Wed, Apr 30, 10:05 AM (19 days ago)
**Rogers Corporation (ROG) Q1 2025 Financial Summary** **Financial Health and Performance:** - **Revenue:** Q1 2025 revenue was $190.5 million, a 10.7% decrease from Q1 2024 ($213.4 million). - **Gross Margin:** Gross margin decreased to 29.9% from 32.0% in Q1 2024 due to lower volumes and unfavorable mix. - **Operating Income:** Operating income was ($0.3) million, a decrease from $11.7 million in Q1 2024. - **Net Income:** Net income was ($1.4) million, compared to $7.8 million in Q1 2024. - **Earnings per Share (EPS):** Basic and diluted EPS were ($0.08), compared to $0.42 in Q1 2024. - **Cash Flow:** Net cash provided by operating activities was $11.7 million, down from $28.1 million in Q1 2024. **Segment Performance:** - **Advanced Electronics Solutions (AES):** Revenue decreased by 14.7% due to lower EV/HEV and wireless infrastructure sales. Gross margin was 27.9%. - **Elastomeric Material Solutions (EMS):** Revenue decreased by 3.6% due to lower EV/HEV and aerospace and defense sales. Gross margin was 32.3%. - **Other:** Revenue decreased by 33.9%, with a gross margin of 32.4%. **Trends and Uncertainties:** - **Market Conditions:** Lower EV/HEV and wireless infrastructure sales due to inventory management and softer end-market demand. - **Restructuring:** $5.9 million in restructuring charges related to manufacturing footprint consolidation and global workforce reduction. - **Foreign Exchange:** Unfavorable foreign currency impacts affected other income (expense), net. - **Trade Policy:** Potential impacts from U.S. trade policy and tariffs on global operations and supply chain. **Future Operations and Impact:** - **Capital Expenditures:** Expected to be $30.0-$40.0 million in 2025, funded by cash from operations and existing credit facilities. - **Liquidity:** $175.6 million in cash and cash equivalents as of March 31, 2025. - **Dividends:** Restrictions based on leverage ratio, which did not exceed 2.75 to 1.00 as of March 31, 2025. **Conclusion:** Rogers Corporation faced challenges in Q1 2025 with decreased revenue and profitability due to market conditions and restructuring efforts. The company is focusing on operational excellence, cost improvements, and strategic investments to drive future growth and profitability.