Rogers Reports Q4 and Full Year 2024 Results

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Rogers Corporation announced financial results for the full year and fourth quarter of 2024.

"Our results were consistent with our guidance expectations for the fourth quarter,” stated Colin Gouveia, Rogers' President and CEO. "As anticipated, sales declined due to seasonally lower portable electronics sales and lower wireless infrastructure and industrial revenues. Despite macro and market challenges impacting full year sales, our focused efforts to deliver operations and procurement cost savings, optimize yields and drive throughput improvements helped mitigate the effect of the lower sales on gross margins. These actions, combined with effective expense and working capital management, enabled us to generate solid cash flow and execute our capital allocation priorities.

"Many of our customers remain cautious about the timing of a recovery in the EV/HEV and industrial markets," said Gouveia. "In 2025, we continue to focus on securing new design wins, improving our cost structure and maintaining a strong balance sheet. We are executing on our commercial, innovation and manufacturing footprint priorities, and are confident that these actions will position Rogers to win when market conditions begin to improve."

Q4 2024 Summary of Results

Net sales of $192.2 million decreased 8.6% versus the prior quarter resulting from lower sales in the AES and EMS business units. AES net sales decreased by 8.7% primarily related to lower wireless infrastructure sales, partially offset by higher ADAS and EV/HEV sales. EMS net sales decreased by 8.4% primarily from lower industrial and portable electronics sales, partially offset by higher aerospace and defense sales. Currency exchange rates favorably impacted total company net sales in the fourth quarter of 2024 by $0.6 million compared to the prior quarter.

Gross margin decreased to 32.1% from 35.2% in the prior quarter primarily from lower volume and unfavorable product mix.

Selling, general and administrative (SG&A) expenses decreased by $2.9 million from the prior quarter to $42.2 million. The decrease in SG&A expenses was primarily due to a $7.7 million gain in connection with the dissolution of a joint venture, partially offset by higher factory start-up costs.

GAAP operating margin of (2.6)% decreased from 6.9% in the prior quarter, primarily due to higher restructuring charges and lower gross margin. Adjusted operating margin of 4.7% decreased by 700 basis points versus the prior quarter.

GAAP earnings per diluted share were $(0.03) compared to earnings per diluted share of $0.58 in the previous quarter. On an adjusted basis, earnings were $0.46 per diluted share compared to earnings of $0.98 per diluted share in the prior quarter.

Ending cash and cash equivalents were $159.8 million, an increase of $13.4 million versus the prior quarter. Net cash provided by operating activities in the fourth quarter was $33.7 million and capital expenditures were $15.4 million.