity utilization has been really a holdback, especially in the Precision Device area, in terms of gross margin over the last year, one point years. And we're starting to see that start to dissipate as the demand is coming back. I didn't mention this in the prepared remarks, but the book to bill for Precision Devices was above 1.15 in Q1.

Jeffrey Niew
Jeffrey Niew
President and Chief Executive Officer at Knowles

I mean it was strong. We had very, very strong orders for Precision Devices. And that's now, of course, not counting the $75,000,000 energy order.

Anthony Stoss
Analyst at Craig-Hallum Capital Group LLC

Right. Can you give us like a range exit gross margin to the company in Q1?

John Anderson
John Anderson
SVP & CFO at Knowles

I would say

John Anderson
John Anderson
SVP & CFO at Knowles

45% to 47% as we exit the year in gross margin.

Anthony Stoss
Analyst at Craig-Hallum Capital Group LLC

Perfect. Perfect. And for you, Jeff, I mean, it's awesome that most of your production of PD is in The U. S. Do you think you might be able to pick up share from some of your competitors that don't produce much in

Anthony Stoss
Analyst at Craig-Hallum Capital Group LLC

The U. S? I'm just curious your thoughts how you think the rest of the year plays out? Are you seeing the inbound calls? Anything would be helpful.

Jeffrey Niew
Jeffrey Niew
President and Chief Executive Officer at Knowles

Tony, I was saving that for the next call, but I'll give you a little color here. Here's the situation. I think with the dynamic and volatile nature of what's going on, I'm a little hesitant to start putting that out there to say yes. But we are definitely getting calls that says, okay, with these tariffs, normally, we had said we had walked away from some of these these bit lower margin businesses, like and and now they're saying, maybe we should consider buying with you. And it's also security and supply.

Jeffrey Niew
Jeffrey Niew
President and Chief Executive Officer at Knowles

And so it would primarily really in the like, in more in the industrial space than med tech or defense. I mean, I don't think we're seeing anything like that. But in the industrial space, we're definitely seeing a number of customers initiate conversations with us, and it's more than a handful saying, okay. We should start having some discussions. I wanna see how this all plays out over the next quarter, but that definitely could be an upside in the back half of the year that's not factored into what we're saying today.

Anthony Stoss
Analyst at Craig-Hallum Capital Group LLC

That's really good news. I would lock them into long term supply agreements, get them down quick. Thanks. Great execution, guys. I'll jump back in queue.

John Anderson
John Anderson
SVP & CFO at Knowles

Great. Thanks,

Operator

We'll go next to Christopher Rolland, Susquehanna.

Christopher Rolland
Christopher Rolland
Senior Equity Analyst at SIG Group

Hey, guys. Congrats on the results. So my question is, if you could perhaps add some commentary around bookings that's the book to bill above 1.5 is pretty incredible for PD. So what are we seeing for the back half? Are these really starting to fill out now?

Christopher Rolland
Christopher Rolland
Senior Equity Analyst at SIG Group

And then perhaps associated with that, I saw receivables were up. Does that kind of speak to the linearity in the quarter? Would you just describe things as kind of accelerating?

Jeffrey Niew
Jeffrey Niew
President and Chief Executive Officer at Knowles

I'll let John do a little checking on the receivables. But for a minute, just to be clear, the bookings were above 1.15.

Christopher Rolland
Christopher Rolland
Senior Equity Analyst at SIG Group

One point one five. Okay. I thought I heard 1.5. Okay. Yes,

Jeffrey Niew
Jeffrey Niew
President and Chief Executive Officer at Knowles

not counting the $75 plus million order we received from Energy, right? So if you could counter that, the book to bill would be a crazy number. So we tried to but it was pretty broad based in PD across our capacitor products, filters and both the legacy PD business as well as formerly the Cornell business. So it's been pretty broad based. I think as I kind of said, what was most encouraging in the quarter is to see another step down of inventory at the distributors, where it's now getting we're starting to see that demand is going up, inventory is coming down.

Jeffrey Niew
Jeffrey Niew
President and Chief Executive Officer at Knowles

So we're getting very close to what I would sit there and say is, like, there's risk. And that's why we're seeing more orders from distributors because they're starting to say their inventories are going to start falling below where they feel comfortable, and hence, why we're getting strong bookings there. I would also add, beyond the distributors and we'll talk more about some of the applications at the Investor Day, but we have a lot of new products from specialty film, a lot of new products going to production. So very good. That's very all positive PD.

Jeffrey Niew
Jeffrey Niew
President and Chief Executive Officer at Knowles

The second piece, I would just talk about MSA, MedTech and Specialty Audio. We expect pretty strong sequential and year over year growth in Q2. And it's driven by and the customer mix should be a little bit better in Q2. John talked about it kind of impacting the gross margins a little bit, but it should be better, the customer mix, in Q2. So I think I want to be cautious here, Chris.

Jeffrey Niew
Jeffrey Niew
President and Chief Executive Officer at Knowles

But right now, as I look through the year, a lot of the orders we're getting, especially in medtech and defense, they're not orders, Lara. These are not terms orders. Like we get an order, deliver it, and they were done. These are orders that are being booked for the rest of the year. And so we feel pretty good about the full year.

John Anderson
John Anderson
SVP & CFO at Knowles

Yeah. Question on Yes. Unusual here. It's just timing of customer collections. Our receivables were at the end of Q1 kind of flat with twelvethirty one, but you're right.

John Anderson
John Anderson
SVP & CFO at Knowles

They were up a fair amount from March thirty one of twenty twenty four. And again, nothing special. It's not like we're having collection issues or anything. It's just timing of payments. We have some customers, larger customers, that have threethirty one year ends.

John Anderson
John Anderson
SVP & CFO at Knowles

Sometimes they pay before either year end, sometimes it slips into Q2, but nothing alarming there.

Christopher Rolland
Christopher Rolland
Senior Equity Analyst at SIG Group

Excellent. And I do not want to steal any thunder from the Analyst Day, but it seems like the business is solidifying. So I was wondering kind of what's next for Knowles, like how much focus is there on inorganic growth opportunities like in new product segments? And then how much opportunity or how much of your focus is spent on inorganic opportunities outside of the company?

Jeffrey Niew
Jeffrey Niew
President and Chief Executive Officer at Knowles

Yes. And I think that's really great. Good question, Chris. First, let me talk about the organic opportunities. Each one of our business unit leaders will be presenting are going to go into these opportunities that they have over the next one, two, three years of where growth could come from.

Jeffrey Niew
Jeffrey Niew
President and Chief Executive Officer at Knowles

So they're all going to do that. On the inorganic side, we are going to have I don't know if we've announced officially the presenters list, but our Head of Corporate Development is going to be presenting at the Investor Day and to talk about our inorganic opportunities. I would sit there and say, and he would probably our guy who does this, said a pretty significant portion of his time during the Cornell acquisition was also dedicated towards the divestiture of the Consumer Vems microphone business. He's freed up now to spend more time with his team on inorganic opportunities. And I think I want to caution, right now, like with the market the way it is, I think things are are are like, a lot of people are are pausing on a on m and a right now.

Jeffrey Niew
Jeffrey Niew
President and Chief Executive Officer at Knowles

I'm glad our balance sheet looks great. We're in a great position. But, you know, they we're ready when the right opportunity comes along to to move that forward. And we're gonna go into more detail about what we're looking for and, you know, the kind of metrics we're looking for, the type of products. We'll go into more detail on that, at the Investor Day.

Christopher Rolland
Christopher Rolland
Senior Equity Analyst at SIG Group

Fantastic. Thanks, Jeff, and congrats.

Jeffrey Niew
Jeffrey Niew
President and Chief Executive Officer at Knowles

Yeah. Thanks.

Executives
Analysts
    • Bob Labick
      President at CJS Securities
    • Anthony Stoss
      Analyst at Craig-Hallum Capital Group LLC
    • Christopher Rolland
      Senior Equity Analyst at SIG Group
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