Rogers (ROG) Q4 2025 earnings summary

Executive summary

• Q4 2025 sales reached $202 million, near the high end of guidance, with adjusted EPS of $0.89 and adjusted EBITDA margin of 17.1%, both exceeding guidance and up 5% and 94% year-over-year, respectively.

• Year-over-year, Q4 sales grew 5% and adjusted EBITDA margin improved by 500 basis points, driven by end market recovery, cost savings, and structural changes.

• Net sales for 2025 were $810.8 million, with gross margin at 31.7% for the year and 31.5% in Q4.

• Significant free cash flow was generated, with $14 million in Q4 share repurchases and a leaner cost structure positioning for 2026.

• Structural changes included a more agile organization, enhanced customer relationships, and faster R&D execution.

Financial highlights

• Q4 adjusted EBITDA was $34.4 million, up from $23.3 million in Q4 2024; margin improved to 17.1%.

• Adjusted EPS nearly doubled year-over-year to $0.89, reflecting higher sales and lower operating expenses.

• Cash at year-end was $197 million, up $29.2 million from Q3, with $46.9 million provided by operations in Q4.

• Free cash flow for Q4 2025 was $42.2 million, with $71.1 million for the full year.

• Full-year capital expenditures were $50 million, at the low end of guidance.

Outlook and guidance

• Q1 2026 sales are expected between $193 million and $208 million, a midpoint increase of 5% year-over-year.

• Q1 gross margin guidance is 30.5%-32.5%, with adjusted EBITDA margin at 15.5% (midpoint), up 530 basis points year-over-year.

• Adjusted EPS for Q1 2026 is forecasted at $0.45-$0.85, with a midpoint of $0.65 versus $0.27 in Q1 2025.

• Full-year 2026 capital expenditures are guided at $30-$40 million.

• Focus areas for 2026 include leveraging capacity, securing design wins, maintaining cost discipline, and increasing adjusted EBITDA.