ROG - Earnings call transcript Q3 2024

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Operator

Good afternoon. My name is Alicia and I'll be your conference operator today. At this time, I would like to welcome everyone to the Rogers Corporation Third Quarter 2024 Earnings Conference Call. I will now turn the call over to your host, Mr. Steve Haymore, Director of Investor Relations. Mr. begin. may you Haymore,

Stephen Haymore

website and Conference the today's Call. on today. of be everyone, that news Quarter issued was call Corporation XXXX found earlier our section Investors Earnings The the with welcome afternoon, the Rogers release to Third can along Good slides for

Please turn Slide X. to

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

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

President With today X. Colin. the turn Slide CFO. to Turning I now and is and Colin me Laura Gouveia, CEO; will Interim to Russell, call over

Randall Gouveia

for thank Thanks, us today. joining Steve. and Good you to afternoon everyone,

as Laura Before quarter, Interim the welcome want Russell our discuss I results the for CFO. to I

new companies a is at and more at the CFO, Laura our opportunity. semiconductor the we have space XX Nevertheless, than impact roles senior years a company. someone Wolfspeed. Laura's we She to already of experience August, and As our skill Rogers. to NXP financial company are announced last set with another in decade pursue more Mayampurath, positive than role caliber left like brings in Ram making the fortunate prior in with of

this on an a have and process planning made we is update Our will final continuing, CFO decision. when succession provide we

Now turning key the I'll the quarter. X. to Slide highlight messages for

manufacturing in the forecast, third with The mixed a of fell were expenses, we a expectations of gross continue guidance Revenues global our seasonal markets, our to in yet is control. quarter, high indications peak the results below are which lower expected in is general electronics. largest not softer contraction in consistent exceeding our activity end were on in for lower Overall, were lower EV/HEV earnings earnings recent continues operating revenues of and last And our EV/HEV seeing X months. EV/HEV. order year's Our it has industrial surpassed industrial. segment particularly carefully result Global slowing improved in and demand, production which behind pace. margin, due the XX.X% while improved to the low estimate. weigh end to and automotive patterns we been while than Ongoing a portable of growing, QX

other to forward. despite current do However, headwinds, continue see segments potential growth the going and in these good market we

for for ribbon-cutting provide long-term details ceramic continue in One on more highlight event we factory capabilities recent growth. investments the such, make position Rogers I'll this As and China. our to substrate capacity capacity in ceremony measured later. is to power new

we've demand more quarter Turning aerospace industrial lower as results. X% $XXX electronics, and portable and due In saw management. quarter offset increase AES, from meaningful demand to I'll to softness growth. our normal QX our ceramic EV/HEV the defense customer key our I'll from Highlighting strong business, power In begin review X. third than with from declined prior and Slide sales the Revenues million EV/HEV. higher markets, seen of improvement ADAS patterns. in inventory saw electronics seasonal due sales, quarters a module EMS to QX sales record of customers. yet after Portable consecutive we not X

However, one strong by and customers as anticipated. of at were build defense leading Aerospace OEM below sales rates not led as in as AES. QX, our were registered outlook our good growth

program in rate fluctuate at in base, drive cost for A&D we the quarter, do sales we competition increased sales different response our customer high and timing, players. improving in the continuing ADAS value single-digit competitive grow particularly our reflecting In softer to emerging to auto on mid- chain. expect these Asian are XXXX. declined structure to sales innovation diversifying both points production dynamics, to with quarterly and Although the product RFS

development next-generation in innovation a launched industrial semiconductor in includes beyond in the of led laminate segment. solutions laminates. radar be Our new EMS QX, copper technology sales that advanced QX saw increase will clad and by slight

moment, in year below discuss and a infrastructure I'll from improved more downturn the industrial manufacturing overall still activity. again sales global ongoing due Wireless were in are to As slightly the strong QX sales in QX. prior

concluded As driven quarter. in the project third in which mentioned strength last specific this quarter, India, by is a

QX the customer improved macro closely At are issues. disappointed earnings on with the and build-out, and higher same which end this sales the currently good time, free with QX we margins, some clear top the this cash were We in are sales customer-specific phase with reflect operating the QX flow positives lower results next The challenges generation. outlook. persistent line and engaged our results There is of design in wireless stage.

line. We in in our on next on actions And driving improvement I'll are underway. top intently improvement X expand focused the the slides,

growth the sales due roughly environment, per X, Slide industrial end The U.S. levels the of I'll are we and in for downturn, submarkets. as last to investment for improve seal of is and industrial the markets diversified includes in is of of the the contracted and provide as these used AES semiconductor with urethane market business In capital vaccine roughly equipment EMS, industrial machines spans versus substrates our is automation market, factory systems materials, lower solutions such impacted automotive years. broader and to half in the faster-growing which global power ceramic EMS lower million to XX protect our dialysis levels, BESS. solutions lower medical, devices BESS improve opportunities segments, Rogers. in materials both this power. our busbars In medical $XX silicone CPAP offer power storage business, and another the transport. distribution other quarter substrates The cover and to life. million due EMS efficient experiencing units. macro XXXX. efficiency manufacturing. medical our most battery opportunities are In certain in on Semiconductors and markets to in to seeing and demand activity Demand first and of has where in and devices, X primarily Despite AES, have such In $XX and to Starting and manufacturing Eurozone industrial. centers in are battery opportunity rolling energy extremely manufacturing which conversion decrease or correlates The data we enable the

We server year-over-year win our return sales demand but power used where Growth to to supply come we have levels. these be in seen improved silicone films won't the are in markets immediately, has data seeing XXXX a XXXX, in recent design but in will centers adhesive system. with yet traction

targeted still but signal early to opportunities our in business in on leveraging data thermal management focused stages, projects are integrity. AI the AES capabilities also Our centers. has These are and

$XX XXXX the update $X market, where compared quarter lower to sales provide have I'll X, the Slide to half of EV/HEV been approximately million on our XXXX. per first million an Turning to

silicone in growth The have driver QX decline since managing EV/HEV discussed of a in prior we X China. sales more making main offset the future correction growth These new we recovery year. capacity include new late inventory production line. EMS and new on the investments a in power power customers market substrate of this compelling As XX% substrate manufacturing the calls, facilities in year-to-date. in than a measured has investments AES anticipation than the ceramic opportunities EV/HEV, facility the In is have greater ceramic are been sales and in BISCO

to continue wins. design secure work aggressively also We new to

prior power we've and leading technology year we silicon U.S., In AMB module deliveries In have Asian be of quarters, Western another we have OEM in to we OEMs. also our used customers continue a wins for key a with secured our Asian important with both design this EV XXXX. significant beginning in EMS that healthy in markets. year carbide this were serve will and have secured our As for European win and several in with power the Asian AES QX several business business, that an design inverter XXX-volt highlighted awarded funnel wins QX, opportunity OEMs and substrate

in substrate power and I'll Western And ceremony importantly, factory who officials we for was Slide headquartered compelling manufacture X. expanding us on with and market. of Chinese AMB will This to in X This manufacturing complement expand customers customers see enabling China. and EV/HEV of China Turning we support substrates. companies. ceramic factory our long-term ribbon-cutting are facility our new opportunity local welcomed the Germany. the new dozens weeks our ago, chronic both I strategy, our the capacity support will Suzhou, government representing to new in regional better will existing factory

a this Third-party in will EV/HEV, adoption technology grow and of the driven energy years, modules latest over market the the markets. substrate silicon expects XX% the market by that several carbide at next industrial power for renewable research increasing CAGR

scheduled in new customer to expect QX QX of late first XXXX. samples We our factory begin shipping in production from mass with the

Now messages. today's key in I'll closing, recap

QX First, which aggressively improvement. software our working we carrying lower our earnings mixed had softer and and through expectations. top drive a QX was line, ordering is good below with we growth This into to are results guidance,

design improvement coming and are manufacturing pursuing growth prioritizing drive in We securing segments regional intently higher quarters. on the focused wins, strategies and to

modules, will with meaningful improvement our We manufacturing growth in in the from in global customers demand provide and in further XXXX. recovery actions, that these activity power expect ramping EV/HEV opportunity battery combination for

flow. we the always, growth, costs on top focus as prioritize we line investments we continue profitability maximizing and cash manage As to CapEx as and will,

QX it I'll QX our Now turn discuss outlook. performance to our financial and Laura over to

Laura Russell

you, Thank Colin.

I'm look the capacity, working and the drive that with of the interim on executive serve execution of say CFO Colin forward the to initiatives. the our team I opportunity about key to excited rest opportunity in to first me strategic Let and

I'll begin QX. with our of on for highlights XX Slide results the

As mixed. in was third quarter Colin our the performance shared,

Our top $XXX below sales were of line our million outlook.

improved The exceeded expectations. adjusted EPS management $XX the margins gross However, enabled to capital of in XX.X% working quarter. cash margin us flow both free million our in $X.XX of during guidance generate and

wireless be of XX, of basis, in sales greater X% offset discuss quarter and quarter prior $XXX,XXX. the our million X% quarter A&D on Western to versus part AES, segment major industrial improved discussed. foreign more new favorable lower sales than by to million. China, power inventory down XXXX. infrastructure in partially of recovery by X% million. expect Of customer prior sales a decreased detail. ceramic have electronic XX% sales. and significantly from offset of months $XXX I'll do $XX decreased the ADAS volume the sales. slightly $X first lines sales was decline will lower On Slide with On sales. which by result of was revenue compared the Net correction resulted quarters. as demand grow customers. are fluctuations well to offset seasonally our ceramic approximately EV/HEV, X and $XXX revenue million declined year by positioned approximately AES prior EMS declined currency reportable We third higher than in product the most sales module a Lower that mainly versus Total were a from of higher and Chinese This industrial recover portfolio in with we to this facility by lack decrease the in This and sales EV/HEV approximately market less both coming Colin And to

second was improvement of offset more sequential XX. Turning XXX gross primarily due was costs. than in lower volume to the points quarter. from to favorable margin product gross Slide an the QX XX.X%, margin underabsorbed which basis mix The increase and

that has to areas enabler procurement income Similar Adjusted as The initiatives a improvements, QX, savings already ensure the amount when manufacturing of to it a carry to have in net We in of quarter gross quarter. in we've continue the operational from ability third improved excellence mainly was we we such offset services. adjusted to to partially ceramic and to the quarters. third the footprint in $XX QX throughput to quarter, per preceding yield the OpEx respond QX. to optimization. excess income been still substrate made and over was small progress were primarily million costs increased operating demand due improved in million compared second margins $X.XX lower and key margin these cost share power returns. our operation The an QX in reduce $X.XX professional The These expenses. the from adjusted compensation the efforts variable $XX higher adjusted lower net in to expense. drive earnings resulted by decrease increase items and continued in quarter other versus prior

Continuing XX million, prior increase from on September was an Slide on of nearly of million the the end approximately Cash XX. $XXX $XX quarter.

As quarter. expenses the and have million QX. were $XX lower third and gross margin, with we year-to-date flow of generated expenditures in management far million operating working a million improved year $XX Capital so result cash of million in $XX this of operating of this capital, $XX

million We $XX to expect previous full year of million, $XX CapEx to million in our below the $X range. range be

maximize generation. will year, the cash allocate synergistic we position, capital and capital no pursuing through continue priorities, form of have With As consistent to increased in to cash to allocation increase our of an we share prioritize to stated actions agility opportunistic the shareholders funding strategy to M&A forward our growth, in to organic repurchases. move and there we returning

of best evaluate the the of capital on and needs current will circumstances. this business use the continue We to based

demand decline on Net The $XXX QX and XX, of fourth will about of I range for The our million quarter. from the decline sales. million. this wireless Slide discuss sequential decrease X% midpoint electronics between sales of are drivers sales portable the to lower and range guidance to At more are to expected slightly Next a main in EV/HEV the is $XXX as seasonal our sales infrastructure sales India have midpoint the customers as levels. shipments guidance, are typical to industrial expected concluded, lower. manage in sheeting ordering deferred in inventory project expected significant a of be QX. display increase General are

a more with margin decrease in from is mix. strongest to of gross of a to guidance of portable also the as related QX This to until to are a of which start $X.XX versus $X.XX Fourth higher expenses headwind projected incorporates volume is also costs. new utilization million some XX% primarily EPS of expected line of manufacturing quarter will related increase normalized adjusted adjusted EPS to reach product guiding XX.X% range more QX the Product are loss of we rate. start-up QX, earnings. lower silicon mix continue to in incrementally operating result We to $X.XX range $X.XX earnings. a our of be $X from production to for and The sales. electronics typically range the range

includes the range Belgium. most our AES EPS in operations QX Our this to restructuring-related of expenses, associated of of down with $X.XX wind

rate Lastly, approximately our full we project tax to be XX%. year

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

Operator

with [Operator Our CGS first from Instructions] Daniel line comes Moore Securities. the question of

Dan Moore

project with of -- off . decline running the you're lower guide, fair of QX weakness few there implied it's I areas sounds the in say with guide, incremental starting electronics? Or that that other that due in wireless are the kind seeing? portable to guess it like sequential to primarily revenue and

Randall Gouveia

Dan, year. I'll also I Yes, wireless right. that. lowest quarter is in you're reason with get towards things our is bit say fourth quarter end would electronics, normally, a QX. program that the highest of what mentioned as the Colin, year ending for about where be #X start typically And that the in would you then our the quarter decrease we portable and QX The

not really coming in and are see signaled this paying space. saying, in an recovery power what don't close improvement also We're at attention our to We moment. ceramic module the a customers they've

anticipate try the hit general to QX. year for destocking deliver in inventory and end then included cash. finally, they the also in that's as targets customers of we And So

would So be factors main QX. impacting those the

Dan Moore

And of X, revenue maybe likely at potential looking not more should helpful. restocking first headwind? the your get is a beyond some That's then pockets Or remain half still if be once year, point? business you some do for this year, seeing of into where of next -- through are management X there we end to inventory

Randall Gouveia

ahead that not meaningful Yes. of is next a couple do I'll What for key is on say see I potential even year, improvement we're guiding would that on based start to though some and -- assumptions. we

of what that exactly when return not customers on happen be The growth the in would coming earlier first unclear this will the possible we market. chromic It's I year. the happen about forward, but is quite based substrate it's said it will think next

AMB see for We power OEMs for and in directly also in technology and goes technology. CAGR have And SiC power the factory local into China we the going new XX%. to both produce that at about wins got we've good modules. modules, Chinese And ceramic with design-in Western business that

that far we has demand been ahead year's then happening. So good to election work the has policy impact It's have continuing is But the by will Also, for to monetary producers get Right think could been EV into that with and uncertainty very the we'll That The as will of macro we continuing ramp. know the will Everyone for that passed. also industrial a make return. be And we uncertainty. tough. ramp. -- XXXX, EMS see pace, year. last us battery now, see what's this and election quite 'XX. an with in we year good that

say, work the happen ready for and top And positioned of we're begin can an a we So business, terms anticipate doing skilling growing. line. uptick in up things the be focused our just some bit overall, of we in we're these expansion the we capital term when so team. long self-help, with would medium well on think demand. We growing the of industrial we're I'd and growing

Dan Moore

despite revenue to on on all if of quarter have and in trying low, remains just look most are kind to but What above? relatively of what the single But Sneak range you it segments get one or yet. look And mix, obviously the from margin don't pressure drivers margins pricing higher margins into obviously a that performance declines. have year-to-date, this dropped the there? operating queue. key us Was business? sense this side, and if last investments, digits in year AES in you more year incremental XX% kind the modest the jump But going the back on back mid-teens what's gets

Laura Russell

it's Dan, Sure, here. Laura

So what are I observations great. say is your would yes,

basis year-on-year suppression We a EMS. are seeing some on within

a little But frankly, of terms allocation bit our are is Some on businesses a level. little in softening of of that, our bit all strategy. an utilization

So with there, seen expansion as We're we do excellence we what have and can headwinds you've some posting. to which, managing operations by opportunities margins the we're our and execute procurement savings. control leveraging margin

So benefit, -- we to is the doing the some going really, what top we But utilization our we're we realized to certainly recovery. line or see there. when start on be can improved see will accretion

Randall Gouveia

fresh certainly we And might XX the And by slides, add is quarter, Dan, the for adjusted in here, just just have do see -- press XX%. the I third off EMS appendix can segment. there the over the to margin was but you operating

some information can reference there. you there's So

Operator

comes question line next from Riley the Our with Securities. of Craig Ellis B.

Craig Ellis

additional I to former. industrial and on and EV business HEV. the on wanted And I my start appreciate X Slide questions the X detail on and the

reprioritization opportunities how medical, types think market? trying make material you message the that it whether of just potential customers Or help you're characterizing next the and that the industrial you storage convey and you we comments you'd efforts, for. understand engage there's as your can business, energy to And battery to revenues systems, about are of So as are you shooting specific you center, it's wins just X to a a contributions about think really the refocusing a Slide as the with on us with should for with opportunities those looking data be relates mentioned specific semi year? as to at design we

Randall Gouveia

Sure.

them we really X% catch-all And to by are saying markets a interesting within as that, that that can is we or grow markets sales. and some end end lot think we industrial, highlighted I'll total sales. well of of move in so out But then start now for it as is percentage than our a actually, expand. And bucket. that There a example General business. and industrial. we of to of worked intent tablets. Rogers are X% device develop was our big general the speakers is less part small relation areas A And market smart of in the good but technology a that years that's such to and electronics, ago, hand really portable began other where

have really is and over against teams into business aggressive cooling been we've the So sealing fight trying from in to of in hard headwinds talk we'll ceramic wins, our out months come we this in and the the units very have going centers. future. what company go more slow But the digital dampening we gasketing technology we all and and all on the to high-speed of macro. it's vibration really data grips X work about in from the And there. products pushing and that design-in past the we It's from have business. they're working can with from the EMS. It's and And like products that really that can

leverage expertise it systems. we that our space. we the like EV/HEV So into there. growth been our Same BESS technology to energy storage battery And some the battery we able course, brought of and have trajectory space. We've translates for feel really into

is business. our worth -- we and So share, some really we we but that today's is are we've in we that within able And And like feel wins begin have there. we we growth on now out big some success because things that that call. medical, piece some that's next would also year. have exciting wanted the pick to mentioning. worth Industrial up additional for -- will also message to there sharing good say finally, tease it, we design But figured that's a I of feel expectations high had been and medical,

Craig Ellis

contribution shipments Laura regarding to through go the I was just ramp maybe in could ramp you question us and in you year make That's to pull that business? exiting How revenue we the be China. exiting initial that impact XXXX of year? about production magnitude the deck that next power XQ spokes what from thinking this sample for . as should understand one the helpful. said we of of help customers substrate Can think The the next

Randall Gouveia

I So can on that. start

You in -- from see few with very local weeks a that facility. first, running I'll of up a comment an customers. China we're that was just in build. spectacular interesting was government it's to had attendance And a when quite ceremony excited I both thrilled lot I it folks about and ago, the and we and opening

In now, at when right running customers. that mid-XXXX. we're prototyping rates, this and probably terms full will be of be qualifying And and yes, technology we run it's should with

this about would that out size of in factory. the be revenues at moment, that talked haven't, We coming

response Eastern We say and to even total in half half And Western other allow is in of think, with Europe link who ceramic. reduced the with our for sales and haven't chain, more really and in shared closely in local business our us, in quicker is China. timing, China that But Europe our this produce production. supply I I time will customers can roughly

a planned. able will that of make capture I have big So to difference us think the terms in it growth being we

Craig Ellis

might been have one in operating expense accrual I and reversal. significant an change of if could it more. it in very the quarter-on-quarter, was sneak it. looks like There just Got some And

absent structurally would increased will XQ. the level expense accrual that OpEx and -- set lower sequentially in that Reported in XQ to operating case perpetuate. reversal is So that or a just therefore,

Laura Russell

let take So that. me

having in our line. we in manage the saying So some to that on for that, was to there top the you're variable correct costs. in OpEx addition adjustment of continue environment And compensation challenges

new we One did we some see us do see with heard that's from quarter. our some support run on our benefit would of in facility. into in you about to in third parties. ready on, that be the spoke slight OpEx Colin up the customers professional also call in But service that the So qualifications our to step quarter-on-quarter fourth qualifying I thing comment

to one that undertake. a it's So investment critical continue and will

Craig Ellis

And the closer and that as does facility? output? impact that the of magnitude Laura, between Or for with get do that the expense we about how full here item, associated rise think actually of we production particular full to

Laura Russell

Yes.

of a think full qualification, customers, is capital face it's we that statement. say upward [ But in pressure before and facility fair and do But get So growth I lines, qualification it. to our yes, the is on we then get investment naturally, as and equipment to ] customers qualification that in for ramp we post factory cost with as because facility and a to working just our general qualify that's of we're to our on of pressure a OpEx a upward closer our investments. there

Operator

[Operator with Our line comes question Instructions] next the from of Craig Ellis B. Riley Securities.

Craig Ellis

Great.

X more. So going or X with keeping it

Randall Gouveia

ready. We're We're ready.

Craig Ellis

program like iOS then those I that And we about did, we the seasons, just you should lower looking diversity that in at the think ramp it quarter? But think you programs expect a those Colin, ago, how sometimes programs electronics, stickiness of an your think than months personal customer that forward the program. go It mentioned Android all multiple of engagements? confirm various here? we come that different base to selling as programs you to from one Android how had about the wanted iOS. I Would in back do be was from sounded in ones those peak fact, there on than of expected. we were Yes, X and

Randall Gouveia

Yes. Okay.

phones they're portable high-performing have and although they foldables, which, phones, require segment thinking how feel that different AI Key confident technology about a properly. small here's So market, both we capability electronics. high-end end for work to really the of us, phones we're part in and technology. also for our differentiated still

we feel And have very offerings with product all of Korea. Chinese, well we OEMs. our different market. patch like the the across So and Western with do suite this fit South programs

to see to As high-end handsets these those mostly be to growing models top low phones this the we of of was, think, point X% for see for, AI affordable a growth up overall year the to overall we're of would time, value catch Android at look waiting high-end, is year. this related, hold at drive I from, the fastest. X% market, though phones. those Last really out of to it software coming how proposition and And we say, high-performing packages. pyramid. up work And sold. market that to course, year-over-year. it's more I baseline in of Where types phones it's XX-year in And where the with And rolling is with growth. packages most we is developed some the still these participate we also in And the those cases phones the seem

were question? been ago, Did we we why come due that in to faster, has say, when X software the QX, is like down us we planning bit." guide. and X or had to answered versus that's So but results things peak ramp delayed anticipated it's the "Hey, packages, bit a that our for when that And this our impacted months a

Craig Ellis

helpful, Yes, That's helpful. that's Colin.

more phones, foldable up that what's AI appear planning you a with are whether would phones coming? get as onboard outlook into be you the and road and phone content mapping, and do in a would drive that capability does look or technology traditional ahead stable Rogers' As content work they customers as your at we content fairly there or things

Randall Gouveia

I And I quality our response terms performance, our things. would and where a only space. say, product about And as also our we In kind branded related is next do technology. It's where but it's and would to, performance leader lot content go we need But in participate, it's our and is strong. of optimistic say we're reliability. thinner of they urethane phone phones, in terms in because the not of phones our circuitry which we foam, they have porn thinner more pack these this of

of electronics We portable also facility can urethane thin And from have our named to beginning we characteristics home Ultra that around deliver also the we products get that of South in space that produced traction see of type more chemistry. because eSorba. with specific another Korean type

as by multiple types sold many see upside but in these of portable of locked So like there we phones an OEMs, we electronics in of still strongly feel a well. we're bit with high-performance

Craig Ellis

for me, despite down back half And debt of macro it. half through through the we a first tough done global tough just Got the PMIs. very has the with really then paying of headwinds go And Colin. The year. job year business the lastly strong as

You're doing a really nice job building cash.

question are your and is the something how And M&A, inpatients on targets thinking any would the be how targeting to execute? So potential feeling and funnel color executing you both that about patients, development the about on you your front? ability

Randall Gouveia

piece. patients the Great. Good question Yes. about

lines year. we're bit of had also believe describe But deal had So holding quite pillar very to that's M&A M&A. how strategy. our remains sponsors the what bolt-on and remains been primarily and our That long that and history in that we mostly service move is been out say, the because are good that but on their really, I And a product and building a Rogers the a longer synergistic EMS we key today, M&A, intact properties fact this has that are I related philosophy has they I'd think keen many our strategic also do for. to right results capabilities have space, surprised just as forward to and slow of buildup, to we're hoped regain customers. haven't our better would of still space cash cadence acquisition with

work with BU turn map, to our the I'm strategic So they like leaders really our group. some would marketing with higher of very M&A dev put around see our drive to and into corp along multiples. Nonetheless, road results these have pleased

fit which X prepared with It we for it. the emerges, of company. an we targets, be So strategy. really right can't have But on rush be the piece when are available. But or still fit target it. to -- interesting Rogers. but It's something strategic we to buy acquiring And to integration becoming has for a don't the won't we're it, to we towards our buy really not to our approach. right would moving just going quickly, be important X want move It only

Operator

the question CJS Moore Daniel from Our next comes of line with Securities.

Dan Moore

your that. over borrowing few Laura M&A next for to more Laura appetite dovetails as continues about mechanistic. opportunistic your Sorry last, thinking buybacks mentioned, it is versus returning last to financial being And to about -- Craig's cash about quarters? relates how increase talk the you're question flexibility and just Maybe with which as my shareholders somewhat

Laura Russell

opportunistic. you're so Dan, Sure. far right as so in

with M&A all market in [indiscernible] buyback clear As stated opportunistic in of growth got organic continue look with how very There's pipeline we've many to a as thirdly, will we've positioned are we've stated, our to point And that interplaying first contingent expansion of be opportunities. as we our addition investments discussed, we've to share that in of strongly and time, going our opportunities. flight capital conditions. on allocation issue, and technology the strategy. objectives. at the is that's we're execute But and the any those at will on X ensuring

evaluate fit. our and on as to execute it see continue we'll based priorities So we

Dan Moore

question sizing just just TAM, And necessarily perimental in China, that helpful. do incremental you expect that shifting come get the of new much the at one is not revenue your Very business to to pull from to of volume benefit. earlier the about volume much trying to last ceramic but what out string for an incremental the net -- of truly how opportunity that to sense the how a from Just maybe a trying be is will locale another? for actually versus facility

Randall Gouveia

be just in DBC. of also of technology power been the is the our of you world a we've stick different modules. called carbide, business X because large for We goes business AMB, baseload way how our goes is really Part sell into I think a at a we ceramic already. high-powered because and is that years. for that there of on looking which Dan, into technologies we're all it's And selling it there have chromic there different is course, it, technology. over would are of to types -- silicon technology the copper China that's

and the module still of because volume Eschenbach, AMB for China provide into carbide DBC is from just power amount silicon we'll being, technology our building. the the business So time there moment is on a at smaller

business So being currently coming that as we from have. to base a see additional of China small but a lot we there's what load,

Operator

further time. back I'd this to like to Colin at no pass call are for over questions There closing remarks. the

Randall Gouveia

joining. to the And for follow-ups all look forward taking our the thanks thanks several and we to coming next of we over you, several join have call. up time Thank days. quarterly But again, for

Operator

This teleconference. concludes today's

You may your disconnect lines.

Rogers (ROG) 24 Oct 242024 Q3 Earnings call transcript