Rogers (ROG) Q2 2026 earnings summary

Executive summary

• Q2 2026 sales reached $216.8 million, up 6.9%–7% year-over-year, surpassing guidance midpoint, driven by broad-based demand and market share gains, especially in industrial, electronics, and communications.

• Adjusted EBITDA rose to $37.6 million (17.3% margin), and adjusted EPS was $0.92, both showing significant year-over-year increases.

• Net income was $13.6 million, reversing a $73.6 million net loss in Q2 2025, aided by operational efficiencies and favorable currency.

• Growth was broad-based across industrial, automotive, and electronics/communications, with industrial as the largest end market at 37% of sales.

• New product initiatives in AI/data centers and high-frequency circuit materials are advancing, with positive customer feedback.

Financial highlights

• Q2 net sales: $216.8 million (+6.9% YoY); gross margin: 32.5% (up 90 bps YoY); adjusted EBITDA: $37.6 million (17.3% margin, up 550 bps YoY); adjusted EPS: $0.92 (up 171% YoY).

• Net income: $13.6 million (vs. $73.6 million loss in Q2 2025); operating income: $20 million (vs. $67.5 million loss prior year).

• Free cash flow: $18.3 million; cash and short-term investments: $211 million at Q2 end, up $15.6 million sequentially.

• SG&A expenses decreased year-over-year, supporting margin improvement.

• Share repurchases totaled $3 million in Q2.

Outlook and guidance

• Q3 2026 net sales expected between $233–$243 million, midpoint implies 10% YoY growth.

• Gross margin guidance: 33.2%–34.2%; adjusted EPS forecast: $1.10–$1.30; adjusted EBITDA: $44–$50 million (midpoint margin up 250 bps YoY).

• Full-year capital expenditures projected at $30–$35 million.

• Full-year non-GAAP tax rate projected at 32%.

• Management expects liquidity and cash flows to be sufficient for at least the next 12 months.