Knowles Aims for 30% EBITDA Margins as It Focuses on Specialty Components
Knowles Corporation has restructured its business by divesting $400 million in lower-margin, commoditized operations between 2017 and 2023. The company now focuses on high-value specialty components for medical technology, defense, and industrial markets through two segments: Precision Devices and MedTech & Specialty Audio. Management expects EBITDA margins to rise from approximately 24% today to 30% within three years, driven by improvements in its Cornell Dubilier capacitor business. The company also anticipates more than 15% growth for the Precision Devices segment this year. Strong cash generation is being used for debt reduction, share repurchases, and selective acquisitions. Defense-related RF filters—98% tied to defense applications—are positioned to benefit from increased U.S. and allied spending on national security.
Topics: defense_spending divestitures margin_expansion specialized_components