Slides
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F E B R U A R Y 5 , 2 0 2 6 EarningsQ42025
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2 Safe Harbor Forward Looking StatementsThis presentation contains forward-looking statements within the meaning of the safe harbor provisions of the United States Private Securities Litigation Reform Act of 1995, such as statements about our future plans, objectives, expectations, financial performance, and continued business operations. The words "believe," "expect," "anticipate," "project," "estimate," "budget," "continue," "could," "intend," "may," "plan," "potential," "predict," "seek," "should," "will," "would," "objective," "forecast," "goal," "guidance," "outlook," "effort," "target," and similar expressions, among others, generally identify forward-looking statements, which speak only as of the date the statements were made. The statements in this presentation are based on currently available information and the current expectations, forecasts, and assumptions of Knowles’ management concerning risks and uncertainties that could cause actual outcomes or results to differ materially from those outcomes or results that are projected, anticipated, or implied in these statements. Other risks and uncertainties include, but are not limited to: fluctuations in our stock's market price; fluctuations in operating results and cash flows; our ability to prevent or identify quality issues in our products or to promptly remedy any such issues that are identified; risks associated with increasing our inventories in advance of anticipated orders by customers; escalating international trade tensions, new or increased tariffs and trade wars among countries; the impact of changes to laws and regulations that affect the Company’s ability to offer products or services to customers in different regions; our ability to achieve reductions in our operating expenses; the ability to qualify our products and facilities with customers; our ability to obtain, enforce, defend or monetize our intellectual property rights; disruption caused by a cybersecurity incident, including a cyber-attack, cyber breach, theft, or other unauthorized access; increases in the costs of critical raw materials and components; availability of raw materials and components; managing new product ramps and introductions for our customers; our dependence on a limited number of large customers; our ability to maintain and expand our existing relationships with leading OEMs in order to maintain and increase our revenue; increasing competition and new entrants in the market for our products; our ability to develop new or enhanced products or technologies in a timely manner that achieve market acceptance; global economic instability, including due to inflation, rising interest rates, or the impacts of geopolitical uncertainties; financial risks, including risks relating to currency fluctuations, credit risks and fluctuations in the market value of the Company; a sustained decline in our stock price and market capitalization may result in the impairment of certain intangible or long-lived assets; market risk associated with fluctuations in commodity prices, particularly for various precious metals used in our manufacturing operation, changes in tax laws, changes in tax rates and exposure to additional tax liabilities; and other risks, relevant factors, and uncertainties identified in our Annual Report on Form 10-K for the fiscal year ended December 31, 2024, subsequent Reports on Forms 10-Q and 8-K and our other filings we make with the U.S. Securities and Exchange Commission. Knowles disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law.Non-GAAP Disclaimer The financial results disclosed in this presentation include certain measures calculated and presented in accordance with GAAP. In addition to the GAAP results included in this presentation, Knowleshas presented supplemental, non-GAAP gross profit, adjusted earnings before interest and income taxes, adjusted earnings before interest and income taxes margin, adjusted earnings beforeinterest, taxes, depreciation, and amortization; adjusted earnings before interest, taxes, depreciation, and amortization margin; non-GAAP gross profit margin, non-GAAP diluted earnings per share,non-GAAP operating expense; free cash flow; and free cash flow margin to facilitate evaluation of Knowles’ operating performance. These non-GAAP financial measures exclude certain amounts thatare included in the most directly comparable GAAP measure. In addition, these non-GAAP financial measures do not have standard meanings and may vary from similarly titled non-GAAP financialmeasures used by other companies. Knowles uses non-GAAP measures as supplements to its GAAP results of operations in evaluating certain aspects of its business, and its executive managementteam focuses on non-GAAP items as key measures of Knowles’ performance for business planning purposes. These measures assist Knowles in comparing its performance between variousreporting periods on a consistent basis, as these measures remove from operating results the impact of items that, in Knowles’ opinion, do not reflect its core operating performance. Knowlesbelieves that its presentation of these non-GAAP financial measures is useful because it provides investors and securities analysts with the same information that Knowles uses internally forpurposes of assessing its core operating performance. For a reconciliation of these non-GAAP financial measures to the most directly comparable GAAP financial measures, see the reconciliationtables in the Appendix.
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3 Knowles at-a-glance.$593M2025 Revenue5,000+Global Employees600+Engineers75+Years in Industry 55% Precision Devices 45% MedTech & Specialty Audio 45% MedTech 4%Electrification / Energy 21%Defense & Aerospace 30% Industrial 2025Market Revenue Mix2025 Segment Revenue Mix
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4 Why we win.High PerformanceTechnology Enabler ofCustomerInnovationCustomizationat Scale High PerformanceCeramic Capacitors &RF / Microwave FiltersServing a diverse and innovative customer base across attractive end markets. Scale of large manufacturer= Agility and innovationCompetitive Advantage MEDTECH DEFENSE INDUSTRIAL ELECTRIFICATION High PerformanceCapacitors & RF/Microwave FiltersHearing Health Solutions
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5 61687538108142107129140 2017 2018 2019 2020 2021 2022 2023 2024 2025* For this non-GAAP financial measure, see the Appendix for GAAP to non-GAAP reconciliation Adjusted EBITDA*CAGR2017-2025Historical Financial Performance - Continuing Operations 321364396355442479457554593 2017 2018 2019 2020 2021 2022 2023 2024 202511%CAGRFocused on areas with higher returns and growthInvested in demanding growth markets 8%CAGR Revenue CAGR2017-2025
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6 Historical Financial Performance - Continuing Operations 9679106146 2022 2023 2024 2025Cash Generated by Operating Activities*2022-2025 Share Repurchase$210M Capital Expenditures$71M M&A Deployment$263M Capital Deployment (2022-2025) Average of 20% of Revenue over the Period 12 Million shares repurchased3% of Revenues over the periodCornell DublierAcquisition* For this non-GAAP financial measure, non-GAAP netcash provided by operating activities,see the Appendix for GAAP to non-GAAP reconciliation
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7 142.5162.2 4Q 2024 4Q 2025* For this non-GAAP financial measure, see the Appendix for GAAP to non-GAAP reconciliation Revenue($M)Revenues exceeded the high end of the guided range with revenue growth accelerating in the back half of the year driven by demand for our products and new design win strength. Non-GAAP Diluted EPS grew substantially driven by higher volume, margin expansion and lower interest expense. Cash generated by operating activities was above the high end of our guidance range driven by increased EBITDA and lower-than-expected net working capital. +13.8% Fourth Quarter Results 0.270.36 4Q 2024 4Q 2025 Non-GAAP Diluted EPS*($) +33.3% 35.147.2 4Q 2024 4Q 2025 Net Cash Provided by Operating Activities($M) +34.5%
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8 553.5593.2 FY2024 FY2025Financial measures depicted on this slide (other than net cash provided by operating activities) are for continuing operations. * For this non-GAAP financial measure, see the Appendix for GAAP to non-GAAP reconciliation Revenue($M) +7.2% Full Year Results 0.921.11 FY2024 FY2025 Non-GAAP Diluted EPS*($) +20.7% 130.1114.0 FY2024 FY2025 Net Cash Provided by Operating Activities($M) -12.4% Full Year Revenue exceeded the high end of our five-year organic growth target with strength in both segments and across most end markets. Non-GAAP Diluted EPS grew substantially driven by higher volume, margin expansion and lower interest expense. Full Year cash provided by operating activities was 19.2% of Revenues. The decline was driven by CMM which was divested at the end of 2024.
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9 * For this non-GAAP financial measure, see the Appendix for GAAP to non-GAAP reconciliation Fourth Quarter and Full Year revenue grew at the high end of the organic growth target driven by increased shipment volumes. Adjusted EBITDA margins were down slightly in 2025 based on product mix. 69.772.54Q 2024 4Q 2025Revenue($)+4.0% 42.542.64Q 2024 4Q 2025Adjusted EBITDA Margin*(%) MedTech & Specialty AudioSEGMENT PERFORMANCE 253.5264.3FY2024 FY2025Revenue($)+4.3% 43.642.0FY2024 FY2025Adjusted EBITDA Margin*(%)-160bps
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10 * For this non-GAAP financial measure, see the Appendix for GAAP to non-GAAP reconciliation 72.889.74Q 2024 4Q 2025Revenue($)+23.2% 20.523.44Q 2024 4Q 2025Adjusted EBITDA Margin*(%) Precision DevicesSEGMENT PERFORMANCE 300.0328.9FY2024 FY2025Revenue($)+9.6% 20.222.3FY2024 FY2025Adjusted EBITDA Margin*(%)+210bps Revenue grew significantly in the fourth quarter as growth accelerated in the back half of the year with inventory levels normalizing with our distribution partners.Adjusted EBITDA margins increased both in Q4 and on a full year basis as higher end market demand and increased factory capacity utilization. +290bps
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11 First Quarter 2026 Outlook Non-GAAPAdjustments GAAP$143 to $153 million$—$143 to $153 millionRevenues from continuing operations$0.22 to $0.26$0.13$0.09 to $0.13Diluted earnings per share from continuingoperations$(5) to $5 million $—$(5) to $5 millionNet cash provided by operating activitiesQ1 2026 GAAP results from continuing operations are expected to include approximately $0.09 per share in stock-based compensation expense and $0.04per share in intangibles amortization expense. These items are excluded from non-GAAP results.
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12 12 2 0 2 6 - 2 0 2 98-10%Revenue CAGR10-14%Adjusted EBITDA†CAGR Creating value for our organization, customers and shareholders — today and in the future. * For this non-GAAP financial measure, see the Appendix for GAAP to non-GAAP reconciliation† Reconciliation of this forward-looking non-GAAP financial measure to the most directly comparable GAAP financial measure is not provided because the information needed to complete a reconciliation is unavailable without unreasonable effort. 8%Revenue CAGR11%Adjusted EBITDA*CAGR 2 0 1 7 - 2 0 2 5 CONTINUING OPERATIONS16-20%Cash from Operations as a % of Revenue
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13 8-10%Revenue CAGR 13 Our components of revenue growth. 6-8%Precision Devices 2-4%MedTech & Specialty Audio 4%Acquisitions2 0 2 6 - 2 0 2 92 0 2 6 - 2 0 2 9
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14 Pricing / Higher Value ProductsFactory Productivity InitiativesCapacity Utilization Continuing to drive value with strong earnings growth. Margin ExpansionOperating ExpensesAccretive Acquisitions Continued disciplined approach to SG&A Accretive in first 12 months Organic Revenue GrowthEBITDA drop through 10-14%Adjusted EBITDA CAGR†2 0 2 6 - 2 0 2 9 † Reconciliation of this forward-looking non-GAAP financial measure to the most directly comparable GAAP financial measure is not provided because the information needed to complete a reconciliation is unavailable without unreasonable effort
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15 Consolidationin existing products and technologies 15 Extensionsto product lines which serve our existing markets and customersAdjacenciesto expand our technology and customer base Consumer MEMS Microphones Strategically focused on expanding from our strong core.ACQUISITIONS DIVESTITURES
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16 Deploy capital with targeted return of 200-300 bps above cost of capital. Capital AllocationOrganic Investment•Capital investments of 4-5% of revenues over a cycle to support new business and product innovation M&A •Focal point of our capital allocation strategy •Supported by robust pipeline focused on high-growth end markets•Demonstrated capabilities to acquire and integrate •Existing liquidity of $340M+ supports acquisition growth•Limit net leverage ratio to 2.75xShare Repurchase •$271M executed on existing $400M program through Q4 2025•Taking an opportunistic and efficient approach to future share repurchases 16Net Leverage represents Debt less Cash over EBITDA
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1 2 3 4 5 17 Strategic transformation into industrial technology leader completed with focus on attractive MedTech, Defense, Industrial, and Energy marketsHistorical financial performance demonstrates ability of portfolio to deliver future growth with strong margin expansion over a cycle Differentiation through customization at scale creating distinct competitive advantageProven M&A strategy to supplement organic growthStrong balance sheet and cash generation with capital allocation strategy to drive shareholder returns Summary
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Appendix18
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Notes1.Production transfer costs represent duplicate costs incurred to migrate manufacturingto existing facilities.2.These expenses are related to the acquisition of Cornell Dubilier by the PrecisionDevices segment. These expenses include ongoing costs to facilitate integration, theamortization of fair value adjustments to inventory, and costs incurred by theCompany to carry out this transaction.3. Transition services represent amounts charged to Syntiant in connection with post-closing transition and separation costs.4. Other expenses include non-recurring professional service fees related to theexecution of various reorganization projects, and foreign currency exchange rateimpacts on restructuring balances.5. During the year ended December 31, 2025, the Company recorded a non-cashdividend on the Syntiant investment in the form of additional Series D-2 shares with avalue of $6.2 million. RECONCILIATION OF GAAP FINANCIAL MEASURES TO NON-GAAP FINANCIAL MEASURES Year Ended December 31,Quarter Ended December 31,2024202520242025(continuing operations, in millions, except per share amounts)$ 553.5$ 593.2$ 142.5$ 162.2Revenues$ 234.8$ 256.3$ 60.9$ 72.5Gross profit42.4 %43.2 %42.7 %44.7 %Gross profit margin1.51.50.40.4Stock-based compensation expense—3.6——Impairment charges1.90.80.50.1Restructuring charges3.81.61.00.7Production transfer costs (1)2.3—0.1—Acquisition-related costs (2)—(0.9)—(0.2)Transition services credit (3)1.10.8——Other (4)$ 245.4$ 263.7$ 62.9$ 73.5Non-GAAP gross profit 44.3 %44.5 %44.1 %45.3 %Non-GAAP gross profit margin$ 183.0$ 186.0$ 45.5$ 46.7Operating expenses(20.7)(26.9)(5.0)(5.6)Stock-based compensation expense (17.0)(16.2)(4.2)(4.1)Intangibles amortization expense(1.5)(3.0)—(0.5)Restructuring charges(0.4)(0.1)(0.2)—Production transfer costs (1)(6.1)(0.8)(0.8)(0.2)Acquisition-related costs (2)—1.1—0.1Transition services credit (3)(1.4)0.6(0.9)0.2Other (4)$ 135.9$ 140.7$ 34.4$ 36.6Non-GAAP operating expenses24.6 %23.7 %24.1 %22.6 %Non-GAAP operating expenses margin$ 23.4$ 50.9$ 10.4$ 25.5Net earnings16.39.33.41.8Interest expense, net11.313.13.34.1Provision for income taxes51.073.317.131.4Earnings before interest and income taxes9.2 %12.4 %12.0 %19.4 %Earnings before interest and income taxes margin22.228.45.46.0Stock-based compensation expense17.016.24.24.1Intangibles amortization expense—3.6——Impairment charges3.43.80.50.6Restructuring charges4.21.71.20.7Production transfer costs (1)8.40.80.90.2Acquisition-related costs (2)—(2.0)—(0.3)Transition services credit (3)—(6.2)—(6.2)Dividend income (5)1.70.50.1(0.3)Other (4)$ 107.9$ 120.1$ 29.4$ 36.2Adjusted earnings before interest and income taxes19.5 %20.2 %20.6 %22.3 %Adjusted earnings before interest and income taxes margin19
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RECONCILIATION OF GAAP FINANCIAL MEASURES TO NON-GAAP FINANCIAL MEASURESNotes6.The non-GAAP reconciling adjustments include stock-based compensation expense,intangibles amortization expense, impairment charges, restructuring charges,production transfer costs, acquisition-related costs, and other expenses, partially offsetby dividend income and a credit to transition services.7. Income tax effects of non-GAAP reconciling adjustments are calculated using theapplicable tax rates in the jurisdictions of the underlying adjustments.8. In the third quarter of 2025, the Company modified its calculation method of Non-GAAPdiluted average shares outstanding to exclude the potential dilution impact fromperformance share units ("PSUs") as these equity awards have not yet been earned.Knowles' PSUs are market-based awards and have fluctuated based on the Company'stotal shareholder return performance relative to the Russell 2000 during themeasurement period. The calculation methodology change in Non-GAAP dilutedaverage shares outstanding increased Non-GAAP diluted earnings per share by $0.01 forthe year ended December 31, 2024.9. The number of shares used in the diluted average shares outstanding calculations on anon-GAAP basis excludes the impact of stock-based compensation expense expected tobe incurred in future periods and not yet recognized in the financial statements, whichwould otherwise be assumed to be used to repurchase shares under the GAAP treasurystock method. Non-GAAP diluted average shares outstanding also excludes the impactof certain equity awards that are not yet earned. Year Ended December 31,Quarter Ended December 31,2024202520242025(continuing operations, in millions, except per share amounts)$ 23.4$ 50.9$ 10.4$ 25.5Net earnings16.39.33.41.8Interest expense, net11.313.13.34.1Provision for income taxes51.073.317.131.4Earnings before interest and income taxes56.946.812.34.8Non-GAAP reconciling adjustments(6)20.620.15.35.1Depreciation expense$ 128.5$ 140.2$ 34.7$ 41.3Adjusted earnings before interest, income taxes, depreciation, andamortization ("EBITDA")23.2 %23.6 %24.4 %25.5 %Adjusted EBITDA margin$ 23.4$ 50.9$ 10.4$ 25.5Net earnings56.946.812.34.8Non-GAAP reconciling adjustments (6)(3.6)—(1.6)(1.1)Income tax effects of non-GAAP reconciling adjustments (7)$ 83.9$ 97.7$ 24.3$ 31.4Non-GAAP net earnings$ 0.26$ 0.58$ 0.12$ 0.29Diluted earnings per share0.660.530.150.07Earnings (loss) per share non-GAAP reconciling adjustment (6) (7) (8)$ 0.92$ 1.11$ 0.27$ 0.36Non-GAAP diluted earnings per share (8)90.188.089.487.5Diluted average shares outstanding1.30.41.1(0.3)Non-GAAP adjustment (8) (9)91.488.490.587.2Non-GAAP diluted average shares outstanding (8) (9)20
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H I S T O R I C A L S E G M E N T D A T A MedTech & Specialty AudioPrecision DevicesQuarter EndedQuarter EndedDecember 31,March 31,June 30,September 30,December 31,December 31,March 31,June 30,September 30,December 31,2024202520252025202520242025202520252025(continuing operations, in millions)$ 69.7$ 59.7$ 67.4$ 64.7$ 72.5$ 72.8$ 72.5$ 78.5$ 88.2$ 89.7Revenues$ 35.7$ 28.7$ 30.4$ 34.1$ 37.4$ 25.6$ 25.3$ 30.0$ 35.7$ 35.0Gross profit51.2 %48.1 %45.1 %52.7 %51.6 %35.2 %34.9 %38.2 %40.5 %39.0 %Gross profit margin0.10.30.10.20.20.30.20.20.10.2Stock-based compensation expense——3.6———————Impairment charges—0.1———0.50.3—0.20.1Restructuring charges—————1.00.10.20.60.7Production transfer costs—————0.1————Acquisition-related costs$ 35.8$ 29.1$ 34.1$ 34.3$ 37.6$ 27.5$ 25.9$ 30.4$ 36.6$ 36.0Non-GAAP gross profit51.4 %48.7 %50.6 %53.0 %51.9 %37.8 %35.7 %38.7 %41.5 %40.1 %Non-GAAP gross profit margin$ 5.3$ 5.1$ 5.1$ 5.0$ 5.4$ 5.0$ 4.9$ 5.0$ 5.1$ 5.1Research and development expenses7.6 %8.5 %7.6 %7.7 %7.4 %6.9 %6.8 %6.4 %5.8 %5.7 %Research and development expenses margin(0.6)(0.6)(0.5)(0.4)(0.5)(0.2)(0.5)(0.3)(0.3)(0.2)Stock-based compensation expense—————(0.6)(0.5)(0.7)(0.6)(0.7)Intangibles amortization expense—————(0.1)————Acquisition-related costs$ 4.7$ 4.5$ 4.6$ 4.6$ 4.9$ 4.1$ 3.9$ 4.0$ 4.2$ 4.2Non-GAAP research and development expenses6.7 %7.5 %6.8 %7.1 %6.8 %5.6 %5.4 %5.1 %4.8 %4.7 %Non-GAAP research and development expenses margin$ 4.8$ 4.2$ 4.4$ 4.1$ 4.5$ 16.2$ 16.1$ 16.6$ 16.0$ 17.6Selling and administrative expenses6.9 %7.0 %6.5 %6.3 %6.2 %22.3 %22.2 %21.1 %18.1 %19.6 %Selling and administrative expenses margin(1.0)(0.8)(0.9)(0.6)(0.6)(0.7)(0.7)(0.7)(0.7)(0.7)Stock-based compensation expense—————(3.6)(3.5)(3.4)(3.4)(3.4)Intangibles amortization expense—————(0.2)(0.1)———Production transfer costs—————(0.7)(0.5)(0.2)0.1(0.2)Acquisition-related costs$ 3.8$ 3.4$ 3.5$ 3.5$ 3.9$ 11.0$ 11.3$ 12.3$ 12.0$ 13.3Non-GAAP selling and administrative expenses5.5 %5.7 %5.2 %5.4 %5.4 %15.1 %15.6 %15.7 %13.6 %14.8 %Non-GAAP selling and administrative expenses margin$ 10.1$ 9.5$ 9.5$ 9.1$ 10.0$ 21.2$ 22.1$ 21.6$ 21.2$ 23.1Operating expenses14.5 %15.9 %14.1 %14.1 %13.8 %29.1 %30.5 %27.5 %24.0 %25.8 %Operating expenses margin(1.6)(1.4)(1.4)(1.0)(1.1)(0.9)(1.2)(1.0)(1.0)(0.9)Stock-based compensation expense—————(4.2)(4.0)(4.1)(4.0)(4.1)Intangibles amortization expense—(0.2)——(0.1)—(1.1)—(0.1)(0.4)Restructuring charges—————(0.2)(0.1)———Production transfer costs—————(0.8)(0.5)(0.2)0.1(0.2)Acquisition-related costs$ 8.5$ 7.9$ 8.1$ 8.1$ 8.8$ 15.1$ 15.2$ 16.3$ 16.2$ 17.5Non-GAAP operating expenses12.2 %13.2 %12.0 %12.5 %12.1 %20.7 %21.0 %20.8 %18.4 %19.5 %Non-GAAP operating expenses margin21
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H I S T O R I C A L S E G M E N T D A T A MedTech & Specialty AudioPrecision DevicesQuarter EndedQuarter EndedDecember 31,March 31,June 30,September 30,December 31,December 31,March 31,June 30,September 30,December 31,2024202520252025202520242025202520252025(continuing operations, in millions)$ 69.7$ 59.7$ 67.4$ 64.7$ 72.5$ 72.8$ 72.5$ 78.5$ 88.2$ 89.7Revenues$ 25.6$ 19.2$ 20.9$ 25.0$ 27.4$ 4.4$ 3.2$ 8.4$ 14.5$ 11.9Operating earnings—(0.1)(0.1)——0.1—0.20.2—Other expense (income), net$ 25.6$ 19.3$ 21.0$ 25.0$ 27.4$ 4.3$ 3.2$ 8.2$ 14.3$ 11.9Earnings before interest and income taxes36.7 %32.3 %31.2 %38.6 %37.8 %5.9 %4.4 %10.4 %16.2 %13.3 %Earnings before interest and income taxes margin1.71.71.51.21.31.21.41.21.11.1Stock-based compensation expense—————4.24.04.14.04.1Intangibles amortization expense——3.6———————Impairment charges—0.3——0.10.51.4—0.30.5Restructuring charges—————1.20.20.20.60.7Production transfer costs—————0.90.50.2(0.1)0.2Acquisition-related costs$ 27.3$ 21.3$ 26.1$ 26.2$ 28.8$ 12.3$ 10.7$ 13.9$ 20.2$ 18.5Adjusted earnings before interest and income taxes39.2 %35.7 %38.7 %40.5 %39.7 %16.9 %14.8 %17.7 %22.9 %20.6 %Adjusted earnings before interest and income taxes margin$ 25.6$ 19.2$ 20.9$ 25.0$ 27.4$ 4.4$ 3.2$ 8.4$ 14.5$ 11.9Operating earnings—(0.1)(0.1)——0.1—0.20.2—Other expense (income), net$ 25.6$ 19.3$ 21.0$ 25.0$ 27.4$ 4.3$ 3.2$ 8.2$ 14.3$ 11.9Earnings before interest and income taxes1.72.05.11.21.48.07.55.75.96.6Non-GAAP reconciling adjustments2.32.12.22.12.12.62.52.42.52.5Depreciation expense$ 29.6$ 23.4$ 28.3$ 28.3$ 30.9$ 14.9$ 13.2$ 16.3$ 22.7$ 21.0Adjusted earnings before interest, income taxes, depreciation, andamortization ("EBITDA")42.5 %39.2 %42.0 %43.7 %42.6 %20.5 %18.2 %20.8 %25.7 %23.4 %Adjusted EBITDA margin22
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H I S T O R I C A L S E G M E N T D A T A MedTech & Specialty AudioPrecision DevicesYear EndedYear EndedDecember 31,December 31,December 31,December 31,2024202520242025(continuing operations, in millions)$ 253.5$ 264.3$ 300.0$ 328.9Revenues$ 133.2$ 130.6$ 104.1$ 126.0Gross profit52.5 %49.4 %34.7 %38.3 %Gross profit margin0.40.80.80.7Stock-based compensation expense3.6——Impairment charges—0.11.90.6Restructuring charges——3.81.6Production transfer costs——2.3—Acquisition-related costs——0.5—Other$ 133.6$ 135.1$ 113.4$ 128.9Non-GAAP gross profit52.7 %51.1 %37.8 %39.2 %Non-GAAP gross profit margin$ 19.8$ 20.6$ 19.6$ 20.1Research and development expenses7.8 %7.8 %6.5 %6.1 %Research and development expenses margin(1.8)(2.0)(0.6)(1.3)Stock-based compensation expense——(2.4)(2.5)Intangibles amortization expense——(0.6)—Acquisition-related costs$ 18.0$ 18.6$ 16.0$ 16.3Non-GAAP research and development expenses7.1 %7.0 %5.3 %5.0 %Non-GAAP research and development expenses margin$ 15.9$ 17.2$ 68.0$ 66.3Selling and administrative expenses6.3 %6.5 %22.7 %20.2 %Selling and administrative expenses margin(2.6)(2.9)(1.3)(2.8)Stock-based compensation expense——(14.6)(13.7)Intangibles amortization expense——(0.4)(0.1)Production transfer costs——(4.5)(0.8)Acquisition-related costs$ 13.3$ 14.3$ 47.2$ 48.9Non-GAAP selling and administrative expenses5.2 %5.4 %15.7 %14.9 %Non-GAAP selling and administrative expenses margin$ 35.7$ 38.1$ 89.1$ 88.0Operating expenses14.1 %14.4 %29.7 %26.8 %Operating expenses margin(4.4)(4.9)(1.9)(4.1)Stock-based compensation expense——(17.0)(16.2)Intangibles amortization expense—(0.3)(1.5)(1.6)Restructuring charges——(0.4)(0.1)Production transfer costs——(5.1)(0.8)Acquisition-related costs$ 31.3$ 32.9$ 63.2$ 65.2Non-GAAP operating expenses12.3 %12.4 %21.1 %19.8 %Non-GAAP operating expenses margin23
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H I S T O R I C A L S E G M E N T D A T A MedTech & Specialty AudioPrecision DevicesYear EndedYear EndedDecember 31,December 31,December 31,December 31,2024202520242025(continuing operations, in millions)$ 253.5$ 264.3$ 300.0$ 328.9Revenues$ 97.5$ 92.5$ 15.0$ 38.0Operating earnings—(0.2)0.20.4Other expense (income), net$ 97.5$ 92.7$ 14.8$ 37.6Earnings before interest and income taxes38.5 %35.1 %4.9 %11.4 %Earnings before interest and income taxes margin4.85.72.74.8Stock-based compensation expense——17.016.2Intangibles amortization expense—3.6——Impairment charges—0.43.42.2Restructuring charges——4.21.7Production transfer costs——7.40.8Acquisition-related costs——0.5—Other$ 102.3$ 102.4$ 50.0$ 63.3Adjusted earnings before interest and income taxes40.4 %38.7 %16.7 %19.2 %Adjusted earnings before interest and income taxes margin$ 97.5$ 92.5$ 15.0$ 38.0Operating earnings—(0.2)0.20.4Other expense (income), net$ 97.5$ 92.7$ 14.8$ 37.6Earnings before interest and income taxes4.89.735.225.7Non-GAAP reconciling adjustments8.38.510.59.9Depreciation expense$ 110.6$ 110.9$ 60.5$ 73.2Adjusted earnings before interest, income taxes, depreciation, andamortization ("EBITDA")43.6 %42.0 %20.2 %22.3 %Adjusted EBITDA margin24
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Quarter EndedTrailing12-monthsMarch 31,June 30,September 30,December 31,2025202520252025(Continuing operations, in millions)$ 50.9$ (0.4)$ 7.8$ 18.0$ 25.5Net earnings (loss)9.32.72.52.31.8Interest expense, net13.11.23.54.34.1Provision for income taxes73.33.513.824.631.4Earnings before interest and income taxes28.410.26.35.96.0Stock-based compensation expense16.24.04.14.04.1Intangibles amortization expense3.6—3.6——Impairment charges3.82.9—0.30.6Restructuring charges1.70.20.20.60.7Production transfer costs0.80.50.2(0.1)0.2Acquisition-related costs(2.0)(0.7)(0.5)(0.5)(0.3)Transition services credit(6.2)———(6.2)Dividend income0.51.1—(0.3)(0.3)Other46.818.213.99.94.8Non-GAAP reconciling adjustments20.15.05.05.05.1Depreciation expense$ 140.2$ 26.7$ 32.7$ 39.5$ 41.3Adjusted earnings before interest, income taxes, depreciation, and amortization ("Adjusted EBITDA")25 R E C O N C I L I A T I O N O F N E T E A R N I N G S T O A D J U S T E D E B I T D A
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R E C O N C I L I A T I O N O F N E T D E B TDecember 31, 2025(in millions)$ —Current maturities of long-term debt114.0Long-term debt114.0Total debt(54.2)Less: Cash and cash equivalents$ 59.8Net debt$ 59.8Net debt$ 140.2Trailing 12 Month Adjusted EBITDA0.4 xNet debt leverage ratio 26
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R E C O N C I L I A T I O N O F N E T E A R N I N G S T O A D J U S T E D E B I T D A 27 Year Ended December 31,201720182019202020212022202320242025(Continuing operations, in millions)$ 321.2$ 363.7$ 395.9$ 355.4$ 441.9$ 478.8$ 456.8$ 553.5$ 593.2Revenues$ (11.3)$ 24.8$ 7.1$ (13.2)$ 98.4$ 66.4$ 65.6$ 23.4$ 50.9Net earnings (loss)19.815.314.315.913.83.55.416.39.3Interest expense, net7.7(10.6)10.22.4(53.0)21.3(28.3)11.313.1Provision for (benefit from) income taxes16.229.531.65.159.291.242.751.073.3Earnings from continuing operations beforeinterest and income taxes15.215.814.59.224.622.422.822.228.4Stock-based compensation expense0.81.82.42.45.05.87.517.016.2Intangibles amortization expense————————3.6Impairment charges8.51.82.63.00.20.63.33.43.8Restructuring charges6.32.62.30.2——0.44.21.7Production transfer costs——————9.48.40.8Acquisition-related costs————————(2.0)Transition services credit————————(6.2)Dividend income0.31.95.30.41.63.42.11.70.5Other31.123.927.115.231.432.245.556.946.8Non-GAAP reconciling adjustments13.914.816.417.217.618.618.720.620.1Depreciation expense$ 61.2$ 68.2$ 75.1$ 37.5$ 108.2$ 142.0$ 106.9$ 128.5$ 140.2Adjusted earnings before interest, income taxes, depreciation, and amortization ("Adjusted EBITDA")19.1 %18.8 %19.0 %10.6 %24.5 %29.7 %23.4 %23.2 %23.6 %Adjusted EBITDA margin
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28 C A S H G E N E R A T E D B Y O P E R A T I N G A C T I V I T I E S O F C O N T I N U I N G O P E R A T I O N S 28 Year Ended December 31,2022202320242025(Continuing operations, in millions)$ 478.8$ 456.8$ 553.5$ 593.2Revenues86.3122.7130.1114.0Net cash provided by operating activities9.8(43.6)(24.4)32.5Amounts utilized in (provided by) in discontinued operations96.179.1105.7146.5Non-GAAP net cash attributable to continuing operations20.1 %17.3 %19.1 %24.7 %Non-GAAP net cash attributable to continuing operations as a percentage of revenues(32.1)(16.9)(13.6)(32.1)Capital expenditures17.24.71.7—Amounts attributable to discontinued operations(14.9)(12.2)(11.9)(32.1)Non-GAAP capital expenditures attributable to continuing operations3.1 %2.7 %2.1 %5.4 %Non-GAAP capital expenditures attributable to continuing operations as a percentage of revenues
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T h a n k y o u .