Rogers Q2 Earnings Call Highlights

Rogers Q2 Earnings Call Highlights

Rogers delivered strong second-quarter results: Sales rose 6.9% year over year to $216.8 million, while adjusted EBITDA increased to $37.6 million and adjusted EPS surged 171% to $0.92. Growth was led by industrial, electronics and communications, with automotive also posting modest gains. Supply-chain disruptions and a facility incident pressured earnings: Raw-material shortages, freight delays, higher operating expenses and a temporary factory shutdown reduced second-quarter earnings by more than $0.10 per share, although the facility issue has been resolved. The company expects broad growth in the third quarter: Rogers forecast revenue of $233 million to $243 million, adjusted EBITDA of $44 million to $50 million and adjusted EPS of $1.10 to $1.30. Management expects strength in aerospace and defense and general industrial markets, supported by higher volumes and restructuring savings despite commodity-cost and factory-underutilization headwinds.

Rogers NYSE: ROG reported second-quarter 2026 sales growth and substantially higher profitability, while outlining a third-quarter outlook that calls for revenue growth across each of its major end markets. Second-quarter sales totaled $216.8 million, up 6.9% from a year earlier and above the midpoint of the company’s guidance range. President and CEO Ali El-Haj said the top-line performance reflected improving demand and market-share gains. Adjusted EBITDA increased to $37.6 million, or 17.3% of sales, compared with $23.9 million in the prior-year period. Adjusted earnings per share rose 171% year over year to $0.92. Gross margin reached 32.5%, improving 90 basis points from the second quarter of 2025.

Although the company’s adjusted EPS was within its guidance range, it fell below the midpoint due to supply-chain pressures, a one-time facility event and higher operating expenses. Chief Financial Officer Laura Russell said the combined impact of those factors exceeded $0.10 per share. El-Haj said Rogers continues to encounter shortages of certain raw materials, including silver and copper, as well as extended freight lead times related to conditions in the Middle East. Transit times that had historically ranged from four to six weeks have extended to more than 12 weeks in some cases, he said. Rogers also experienced a small fire at one facility that suspended manufacturing for several days and required cleanup work. El-Haj said the issue has been resolved and no employees were injured. Russell later said raw-material and freight headwinds, together with operating-expense timing and investments, represented roughly 70% to 80% of the second-quarter earnings impact. The balance was associated with the facility event.

Industrial remained Rogers’ largest end market, accounting for about 37% of year-to-date sales. Revenue in the segment grew at a high single-digit rate from the prior-year quarter, supported by improving general industrial demand in the U.S. and Europe, particularly in the company’s silicone solutions business. Mass-transit demand was also strong, led by U.S. rail applications. Automotive represented about 25% of quarterly sales and grew at a low single-digit rate year over year. Sales of advanced driver-assistance systems and internal-combustion-engine vehicle applications increased. Electric-vehicle revenue was flat from a year earlier, as better power-substrate sales offset lower orders for EV battery materials. El-Haj said EV and hybrid-electric battery sales improved sequentially, and recent design ...