Rogers (US:ROG)2026-02-19 19:35Business Segments - The company operates two strategic segments: Advanced Electronics Solutions (AES) and Elastomeric Material Solutions (EMS), with non-core businesses reported in an Other segment[16]. - As of December 31, 2025, the AES segment had manufacturing and administrative facilities in multiple locations including Chandler, Arizona, and Suzhou, China, while the EMS segment had facilities in Rogers, Connecticut, and Blackburn, England[18][19]. - The company sold to approximately 2,800 customers worldwide in 2025, with no individual customer representing more than 10% of total net sales[20]. Innovation and Development - The company emphasizes innovation as a key component of its business strategy, supported by Rogers Innovation Centers in Chandler, Arizona, and Suzhou, China, focusing on the development of new high-tech materials[24]. - The company has a history of innovation and holds numerous domestic and foreign patents, which provide a competitive advantage in its operating segments[25][26]. Raw Materials and Supply Chain - Key raw materials for the AES segment include copper, polymer, and ceramic materials, while the EMS segment relies on polyol and silicone materials[27]. - The company faces risks related to supply chain disruptions and reliance on sole or limited-source suppliers for key raw materials, which could adversely impact operations[28]. - The company utilizes hedging strategies to mitigate fluctuations in the cost of copper, a key raw material, but does not currently hedge other commodity-based raw materials[151]. Workforce and Employee Safety - The company employs approximately 3,000 people globally, with 1,100 in North America, 900 in EMEA, and 1,000 in APAC as of December 31, 2025[30]. - The company is committed to promoting employee health and safety, aiming to minimize lost workdays and recordable incidents[32]. Financial Risks and Currency Exposure - The company is exposed to foreign currency risk primarily in Europe and Asia, with a potential impact of approximately $38.9 million decrease in net sales and $1.2 million decrease in net income from a 10% strengthening of the U.S. dollar[149]. - A 10% weakening of the U.S. dollar could result in an increase of approximately $47.6 million in net sales and $1.7 million in net income[149]. - As of December 31, 2025, the interest rate on the company's revolving credit facility was 5.64%, with no borrowings outstanding, meaning a 100-basis point increase in SOFR had no impact for the year[150]. Sales and Orders - The company’s sales are primarily made through short-term purchase orders, which can be modified or canceled on short notice[23].