ROG earnings analysis
What we found in ROG's 10-Q: the parts that mattered, the offsets in the same document, and what the company said about what comes next.
Our reading of the filing · Free to read, no account needed
Rogers delivered a solid Q2 recovery, with revenue up 6.9% year over year to $216.8 million, gross margin up 90 basis points to 32.5%, and operating margin improving to 9.2% from a 33.3% loss. AES and EMS both grew, while lower SG&A and sharply reduced restructuring charges supported the earnings rebound. Cash generation improved, but higher receivables and inventory, a 36.4% tax rate, and continuing restructuring activity temper the otherwise favorable trend.
The parts that mattered.
Pulled out of the filing itself, with the figures the company reported.
- Revenue accelerated to $216.8M
- Q2 revenue was $216.8 million, up $14.0 million (6.9%) year over year and $15.8 million sequentially from $201.0 million in Q1 2026. Higher demand contributed $8.7 million and currency added $5.3 million.
- Gross margin expanded to 32.5%
- Gross margin expanded 90 basis points year over year to 32.5% and 30 basis points sequentially from 32.2%. Higher volume, favorable mix and operating efficiencies outweighed increased raw-material costs.
- Profitability turnaround strengthened
- Operating margin reached 9.2%, versus a 33.3% operating loss a year earlier and 5.3% in Q1 2026. SG&A fell $6.3 million, or 13.0%, to $42.2 million, while restructuring and impairment expense declined to $0.7 million from $76.1 million.
- EPS returned to positive territory
- GAAP diluted EPS was $0.76, versus a $4.00 diluted loss per share in Q2 2025 and $0.25 in Q1 2026. The year-over-year comparison benefited materially from the prior-year $76.1 million restructuring and impairment charge.
- Both core segments delivered growth
- Both core segments grew: AES sales increased $8.5 million to $117.5 million and EMS sales increased $5.4 million to $94.8 million. EMS delivered the stronger margin improvement, rising 170 basis points to 36.9%.
- Operating cash flow improved
- Six-month operating cash flow increased to $30.2 million from $25.4 million. The company also repurchased $3.0 million of shares in Q2, leaving $48.8 million under its authorization.
And the other side of it.
The offsets in the same document — the things a summary that only listed the good news would have left out.
- Receivables and inventory increased
- Working-capital use increased as receivables rose $18.6 million (14.2%) to $149.2 million and inventories rose $5.0 million to $130.0 million since December 31, 2025. Cash declined $15.6 million to $181.4 million, although the company also held $30.0 million of short-term investments.
- Elevated tax rate weighs on earnings
- The Q2 effective tax rate was 36.4%, above the 21% U.S. statutory federal rate, because valuation allowances increased in loss jurisdictions where management does not expect to realize a tax benefit. Tax expense was $7.8 million.
- Restructuring actions remain ongoing
- Restructuring and impairment expense remained $0.7 million in Q2 and $6.6 million year to date, tied to Eschenbach footprint consolidation, executive transition, workforce reductions and a Mexico lease impairment. Item 1A reported no updates to the risk factors in the 2025 Form 10-K.
- Input-cost and trade exposure persists
- Management identified increased raw-material costs as a partial offset to volume, mix and efficiency gains; nevertheless, gross margin improved to 32.5% from 31.6%. The filing also cites global trade restrictions and supply-chain dynamics as potential sources of future volatility.
What they reported.
What the company itself reported, taken out of the document.
- Earnings per share
- $0.76
- Gross margin
- 32.5%
- Operating margin
- 9.2%
- Segment
- Advanced Electronics Solutions (AES): revenue $117.5 million, up 7.8% year over year from $109.0 million; gross margin 28.5% versus 28.3%.
- Segment
- Elastomeric Material Solutions (EMS): revenue $94.8 million, up 6.0% year over year from $89.4 million; gross margin 36.9% versus 35.2%.
- Segment
- Other: revenue $4.5 million, up from $4.4 million; gross margin 42.2% versus 36.4%.
What they said about what is next.
The 10-Q does not provide quantitative revenue or EPS outlook. Management expects 2026 capital spending of approximately $30.0 million to $35.0 million, funded by operating cash flow and cash on hand; it states liquidity is sufficient for operations, planned capex and R&D for at least the next 12 months.
The filing reads better than the one before it.
What came before.
- 10-Q · April 28, 2026
- Rogers Corporation reported Q1 2026 results with net sales of $200.5 million, marking a 5.2% year-over-year increase, and a significant rebound in gross margin to 32.2% compared to 29.9% in the prior year. Adjusted EPS…
- 10-K · February 19, 2026
- Rogers operates two core segments (AES and EMS) focused on high-performance engineered materials with global manufacturing and four Rogers Innovation Centers. 2025 revenue was roughly stable at ~$812.0M (sum of…
- 10-Q · October 30, 2025
- Rogers reported quarterly net sales of $216.0 million (Q3 2025) versus $210.3 million a year earlier, with operating income of $15.7 million (up from $14.6 million). GAAP diluted EPS for the quarter was $0.48 versus…
- 10-Q · August 1, 2025
- Rogers reported Q2 net sales of $202.8M and a gross margin of $64.0M (≈31.6%), but recorded large restructuring and impairment charges of $76.1M that drove an operating loss of $67.5M and a GAAP diluted loss per share…
This is our reading of a public filing, not the filing. Read the original on SEC.gov · Educational only. Nothing here is investment advice.
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