Rogers Corp (ROG) 2024 Q4 法說會逐字稿

Good afternoon, everyone and welcome to the Rogers Corporation fourth-quarter 2024 earnings conference call. The slides for today's call can be found on the investor section of our website along with the news release that was issued earlier today.

大家下午好，歡迎參加羅傑斯公司 2024 年第四季財報電話會議。今天的電話會議幻燈片可以在我們網站的投資者部分找到，以及今天早些時候發布的新聞稿。

Please turn to slide 2. Before we begin, I would like to note that statements in this conference call that are not strictly historical are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 and should be considered as subject to the many uncertainties that exist in Roger's operations and environment. These uncertainties include economic conditions, market demands, and competitive factors. Such factors could cause actual results to differ materially from those in any forward-looking statement made today.

請翻到投影片 2。在我們開始之前，我想指出的是，本次電話會議中非嚴格歷史性的陳述都是《1995年私人證券訴訟改革法案》所定義的前瞻性陳述，並且應該被視為受羅傑的運營和環境中存在的諸多不確定因素的影響。這些不確定性包括經濟狀況、市場需求和競爭因素。這些因素可能導致實際結果與今天所做的任何前瞻性聲明中的結果有重大差異。

Please turn to slide 3. The discussions during this conference call will also reference certain financial measures that were not prepared in accordance with US generally accepted accounting principles. A reconciliation of those non-GAAP financial measures to the most directly comparable GAAP financial measures can be found in the slide deck for today's call, which are available on our investor relations website.

請翻到幻燈片 3。本次電話會議的討論也將參考某些未依照美國公認會計原則編製的財務指標。這些非 GAAP 財務指標與最直接可比較的 GAAP 財務指標的對帳表可在今天電話會議的幻燈片中找到，該投影片可在我們的投資者關係網站上找到。

Turning to slide 4 with me today is Colin Gouveia, President and CEO; and Laura Russell, Senior Vice President and CFO. I will now turn the call over to Colin.

今天和我一起翻到投影片 4 的是總裁兼執行長 Colin Gouveia；以及資深副總裁兼財務長 Laura Russell。現在我將電話轉給科林。

Thanks, Steve. Good afternoon, everyone, and thank you for joining us today. Before I discuss the results for the quarter, let me first mention that since our last earnings call, Laura Russell was appointed our Chief Financial Officer.

謝謝，史蒂夫。大家下午好，感謝大家今天的參與。在我討論本季的業績之前，我首先要提一下，自上次財報電話會議以來，勞拉·拉塞爾 (Laura Russell) 被任命為我們的首席財務官。

Through our search process, Laura emerged as the clear choice to serve in this position. Since joining the company in 2023 and especially during her recent service as interim CFO, Laura has been an invaluable addition to the Rogers executive team. She brings significant business and financial expertise developed during her multi-decades experience with other leading global companies predominantly in the semiconductor segment. I look forward to partnering with her as we execute our strategic objectives.

透過我們的搜尋過程，勞拉成為擔任該職位的明顯人選。自 2023 年加入公司以來，尤其是在最近擔任臨時財務長期間，勞拉一直是羅傑斯執行團隊的寶貴成員。她在其他全球領先公司（主要在半導體領域）工作數十年，並積累了豐富的商業和金融專業知識。我期待與她合作，共同實現我們的策略目標。

Now turning to slide 5, I'll start with the key messages for today's call. Fourth-quarter results were in line with our expectations as sales, gross margin, and adjusted earnings were all near the midpoint of our guidance ranges. As anticipated, Q4 sales were lower sequentially due to challenging market conditions, normal seasonality, and successful completion in Q3 of our large wireless India design win. However, our Q4 results benefited from a continuing focus on managing operational costs and expenses.

現在翻到第 5 張投影片，我將開始介紹今天電話會議的關鍵訊息。第四季的業績符合我們的預期，銷售額、毛利率和調整後收益都接近我們預期範圍的中點。正如預期的那樣，由於市場條件嚴峻、季節性正常以及我們在第三季度成功完成印度大型無線設計任務，第四季的銷售額環比下降。然而，我們第四季度的業績受益於對管理營運成本和費用的持續關注。

We experienced significant market headwinds in most of 2024, particularly in industrial and EV/HEV markets. The challenges in industrial markets resulted from continued weakness in global manufacturing activity, while global growth rates in the EV/HEV market fell to half the level of the prior year. The rapid deceleration in EV/HEV production, particularly in Europe, triggered a major inventory destocking among our customers. As a result, our curamik power substrate sales dropped significantly and were the largest reason for our lower 2024 sales. While our customers expect to see a gradual recovery in the EV/HEV and the power industrial markets in the second half of 2025, these inventory challenges, as well as uncertainty related to trade policy, are persisting into Q1.

在2024 年的大部分時間裡，我們都經歷了巨大的市場阻力，尤其是在工業和 EV/HEV 市場。工業市場面臨的挑戰源自於全球製造業活動持續疲軟，而全球電動車/混合動力車市場的成長率則降至去年的一半。電動車/混合動力車產量的快速減速（尤其是在歐洲）引發了我們客戶大量去庫存。結果，我們的curamik電源基板銷售大幅下降，這是我們2024年銷售下降的最大原因。雖然我們的客戶預計 2025 年下半年 EV/HEV 和電力工業市場將逐步復甦，但這些庫存挑戰以及與貿易政策相關的不確定性將持續到第一季。

Customers are ordering cautiously in this current environment, and therefore, we expect a relatively flat sales outlook for the first quarter. Laura will provide more details on the Q1 guidance later.

在當前環境下，客戶訂貨較為謹慎，因此我們預期第一季的銷售前景將相對穩定。勞拉稍後將提供有關第一季指引的更多詳細資訊。

In 2024, we further positioned Rogers for market recovery with solid progress on commercial innovation and operational excellence initiatives. This included securing new design wins in many of our key and markets, launching new products, and advancing our local-for-local manufacturing footprint strategy. Operational excellence initiatives resulted in robust free cash flow conversion in 2024. With a pristine balance sheet, Rogers is in a strong position to continue advancing both our organic and inorganic growth objectives even as we navigate this dynamic market environment.

2024年，我們將在商業創新和卓越營運計畫方面取得穩步進展，進一步幫助羅傑斯應對市場復甦。這包括在我們的許多關鍵市場中獲得新的設計勝利、推出新產品以及推進我們的本地製造足跡策略。卓越營運措施帶來 2024 年強勁的自由現金流轉換。憑藉完美的資產負債表，即使在這種動態的市場環境中，羅傑斯也有強大的實力繼續推進我們的有機和無機成長目標。

Turning to slide 6 and our fourth quarter in full year 2024 results. Fourth quarter revenues of $192 million declined 9% from the prior quarter and were in line with our guidance midpoint. Gross margin of 32.1% was about 300 basis points lower versus Q3 due to volume. Full year sales declined 9% primarily due to two markets, industrial and EV/HEV.

轉到投影片 6 和我們的 2024 年全年第四季業績。第四季營收為 1.92 億美元，較上一季下降 9%，與我們的預期中位數一致。毛利率為 32.1%，由於銷售原因，較第三季下降約 300 個基點。全年銷售額下降 9% 主要是由於工業和 EV/HEV 兩個市場。

2024 gross margin was 33.4%, 40 basis points lower versus the prior year. The impact of the lower volume was largely offset by significant improvements in operational excellence, including a notable reduction in our operation spending and procurement costs.

2024年毛利率為33.4%，較前一年下降40個基點。產量下降的影響在很大程度上被營運卓越的顯著改善所抵消，包括營運支出和採購成本的顯著減少。

Looking at our sales by market, the increase in Q4 EVHEV sales was modest as we have not yet seen a meaningful demand improvement from our curamik power module customers. Elastomeric Material Solutions, or EMS, sales into the EV/HEV market were again solid, albeit flat to Q3.

從各市場銷售情況來看，第四季 EVHEV 銷售量增幅較小，因為我們尚未看到 curamik 電源模組客戶的需求顯著改善。彈性材料解決方案（EMS）在 EV/HEV 市場的銷售再次保持穩健，儘管與第三季持平。

As discussed earlier, EV/HEV full year sales for curamik were significantly lower versus 2023. However, EMS had record revenue in 2024 into EV/HEV, driven by ramping production rates for key programs with critical customers. ADAS sales improved sequentially due to improved automotive volumes and stronger order patterns from some key customers.

如前所述，curamik 的 EV/HEV 全年銷售量明顯低於 2023 年。然而，由於關鍵客戶的關鍵項目的生產力提高，EMS 在 2024 年 EV/HEV 領域的收入創下了歷史新高。由於汽車銷售增加和一些主要客戶的訂單模式增強，ADAS 銷售額環比增長。

Aerospace and defense delivered solid growth for a second consecutive quarter in Q4 from higher commercial aerospace demand. For the full year, our A&D sales grew at double digit rate led by the Radio Frequency Solutions, or RFS business, which saw stronger demand for military radar applications.

由於商業航空需求增加，航空航太和國防領域第四季連續第二季實現穩健成長。全年來看，我們的 A&D 銷售額實現兩位數成長，其中，射頻解決方案（RFS）業務的領先，得益於軍用雷達應用的需求強勁。

Portable electronics sales were sequentially lower in the fourth quarter due to normal seasonality and in line with expectations. Full year sales grew only slightly compared to the previous year, as we saw a less aggressive refresh cycle for smartphones in late 2024, despite having strong content in high-end AI functional devices.

由於正常的季節性因素，第四季便攜式電子產品銷售額較上季下降，符合預期。全年銷售額與前一年相比僅小幅增長，因為儘管高端 AI 功能設備內容豐富，但我們看到 2024 年末智慧型手機的更新周期不再那麼激進。

As expected, industrial sales were sequentially lower in the fourth quarter due to customers managing year-end inventory levels. Although inventory levels have stabilized across most of the submarkets that comprise our industrial sales, demand has not yet improved. This is consistent with US and European PMI data, which has been in contraction for most of the last two years.

如預期，由於客戶管理年終庫存水平，第四季度工業銷售量較上季下降。儘管我們工業銷售的大多數子市場的庫存水準已經穩定下來，但需求尚未改善。這與美國和歐洲的PMI數據一致，這兩個數據在過去兩年的大部分時間裡一直處於收縮狀態。

Wireless infrastructure sales saw the largest decline of all our market segments quarter to quarter as shipments to our Indian program were completed. However, for the full year, we delivered strong wireless growth primarily due to the Indian-based fixed wireless access project with strong proven technology targeted to this market. We continue to pursue opportunities in our sales funnel, including the next phase of this project in India.

由於印度專案的出貨已經完成，無線基礎設施銷售額在所有細分市場的季度環比下降幅度最大。然而，就全年而言，我們實現了強勁的無線成長，這主要得益於針對印度市場的強大且經過驗證的固定無線存取專案。我們將繼續在銷售管道中尋找機會，包括該項目在印度的下一階段。

Next on slide 7, I'd like to spend a few minutes highlighting some of the key accomplishments across our commercial and R&D teams from 2024. We remain confident in the underlying strength and growth opportunities in the markets we serve despite last year's challenges. We secured a number of significant wins across our portfolio in 2024. And while some of these wins delivered sales in the year, many are wins that are expected to contribute to revenues in the coming quarters and beyond.

接下來在第 7 張投影片上，我想花幾分鐘重點介紹我們的商業和研發團隊自 2024 年以來取得的一些主要成就。儘管去年面臨挑戰，我們仍然對所服務市場的潛在實力和成長機會充滿信心。2024 年，我們的投資組合取得了許多重大勝利。雖然其中一些勝利在當年帶來了銷售，但許多勝利預計將在未來幾季及以後為收入做出貢獻。

The most recent of these wins is in the ADAS space. In the fourth quarter, a leading Asian automotive radar supplier selected Roger's materials for a new 77 gigahertz forward radar unit application. We rewarded this business based on the strong performance and reliability of our laminate materials, where we remain the technology leader in mission critical applications.

最新的勝利是在 ADAS 領域。第四季度，一家領先的亞洲汽車雷達供應商選擇了Roger的材料，用於新的77千兆赫前向雷達單元應用。我們憑藉層壓材料的強大性能和可靠性獲得了這項業務的獎勵，我們在關鍵任務應用領域仍然保持著技術領先地位。

Other significant design winds from earlier in 2024 were in key markets such as EV/HEV, portable electronics, renewable energy, and data centers. Design wins in the EV/HEV space have the largest future revenue potential and included multiple wins in both Western and Asian customers. These wins were in both business segments.

2024 年初的其他重要設計風向是 EV/HEV、便攜式電子產品、再生能源和資料中心等關鍵市場。EV/HEV 領域的設計勝利具有最大的未來收入潛力，並且包括來自西方和亞洲客戶的多次勝利。這兩個業務部門都取得了勝利。

In AES, our curamik power substrates were designed in by multiple power module manufacturers and OEMs in China. This provides us increased access to the fastest growing EV/HEV region in the world and underpins our capacity expansion plans.

在AES，我們的curamik電源基板由中國多家電源模組製造商和OEM設計。這為我們進入世界上成長最快的 EV/HEV 地區提供了更多機會，也為我們的產能擴張計畫提供了支持。

We also continue to develop strong relationships with our US and European customers and have good exposure to each of these geographies through our customer base. In addition, our EMS business has secured important design wins for our battery cell pad technology with leading global OEMs and their battery suppliers. Our PORON polyurethane products continue to be a leading material of choice for pressure and vibration management solutions that improve EV battery efficiency and reliability.

我們也繼續與美國和歐洲客戶發展牢固的關係，並透過我們的客戶群在這些地區保持良好的知名度。此外，我們的 EMS 業務已與全球領先的 OEM 及其電池供應商贏得了電池單元墊技術的重要設計勝利。我們的 PORON 聚氨酯產品繼續成為提高電動車電池效率和可靠性的壓力和振動管理解決方案的首選材料。

Additionally, we strengthened our M&A pipeline in 2024 as we identified additional strategic bolt on acquisition targets. To ensure we maintain our position in high performing engineered materials, we made advancements across our innovation pipeline in 2024.

此外，我們在 2024 年加強了併購管道，因為我們確定了額外的策略附加收購目標。為了確保我們在高性能工程材料領域保持領先地位，我們在 2024 年在創新管道方面取得了進展。

Starting with our AES business, we launched a new advanced thermoset laminate in Q4 2024 designed for corner radar applications in the ADAS market. For years, our copper clad laminate technologies have helped to enable accurate and timely detection of objects to improve automotive safety. This new product builds on these strengths while reducing manufacturing costs for our customers. Our R&D team continues to innovate in this space with the next generation of this product scheduled to launch later this year.

從我們的 AES 業務開始，我們在 2024 年第四季度推出了一種新型先進熱固性層壓板，專為 ADAS 市場的角雷達應用而設計。多年來，我們的覆銅板技術有助於實現準確、及時的物體檢測，從而提高汽車安全性。這款新產品充分利用了這些優勢，同時為我們的客戶降低了製造成本。我們的研發團隊將繼續在這一領域進行創新，該產品的下一代產品計劃於今年稍後推出。

We also launched multiple successful products in our EMS business. This includes our PORON polyurethane materials where we introduced new technology targeted to the semiconductor market. In our curamik business, work continues to develop next-generation power substrate solutions that improve thermal dissipation to enable improved system performance and lower costs for our customers.

我們也在EMS業務中推出了多款成功的產品。其中包括我們的 PORON 聚氨酯材料，我們在其中引入了針對半導體市場的新技術。在我們的 curamik 業務中，我們繼續致力於開發下一代電源基板解決方案，以改善散熱，從而為我們的客戶提高系統效能並降低成本。

In EMS, we had multiple engagements with key OEMs and battery manufacturers related to emerging EV battery technologies where our polyurethane and silicone materials solve pressure management challenges and other critical needs. In AI, early-stage work on solutions for data centers also continued last year. In both AES and EMS, we are targeting opportunities in the areas of thermal and vibration management and signal integrity. In 2025, we will build on these achievements as we continue to secure new design wins and accelerate our pace of innovation.

在 EMS 領域，我們與主要 OEM 和電池製造商進行了多次合作，探討新興 EV 電池技術，其中我們的聚氨酯和矽膠材料解決了壓力管理難題和其他關鍵需求。在人工智慧領域，資料中心解決方案的早期工作也在去年持續進行。在 AES 和 EMS 中，我們都瞄準熱和振動管理以及訊號完整性領域的機會。2025年，我們將在此基礎上再接再厲，繼續贏得新的設計大獎，並加快創新步伐。

Turning to slide 8, we've made good progress executing our local for local manufacturing strategy, with the addition of a new curamik power substrate facility and a BISCO Silicone line both in China. Building our geographically diversified manufacturing footprint is key to achieving our near and long-term growth objectives.

第 8 頁，我們在執行本地製造策略方面取得了良好進展，在中國增加了新的 curamik 電源基板設施和 BISCO 矽膠生產線。建立我們地理多元化的製造足跡是實現我們近期和長期成長目標的關鍵。

In recent years, we have focused on selectively adding manufacturing capabilities to position Rogers, to grow with existing customers as they expand in new regions as well as capture business with new customers by accessing these markets competitively. This effort has also improved our operations flexibility with multi-site product and supply chain qualifications. This strategy helps de-risk sole supply and mitigates the impact of current and potential future tariffs.

近年來，我們專注於有選擇地增加製造能力，以使羅傑斯能夠隨著現有客戶在新地區的擴張而共同成長，並透過有競爭力地進入這些市場來贏得新客戶的業務。這項努力還透過多站點產品和供應鏈資格提高了我們的營運靈活性。這項策略有助於降低單一供應的風險，並減輕當前和未來潛在關稅的影響。

Specific to our 2024 investments, the new curamik power substrate factory better supports Western customers who are expanding their silicon carbide power module production in China. We have secured design wins with new customers headquartered in China, with more design and activity ongoing. This facility is scheduled to start full scale production in mid-2025. These investments provide us with scale and capacity to address this growth market. Our capacity footprint additions are now essentially complete.

具體到我們 2024 年的投資，新的 curamik 功率基板工廠將更能支持正在中國擴大碳化矽功率模組生產的西方客戶。我們已經贏得了總部位於中國的新客戶的設計訂單，並且有更多的設計和活動正在進行中。該工廠計劃於 2025 年中期開始全面生產。這些投資為我們提供了規模和能力來應對這個成長型市場。我們的產能擴張現已基本完成。

As we did in 2024, we will continue to drive manufacturing cost improvements and operational excellence throughout this year. This includes reductions in manufacturing and procurement costs, as well as additional yield and throughput improvements. It also includes ongoing consolidation of our RFS footprint, which we first announced last year. These actions are expected to improve operating profit between $7 million to $9 million annually, with a portion of that benefit realized in the second half of this year once the wind down of our Belgian facility is complete. This self-help will remain our focus for operations in 2025.

正如我們在 2024 年所做的那樣，我們將在今年繼續推動製造成本改進和卓越營運。這包括降低製造和採購成本，以及額外提高產量和生產能力。它還包括我們去年首次宣布的對 RFS 足跡的持續整合。這些舉措預計將使每年的營業利潤提高 700 萬至 900 萬美元，其中部分收益將在今年下半年比利時工廠關閉完成後實現。這種自助仍將是我們 2025 年營運的重點。

One final point on additional actions we've taken to support Rogers' growth, and that is the implementation of our SAP S/4HANA ERP system. We are currently in the early stages of this implementation, which we expect will lead to more efficient internal processes and improved customer experience and a more flexible and scalable business. The rollout is on track and is expected to continue over the next two years. Now, I'll turn it over to Laura to discuss our Q4 financial performance and Q1 2025 outlook.

關於我們為支持羅傑斯發展而採取的其他行動的最後一點，那就是實施 SAP S/4HANA ERP 系統。我們目前正處於實施的早期階段，我們預計這將帶來更有效率的內部流程、更好的客戶體驗以及更靈活和可擴展的業務。該項目正在有序推進，預計在未來兩年內持續推進。現在，我將讓勞拉討論我們第四季的財務表現和 2025 年第一季的展望。

Thank you, Colin. I'll begin on Slide 9 with the highlights of our results for Q4. Our overall results for the fourth quarter were in line with our expectations. Sales of $192 million, gross margin of 32.1% and adjusted EPS of $0.46 were all near the mid-point of our previously announced guidance. For the full year, sales of $830 million were 9% lower than the prior year.

謝謝你，科林。我將從投影片 9 開始介紹我們第四季的業績亮點。我們第四季的整體業績符合我們的預期。銷售額為 1.92 億美元，毛利率為 32.1%，調整後每股收益為 0.46 美元，兩者都接近我們先前公佈的預期中位數。全年銷售額為 8.3 億美元，較上年下降 9%。

However, with our focused efforts to reduce manufacturing costs and increase efficiencies, gross margin declined by only 40 basis points. Adjusted earnings for the full year were $2.72 versus $3.78 in 2023. As a result of our efforts to reduce costs, control expenses and manage working capital, we generated free cash flow of $71 million in 2024, similar to prior year levels. On Slide 10, I'll discuss our fourth quarter sales results in greater detail. Net sales of $192 million declined by approximately 9% versus the third quarter, primarily due to lower volume, which was slightly offset by favorable foreign currency fluctuation.

然而，由於我們集中精力降低製造成本並提高效率，毛利率僅下降了 40 個基點。全年調整後收益為 2.72 美元，而 2023 年為 3.78 美元。由於我們努力降低成本、控制費用和管理營運資金，我們在 2024 年產生了 7,100 萬美元的自由現金流，與前一年水準相似。在第 10 張投影片上，我將更詳細地討論我們第四季的銷售業績。淨銷售額為 1.92 億美元，較第三季下降約 9％，主要由於銷量下降，但有利的外匯波動略微抵消了這一影響。

On a reportable segment basis, AES revenue decreased 9% versus the prior quarter to $102 million. Lower wireless infrastructure sales were partially offset by higher ADAS revenue. As noted on last quarter's call, lower wireless infrastructure sales were expected as we completed shipments to a project in India in Q3. EMS revenue decreased by approximately 8% to $86 million due to lower industrial sales as customers managed year-end inventory levels and from the normal seasonal decline in portable electronics sales. Aerospace & Defense sales improved sequentially.

以報告分部計算，AES 營收較上一季下降 9% 至 1.02 億美元。無線基礎設施銷售額的下降被 ADAS 收入的提高部分抵消。正如上個季度的電話會議所述，由於我們在第三季度完成了對印度一個項目的發貨，預計無線基礎設施銷售額將下降。由於客戶管理年終庫存水準導致工業銷售額下降以及便攜式電子產品銷售出現正常的季節性下滑，EMS 收入下降約 8% 至 8,600 萬美元。航空航天和國防銷售連續成長。

Turning to Slide 11. Q4 gross margin was 32.1%, a decrease of 310 basis points from the third quarter. The reduction in gross margin was primarily due to lower volume and unfavorable product mix. We achieved further operations and procurement savings in Q4, but these were more than offset by under-absorbed fixed costs. Over the course of 2024, we achieved significant cost reductions from our ongoing operational excellence initiatives, which are focused on reducing manufacturing costs.

翻到第 11 張投影片。第四季毛利率為32.1%，較第三季下降310個基點。毛利率下降主要由於銷售下降和產品組合不利。我們在第四季度進一步實現了營運和採購節約，但這些節約被未吸收的固定成本所抵消。在 2024 年期間，我們透過持續的卓越營運計畫實現了顯著的成本削減，這些計畫專注於降低製造成本。

We executed these savings by driving operations and procurement cost savings, optimizing yield and enabling throughput improvements. These actions led to a 6% decrease in manufacturing spend in 2024. Even with these reductions, we did continue to carry some excess costs in the fourth quarter in anticipation of a rebound in demand. We will continue to monitor these costs closely as we work to balance margins and the ability to quickly respond to future recovery in demand. Adjusted net income decreased to $9 million in the fourth quarter from $18 million in Q3.

我們透過推動營運和採購成本節約、優化產量和提高產量來實現這些節約。這些措施導致2024年製造業支出下降6%。即使有這些削減，我們仍然在第四季度繼續承擔了一些超額成本，以期預期需求反彈。我們將繼續密切監控這些成本，並努力平衡利潤率和快速應對未來需求復甦的能力。調整後淨收入從第三季的 1,800 萬美元下降至第四季的 900 萬美元。

Q4 adjusted earnings per share was $0.46 compared to $0.98 in the prior quarter. The lower Q4 adjusted net income was primarily due to the lower gross margin already discussed and higher operating expenses. The increase in adjusted operating expense was primarily due to additional start-up costs. These items were partially offset by a decrease in other expense and lower income tax. On a GAAP basis, operating expense increased to $67 million in Q4, $7 million higher sequentially.

第四季調整後每股收益為 0.46 美元，而上一季為 0.98 美元。第四季調整後淨收入下降主要是由於已經討論過的毛利率下降和營業費用增加。調整後營業費用的增加主要是由於額外的啟動成本。這些項目被其他費用的減少和所得稅的降低部分抵消。根據 GAAP 標準，第四季營業費用增至 6,700 萬美元，比上一季增加 700 萬美元。

The primary drivers of the increase were higher severance costs related to a global workforce reduction and incremental factory start-up expenses. In Q4, we also incurred an $8 million impairment related to our ERP system, which is in development. This was largely offset by a gain of nearly $8 million in connection with an agreement to separate from our existing joint venture relationship. As Colin referenced, we continue to make progress on our ERP deployment plan and expect to achieve significant synergies when the implementation is complete. Continuing to Slide 12, I'll next discuss some of the highlights from our capital allocation priorities in 2024.

成長的主要驅動因素是全球勞動力減少和工廠開辦費用增加導致的遣散費用增加。第四季度，我們也因正在開發的 ERP 系統而產生了 800 萬美元的減損。這在很大程度上被與我們現有的合資關係分離的協議相關的近 800 萬美元的收益所抵消。正如柯林所說，我們的 ERP 部署計劃正在不斷取得進展，並期望在實施完成後實現顯著的協同效應。繼續第 12 張投影片，我接下來將討論 2024 年資本配置重點的一些亮點。

Cash at the end of '24 was $160 million. For the full year, we generated solid operating cash flow of $127 million and free cash flow of $71 million. We allocated $56 million to capital expenditures to fund organic growth initiatives, which included new manufacturing and business process improvement activities. In the first quarter of the year, we repaid the remaining $30 million balance on our revolving credit facility and continue to carry no debt. Share repurchases in 2024 totaled $20 million, with $12 million repurchased in the fourth quarter.

24 年底的現金為 1.6 億美元。全年我們產生了 1.27 億美元的穩健營運現金流和 7,100 萬美元的自由現金流。我們撥出 5,600 萬美元的資本支出來資助有機成長計劃，其中包括新製造和業務流程改善活動。今年第一季度，我們償還了循環信貸額度剩餘的 3,000 萬美元，並且繼續沒有任何債務。2024 年股票回購總額為 2,000 萬美元，其中第四季回購 1,200 萬美元。

As we move forward through the year, we will continue to prioritize actions to maximize cash generation. With our favorable cash position and a clean balance sheet, we continue to be in a good position to allocate capital consistent with our priorities of funding organic growth, pursuing synergistic M&A and returning capital to shareholders in the form of opportunistic share repurchases. In 2025, capital expenditures will begin to decrease as we complete the current power substrate expansion in China. For this reason, we expect full year CapEx to be in the range of $40 million to $50 million. Next, on Slide 13, I will discuss our guidance for the first quarter.

隨著新一年的到來，我們將繼續優先採取行動，以最大限度地創造現金。憑藉我們良好的現金狀況和清晰的資產負債表，我們繼續處於有利地位，可以根據我們的優先事項分配資本，即資助有機增長、追求協同併購以及以機會性股票回購的形式向股東返還資本。2025年，隨著我們完成目前在中國的電源基板擴建，資本支出將開始減少。因此，我們預計全年資本支出將在 4,000 萬至 5,000 萬美元之間。接下來，在第 13 張投影片上，我將討論我們對第一季的指導。

Before discussing the specific ranges for the quarter, I'll provide some context to our current expectations for 2025. First, as Colin touched on, customers remain very cautious, and there is a heightened level of uncertainty related to trade policies and timing of a market recovery. Customers, particularly of our curamik business are signaling that recovery will be gradual and second half weighted. For that reason and due to the normal seasonality in our Portable Electronics business, we expect the second half of the year to be stronger than the first half and with Q1 likely the low point for the year. As sales improve, the higher volumes will naturally bring up gross margins to levels more in the range of what we achieved in 2024.

在討論本季的具體範圍之前，我將提供一些我們對 2025 年的當前預期背景。首先，正如科林所提到的，客戶仍然非常謹慎，貿易政策和市場復甦時機的不確定性很高。客戶（特別是我們的 curamik 業務的客戶）表示，復甦將是漸進的，並且會受到下半年影響。基於這個原因，也由於我們的便攜式電子產品業務的正常季節性，我們預計今年下半年的表現將強於上半年，而第一季可能是今年的最低點。隨著銷售量的增加，銷量的增加自然會使毛利率上升到我們 2024 年實現的水平。

Now turning to the ranges for the first quarter. We expect Q1 sales to be between $180 million and $195 million. The midpoint of this range is a decrease of about 2% from Q4 sales. The decline is due to an expected unfavorable foreign currency impact of 1% to 2% and lower portable electronics sales due to normal seasonality. We are guiding gross margin to be in the range of 29% to 30.5% for Q1, with the decrease a result of both lower volume and unfavorable product mix.

現在來看看第一季的範圍。我們預計第一季的銷售額將在 1.8 億美元至 1.95 億美元之間。該範圍的中間值比第四季度的銷售額下降了約 2%。銷售額下降是由於預計外匯將帶來 1% 至 2% 的不利影響，以及正常季節性導致的便攜式電子產品銷售額下降。我們預計第一季的毛利率將在 29% 至 30.5% 之間，毛利率下降是由於銷售下降和產品結構不利造成的。

This guidance range also incorporates a small impact from our new silicon manufacturing line, which will continue until we reach a more normalized utilization rate. As noted earlier, we will continue to carefully monitor demand levels and will pursue further actions to flex our cost structure should we not see meaningful top line improvements in the coming quarters. First quarter adjusted operating expenses are projected to be slightly lower versus Q4. EPS is expected to range from a loss of $0.26 to $0.04 of earnings. The adjusted EPS range is $0.10 to $0.40 of earnings.

這個指導範圍也考慮了我們新的矽生產線帶來的小幅影響，這種影響將持續到我們達到更正常的利用率。如前所述，我們將繼續密切監測需求水平，如果未來幾季我們沒有看到有意義的營收成長，我們將採取進一步行動來調整我們的成本結構。第一季調整後的營業費用預計較第四季略有下降。預計每股收益將在虧損 0.26 美元至獲利 0.04 美元之間。調整後的每股盈餘範圍為0.10美元至0.40美元。

Our Q1 EPS range includes $0.25 of restructuring-related expenses, with most of this associated with the wind down of our AES operations in Belgium. Lastly, we project our full year tax rate to be approximately 27%. I will now turn the call back over to Colin.

我們第一季的每股盈餘範圍包括 0.25 美元的重組相關費用，其中大部分與我們在比利時的 AES 業務的結束有關。最後，我們預計全年稅率約為 27%。我現在將電話轉回給科林。

Thanks, Laura. In summary, we had solid execution in Q4 to deliver results that were in line with our expectations. We focused intently on what we can control in 2024, including securing new design wins, continuing to innovate new materials and solutions that meet our customers' needs and delivering cost savings.

謝謝，勞拉。總而言之，我們在第四季度的執行非常出色，取得了符合我們預期的業績。我們專注於 2024 年我們能夠控制的事情，包括確保新的設計勝利、繼續創新滿足客戶需求的新材料和解決方案並節省成本。

Looking ahead to 2025, we expect the market-driven challenges from last year will continue. While it is difficult to predict the timing of a market recovery, we will continue to execute aggressively on our commercial, innovation, and manufacturing footprint priorities. We are confident that our focus and discipline will position Rogers to win when market conditions begin to improve.

展望 2025 年，我們預計去年的市場驅動挑戰仍將持續。雖然很難預測市場復甦的時間，但我們將繼續積極執行我們的商業、創新和製造足跡優先事項。我們相信，當市場條件開始好轉時，我們的專注和紀律將使羅傑斯獲得勝利。

I will now turn the call back over to the operator for questions.

我現在將把電話轉回給接線員以便回答問題。

(Operator Instructions) Bob Labick, CJS Securities.

（操作員指示）Bob Labick，CJS Securities。

Hi, this is Jeremy on for Dan Moore with CJS. Q1 guidance implies a 12% revenue decline year-over-year at the midpoint, albeit a more modest decline sequentially. How should we think about revenue on a segment basis, as well as an end market basis for Q1 relative to Q4? And then what end markets are you experiencing further sequential softness in?

大家好，我是 Jeremy，代表 CJS 的 Dan Moore 報道。第一季的指引意味著營收將年減 12%，儘管季減幅度較小。我們應該如何從分部角度以及終端市場角度考慮第一季相對於第四季的營收？那麼，哪些終端市場正在經歷進一步的連續疲軟？

Well, I can start, Jeremy, and then Laura can answer. If you think about sequentially, what we see is a slight decrease related to Portable Electronics, which the highest quarter for Portable Electronics for us in terms of revenues is Q3, decreasing a bit in Q4 and Q1 is the low point. So I would say that would be primarily the major issue there.

好吧，傑里米，我先開始，然後勞拉可以回答。如果按順序考慮，我們發現便攜式電子產品略有下降，就收入而言，便攜式電子產品最高的季度是第三季度，第四季度略有下降，而第一季是最低點。因此我想說這就是那裡的主要問題。

And then if you look at year-over-year, that's related primarily to our curamik business. So our curamik business is a very important business for us. It did have five years of record growth all the way through 2023. But '24, it decreased substantially, primarily due to inventory and the slowdown in EV/HEV.

然後，如果您看一下同比情況，這主要與我們的 curamik 業務有關。因此，我們的 curamik 業務對我們來說是一項非常重要的業務。到 2023 年，它確實實現了五年創紀錄的成長。但'24年，它大幅下降，主要原因是庫存和EV/HEV的成長放緩。

One thing to note, though, in 2024 was that we had a reasonably good quarter with curamik in Q1. The pushouts and the challenges didn't really start until the beginning of March when we saw a lot of orders from basically our entire customer base get pushed outwards. So those would be, I would say, the two biggest impacts from a sequential and a year-over-year basis. I'd ask Laura to add anything that I might have missed.

不過，要注意的一點是，2024 年第一季我們與 curamik 的合作相當不錯。直到 3 月初，我們看到基本上整個客戶群的大量訂單都被推遲，推遲和挑戰才真正開始。因此，我想說，從連續和同比來看，這兩個是最大的影響。我會請勞拉補充我可能遺漏的任何內容。

No, I think you've covered that carefully, Colin. And the EV impact was really the big one on a year-over-year basis. And as you said, from a portable electronics perspective, we're facing another challenge in different long term from the fourth.

不，我想你已經仔細考慮過了，科林。與去年同期相比，電動車的影響確實很大。正如您所說，從便攜式電子產品的角度來看，我們面臨著與第四個長期挑戰不同的另一個挑戰。

Awesome. Very helpful. And then I know you don't provide guidance beyond the next quarter, but given the implied year-over-year decline in Q1, do you expect to get back to positive top line growth on a year-over-year basis, at least by the second half of '25? And if not, are there further cost reduction actions you're thinking about to protect margins and cash flow?

驚人的。非常有幫助。然後我知道您不會提供下個季度之後的指引，但考慮到第一季同比下降的隱含趨勢，您是否預計至少在 2025 年下半年，營收將同比恢復正增長？如果沒有，您是否考慮採取進一步的成本削減措施來保護利潤和現金流？

Jeremy, I'll start, and I'll talk about revenues and top line, and then I'll ask Laura to make a few comments maybe on gross margin. But just to reemphasize what we just mentioned that self-help was a top priority for us in 2024 and remains so in 2025. There's still much more we can do in terms of controlling costs and more importantly, improve efficiencies. So that remains one of our top focus areas. And although we don't give guidance beyond one quarter, here's a general comment on the full year.

傑里米，我先談談收入和營業額，然後我會請勞拉就毛利率發表一些評論。但要再次強調的是，我們剛才提到，自助是我們在 2024 年的首要任務，而且在 2025 年仍然如此。在控製成本以及更重要的是提高效率方面我們還可以做很多事情。因此這仍然是我們關注的領域之一。儘管我們沒有給出超過一個季度的預測，但以下是對全年的整體評論。

We do expect Q1 to be the low point, and we see a much stronger or a stronger second half. The drivers for that, that are driving our assumptions are a few things. First, when you look out at the curamik market, those curamik customers, which sell -- which buy our materials that go into power modules that go into EV/HEV and industrial, those customers are pretty much pointing to a gradual recovery in the second half of the year. The second thing is that as the portable electronics season hits and that seasonality comes along in Q3 as OEMs begin to build for the holiday season at the end of the year, we have good content across the patch in terms of Western OEMs, South Korean OEMs and Chinese OEMs. So there's been several good design wins.

我們確實預計第一季將是低谷，我們預計下半年將會更加強勁。造成這種現象的因素以及推動我們做出假設的因素有幾點。首先，當你觀察 curamik 市場時，那些銷售 - 購買我們的材料的 curamik 客戶，這些材料用於製造用於 EV/HEV 和工業的電源模組，這些客戶幾乎都表明下半年將逐步復甦。第二件事是，隨著便攜式電子產品旺季的到來以及第三季的季節性到來，OEM 開始為年底的假期季節做準備，我們在西方 OEM、韓國 OEM 和中國 OEM 方面都有很好的內容。我們已經獲得了多個優秀的設計獎項。

So we believe we're positioned for growth there when that seasonality hits. And then finally, we've got some new manufacturing capability coming on in China for a few different product lines. And we have some design wins in those product lines that are enabled by this new manufacturing capacity. So we believe that will also help us in the second half of the year. The curamik business, for example, is still in qualifications, and those will be wrapping up around mid-'25.

因此我們相信，當季節性來臨時，我們將能夠實現成長。最後，我們在中國為幾條不同的產品線建立了一些新的製造能力。由於這項新的製造能力，我們在這些產品線中取得了一些設計上的勝利。因此我們相信這也會對我們下半年的表現有所幫助。例如，curamik 業務仍處於資格審查階段，預計將在 2025 年中期結束。

And then the BISCO brand silicone line, that is active, but we're in the middle of qualifications now with customers as well, and that will be sorted out second half of the year. So I think overall, we do see some growth, especially in some of our key segments, but we have some pretty strong headwinds coming from FX, which will temper that growth. So self-initiatives remain a top priority and that improved Q2, we think, will get us to a relatively flat year driven by FX, tempering some growth. And then Laura, I'd like to turn it to you for some comments on gross margins.

然後是 BISCO 品牌矽膠生產線，該生產線目前處於活躍狀態，但我們現在正處於與客戶進行資格認證的中間階段，這將在今年下半年完成。因此我認為總體而言，我們確實看到了一些成長，特別是在一些關鍵領域，但我們面臨來自外匯的一些相當強勁的阻力，這將抑制這種成長。因此，自我主動性仍然是重中之重，我們認為，第二季的改善將使我們在外匯的推動下度過一個相對平穩的一年，並緩和一些成長。然後勞拉，我想請你對毛利率發表一些評論。

Sure. So if I could just augment Colin's comments from a margin perspective. You've seen the dilution that we saw into the fourth quarter and what we just posted, which was really driven by predominantly volume as we saw the top line dilute $18 million quarter-on-quarter and also a mix headwind. We posted the 35.1% in the third quarter. But we did highlight at that point in time, we did benefit from mix there with the portable electronics peak quarter.

當然。因此，如果我可以從邊緣角度補充科林的評論。您已經看到了我們在第四季度看到的稀釋以及我們剛剛發布的內容，這實際上主要是由銷量推動的，因為我們看到營收環比下降 1800 萬美元，同時還存在多種不利因素。我們在第三季的成長率為 35.1%。但我們確實在那個時間點強調，我們確實受益於便攜式電子產品高峰季的混合。

And in addition to that, the conclusion of the program that we had in the wireless space, which was favorable for us. So with those rolling off into the fourth quarter and the top line dilution, we saw some pressure. Now when we roll forward into the first quarter, as Colin said, we expect this to be the low point of the year in '25. And in that low point, we're dealing with the continued suppression in the top line, so an underutilization overhang. And we have another adverse impact in mix.

除此之外，我們在無線領域的計畫也取得了進展，這對我們有利。因此，隨著這些業務進入第四季以及營收稀釋，我們看到了一些壓力。現在，當我們進入第一季時，正如科林所說，我們預計這將是 25 年的年度最低點。在這個低谷中，我們正在應對營收的持續抑制，因此存在利用率不足的問題。我們在混合方面還存在另一個不利影響。

We highlighted portable electronics and the lowest quarter of the year being in the first quarter. The last thing I would say about the first quarter margin guide is that as we ramp the new silicon line in China, we need to qualify our customers from that line. So in the first quarter, we're going to face some margin headwind that's incremental to Q4 because the line is new for us. So that causes some incremental pressure there. But if we look forward to some of the expectations we have through '25, the biggest thing that will benefit us is a recovery on the top line.

我們重點介紹了便攜式電子產品，今年銷量最低的季度是第一季。關於第一季利潤率指南，我要說的最後一件事是，隨著我們在中國推出新的矽片生產線，我們需要讓該生產線的客戶獲得資格。因此，在第一季度，我們將面臨一些利潤率的阻力，這種阻力會比第四季增加，因為這條產品線對我們來說是新的。所以這會造成一些增量壓力。但如果我們展望25年的一些預期，對我們最有利的就是營收的復甦。

And the expectation there is driven by some of the information that we're seeing from our customer base, a gradual to improving outlook through the year should facilitate recovery in our margin post.

這種預期是由我們從客戶群中了解到的一些資訊所驅動的，全年前景的逐步改善應該會促進我們利潤率的回升。

Just one quick add to that for everyone. There's been several questions on the RFS wind down in Belgium. And we did announce that, and that is underway. But it really doesn't begin helping the P&L until probably very much at the back end of this coming year. And it will help both in gross margin.

我只想向大家快速補充一點。關於比利時 RFS 的逐步關閉，存在一些疑問。我們確實宣布了這一點，並且正在進行中。但它可能要到今年年底才會真正開始對損益表有所幫助。這將有助於提高毛利率。

There's also some OpEx help that we'll receive as well combined in that range previously mentioned of $7 million to $9 million. And then you really get the full run rate and benefit of that in 2026. So thanks, Jeremy, for that question.

我們還將獲得一些營運支出幫助，總額在先前提到的 700 萬至 900 萬美元之間。然後您將在 2026 年真正獲得全部運行率和收益。所以，感謝傑里米提出這個問題。

Awesome. Thank you. Super helpful. I'll hop back in the queue.

驚人的。謝謝。超有幫助。我將重新回到隊列中。

Craig Ellis, B. Riley Securities.

艾利斯 (Craig Ellis)，B. Riley Securities。

Hi, yeah. It's Meyer on for Craig. I wanted to ask about the A&D business, and you guys have kind of characterized that as a high-growth business for some time now, and you've been seeing some improvement. I think now it's about 14% of your total revenues. I just wanted to get a sense of, is this improvement sort of quarter-to-quarter? Or is this the base being lifted? And is this something that we can look forward to long term?

嗨，是的。邁耶替換克雷格。我想問一下 A&D 業務的情況，你們一段時間以來一直將其描述為高成長業務，而且已經看到了一些改善。我認為現在它約佔你總收入的14%。我只是想知道，這種改進是否是逐季進行的？或者說這是正在被抬起的基地？這是我們可以長期期待的事嗎？

So A&D is a core business for us. It really breaks into two pieces. The aerospace piece, which is our EMS technology going to the major aircraft OEMs gasketing and sealing. We also have some EMS business in defense where it's improving the rugged ability of whatever product is being produced for the defense department.

因此，A&D 是我們的核心業務。它確實斷成了兩截。航空航天部件，即我們的 EMS 技術，用於主要飛機 OEM 的墊片和密封。我們在國防領域也有一些 EMS 業務，旨在提高為國防部生產的任何產品的堅固耐用性。

From a RFS Solutions business, we make the precursor for radars and antennas, and we have multiple program wins across many different programs and with many different primes. So this is a solid base business for us. We had a good year in Aerospace & Defense. We anticipate that to continue going forward. And we see the Aerospace & Defense business for us as a mid-single-digit growth business in the near, medium, and longer term.

作為一家 RFS Solutions 業務公司，我們製造雷達和天線的前身，並在許多不同的專案和許多不同的主要專案中獲得了多個勝利。所以這對我們來說是一項堅實的基礎業務。我們在航空航太和國防領域度過了豐收的一年。我們預計這種情況將持續下去。我們認為航空航太和國防業務在近期、中期和長期內都將實現中等個位數成長。

Okay, yeah, great, thank you so much. And then sort of shifting over to some of the geopolitical uncertainty that you guys were pointing at, in part, I think, due to tariffs. I'm sure some of that is due to the restriction uncertainty. Can you guys help me build up some color on that and then kind of point to where you're seeing that most and which end markets you think might release the quickest or might last longer?

好的，是的，太好了，非常感謝。然後轉向你們提到的一些地緣政治不確定性，我認為部分原因是關稅。我確信部分原因是限制的不確定性。你們能否幫助我對此進行一些闡釋，然後指出你們最常看到的地方以及你們認為哪些終端市場可能最快釋放或持續更長時間？

So it's a very dynamic landscape. The tariff situation is changing almost on a daily basis. We're paying very close attention to it based on the geographic dispersion of our revenues. We've got 44% in Asia and the rest split almost evenly between North America and Europe. Our mitigation for what might happen from a tariff perspective is this local for local strategy.

這是一個非常動態的景觀。關稅情況幾乎每天都在變化。根據我們收入的地理分佈，我們對此非常關注。我們的 44% 的份額在亞洲，剩餘的份額幾乎平均分佈在北美和歐洲。從關稅角度來看，對於可能發生的情況，我們的緩解措施就是採取本地對本地的策略。

So we, with a few exceptions, can make all of our products in Asia and supply the Asian market, and we have the same capabilities to supply most of our products and produce them in either North America or Europe and can sell in those geographies. So bottom line is, we can't predict what's going to happen with tariffs. We pay attention and monitor it every day, but we feel like we've got a very strategic footprint in terms of manufacturing to support our customers going forward in terms of if something happens, which, again, we can't predict.

因此，除了少數例外，我們可以在亞洲生產所有產品並供應亞洲市場，我們也有相同的能力供應大多數產品，並在北美或歐洲生產它們並在這些地區銷售。所以底線是，我們無法預測關稅會發生什麼變化。我們每天都會關注並監控它，但我們覺得我們在製造方面具有非常策略性的足跡，以便在發生某些事情時支持我們的客戶，而這些事情我們也無法預測。

Okay, yeah, and if I can just follow up with that -- for that really quickly.

好的，是的，如果我可以快速跟進的話。

Of course.

當然。

And then since you guys are so positioned well with the local for local, is it fair to think about it as any sort of hesitance would be sort of downstream of you guys in supply chain and you're sort of waiting on other players to sort of break the hesitance rather than your direct relations?

那麼，既然你們在當地市場中佔據著如此有利的地位，那麼是否可以這樣想：任何猶豫都會發生在你們供應鏈的下游，而你們正在等待其他參與者來打破猶豫，而不是你們的直接關係？

I'll try to answer that. The hesitance from downstream related to -- I might not -- let me try this answer, and then we can always circle back in the queue. We see a lot of customers who we've spoken to, especially in Q1, who are just unclear of what's going to develop in terms of the macro economy. It's been difficult macro headwinds in a lot of different segments. Inflation is still a bit higher than what people are used to, and our customers are extremely cautious in terms of building inventory and feeling comfortable about the year.

我會盡力回答這個問題。下游的猶豫與——我可能不會——有關，讓我試試這個答案，然後我們就可以回到隊列中。我們發現許多與我們交談過的客戶，尤其是在第一季度，他們不清楚宏觀經濟將會如何發展。許多不同領域都面臨嚴峻的宏觀逆風。通貨膨脹率仍比人們習慣的水平高一點，我們的客戶在建立庫存方面極其謹慎，對今年感到放心。

So we anticipate things to settle down as there's more clarity on some of these geopolitical issues, and that would lead to a settling of the macro environment. And we think things would then get back to a more reasonable cadence in terms of orders and also confidence in the economy across the different regions.

因此，隨著一些地緣政治問題變得更加明朗，我們預期事態將會平息，並導致宏觀環境的穩定。我們認為，就訂單和不同地區經濟信心而言，情況將恢復到更合理的節奏。

Got it. Thank you so much.

知道了。太感謝了。

(Operator Instructions) We reached the end of our question-and-answer session, I'd like to turn the floor back over for any further or closing comments.

（操作員指示）我們的問答環節已經結束，我想將發言權交還給大家，以便大家發表進一步的評論或結束語。

Just wanted to say thank you for joining our call, and we look forward to following up with many of you with callbacks over the next several weeks. Thanks again for attending.

只是想感謝您加入我們的電話會議，我們期待在接下來的幾週內與您回電。再次感謝您的參加。

Thank you. That does conclude today's teleconference webcast. You may disconnect your line at this time, and have a wonderful day. We thank you for your participation today.

謝謝。今天的電話會議網路直播到此結束。此時您可以斷開您的線路，並享受美好的一天。我們感謝您今天的參與。