Rogers (ROG) Q1 2025 earnings summary

Executive summary

• Q1 2025 sales were $190.5 million, down 0.9% sequentially and 10.7% year-over-year, with adjusted EPS at $0.27 and a net loss of $1.4 million; cash position increased to $175.6 million, aided by a facility sale.

• New design wins and opportunity pipeline growth in EV/HEV, industrial, ADAS, aerospace, and renewable energy markets, especially with European and Chinese OEMs.

• Aggressive cost reduction actions, including facility consolidations, workforce reductions, and discretionary spend cuts, are expected to yield $25 million in 2025 savings.

• Restructuring charges of $5.9 million were recognized, mainly for the Belgium facility wind-down and global workforce reduction.

• The company is actively mitigating tariff impacts through supply chain adjustments and pricing actions, leveraging its global manufacturing footprint.

Financial highlights

• Net sales: $190.5 million, down 1% sequentially and 10.7% year-over-year, mainly due to FX and lower portable electronics sales.

• Gross margin: 29.9%, down from 32.1% in Q4 and 32.0% in Q1 2024, attributed to utilization headwinds and unfavorable product mix.

• Adjusted EBITDA: $19.5 million (10.2% margin), down from $23.3 million in Q4 and $28.3 million in Q1 2024.

• Net loss: $1.4 million; adjusted EPS: $0.27; GAAP EPS: $(0.08).

• Cash and cash equivalents: $175.6 million at quarter end, up from $159.8 million at year-end 2024.

Outlook and guidance

• Q2 2025 net sales expected between $190 million and $205 million; gross margin guidance 31%-33%.

• Adjusted EPS for Q2 projected at $0.30–$0.70; GAAP EPS guidance: $0.00–$0.40; full-year tax rate expected at 27%.

• CapEx for 2025 reduced to $30–$40 million, funded by operations and cash on hand.

• Management expects ongoing cost improvements from manufacturing footprint optimization and workforce reductions.

• Growth opportunities anticipated in EV/HEV, ADAS, aerospace, defense, and renewable energy markets.