Rogers Corporation Reports 8.6% Decline in Net Sales for Fiscal Year 2024

Rogers Corporation reported a decline in financial performance for the fiscal year ending December 31, 2024, with net sales decreasing by 8.6% to $830.1 million, down from $908.4 million in 2023. The company's gross margin also fell, decreasing 40 basis points to 33.4%. Operating income as a percentage of net sales dropped significantly, from 9.4% in 2023 to 3.0% in 2024. The decline in revenue was primarily attributed to lower sales in the electric vehicle (EV) and hybrid electric vehicle (HEV) markets, as well as in industrial and advanced driver assistance systems (ADAS) sectors, although there were some offsets from increased sales in wireless infrastructure and aerospace and defense markets.

In terms of operational changes, Rogers Corporation executed a Joint Venture Separation Agreement with INOAC, which resulted in a net payment of $4.9 million to the company and a recognized gain of $7.7 million. The company also undertook restructuring efforts, incurring charges of $16.2 million related to manufacturing footprint consolidation and workforce reductions. Additionally, impairment charges of $7.9 million were recorded, primarily associated with the ongoing development of a new enterprise resource planning (ERP) system.

Rogers Corporation's customer base remained diverse, serving approximately 2,900 customers globally, with no single customer accounting for more than 10% of total net sales. The company employed around 3,200 people as of December 31, 2024, with a significant presence in North America, Europe, and Asia. The company reported a decrease in accounts receivable, which fell by 16.4% to $135.3 million, reflecting lower sales levels at year-end. Inventory levels also decreased by 7.3% to $142.3 million, driven by lower raw materials and work-in-process levels.

Looking ahead, Rogers Corporation anticipates continued challenges in the EV/HEV market, which is projected to grow at a compound annual growth rate of 10% to 15% over the next several years. The company aims to capitalize on this growth through its advanced battery cell pads and ceramic substrates. Despite the current downturn, Rogers remains focused on its strategic priorities, including innovation and operational excellence, to enhance profitability and drive future growth. The company plans to invest between $40 million and $50 million in capital expenditures in 2025, funded through cash from operations and existing credit facilities.