Microvast Holdings announces departure of chief financial officer
Introduction & Market Context
Rogers Corporation (NYSE:ROG) reported its second quarter 2025 results on July 31, showing sequential improvement in key financial metrics despite significant challenges in its electric vehicle (EV) business segment. The company’s stock closed at $66.40 on the day of the earnings call, representing a 1.23% decline for the session but showing recovery from its 52-week low of $51.43.
The materials technology company continues to navigate a complex market environment, particularly in the evolving electric vehicle sector where changing regional dynamics are impacting its curamik® substrate business. Despite these headwinds, Rogers demonstrated operational resilience with sequential improvements in sales, margins, and adjusted profitability.
Quarterly Performance Highlights
Rogers reported Q2 2025 net sales of $202.8 million, a 6.5% increase from $190.5 million in the previous quarter. Gross margin improved to 31.6% from 29.9% in Q1, while adjusted EBITDA rose to $23.9 million (11.8% of sales) from $19.5 million (10.2%) sequentially.
However, the company recorded a significant GAAP net loss of $73.6 million, or $4.00 per diluted share, primarily due to non-cash items related to its curamik® business. This compares to a much smaller loss of $1.4 million, or $0.08 per share, in Q1 2025. On an adjusted basis, earnings per diluted share improved to $0.34 from $0.27 in the previous quarter.
As shown in the following financial summary chart:
The company’s free cash flow improved to $5.6 million in Q2 from $2.1 million in Q1, despite ongoing investments in capital expenditures. Rogers also returned value to shareholders through $28.1 million in share repurchases during the quarter, contributing to a reduction in cash position from $175.6 million to $157.2 million.
The following cash utilization chart illustrates the company’s capital allocation during Q2:
Detailed Financial Analysis
Rogers’ gross margin and adjusted EBITDA showed meaningful sequential improvement, reflecting the company’s focus on operational efficiency and cost management. Gross margin increased by 170 basis points to 31.6%, while adjusted EBITDA margin expanded by 160 basis points to 11.8%.
This improvement is visualized in the following chart:
The company’s sales performance varied across end markets, with Industrial representing the largest segment at 28% of total sales, followed by Aerospace & Defense (16%) and e-mobility (14%). Industrial sales improved at a double-digit rate, with growth in both Advanced Electronics Solutions (AES (NYSE:AES)) and Elastomeric Material Solutions (EMS) segments. North America and European defense markets remained strong, while commercial aerospace demand showed improvement.
Strategic Initiatives
A central focus of Rogers’ Q2 presentation was its response to the evolving electric vehicle market, particularly in China where domestic power module manufacturers are capturing an increasing share of the market. The company highlighted significant changes in regional EV production forecasts, with China expected to produce 11.1 million battery electric vehicles in 2025, compared to 4.9 million in North America and 4.2 million in Europe.
The following chart illustrates these market dynamics:
In response to these market shifts, Rogers is implementing a two-pronged strategy. First, the company is right-sizing its curamik® operations, expecting to achieve $13 million in annual run rate savings with approximately one year payback on restructuring actions. Second, Rogers is establishing localized manufacturing through a new curamik® facility in China, with customer qualification processes moving forward.
The company is also securing opportunities in related markets such as renewable energy and industrial applications to diversify its revenue streams beyond automotive applications.
Forward-Looking Statements
For the third quarter of 2025, Rogers provided guidance suggesting continued sequential improvement. The company expects net sales between $200 million and $215 million, with gross margin ranging from 31.5% to 33.5%. GAAP earnings per diluted share are projected between $0.00 and $0.40, while adjusted earnings per diluted share are expected to range from $0.50 to $0.90.
This guidance represents a significant improvement in adjusted EPS compared to Q2 results, as shown in the following projection:
The company’s adjusted EPS guidance includes approximately $0.11 per share in intangible amortization and $0.39 in other adjustments, reflecting ongoing restructuring activities and other non-recurring items.
Competitive Industry Position
Rogers emphasized its core strengths remain intact despite market challenges, highlighting deep customer relationships, strong technical capabilities, employee talent, and global reach as key competitive advantages. The company is focusing on three key priorities to enhance its market position: implementing a more agile organizational structure, improving speed of execution, and accelerating growth through enhanced customer focus and new product introductions.
The management team stressed that despite headwinds in the EV market, particularly related to its curamik® business, Rogers’ diversified portfolio and strategic initiatives position it well for long-term growth. The company’s ability to adapt to changing market dynamics while maintaining operational discipline will be crucial for navigating the evolving competitive landscape.
Conclusion
Rogers Corporation’s Q2 2025 results demonstrate the company’s resilience in the face of significant market challenges, particularly in the electric vehicle segment. While the substantial GAAP loss related to curamik® restructuring overshadowed the quarter’s financial performance, the sequential improvements in sales, margins, and adjusted profitability suggest that Rogers’ strategic initiatives are gaining traction.
As the company continues to adapt to the evolving EV market and implement cost-saving measures, investors will be watching closely to see if the projected improvements in Q3 2025 materialize. Rogers’ ability to successfully execute its localization strategy in China while maintaining its competitive position in other key markets will be critical factors in determining its long-term success.
Full presentation:
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