Rogers Corporation

What they do

Rogers makes advanced electronic and elastomeric materials used in applications such as EV/HEV powertrains, automotive safety and radar systems, mobile devices, renewable energy and wireless infrastructure. The company is organized around Advanced Electronics Solutions (AES) and Elastomeric Material Solutions (EMS), supported by an Elastomer Components Division. It maintains manufacturing, sales and administrative operations in several countries, including the United States, China, Germany, England, Belgium, South Korea and Hungary. Rogers also holds joint ventures with INOAC, including Rogers Inoac Corporation and Rogers Inoac Suzhou Corporation.

Revenue drivers

• Advanced Electronics Solutions (AES) — Serves EV/HEV, ADAS/radar, portable electronics, wireless infrastructure and renewable energy applications; the 10-Q defined-terms table identifies AES as a reported operating segment.
• Elastomeric Material Solutions (EMS) — Another reported segment, providing elastomeric materials for automotive safety, energy-efficient motor drives, industrial equipment and other applications; supported by the Elastomer Components Division.
• End-market mix (industrial and electronics/communications) — Q2 2026 revenue growth was concentrated primarily in the industrial, and electronics and communications end markets, with net sales up 6.9% year over year to $216.8 million.

Recent performance

Second quarter 2026 net sales were $216.8 million, up 6.9% from $202.8 million a year earlier, with currency exchange rates adding $5.3 million favorably. Gross margin of 32.5% improved from 31.6%; net income was $13.6 million versus a $73.6 million loss in Q2 2025, which included $71.8 million of non-cash impairment charges and $4.3 million of restructuring. Adjusted EBITDA rose $13.7 million to $37.6 million, and adjusted diluted EPS was $0.92 versus $0.34. First-half 2026 sales were $417.3 million with net income of $18.1 million.

Strategy

Management, led by President and CEO Ali El-Haj, is focused on improving operating performance, commercial initiatives and positioning Rogers for sustainable long-term growth. The company targets growth opportunities in EV/HEV, ADAS, portable electronics, renewable energy, and aerospace and defense markets. It is pursuing new product initiatives and higher customer activity levels while contending with supply chain challenges. Rogers funds this with cash generation: Q2 2026 operating cash flow was $24.4 million, capital expenditures $6.1 million, and free cash flow $18.3 million.

Risks

• Growth-market volatility — Rogers' EV/HEV, ADAS, portable electronics and renewable energy targets have been volatile, cyclical and prone to adoption delays, which has reduced product demand and risks overcapacity or inventory obsolescence.
• Geographic and trade exposure — Significant manufacturing, sales or administrative operations in China, Germany, England, Belgium, South Korea and Hungary expose Rogers to uncertain economic conditions and trade policy shifts, tariffs and supply chain decoupling.
• Foreign currency and supplier dependence — Currency rates moved Q2 2026 sales favorably by $5.3 million, but fluctuations are a stated risk; the company also depends on sole or limited-source suppliers for certain key raw materials.
• Regulatory and legal matters — The 10-Q lists legal proceedings and risk factors, and the 10-K references PFAS and U.S. EPA matters, indicating environmental and regulatory exposures.

Outlook

For the third quarter of 2026, Rogers guides net sales of $233 million to $243 million, gross margin of 33.2% to 34.2%, adjusted diluted EPS of $1.10 to $1.30, and adjusted EBITDA of $44 million to $50 million. Management expects continued year-over-year improvement in all financial metrics in the third quarter, citing new product initiatives and increased customer activity. Full-year 2026 capital expenditures are planned at $30 million to $35 million.