Q4 2024 Rogers Corp Earnings Call Transcript
Key Points
- Rogers Corp (ROG) delivered fourth-quarter results in line with expectations, with sales, gross margin, and adjusted earnings near the midpoint of guidance ranges.
- The company made significant progress in commercial innovation and operational excellence initiatives, securing new design wins and launching new products.
- Rogers Corp (ROG) achieved robust free cash flow conversion in 2024, maintaining a strong balance sheet to support organic and inorganic growth objectives.
- Aerospace and defense sales grew at a double-digit rate, driven by strong demand for military radar applications.
- The company successfully executed its local-for-local manufacturing strategy, adding new facilities in China to support growth and mitigate tariff impacts.
- Fourth-quarter revenues declined by 9% from the prior quarter, primarily due to challenging market conditions and normal seasonality.
- The company faced significant market headwinds in 2024, particularly in industrial and EV/HEV markets, leading to a major inventory destocking among customers.
- Gross margin decreased by 310 basis points in Q4 due to lower volume and unfavorable product mix.
- Rogers Corp (ROG) experienced a significant decline in curamik power substrate sales, impacting overall sales performance.
- The company anticipates a relatively flat sales outlook for the first quarter of 2025 due to cautious customer ordering and ongoing inventory challenges.
Good afternoon, everyone and welcome to the Rogers Corporation fourth-quarter 2024 earnings conference call. The slides for today's call can be found on the investor section of our website along with the news release that was issued earlier today.
Please turn to slide 2. Before we begin, I would like to note that statements in this conference call that are not strictly historical are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 and should be considered as subject to the many uncertainties that exist in Roger's operations and environment. These uncertainties include economic conditions, market demands, and competitive factors. Such factors could cause actual results to differ materially from those in any forward-looking statement made today.
Please turn to slide 3. The discussions during this conference call will also reference certain financial measures that were not prepared in accordance with US generally accepted accounting principles. A reconciliation of those non-GAAP
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