Rogers’ first-quarter results drew a positive market response, as the company delivered revenue and adjusted earnings modestly ahead of Wall Street’s expectations despite a double-digit sales decline from the prior year. Management attributed performance to a combination of new customer design wins, especially in the electric vehicle (EV) and energy segments, and ongoing operational cost reductions. CEO Colin Gouveia highlighted the company's “global manufacturing footprint and local-for-local supply capabilities” as factors that helped offset the limited impact of newly announced U.S.-China tariffs in the period. The team also pointed to increased adoption of Rogers’ silicone and polyurethane materials in applications ranging from industrial inverters to battery-related components for major automotive manufacturers.
Is now the time to buy ROG? Find out in our full research report (it’s free).
Rogers (ROG) Q1 CY2025 Highlights:
- Revenue: $190.5 million vs analyst estimates of $186.3 million (10.7% year-on-year decline, 2.2% beat)
- Adjusted EPS: $0.27 vs analyst estimates of $0.25 (6.6% beat)
- Adjusted EBITDA: $19.5 million vs analyst estimates of $17.2 million (10.2% margin, 13.4% beat)
- Revenue Guidance for Q2 CY2025 is $197.5 million at the midpoint, roughly in line with what analysts were expecting
- Adjusted EPS guidance for Q2 CY2025 is $0.50 at the midpoint, above analyst estimates of $0.40
- Operating Margin: 2.9%, down from 5.5% in the same quarter last year
- Market Capitalization: $1.27 billion
While we enjoy listening to the management's commentary, our favorite part of earnings calls are the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention.
Our Top 5 Analyst Questions Rogers’s Q1 Earnings Call
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Dan Moore (CJS Securities) asked about the timing and allocation of the $25 million in cost savings, to which CFO Laura Russell explained that most savings in Q2 would come from facility consolidation and RFS manufacturing reductions, with further benefits accruing in the second half of the year.
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Moore (CJS Securities) also queried whether seasonal strength in portable electronics and cost reductions would drive stronger results later in the year. CEO Colin Gouveia noted improvement depends on both end-market recovery and resolution of tariff uncertainties.
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Craig Ellis (B. Riley Securities) asked about customer attitudes since tariffs escalated, and Gouveia responded that while uncertainty remains, customer relationships are “constructive and open,” with joint efforts to accelerate qualification of alternative sourcing.
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Ellis (B. Riley Securities) further probed the China curamik opportunity pipeline and regional market conditions. Gouveia described a “balanced funnel” across product lines in China, but emphasized ongoing sluggishness in the global power module market.
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David Silver (CLK & Associates) inquired whether geopolitical risks were causing customers to delay or rethink U.S. partnerships. Gouveia replied that while the environment is dynamic, there is no evidence of anti-U.S. bias impacting project pipelines or long-term customer collaboration.
Catalysts in Upcoming Quarters
In the coming quarters, our team will monitor (1) the pace of new design-in conversions and production ramp at the China facility, (2) sustained execution of cost savings initiatives and their impact on margins, and (3) the evolution of global tariff and trade policies and resulting customer order patterns. Progress on these fronts will be critical to determining whether Rogers can stabilize sales and improve profitability amid ongoing macroeconomic and geopolitical headwinds.
Rogers currently trades at $68.79, up from $59.44 just before the earnings. Is the company at an inflection point that warrants a buy or sell? See for yourself in our full research report (it’s free).
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