Rogers (ROG) Q2 2025 earnings summary

Executive summary

• Q2 2025 net sales reached $202.8 million, up 6.5% sequentially but down 5.3% year-over-year, with growth in industrial, portable electronics, A&D, and ADAS markets, while wireless infrastructure and EV/HEV sales declined.

• Gross margin improved to 31.6%, up 170 basis points sequentially, but down 250 basis points year-over-year.

• Net loss of $73.6 million included $71.8 million in non-cash impairment charges and $4.3 million in restructuring expenses related to the curamikⓇ business.

• Adjusted EPS was $0.34, up from $0.27 in Q1 2025, within guidance.

• Leadership transition to an interim CEO and executive departures occurred, with restructuring actions underway to improve margins and cost structure.

Financial highlights

• Q2 2025 net loss was $73.6 million (GAAP), or $(4.00) per share, mainly due to $71.8 million in impairment charges.

• Adjusted EBITDA reached $23.9 million (11.8% of sales), up from $19.5 million in Q1 2025.

• Free cash flow was $5.6 million, up from $2.1 million in the previous quarter.

• Cash and cash equivalents at quarter-end were $157.2 million, down $18.4 million sequentially, with $28.1 million in share repurchases.

• Q2 2025 SG&A expenses were $48.5 million (23.9% of sales), and R&D expenses were $7.0 million (3.5% of sales), both down year-over-year.

Outlook and guidance

• Q3 2025 net sales expected between $200 million and $215 million, with gross margin guidance of 31.5%–33.5%.

• Adjusted EPS for Q3 projected at $0.50–$0.90; GAAP EPS expected between $0.00 and $0.40, including severance and restructuring charges.

• 2025 capital expenditures forecasted at $30 million to $40 million, funded by operations and cash on hand.

• Cost reduction initiatives in the curamikⓇ business expected to yield over $13 million in annual savings, with $12–$20 million in related expenses.

• Restructuring of the Belgium facility is expected to improve annual operating income by $7–$9 million once completed in H2 2025.