Rogers Corporation Reports First Quarter 2025 Results
Q1 Results Consistent With Expectations
"Our first quarter unfolded largely as we expected with financial results that were in line with our guidance expectations,” stated Colin Gouveia, Rogers' President and CEO. "Sales decreased slightly versus the prior quarter as a result of unfavorable foreign currency changes and seasonally lower sales in the portable electronics market, but we were pleased to see improved demand in the ADAS and industrial end markets. We also further strengthened our balance sheet, ending the quarter with a
"Visibility into the remainder of the year is limited due to broad uncertainty related to tariffs and global trade," said Gouveia. "However, despite these challenges, we remain focused on executing our commercial, innovation, and operational priorities. Combined with our strong financial position, these priorities are positioning Rogers for success as market conditions improve."
Financial Overview |
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GAAP Results (dollars in millions, except per share amounts) |
Q1 2025 |
Q4 2024 |
Q1 2024 |
Net Sales |
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Gross Margin |
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Net Income (Loss) |
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Diluted Earnings (Loss) Per Share |
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Adjusted Earnings Per Diluted Share1 |
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Adjusted EBITDA1 |
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Net Cash Provided by Operating Activities |
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Free Cash Flow1 |
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1 - Adjusted Earnings Per Diluted Share, Adjusted EBITDA and Free Cash Flow are non-GAAP measures. A reconciliation of non-GAAP to GAAP measures is provided in the schedules included below. |
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Q1 2025 Summary of Results
Net sales of
GAAP losses per diluted share were
Ending cash and cash equivalents were
Financial Outlook
Guidance for the second quarter is based on global tariff policies in place as of April 29, 2025. Rogers has implemented actions that are expected to largely offset the impact of tariffs in the second quarter.
(dollars in millions, except per share amounts) |
Q2 2025 |
Net Sales |
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Gross Margin |
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Earnings Per Diluted Share1 |
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Adjusted Earnings Per Diluted Share2 |
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2025 |
Capital Expenditures |
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1 - Includes expected restructuring charges associated with the wind-down of AES manufacturing operations in our Evergem, |
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2 - A reconciliation of non-GAAP to GAAP measures is provided in the schedules included below. |
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Conference Call and Additional Information
A conference call to discuss the results for the first quarter will take place today, Tuesday, April 29, 2025 at 5:00 pm ET. A live webcast of the event and the accompanying presentation can be accessed on the Rogers Corporation website at https://www.rogerscorp.com/investors.
About Rogers Corporation
Rogers Corporation (NYSE:ROG) is a global leader in engineered materials to power, protect and connect our world. Rogers delivers innovative solutions to help our customers solve their toughest material challenges. Rogers’ advanced electronic and elastomeric materials are used in applications for EV/HEV, automotive safety and radar systems, mobile devices, renewable energy, wireless infrastructure, energy-efficient motor drives, industrial equipment and more. Headquartered in
Safe Harbor Statement
Statements included in this release that are not a description of historical facts are “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Such statements are generally accompanied by words or phrases such as “anticipate,” “assume,” “believe,” “could,” “estimate,” “expect,” “foresee,” “goal,” “intend,” “may,” “might,” “plan,” “potential,” “predict,” “project,” “should,” “seek,” “target” or similar expressions that convey uncertainty as to the future events or outcomes. Forward-looking statements are based on assumptions and beliefs that we believe to be reasonable; however, assumed facts almost always vary from actual results, and the differences between assumed facts and actual results could be material depending upon the circumstances. Where we express an expectation or belief as to future results, that expectation or belief is expressed in good faith and based on assumptions believed to have a reasonable basis. We cannot assure you, however, that the stated expectation or belief will occur or be achieved or accomplished. This release contains forward-looking statements regarding our plans, objectives, outlook, goals, strategies, future events, future net sales or performance, capital expenditures, future restructuring, plans or intentions relating to expansions, business trends and other information that is not historical information. All forward-looking statements are based upon information available to us on the date of this release and are subject to risks, uncertainties and other factors, many of which are outside of our control, which could cause actual results to differ materially from those indicated by the forward-looking statements. Other risks and uncertainties that could cause such results to differ include the following, without limitation: failure to capitalize on, volatility within, or other adverse changes with respect to our growth drivers, such as delays in adoption or implementation of new technologies; failure to successfully execute on our long-term growth strategy; uncertain business, economic and political conditions in the
(Financial statements follow)
Condensed Consolidated Statements of Operations (Unaudited) |
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Three Months Ended |
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(DOLLARS AND SHARES IN MILLIONS, EXCEPT PER SHARE AMOUNTS) |
March 31, 2025 |
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March 31, 2024 |
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Net sales |
$ |
190.5 |
|
|
$ |
213.4 |
|
Cost of sales |
|
133.5 |
|
|
|
145.2 |
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Gross margin |
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57.0 |
|
|
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68.2 |
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|
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Selling, general and administrative expenses |
|
44.5 |
|
|
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47.5 |
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Research and development expenses |
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7.1 |
|
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8.9 |
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Restructuring and impairment charges |
|
5.9 |
|
|
|
0.1 |
|
Other operating (income) expense, net |
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(0.2 |
) |
|
|
— |
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Operating income (loss) |
|
(0.3 |
) |
|
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11.7 |
|
|
|
|
|
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Equity income in unconsolidated joint ventures |
|
— |
|
|
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0.3 |
|
Other income (expense), net |
|
(1.6 |
) |
|
|
0.4 |
|
Interest income (expense), net |
|
0.3 |
|
|
|
(0.8 |
) |
Income (loss) before income taxes |
|
(1.6 |
) |
|
|
11.6 |
|
Income tax (benefit) expense |
|
(0.2 |
) |
|
|
3.8 |
|
Net income (loss) |
$ |
(1.4 |
) |
|
$ |
7.8 |
|
|
|
|
|
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Basic earnings (loss) per share |
$ |
(0.08 |
) |
|
$ |
0.42 |
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Diluted earnings (loss) per share |
$ |
(0.08 |
) |
|
$ |
0.42 |
|
|
|
|
|
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Shares used in computing: |
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|
|
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Basic earnings (loss) per share |
|
18.5 |
|
|
|
18.6 |
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Diluted earnings (loss) per share |
|
18.5 |
|
|
|
18.7 |
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Condensed Consolidated Statements of Financial Position (Unaudited) |
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(DOLLARS AND SHARES IN MILLIONS, EXCEPT PAR VALUE) |
March 31, 2025 |
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December 31, 2024 |
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Assets |
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|
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Current assets |
|
|
|
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Cash and cash equivalents |
$ |
175.6 |
|
|
$ |
159.8 |
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Accounts receivable, net |
|
139.2 |
|
|
|
135.3 |
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Contract assets |
|
25.0 |
|
|
|
23.7 |
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Inventories, net |
|
143.0 |
|
|
|
142.3 |
|
Asbestos-related insurance recoverables, current portion |
|
4.3 |
|
|
|
4.3 |
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Other current assets |
|
15.8 |
|
|
|
28.5 |
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Total current assets |
|
502.9 |
|
|
|
493.9 |
|
Property, plant and equipment, net of accumulated depreciation of |
|
375.5 |
|
|
|
365.1 |
|
Operating lease right-of-use assets |
|
23.4 |
|
|
|
24.1 |
|
Goodwill |
|
363.4 |
|
|
|
357.6 |
|
Other intangible assets, net of amortization |
|
109.6 |
|
|
|
110.3 |
|
Asbestos-related insurance recoverables, non-current portion |
|
48.0 |
|
|
|
48.0 |
|
Deferred income taxes |
|
66.4 |
|
|
|
61.5 |
|
Other long-term assets |
|
21.2 |
|
|
|
20.6 |
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Total assets |
$ |
1,510.4 |
|
|
$ |
1,481.1 |
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Liabilities and Shareholders’ Equity |
|
|
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Current liabilities |
|
|
|
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Accounts payable |
$ |
50.9 |
|
|
$ |
48.1 |
|
Accrued employee benefits and compensation |
|
41.3 |
|
|
|
41.5 |
|
Accrued income taxes payable |
|
5.6 |
|
|
|
7.7 |
|
Operating lease obligations, current portion |
|
4.1 |
|
|
|
4.0 |
|
Asbestos-related liabilities, current portion |
|
5.4 |
|
|
|
5.4 |
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Other accrued liabilities |
|
20.3 |
|
|
|
16.8 |
|
Total current liabilities |
|
127.6 |
|
|
|
123.5 |
|
Operating lease obligations, non-current portion |
|
20.1 |
|
|
|
20.6 |
|
Asbestos-related liabilities, non-current portion |
|
52.0 |
|
|
|
52.1 |
|
Non-current income tax |
|
5.8 |
|
|
|
5.7 |
|
Deferred income taxes |
|
18.3 |
|
|
|
18.0 |
|
Other long-term liabilities |
|
16.3 |
|
|
|
9.6 |
|
Shareholders’ equity |
|
|
|
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Capital stock - |
|
18.5 |
|
|
|
18.5 |
|
Additional paid-in capital |
|
149.7 |
|
|
|
147.3 |
|
Retained earnings |
|
1,179.7 |
|
|
|
1,181.1 |
|
Accumulated other comprehensive loss |
|
(77.6 |
) |
|
|
(95.3 |
) |
Total shareholders' equity |
|
1,270.3 |
|
|
|
1,251.6 |
|
Total liabilities and shareholders' equity |
$ |
1,510.4 |
|
|
$ |
1,481.1 |
|
Reconciliation of non-GAAP financial measures to the comparable GAAP measures
Non-GAAP Financial Measures:
This earnings release includes the following financial measures that are not presented in accordance with generally accepted accounting principles in
(1) Adjusted earnings per diluted share, which the Company defines as earnings (loss) per diluted share excluding acquisition and related integration costs, dispositions, intangible amortization, (gains) losses on the sale or disposal of property, plant and equipment, restructuring, severance, impairment and other related costs, asbestos-related charges (credits), and the related income tax effect on these items, divided by adjusted weighted average shares outstanding - diluted;
(2) Adjusted EBITDA, which the Company defines as net income (loss) excluding acquisition and related integration costs, dispositions, intangible amortization, (gains) losses on the sale or disposal of property, plant and equipment, restructuring, severance, impairment and other related costs, asbestos-related charges (credits), interest income (expense), net, income tax (benefit) expense , depreciation of fixed assets, and equity compensation expense;
(3) Adjusted EBITDA Margin, which the Company defines as the percentage that results from dividing Adjusted EBITDA by total net sales;
(4) Free cash flow, which the Company defines as net cash provided by operating activities less non-acquisition capital expenditures.
Management believes adjusted earnings per diluted share, adjusted EBITDA and adjusted EBITDA margin are useful to investors because they allow for comparison to the Company’s performance in prior periods without the effect of items that, by their nature, tend to obscure the Company’s core operating results due to potential variability across periods based on the timing, frequency and magnitude of such items. As a result, management believes that these measures enhance the ability of investors to analyze trends in the Company’s business and evaluate the Company’s performance relative to peer companies. Management also believes free cash flow is useful to investors as an additional way of viewing the Company's liquidity and provides a more complete understanding of factors and trends affecting the Company's cash flows. However, non-GAAP financial measures have limitations as analytical tools and should not be considered in isolation from, or as alternatives to, financial measures prepared in accordance with GAAP. In addition, these non-GAAP financial measures may differ from, and should not be compared to, similarly named measures used by other companies. Reconciliations of the differences between these non-GAAP financial measures and their most directly comparable financial measures calculated in accordance with GAAP are set forth below.
Reconciliation of GAAP Earnings (Loss) Per Diluted Share to Adjusted Earnings Per Diluted Share*: |
|||||||||
|
2025 |
2024 |
|||||||
|
Q1 |
Q4 |
Q1 |
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GAAP Earnings (Loss) Per Diluted Share |
$ |
(0.08 |
) |
$ |
(0.03 |
) |
$ |
0.42 |
|
|
|
|
|
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Acquisition & Divestiture Related Costs: |
|
|
|
||||||
Acquisition & Related Integration Costs |
|
— |
|
|
(0.40 |
) |
|
— |
|
Intangible Amortization |
|
0.15 |
|
|
0.17 |
|
|
0.17 |
|
(Gain) Loss on Sale or Disposal of PPE |
|
— |
|
|
0.01 |
|
|
— |
|
|
|
|
|
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Restructuring, Business Realignment & Other Cost Saving Initiatives: |
|
|
|
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Restructuring, Severance, Impairment & Other Related Costs |
|
0.32 |
|
|
0.91 |
|
|
0.06 |
|
|
|
|
|
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Asbestos-Related Charges (Credits) |
|
— |
|
|
0.08 |
|
|
— |
|
Estimated Income Tax Impacts of Adjustments |
|
(0.11 |
) |
|
(0.27 |
) |
|
(0.06 |
) |
Impact of Including Dilutive Securities |
|
— |
|
|
— |
|
|
— |
|
Total Adjustments |
$ |
0.35 |
|
$ |
0.49 |
|
$ |
0.17 |
|
Adjusted Earnings Per Diluted Share |
$ |
0.27 |
|
$ |
0.46 |
|
$ |
0.58 |
|
*Values in table may not add due to rounding. |
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**Some amounts have been updated to conform to current period presentation. |
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The following table reconciles weighted average shares outstanding - diluted under US GAAP to adjusted weighted average shares outstanding - diluted used in the calculation of adjusted diluted EPS: |
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|
2025 |
2024 |
|
(shares in millions |
Q1 |
Q4 |
Q1 |
Weighed average shares outstanding - diluted |
18.5 |
18.6 |
18.7 |
Dilutive effect of awards under equity compensation plans |
— |
— |
— |
Adjusted weighted average shares outstanding - diluted |
18.5 |
18.6 |
18.7 |
Reconciliation of GAAP Net Income (Loss) to Adjusted EBITDA*: |
||||||||
|
2025 |
2024 |
||||||
(dollars in millions) |
Q1 |
Q4 |
Q1 |
|||||
GAAP Net Income (Loss) |
$ |
(1.4 |
) |
$ |
(0.5 |
) |
$ |
7.8 |
|
|
|
|
|||||
Acquisition & Divestiture Related Costs: |
|
|
|
|||||
Acquisition & Related Integration Costs |
|
— |
|
|
(7.5 |
) |
|
— |
Intangible Amortization |
|
2.7 |
|
|
3.1 |
|
|
3.1 |
(Gain) Loss on Sale or Disposal of PPE |
|
— |
|
|
0.1 |
|
|
— |
|
|
|
|
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Restructuring, Business Realignment & Other Cost Saving Initiatives: |
|
|
|
|||||
Restructuring, Severance, Impairment & Other Related Costs |
|
5.9 |
|
|
16.9 |
|
|
1.1 |
|
|
|
|
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Asbestos-Related Charges (Credits) |
|
— |
|
|
1.4 |
|
|
— |
|
|
|
|
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Interest (Income) Expense, net |
|
(0.3 |
) |
|
(0.2 |
) |
|
0.8 |
Income Tax (Benefit) Expense |
|
(0.2 |
) |
|
(2.3 |
) |
|
3.8 |
Depreciation |
|
9.2 |
|
|
9.3 |
|
|
8.2 |
Equity Compensation |
|
3.6 |
|
|
2.9 |
|
|
3.5 |
Total Adjustments |
$ |
20.9 |
|
$ |
23.7 |
|
$ |
20.5 |
Adjusted EBITDA |
$ |
19.5 |
|
$ |
23.3 |
|
$ |
28.3 |
*Values in table may not add due to rounding. |
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Calculation of Adjusted EBITDA margin*: |
|||||||||
|
2025 |
2024 |
|||||||
(dollars in millions) |
Q1 |
Q4 |
Q1 |
||||||
Adjusted EBITDA |
$ |
19.5 |
|
$ |
23.3 |
|
$ |
28.3 |
|
Divided by Total Net Sales |
|
190.5 |
|
|
192.2 |
|
|
213.4 |
|
Adjusted EBITDA Margin |
|
10.2 |
% |
|
12.1 |
% |
|
13.3 |
% |
*Values in table may not add due to rounding. |
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Reconciliation of Net Cash Provided By Operating Activities to Free Cash Flow*: |
|||||||||
|
2025 |
2024 |
|||||||
(dollars in millions) |
Q1 |
Q4 |
Q1 |
||||||
Net Cash Provided By Operating Activities |
$ |
11.7 |
|
$ |
33.7 |
|
$ |
28.1 |
|
Non-Acquisition Capital Expenditures |
|
(9.6 |
) |
|
(15.4 |
) |
|
(9.4 |
) |
Free Cash Flow |
$ |
2.1 |
|
$ |
18.3 |
|
$ |
18.7 |
|
Reconciliation of GAAP Earnings Per Diluted Share to Adjusted Earnings Per Diluted Share Guidance for the 2025 Second Quarter: |
|
|
Guidance
|
GAAP Earnings per Diluted Share |
|
|
|
Intangible Amortization |
|
|
|
Other Adjustments* |
|
|
|
Adjusted Earnings per Diluted Share |
|
*Other Adjustments is mainly comprised of expected restructuring charges associated with the wind-down of AES manufacturing operations in our Evergem, |
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View source version on businesswire.com: https://www.businesswire.com/news/home/20250429077259/en/
Investor Contact:
Steve Haymore
Phone: 480-917-6026
Email: stephen.haymore@rogerscorporation.com
Website Address: https://www.rogerscorp.com
Source: Rogers Corporation
