Rogers (ROG) Q1 2025 earnings summary

Executive summary

• Q1 2025 net sales were $190.5 million, down 0.9% sequentially and 10.7% year-over-year, with gross margin at 29.9% and adjusted EPS of $0.27; cash position increased to $175.6 million, aided by a facility sale.

• New design wins in EV/HEV, industrial, and renewable energy markets, with increased opportunities in China and a major European OEM.

• 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 winding down AES operations in Belgium and global workforce reduction.

• Local-for-local manufacturing and mitigation plans are in place to offset tariff impacts, especially for U.S.-China trade.

Financial highlights

• Net sales: $190.5 million, down 1% sequentially and 10.7% year-over-year, impacted by $3 million FX and lower portable electronics.

• Gross margin: 29.9%, down from 32.1% in Q4 and 32.0% in Q1 2024.

• Adjusted EPS: $0.27, down from $0.46 in Q4; GAAP net loss: $1.4 million.

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

• 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.

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

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

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