Rogers (ROG) Gabelli Funds' 16th Annual Specialty Chemicals Symposium summary

Strategic overview and business model

• Strategy centers on four pillars: market-driven focus, technology development, operational excellence, and synergistic M&A.

• Operational improvements in supply chain and procurement have boosted gross margins.

• Local-for-local manufacturing and innovation centers support global customer proximity.

• Over 70% of revenue comes from outside the U.S., with a strong presence in Asia, Europe, and the U.S.

• More than 5,000 customers in over 70 countries.

Market segments and growth drivers

• Advanced Electronics Solutions and Elastomeric Material Solutions are the two main business units.

• EV/HEV, portable electronics, renewable energy, aerospace/defense, and automotive radar are high-growth markets.

• EV/HEV represents about 20% of sales, with a projected 15% CAGR.

• Core business includes general industrial and wireless infrastructure, with GDP-type growth.

• Ceramic substrates and RF solutions are key technologies for power electronics and ADAS.

Recent performance and operational changes

• CEO tenure began after a failed merger, with a focus on resetting strategy and strengthening operations.

• Exited underperforming businesses and relocated production to align with customer geographies.

• Paid off all debt, improved cash flow, and increased cash reserves.

• Top-line growth challenged by macro headwinds and inventory issues, but a path forward is identified.