Rogers Corporation (ROG): BCG Matrix [Dec-2025 Updated]

You're looking for a clear-eyed view of Rogers Corporation's business portfolio as of late 2025, and honestly, the BCG Matrix is the perfect tool to map their current transition. We see clear Stars driving growth in 5G/6G and EV materials, supported by Cash Cows that delivered a solid $21.2 million in Free Cash Flow in Q3 2025, but this strength sits alongside legacy Dogs we need to rationalize, like the curamik® business, and several high-potential Question Marks requiring capital to scale up. Let's break down exactly where Rogers is placing its bets and where it needs to clean house.

Background of Rogers Corporation (ROG)

You're looking at Rogers Corporation (ROG), which is a global leader in engineered materials designed to power, protect, and connect our world. Honestly, they operate in some pretty specialized, high-tech spaces, which is key to understanding their portfolio.

Rogers Corporation organizes its business primarily into two major segments: Advanced Electronic Solutions (AES) and Elastomeric Material Solutions (EMS). The AES segment focuses on high-performance materials for things like wireless infrastructure, Advanced Driver-Assistance Systems (ADAS), and Electric/Hybrid Vehicle (EV/HEV) power modules. EMS deals with materials for industrial, portable electronics, and aerospace and defense (A&D) applications.

Looking at the most recent full-year data we have, for fiscal year 2024, Rogers Corporation posted total net sales of approximately $830.1 million, which was down from $908.4 million in 2023. For the first three quarters of 2025, the picture is a bit mixed, showing sequential recovery after a soft start. For instance, third quarter 2025 net sales hit $216.0 million, up 6.5% from the second quarter of 2025, and the company ended Q3 2025 with a cash position of $167.8 million.

The Advanced Connectivity Solutions used to be their highest-performing source, bringing in $452.20 million in the last reported full year, though recent results show more movement between the segments. For example, in Q3 2025, AES net sales increased by 5.2%, driven by EV/HEV, wireless infrastructure, and industrial sales, while EMS net sales grew by 8.7%, helped by stronger portable electronics, A&D, and industrial sales. The company is actively working on cost improvements, targeting $25 million in savings for 2025, and they're focused on executing commercial and innovation priorities while managing uncertainty around global tariffs.

Rogers Corporation (ROG) - BCG Matrix: Stars

The business units positioned as Stars for Rogers Corporation are characterized by leading positions in markets experiencing significant expansion, demanding substantial investment to maintain or grow their market share.

The Advanced Electronics Solutions (AES) segment, which includes materials for wireless infrastructure and EV/HEV, saw net sales increase by 5.2% in the third quarter of 2025 compared to the second quarter of 2025. The Elastomeric Material Solutions (EMS) segment, which includes A&D materials, posted sequential net sales growth of 8.7% in Q3 2025.

Here is a breakdown of the revenue drivers within the segments aligned with the potential Star categories as of the third quarter of 2025:

The overall company financial performance in Q3 2025 supports the investment thesis for these high-potential areas, with total Net Sales reaching $216.0 million, a 6.5% increase over the prior quarter.

Key financial metrics for Rogers Corporation in Q3 2025 include:

• Net Sales: $216.0 million
• Gross Margin: 33.5%
• Adjusted Earnings Per Diluted Share: $0.90
• Net Cash Provided by Operating Activities: $28.9 million
• Free Cash Flow: $21.2 million

The growth in the AES segment, driven by EV/HEV and wireless infrastructure, indicates these are areas where Rogers Corporation holds a strong market position in rapidly expanding markets. For instance, the EMS segment's 8.7% sequential sales increase was bolstered by A&D strength.

For the Advanced Electronics Solutions (AES) segment specifically:

• Sequential Net Sales Increase (Q3 2025 vs Q2 2025): 5.2%
• Key Positive Contributors: EV/HEV, wireless infrastructure, industrial sales
• Key Negative Contributor: ADAS sales

The company is actively investing, as seen by the $7.7 million in capital expenditures during Q3 2025, which is the necessary support for these market leaders to transition into Cash Cows when market growth moderates.

Rogers Corporation (ROG) - BCG Matrix: Cash Cows

Cash cows for Rogers Corporation (ROG) are characterized by high market share in mature segments, yielding substantial cash flow with minimal reinvestment needs outside of maintenance and efficiency improvements. These units fund the rest of the portfolio.

The overall business generated $21.2 million in Free Cash Flow in Q3 2025, which is defintely a good sign. This cash generation is supported by strong profitability metrics from established product lines.

Core Elastomeric Material Solutions (EMS) for general industrial sealing and vibration management represents a segment expected to fit the Cash Cow profile due to its mature market positioning. While Q1 2025 saw a year-over-year decrease in net sales of 3.6% for the EMS segment, its established nature suggests high margins are maintained through operational discipline.

Legacy industrial applications within Advanced Electronics Solutions (AES) are also key contributors. For Q3 2025, AES net sales showed sequential improvement of 5.2%, driven by industrial sales alongside EV/HEV and wireless infrastructure demand. This contrasts with the Q1 2025 year-over-year decrease of 14.7% for the AES segment overall, suggesting a recent positive inflection point for the industrial portion.

The stability and margin profile of these established businesses are reflected in the consolidated Q3 2025 performance:

Established, high-margin materials for stable Aerospace and Defense (A&D) platforms, often served by EMS, are critical for consistent cash generation. The focus here is on maintaining productivity rather than aggressive growth spending.

Investments into supporting infrastructure are targeted to improve efficiency and increase cash flow further. For instance, the company is executing cost improvement initiatives. The Q3 2025 results indicated management expects roughly 300 basis points of adjusted EBITDA margin improvement versus the prior year at the midpoint of the full-year guidance range.

These Cash Cow units provide the necessary liquidity for the corporation:

• Support for Question Mark product development.
• Funding for corporate administrative costs.
• Servicing corporate debt obligations.
• Funding shareholder returns through dividends or buybacks.

Share repurchases in Q3 2025 totaled $10.0 million, with management indicating Q4 buybacks will exceed Q3 levels. Capital expenditures for Q3 2025 were $7.7 million, a low level relative to operating cash flow, which is characteristic of supporting mature assets.

Rogers Corporation (ROG) - BCG Matrix: Dogs

Dogs are units or products with a low market share and low growth rates. They frequently break even, neither earning nor consuming much cash. Dogs are generally considered cash traps because businesses have money tied up in them, even though they bring back almost nothing in return. These business units are prime candidates for divestiture.

The struggling curamik® ceramic power substrate business in Europe is facing a lowered outlook, which triggered a non-cash goodwill impairment charge of $67.3 million in the second quarter of 2025. This single charge contributed significantly to the total GAAP net loss of $(73.6) million reported for Q2 2025, which also included $4.3 million in restructuring expenses. Total restructuring and impairment charges for the quarter reached $76.1 million.

The product lines associated with this significant write-down are now subject to restructuring. The anticipated total restructuring charges related to these actions, specifically for curamik® in Europe, are estimated to be between $12 million to $20 million, spread over the next several quarters.

Legacy, low-margin products, particularly within the curamik® business, are being rationalized through capacity rebalancing between Europe and China. These cost actions are targeted to achieve annual run-rate cost savings in excess of $13 million. This targeted saving is incremental to the prior $32 million program, with the full $13 million in annualized savings not expected until Q4 2026.

Older wireless infrastructure materials are part of the product mix facing headwinds, as Advanced Electronics Solutions (AES) net sales in Q2 2025 were partially offset by lower wireless infrastructure sales. This market shift is concurrent with the planned wind-down of manufacturing of advanced circuit materials at the Evergem, Belgium factory by mid-2025. This specific facility closure is expected to improve operating profit between $7 million to $9 million annually once fully implemented, with associated charges estimated between $18 million to $28 million.

Here's a quick look at the financial data points tied to these underperforming areas as of the Q2 2025 reporting period:

The units categorized as Dogs exhibit several characteristics:

• The curamik® business in Europe is undergoing restructuring.
• The business segment was associated with a $67.3 million non-cash goodwill impairment.
• Cost rationalization efforts target savings greater than $13 million annually.
• Manufacturing for certain advanced circuit materials is ceasing in Belgium by mid-2025.

Rogers Corporation (ROG) - BCG Matrix: Question Marks

You're looking at the areas of Rogers Corporation (ROG) that are in high-growth markets but haven't yet secured a dominant market share. These are the units that demand cash to fuel their expansion, hoping to become future Stars. For Rogers Corporation (ROG), these Question Marks are tied to strategic capacity shifts and specific end-market performance as of the third quarter of 2025.

The need for significant investment is clear in the capital allocation. Rogers Corporation (ROG) reaffirmed its full-year 2025 capital expenditure forecast to be between $\text{\$30}$ million and $\text{\$40}$ million. To put this in perspective, the capital expenditures for the second quarter of 2025 were $\text{\$8.1}$ million, which included residual investments in new capacity alongside ERP implementation and maintenance. This level of spending is characteristic of a business unit needing to quickly build out its footprint to capture market share.

Here are the specific areas fitting the Question Mark profile:

• New EV/HEV capacity ramp-up in China, part of the local-for-local strategy, where market share is still being built.
• Certain ADAS product lines within AES that saw lower sales in Q3 2025, indicating an unproven market share position.
• Emerging material applications in renewable energy, which are high-growth but require significant capital expenditure to scale.
• New product development projects that contributed to the Q2 2025 capital expenditures of $\text{\$8.1}$ million.

The strategic shift in the Advanced Electronics Solutions (AES) segment directly illustrates this dynamic. The company has been executing a 'local for local' manufacturing strategy, which involved ramping up manufacturing in China to serve the buoyant Chinese EV market, contrasting with downgraded EV growth projections in North America and Europe. The new curamik facility in China started production in the late third quarter of 2025. This ramp-up is a classic Question Mark investment: high potential growth market (China EV/Renewable Energy) but currently consuming cash and facing near-term margin pressure due to the scale-up. Management expects an $\text{80}$ basis points headwind to the gross margin in the fourth quarter of 2025 specifically from this facility ramp.

The performance of specific product lines within AES shows the market share uncertainty. While AES net sales increased by $\text{5.2\%}$ quarter-over-quarter in Q3 2025, this growth was driven by higher EV/HEV and industrial sales, but it was partially offset by lower ADAS sales. Lower sales in a growing segment like ADAS (Advanced Driver-Assistance Systems) suggests the market share position is still being fought for, making it a candidate for the Question Mark quadrant.

You can see the cash flow dynamics in the quarterly results, which show the cash consumption inherent in these growth plays:

While Q3 2025 Free Cash Flow improved to $\text{\$21.2}$ million, it remains a fraction of the overall revenue, and the need to invest $\text{\$8.1}$ million in CapEx in Q2 2025 to build future capacity shows where cash is being directed to gain that market share. If these investments do not quickly translate into market share gains, these units risk becoming Dogs.