ROG

Rogers is a high-quality specialty-materials maker (AES + EMS segments) with a genuinely strong balance sheet — $197M cash (up 23%), zero long-term debt, $1.20B of equity (~$67/share book) — and it still generated $101M of operating cash flow in 2025 despite a GAAP net loss of -$61.8M. That headline loss is misleading: the MD&A attributes it to $71.8M of curamik impairment, $1.9M of Mexico lease impairment, and $23.4M of restructuring (Evergem Belgium AES wind-down, curamik footprint consolidation, executive transition, workforce cuts) — together ~12.0% of sales in 'restructuring and impairment.' Strip those largely non-cash/one-time charges and underlying operating income is solidly positive (~6% of sales), and gross margin, while down 170bps to 31.7%, remains healthy for a materials business. Management is also returning capital, repurchasing 738,145 shares for $52.4M with $51.8M still authorized.

The problem is the trajectory. Revenue has fallen four years running — from a $971M peak in FY2022 to $811M in FY2025 (-2.3% YoY) — even as the company invests behind EV/electrification, ADAS, A&D and renewables. The MD&A speaks only of an 'opportunity, over the next several years, to increase revenues from current levels,' which is a recovery hope, not evidence of inflection. R&D was cut 18.8% to $28.1M and capex nearly halved to $30.1M, both of which flatter near-term cash flow but raise questions about the durability of the growth story management is selling. ROE is -5.2% and there is no dividend.