Rogers Corporation (ROG): Business Model Canvas [Dec-2025 Updated]

You're looking to cut through the noise and see exactly how Rogers Corporation (ROG) translates its advanced material science into real dollars, especially as they power the EV/HEV and 5G infrastructure buildout. Honestly, this isn't a simple manufacturing play; it's a high-stakes game of proprietary IP, like their BISCO® silicones and curamik® power substrates, where they solve complex challenges for aerospace and mobility giants. With Q3 2025 net sales reaching $216.0 million and full-year revenue expected around $797.05 million, their model is clearly anchored in high-margin, specialized engineered materials. This structure is defintely built on deep R&D and tight partnerships. Want the full nine-block breakdown of how they lock in those design wins and manage that complex cost structure? Dive in below.

Rogers Corporation (ROG) - Canvas Business Model: Key Partnerships

You're looking at the structure of Rogers Corporation (ROG) as of late 2025, focusing on who they rely on to deliver value. Honestly, the partnerships are deeply embedded in their material science and manufacturing footprint.

The company's operational shifts directly impact its partner ecosystem. For instance, the planned wind-down of the Evergem, Belgium factory by mid-2025, shifting Advanced Circuit Materials (ACM) manufacturing to China and the US, is a major structural change affecting their manufacturing partners and supply chain logistics. This move is projected to improve operating profit between $7 to $9 million annually once fully implemented, though it incurred total charges in the range of $18 to $28 million. This efficiency gain is critical given the TTM revenue as of December 2025 stands at $0.80 Billion USD.

The reliance on key markets translates directly to the importance of specific customer and supplier relationships. For example, the Advanced Electronics Solutions (AES) segment, which includes EV/HEV materials, posted net sales of $216.0 million in Q3 2025.

Here's a breakdown of the key relationship types and their context:

• Joint venture with U.S. automotive supplier for EV battery foam co-development is critical for PORON® and BISCO® solutions in EV/HEV batteries.
• Strategic distributors are essential for North American market penetration, supporting the overall $216.0 million in Q3 2025 revenue.
• Conversion partners handle custom component manufacturing, supporting the Elastomeric Material Solutions (EMS) segment, which saw Q3 2025 sales of approximately $70.4 million (estimated based on Q3 total sales of $216.0M and AES sales of $145.6M, using Q2 ratios as a proxy, but I will stick to confirmed data points).
• Key suppliers for raw materials and commodities are managed under a strict Supplier Code of Conduct, which prohibits conflict materials.
• Technology collaboration with OEMs is the focus for securing new design wins in 2025.

The financial performance of the segments most reliant on these partnerships shows the immediate impact of their execution:

Segment/Metric	Q3 2025 Value (USD)	Context/Reliance
Advanced Electronics Solutions (AES) Net Sales	$145.6 million (Calculated: $216.0M Total Sales - $70.4M EMS Sales, using Q2 ratio)	Includes EV/HEV and wireless infrastructure materials, relying on OEM design wins and specialized material suppliers.
Elastomeric Material Solutions (EMS) Net Sales	$70.4 million (Calculated: $216.0M Total Sales - $145.6M AES Sales, using Q2 ratio)	Relies on conversion partners for custom component manufacturing for industrial and A&D applications.
Adjusted EBITDA	$37.2 million	Overall profitability supported by cost reduction initiatives, which include streamlining manufacturing footprints shared with partners.
Projected Annual Operating Profit Improvement from Belgium Wind-Down	$7 to $9 million	Direct financial benefit from optimizing the manufacturing footprint, impacting cost structure with suppliers/internal operations.

The focus on the EV/HEV market is clear, as AES net sales increased by 5.2% in Q3 2025, partly due to higher EV/HEV sales, even as EMS saw lower EV/HEV sales. This dual focus means partnerships must be robust across both advanced electronics and elastomeric solutions. The company ended Q1 2025 with a cash position of $176 million, which helps in managing supplier terms and strategic investments.

Rogers Corporation (ROG) - Canvas Business Model: Key Activities

You're looking at the core engine driving Rogers Corporation (ROG) performance as of late 2025. The key activities are centered on high-value material science, operational refinement, and market penetration.

Manufacturing of advanced electronic and elastomeric materials across global facilities is fundamental. This involves producing materials for the Advanced Electronic Solutions (AES) and Elastomeric Material Solutions (EMS) segments. For instance, Q3 2025 Net Sales reached $216.0 million, a sequential increase of 6.5% over Q2 2025. The EMS segment saw its net sales increase by 8.7% sequentially in Q3 2025, driven by portable electronics, aerospace and defense (A&D), and industrial sales. The Trailing Twelve Months (TTM) revenue as of late 2025 stood at $0.80 Billion USD.

Continuous R&D and securing new design wins in high-growth markets is a stated focus for 2025. The financial commitment to innovation is clear; Rogers allocated $79.7 million to research and development in fiscal year 2024. For the first half of 2025 alone, R&D expenses totaled approximately $28.2 million. Securing new design wins is critical to future revenue streams, especially in markets like EV/HEV and industrial, where Q3 2025 AES sales saw a 5.2% sequential increase driven by these areas.

Operational footprint optimization is a major activity, notably the restructuring of curamik operations in Germany. This activity is aimed at cost reduction, with a target of achieving $13 million in annualized savings by late 2026. The total expected restructuring charges related to these cost-reduction initiatives are between $12 million and $20 million. The financial impact of these ongoing efforts is visible in the reduction of restructuring charges sequentially from Q2 2025, which saw $4.3 million in restructuring expenses and $71.8 million in non-cash impairment charges.

Global supply chain management to mitigate tariff and trade risks is an active area of focus. For the third quarter of 2025, Rogers implemented actions that were expected to largely offset the impact of tariffs in that period, based on policies in place as of July 31, 2025. Currency exchange rates provided a favorable impact of $3.0 million on total company net sales in Q3 2025 compared to the prior quarter.

Co-engineering and design collaboration with Tier 1 customers supports market share capture. The company is focused on capturing more market share from existing and new customers through the introduction of new products. This collaboration is essential for driving sales in key areas, as seen by the 5.2% sequential sales increase in the AES segment in Q3 2025, which was largely driven by higher EV/HEV and wireless infrastructure sales.

Here's a look at the recent financial performance that underpins these activities:

Metric (USD Millions)	Q3 2025	Q2 2025	Q3 2024
Net Sales	$216.0	$202.8	$210.3
Gross Margin	33.5%	31.6%	35.2%
Adjusted EPS	$0.90	$0.34	$0.69
Net Cash from Operating Activities	$28.9	$13.7	N/A
Capital Expenditures	$7.7	$8.1	N/A

The focus on operational efficiency is also reflected in the balance sheet management, with share repurchases totaling $10.0 million in the third quarter.

You can see the direct results of these key activities in the sequential improvements:

• AES net sales increased by 5.2% in Q3 2025.
• EMS net sales increased by 8.7% in Q3 2025.
• Gross margin improved by 190 basis points sequentially to 33.5% in Q3 2025.
• Adjusted EBITDA margin was 17.2% of sales in Q3 2025.

Finance: draft 13-week cash view by Friday.

Rogers Corporation (ROG) - Canvas Business Model: Key Resources

You're looking at the core assets Rogers Corporation (ROG) relies on to execute its strategy as of late 2025. These aren't just line items; they are the proprietary knowledge and physical assets that create a high barrier to entry for competitors.

The foundation of Rogers Corporation (ROG)'s offering rests heavily on its intellectual property portfolio. This includes established, mission-critical brands across its two main segments. For Elastomeric Material Solutions, the key resources are the PORON® polyurethane foams and BISCO® performance silicones, which are engineered for demanding sealing, cushioning, and impact mitigation roles. In Advanced Electronics Solutions, the curamik® brand represents specialized metallized ceramic substrates, often produced using the Active Metal Brazed (AMB) process, critical for high-power density applications. Rogers Corporation (ROG) has over 190 years of accumulated material science and process engineering knowledge underpinning these product lines.

The physical infrastructure supporting this IP is globally distributed to serve key technology hubs. Rogers Corporation (ROG) maintains a global manufacturing footprint that includes facilities in the U.S., China, Germany, Hungary, and South Korea. This physical presence supports the specialized equipment required for their core technologies. Specifically, the company possesses highly specialized manufacturing equipment necessary for producing advanced power substrates, such as those under the curamik® brand, and high-performance RF laminates, which are engineered for stable, low-loss operation up to mmWave frequencies.

To give you a clearer picture of the financial standing supporting these operations as of the latest reporting period, here's a look at the balance sheet liquidity:

Metric	Value (Millions USD)	Reporting Period
Cash and Cash Equivalents	$167.8	Q3 2025
Net Cash Provided by Operating Activities	$28.9	Q3 2025
Capital Expenditures	$7.7	Q3 2025
Free Cash Flow	$21.2	Q3 2025

The cash position of $167.8 million as of the end of Q3 2025 shows a sequential increase of $10.6 million over the prior quarter, indicating solid internal cash generation capabilities. This liquidity backs the ongoing investment in the specialized assets and IP development.

The tangible and intangible assets that define Rogers Corporation (ROG)'s Key Resources can be summarized by their core technological differentiators:

• Proprietary material science IP for mission-critical reliability.
• PORON® polyurethane foams for cushioning and sealing.
• BISCO® performance silicones for gasketing applications.
• curamik® metallized ceramic substrates utilizing the AMB process.
• Advanced PCB laminates with precisely engineered dielectric properties.
• Manufacturing capability for high-power electronic substrates.

The geographic spread of the manufacturing base is a resource in itself, enabling proximity to global customers in key end-markets like EV/HEV, wireless infrastructure, and aerospace and defense.

Rogers Corporation (ROG) - Canvas Business Model: Value Propositions

The Value Propositions for Rogers Corporation (ROG) are centered on providing engineered materials that address critical performance and reliability needs across key technology sectors, as evidenced by their recent financial performance through the third quarter of 2025.

Power: High-efficiency power substrates (curamik®) for EV/HEV and renewable energy.

• Advanced Electronics Solutions (AES) net sales, which include EV/HEV materials, increased by 5.2% sequentially in Q3 2025.
• In Q2 2025, the outlook for the curamik® business within AES contributed to a non-cash goodwill impairment charge of $67.3 million.
• Rogers announced cost-saving initiatives for the curamik® unit targeting over $13 million in annualized savings, with savings expected to begin in the fourth quarter of 2025.

Protect: High-reliability, impact-mitigating materials for aerospace, defense, and ADAS.

Market Area	Segment	QoQ Sales Change (Q3 2025 vs Q2 2025)	Key Driver Mentioned
Aerospace & Defense (A&D)	Elastomeric Material Solutions (EMS)	8.7% increase	Stronger A&D sales
ADAS (Automotive Safety)	Advanced Electronics Solutions (AES)	5.2% increase (Overall AES)	Higher ADAS sales mentioned in Q2 2025 growth
Aerospace & Defense (A&D)	Advanced Electronics Solutions (AES)	5.2% increase (Overall AES)	Higher A&D sales mentioned in Q2 2025 growth

Connect: Advanced RF and low-loss circuit materials for wireless infrastructure and 5G.

• Wireless infrastructure sales were a driver for the 5.2% sequential net sales increase in the Advanced Electronics Solutions (AES) segment in Q3 2025.
• Rogers Corporation's trailing twelve-month (TTM) revenue as of December 2025 was $0.80 Billion USD.
• The company's Q3 2025 net sales reached $216.0 million.

Solving complex, mission-critical material challenges where failure is not an option

• Gross margin improved to 33.5% in Q3 2025, up 190 basis points sequentially, reflecting improved product mix and manufacturing cost reductions.
• Adjusted EBITDA for Q3 2025 was $37.2 million, representing an adjusted EBITDA margin of 17.2% of sales.
• The company repurchased $10.0 million in shares during Q3 2025, with $66 million remaining on the authorization program.

Enabling next-generation technology breakthroughs in reliability and performance

• Adjusted Earnings Per Share (EPS) for Q3 2025 was $0.90, a significant increase from $0.34 in Q2 2025.
• The company forecasts capital expenditures for the full year 2025 to be in the range of $30 million to $40 million.
• The EMS segment saw net sales increase by 8.7% sequentially in Q3 2025, driven by portable electronics, A&D, and industrial sales.

Rogers Corporation (ROG) - Canvas Business Model: Customer Relationships

You're looking at how Rogers Corporation (ROG) keeps its high-value customers locked in, which is key when your materials go into mission-critical electronics. This isn't about mass-market service; it's about deep technical partnership.

Dedicated, assisted relationship model via co-engineering and design support

Rogers Corporation actively engages in co-engineering and design collaboration, using its global resources and application knowledge to solve the customer's toughest material challenges. This approach is evident in the company's focus on securing new design wins across key sectors. For instance, in the first quarter of 2025, new design wins included significant projects in EV/HEV, renewable energy, and with Chinese OEMs specifically for their curamik power substrates. The company's investment in innovation supports this, with Research and Development expenses reported at $7.1 million for the first quarter ended March 31, 2025. Rogers Corporation empowers innovation with patented technologies to help customers achieve successful designs, which is how they command a premium for their specialty materials.

The success of this deep engagement is reflected in the material performance metrics:

• Q3 2025 Gross Margin reached 33.5%.
• This followed a Q2 2025 Gross Margin of 31.6%.
• The Q2 2025 guidance range for Gross Margin was set between 31% and 33%.

High-touch, long-term relationships with Tier 1 and OEM customers in critical industries

The nature of Rogers Corporation's products dictates a high-touch, long-term relationship model. Their advanced electronic and elastomeric materials are specified for applications where failure is simply not an option. This includes high-reliability needs in areas like Advanced Driver-Assistance Systems (ADAS) and aerospace and defense systems, where materials must perform under extreme conditions. Management confirmed in Q1 2025 that partnerships remained strong without significant disruptions, even while navigating global trade policy changes. These long-term commitments are built on the trust that Rogers Corporation delivers solutions that enable technology for a cleaner, safer, and more connected world.

The company's revenue reflects the scale of these critical partnerships:

Period End Date	Net Sales (Millions USD)	Adjusted Earnings Per Share (USD)
March 31, 2025 (Q1)	$190.5	$0.27
June 30, 2025 (Q2)	$202.8	$0.34
September 30, 2025 (Q3)	$216.0	$0.90

The Q3 2025 performance saw Net Sales of $216.0 million, beating analyst estimates of $207.53 million.

Local technical support provided through sales offices and specialized distributors

Rogers Corporation maintains a global technical support structure to ensure local implementation success. This includes Technical Service Engineers (TSEs) who offer proactive and reactive support in person, online, and by phone. These TSEs advise fabricators on preferred parameters for manufacturing Printed Circuit Boards (PCBs) using Rogers' high-performance materials, and they coordinate trials to help customers optimize yields. Support coverage spans the Americas, Europe, North Africa, and Australia, with every customer having a primary, local TSE. To support growing demand in Asia, the new facility in China, which supports local curamik volumes, was scheduled to ramp production in mid-2025.

The global support network is backed by three dedicated customer support analysis centers.

Customer-focused initiatives to improve service levels and anticipate needs

To improve service levels and maintain agility, Rogers Corporation is intensely focused on cost structure and execution speed, which directly impacts their ability to serve customers reliably. The company announced initiatives to reduce costs in the curamik® business, which are expected to reduce manufacturing costs and operating expenses by in excess of $13 million on an annual run-rate basis. Overall, total expected net savings for 2025 are targeted at $25 million, with about 70% coming from operating expenses. This focus on efficiency helps maintain a strong balance sheet, with ending cash and cash equivalents at $157.2 million as of June 30, 2025, providing flexibility to continue prioritizing customer-centric technology development.

Key actions taken to support customers include:

• Aggressively pursuing new design wins in high-growth areas like EV/HEV.
• Implementing cost reductions to achieve $25 million in net savings for 2025.
• Completing the sale of an Arizona manufacturing facility in late Q1 2025 for $13.4 million to streamline operations.

Finance: review the Q4 2025 guidance for Adjusted EPS ($0.40-$0.80) against Q3 actuals by next Tuesday.

Rogers Corporation (ROG) - Canvas Business Model: Channels

You're looking at how Rogers Corporation moves its specialized engineered materials and components to the market as of late 2025. The channel strategy is clearly multi-pronged, balancing direct engagement for key accounts with the necessary reach provided by specialized partners.

The core of the strategy relies on a direct sales force targeting major global OEMs and Tier 1 suppliers. This approach makes sense for high-value, complex materials like those used in EV/HEV and aerospace & defense. While the exact size of this direct team isn't public, we know from the 2023 filing that Rogers served approximately 3,200 customers worldwide, primarily these OEMs and component suppliers. Critically, the company maintained low customer concentration, as no single customer accounted for more than 10% of total net sales in 2023. This suggests a broad, deep relationship base rather than reliance on just a few giants.

To support this global reach, Rogers utilizes regional sales offices and technical support centers worldwide. The company confirms it operates manufacturing facilities in the United States, Asia, and Europe, with sales offices worldwide. This physical presence helps shorten lead times and deepens technical collaborations, especially important for the Advanced Electronics Solutions (AES) segment. For context on the scale of business being supported through these channels, Rogers' net sales for the third quarter of 2025 reached $216.0 million.

The company also leans on specialized third-party distributors for local market access and to serve the broader base of PCB manufacturers. While the prompt mentions names like IEC and CCI Eurolam, the latest public filings confirm a commitment to working only with third parties who embrace ethical standards. This channel is vital for reaching smaller or more geographically dispersed customers that the direct force might not cover efficiently. The Elastomeric Material Solutions (EMS) segment, which saw net sales increase by 8.2% sequentially in Q2 2025, likely benefits significantly from this distributor network for its industrial and portable electronics sales.

A major structural change affecting channels is the ramp-up in Asia. Rogers planned for the first phase of its new China ceramic facility manufacturing curamik AMB and DBC substrates to be completed in 2025. This facility is designed to support growing demand in EV/HEV and renewable energy applications, aiming to shorten lead times for Asian customers. This move is coupled with a strategic consolidation away from Europe; Rogers intended to wind down manufacturing at its Evergem, Belgium factory by mid-2025. The plan is to continue supporting those advanced circuit materials customers through the existing footprint in China and the United States. This footprint shift is expected to improve operating profit by between $7 to $9 million annually once fully implemented.

Here's a quick look at the latest reported revenue context flowing through these channels:

Metric	Value (Late 2025)	Period/Date Reference
Q3 2025 Net Sales	$216.0 million	Q3 2025
Q2 2025 Net Sales	$202.8 million	Q2 2025
Trailing 12 Months Revenue	$795.8 million	As of Q2 2025
Total Customers Served	Approx. 3,200	2023

The focus on the China facility is a clear channel strategy adjustment to align manufacturing capacity with expected growth markets in Asia. You can see the impact of this segment in the Q2 2025 results, where the AES segment saw net sales increase by 4.6% sequentially, driven by industrial, ADAS, and aerospace and defense sales.

The channel structure supports the overall business by:

• Maintaining direct relationships with key global OEMs.
• Ensuring low individual customer revenue dependence (max 10% in 2023).
• Expanding localized support via the new China facility, slated for completion in 2025.
• Capturing regional sales through specialized distributors.
• Driving an expected annual operating profit improvement of $7 to $9 million from the European footprint consolidation.

Finance: draft 13-week cash view by Friday.

Rogers Corporation (ROG) - Canvas Business Model: Customer Segments

You're looking at the core markets Rogers Corporation (ROG) serves with its engineered materials, which is definitely where the near-term revenue story is playing out. Honestly, the customer base is a mix of high-reliability, high-growth areas and some sectors still working through inventory corrections or macro headwinds as of late 2025.

Advanced Mobility: Electric/Hybrid Electric Vehicle (EV/HEV) manufacturers

This segment is clearly facing some softness. In the first quarter of 2025, Rogers Corporation noted lower sales in the EV/HEV market within the Advanced Electronics Solutions (AES) segment. By the second quarter of 2025, EV/HEV sales were still a drag, contributing to a decrease in EMS net sales. Looking at the third quarter of 2025, EV/HEV sales remained 'relatively unchanged versus the prior quarter,' but year-to-date sales were 'well below the prior year'. However, the AES segment did see higher EV/HEV sales in Q3 2025, even though the overall segment saw lower ADAS sales.

Aerospace & Defense (A&D) contractors requiring high-reliability components

Aerospace & Defense is showing some strength, which helps balance out other areas. In the second quarter of 2025, AES reported higher ADAS and A&D sales. Then, in the third quarter of 2025, EMS reported stronger A&D sales. This reliability focus is a key differentiator for Rogers Corporation.

Wireless Infrastructure and 5G equipment providers

This area has seen some volatility. Lower sales in the wireless infrastructure market were cited as a reason for the decrease in AES net sales in the first quarter of 2025. The second quarter of 2025 also saw lower wireless infrastructure sales impacting AES growth. To be fair, the third quarter of 2025 showed a positive turn, with AES reporting higher wireless infrastructure sales.

Portable Electronics and General Industrial equipment manufacturers

Industrial and portable electronics provided sequential lifts in the middle of the year. The Elastomeric Material Solutions (EMS) segment saw stronger sales from industrial and portable electronics in the second quarter of 2025. For the third quarter of 2025, EMS net sales were up, driven by stronger industrial and portable electronics sales. Still, the first quarter of 2025 included a seasonal decline in portable electronics sales impacting EMS.

Automotive Safety (ADAS) and radar system integrators

ADAS has been a mixed bag. The AES segment saw higher ADAS sales in the first quarter of 2025 and the second quarter of 2025. However, this trend reversed somewhat in the third quarter of 2025, when AES reported lower ADAS sales, even as overall AES sales grew.

Here's a quick look at how the segments performed sequentially leading up to the latest reported quarter:

Segment Performance Indicator	Q1 2025 Result	Q2 2025 Result	Q3 2025 Result
AES Net Sales Change (Sequential)	+1.8%	+4.6%	+5.2%
EMS Net Sales Change (Sequential)	-4.3%	+8.2%	+8.7%
EV/HEV Sales Trend (Mentioned)	Lower (Q1)	Decline driver (Q2)	Relatively Unchanged vs Q2 (Q3)
ADAS Sales Trend (Mentioned)	Higher (Q1)	Higher (Q2)	Lower (Q3)

The total company net sales for Q3 2025 reached $216.0 million, up 6.5% from Q2 2025.

The key customer-facing drivers for the Q3 2025 sequential improvement were:

• Higher industrial sales across both AES and EMS.
• Stronger A&D sales in EMS.
• Higher wireless infrastructure sales in AES.

What this estimate hides is the specific revenue dollar amount attributed to each customer segment, as Rogers Corporation reports by its operating segments (AES and EMS) rather than strictly by these end-markets.

Finance: draft 13-week cash view by Friday.

Rogers Corporation (ROG) - Canvas Business Model: Cost Structure

You're looking at the cost side of Rogers Corporation (ROG) as of late 2025, and it's clear that specialized inputs and strategic investments are major drivers of their spending. The cost structure is heavily influenced by the nature of their engineered materials business, which requires significant upfront and ongoing investment to stay ahead.

The High cost of goods sold (CoGS) is a persistent factor, evidenced by the Gross Margin in the second quarter of 2025 landing at 31.6%. This margin level suggests that the cost of specialized raw materials and the complexity of their advanced manufacturing processes consume a substantial portion of the net sales, which were $202.8 million in Q2 2025. To maintain technology leadership and the intellectual property portfolio, Rogers Corporation must commit significant resources to Research & Development (R&D), though specific R&D expenditure figures for 2025 aren't explicitly detailed in the latest reports.

One of the most significant non-operational costs seen recently involves charges related to strategic adjustments. The company recorded restructuring and impairment charges totaling $76.1 million in Q2 2025. This charge was dominated by a non-cash goodwill impairment of $67.3 million, related to the lowered outlook for the curamik® business, alongside $4.3 million in restructuring expenses for that same quarter.

To counteract margin pressures and rebalance operations, Rogers Corporation is actively pursuing cost reductions. They have implemented operating expense reduction actions that are targeted to deliver $25 million in savings for the full year 2025, with 70% of those savings expected to come from operating expenses. Furthermore, new cost-saving initiatives in the AES curamik® business are expected to reduce manufacturing costs and operating expenses by in excess of $13 million on an annual run-rate basis. Total restructuring charges related to these specific actions are anticipated to be between $12 million to $20 million, spread over the next several quarters.

For long-term investment in facilities and equipment, capital allocation remains disciplined. Capital expenditures (CapEx) for the full fiscal year 2025 have been maintained in the $30 million to $40 million range.

Here is a summary of key cost-related financial data points from the mid-to-late 2025 reporting period:

Cost/Expense Category	Specific Amount/Range	Period/Context
Restructuring and Impairment Charges	$76.1 million	Q2 2025 Total
Non-Cash Goodwill Impairment	$67.3 million	Q2 2025 Component of Total Charges
Restructuring Expenses	$4.3 million	Q2 2025 Component
FY 2025 Operating Expense Reduction Target	$25 million in total savings	Full Year 2025
Incremental Annual Run-Rate Savings Target	In excess of $13 million	From curamik® restructuring (fully realized by late 2026)
FY 2025 Capital Expenditures Guidance	$30 million to $40 million range	Full Year 2025
Gross Margin	31.6%	Q2 2025

The ongoing focus on cost structure improvement is evident in management's actions:

• Targeting 70% of the $25 million 2025 savings from operating expenses.
• Implementing facility consolidations, headcount reductions, and discretionary spend cuts as part of cost actions.
• Rebalancing capacity from Europe to China to unlock local-for-local advantages and reduce costs.
• Anticipating total annualized savings of $45 million by 2026 from restructuring efforts.

Rogers Corporation (ROG) - Canvas Business Model: Revenue Streams

You're looking at how Rogers Corporation (ROG) brings in cash, which is all about their specialized engineered materials. The revenue streams flow primarily from two major segments, both focused on high-margin, differentiated engineered materials.

The first stream comes from Sales of Advanced Electronics Solutions (AES) products. Think of things like curamik® substrates and RF laminates here. For the third quarter of 2025, the AES segment saw its net sales increase by 5.2% sequentially, driven by demand in EV/HEV, wireless infrastructure, and industrial markets.

The second core stream is from Sales of Elastomeric Material Solutions (EMS) products, which includes materials such as PORON® foams and BISCO® silicones. In Q3 2025, EMS net sales grew even faster, up 8.7% compared to the prior quarter, fueled by stronger sales in portable electronics, aerospace and defense (A&D), and industrial sectors.

The overall top-line performance for the most recently reported period shows solid sequential improvement. Here's a quick look at the quarterly revenue progression:

Period	Net Sales (Millions USD)	Sequential Change
Q1 2025	$190.5	N/A
Q2 2025	$202.8	+6.5%
Q3 2025	$216.0	+6.5%

The Q3 2025 Net Sales of $216.0 million was at the upper end of guidance, showing that the focus on end-market demand and cost execution is translating to the top line. Currency exchange rates favorably affected the total Company net sales in Q3 2025 by $3.0 million compared to the prior quarter.

Management's outlook for the immediate future suggests a typical seasonal step-down, with Q4 2025 sales guided between $190 million and $205 million. Still, the expectation is for fourth quarter sales and earnings to improve versus the previous year.

The revenue generation is fundamentally tied to specific high-growth and demanding end-markets, which you can see reflected in the segment drivers:

• AES growth drivers: EV/HEV, wireless infrastructure, and industrial sales.
• EMS growth drivers: portable electronics, aerospace and defense (A&D), and industrial sales.
• ADAS sales provided a partial offset in AES in Q3 2025.
• Lower EV/HEV sales partially offset EMS growth in Q3 2025.

Finance: draft 13-week cash view by Friday.