Rogers (ROG) Q4 2024 earnings summary

Executive summary

• Q4 2024 results met guidance, with sales, gross margin, and adjusted EPS aligning with expectations despite persistent market headwinds, especially in EV/HEV and industrial segments.

• Full-year 2024 sales declined 9% year-over-year, mainly due to weakness in industrial and EV/HEV markets, while aerospace and defense sales grew.

• Operational excellence and cost-saving initiatives drove robust free cash flow and supported a strong balance sheet.

• Significant commercial wins, new product launches, and design wins position the company for future growth as markets recover.

• Customers remain cautious on recovery timing in key markets; focus remains on design wins, cost structure, and manufacturing priorities for 2025.

Financial highlights

• Q4 2024 net sales were $192.2M, down 8.6% sequentially and 6.1% year-over-year; full-year 2024 net sales were $830.1M, down from $908.4M in 2023.

• Q4 gross margin was 32.1%, down from 35.2% in Q3 2024; full-year gross margin was 33.4%.

• Q4 adjusted EPS was $0.46; full-year adjusted EPS was $2.72.

• Q4 adjusted EBITDA was $23.3M (12.1% margin); full-year adjusted EBITDA was $118.7M (14.3% margin).

• Free cash flow for 2024 was $71M; year-end cash and equivalents were $159.8M.

Outlook and guidance

• Q1 2025 net sales expected between $180M and $195M, with gross margin guidance of 29.0% to 30.5%.

• Q1 2025 adjusted EPS guidance is $0.10 to $0.40, including expected restructuring charges from the Belgium facility wind-down.

• 2025 capital expenditures projected at $40M to $50M as China expansion completes.

• Recovery in key markets anticipated in the second half of 2025, with Q1 as the low point.