Rogers (US:ROG)2026-02-17 23:00Financial Data and Key Metrics Changes - Q4 2025 sales reached $202 million, a 5% increase compared to Q4 2024, and adjusted EBITDA margins improved by 500 basis points to 17.1% [4][13] - Adjusted EPS for Q4 was $0.89, nearly double the prior year period, driven by higher sales and improved operating expenses [13][14] - Free cash flow for the year was $71 million, with $52 million allocated for share repurchases [9][16] Business Line Data and Key Metrics Changes - Industrial sales, the largest segment, accounted for 27% of total revenue, with a high single-digit growth year-over-year [5][6] - Aerospace and Defense sales represented 16% of revenue, growing at a high single-digit rate for the full year despite a slight decline in Q4 [6] - EV and HEV sales remained at 14% of revenue, with Q4 sales declining year-over-year due to challenges in certain regions [6][7] - ADAS sales grew at a double-digit rate for the full year, benefiting from increased adoption and vehicle autonomy [7] Market Data and Key Metrics Changes - The company noted a gradual improvement in end markets, particularly in industrial, ADAS, and renewable energy sectors [5][6] - Portable electronics sales declined in both Q4 and for the full year, primarily due to a product reaching end of life [7] Company Strategy and Development Direction - The company aims to improve multi-year growth and profitability initiatives, with a focus on securing design wins across various market segments [10][11] - Data centers have been identified as a significant new market opportunity, with initial design wins secured in the EMS business [10][26] - The company plans to maintain disciplined capital allocation and keep capital expenditures comparable to 2025 levels [11][16] Management's Comments on Operating Environment and Future Outlook - Management expressed cautious optimism for Q1 2026, expecting continued growth in industrial sales but uncertainty in the automotive and EV sectors [22][23] - The company anticipates significant year-over-year improvements in Q1 2026 sales and profitability, with adjusted EPS expected to range from $0.45 to $0.85 [18][19] - Management highlighted the importance of innovation and new product development to drive future growth [49][50] Other Important Information - The company achieved $25 million in cost improvements in 2025, with an additional $20 million expected by the end of 2026 [9][11] - The restructuring of ceramic operations in Germany is on track, with anticipated annual savings of $13 million [11][36] Q&A Session Summary Question: Guidance for Q1 and near-term outlook for ADAS and renewables - Management expects stronger growth in the industrial sector but sees uncertainty in automotive and EV markets, with guidance reflecting these conditions [22][23] Question: Key applications in data centers - Management emphasized opportunities in thermal management and signal integrity technologies, with larger brand name OEMs qualifying these technologies [25][26] Question: Broader initiatives for multi-year growth - Management indicated growth targets across all business segments, with specific initiatives aimed at expanding market share and engaging directly with OEMs [32][33] Question: Profitability improvement initiatives - Management confirmed ongoing initiatives are in place, with expected benefits from restructuring efforts in the second half of 2026 [35][36] Question: Impact of tariffs on business operations - Management noted that the company's global manufacturing capabilities mitigate tariff impacts, allowing for local supply to customers [54][55]