Rogers Corporation: Navigating Uncertainty with Turnaround Leadership and Strategic Innovation

Rogers Corporation (ROG) faces a pivotal moment under interim CEO Ali El-Haj, whose track record in turnaround leadership and supply chain resilience positions the firm to capitalize on high-growth EV/HEV and industrial markets. As macroeconomic headwinds loom, Rogers' strategic focus on operational agility, cost savings, and localized manufacturing in China could transform it into a standout performer in materials science.

The Turnaround Expertise of Ali El-Haj

El-Haj's 30-year career in automotive and manufacturing turnarounds offers a stark contrast to Rogers' recent operational challenges. His tenure at Techniplas, where he navigated pandemic-driven supply chain disruptions while securing contracts with European OEMs, mirrors the strategic demands Rogers faces today. At CAP-CON and ARC Automotive, he delivered double-digit revenue growth and top-tier EBITDA margins, demonstrating a knack for restructuring under pressure.

El-Haj's technical background—rooted in quantum mechanics and electrical engineering—provides a unique lens for innovation. This expertise aligns with Rogers' core strengths in advanced materials like curamik® ceramic substrates and ROLINX® busbars, which are critical to EV power electronics and industrial systems.

Strategic Shifts: Cost Discipline Meets High-Growth Markets

Rogers' recent Q2 2025 guidance highlights progress in two key areas:
1. Cost Savings: A $25M annual savings target, driven by operational efficiency initiatives and cost reductions, is expected to lift gross margins to 31.0%–33.0%. This contrasts sharply with peers like GrafTech (GTI), which has struggled with margin pressures amid uneven demand.
2. Design Wins: Rogers secured multiple advancements in EV/HEV and industrial sectors, including:
- Silicone technology for EV inverters: Enhancing thermal management in high-power applications.
- ProCell™ EV Firewall materials: Addressing critical safety concerns in lithium-ion battery systems.
- Expanded curamik® pipeline: A new China-based facility will supply ceramic substrates to domestic OEMs, leveraging the “local-for-local” strategy to bypass tariffs.

These wins are underpinned by Rogers' $176M cash balance (Q1 2025), enabling capital expenditures of $30–40M in 2025 to scale production and R&D.

Why Rogers Outperforms Peers Amid Uncertainty

While macroeconomic risks—such as trade tensions and soft EV demand—persist, Rogers' localized manufacturing in China and focus on high-margin materials give it an edge:
- Supply Chain Resilience: The China facility mitigates tariff risks and taps into 70% of global EV battery production (per Benchmark Mineral Intelligence). This contrasts with competitors reliant on U.S.-centric supply chains.
- Margin Expansion: Cost savings and a shift toward premium materials (e.g., curamik®) could lift profitability beyond peers like Saint-Gobain (SGOB.PA), which lacks Rogers' EV/HEV-specific innovations.
- Valuation Advantage: At $73.27, Rogers trades 15% below its $82.50 average analyst target (Bloomberg consensus), offering upside if design wins materialize.

Investment Thesis: Buy the Dip

Rogers Corporation is a compelling buy at current levels, given:
1. Leadership Credibility: El-Haj's turnaround expertise aligns with the need to simplify operations and prioritize high-growth markets.
2. Strategic Execution: The China localization strategy and design wins in EV/HEV create long-term moats against competitors.
3. Financial Strength: A strong balance sheet and margin improvements position the firm to weather near-term demand volatility.

Risks include delayed commercialization of design wins and geopolitical disruptions, but Rogers' proactive measures—such as tariff-avoidance localization—mitigate these concerns.

Conclusion

Rogers Corporation is undergoing a renaissance under interim CEO Ali El-Haj, leveraging its advanced materials and operational discipline to dominate EV/HEV and industrial markets. With a robust balance sheet, strategic localization, and a 15% undervaluation relative to targets, now is an opportune time to establish a position in ROG. For investors seeking exposure to EV innovation without overpaying, Rogers offers both safety and growth potential.

Data as of July 14, 2025. Past performance does not guarantee future results. Always conduct your own research before making investment decisions.