Summary of Rogers Corporation Q1 2026 Earnings Call

1Key Financial Results and Metrics

Sales: $201 million, a 5% year-over-year increase, primarily due to foreign currency benefits and higher industrial demand.

Adjusted EPS: $0.75, more than double the previous year, reflecting improved profitability.

Adjusted EBITDA: $32 million, with margins expanding 580 basis points to 16%.

Cash Position: $196 million in cash at the end of Q1, with cash provided by operations at $5.8 million, a decrease from $46.9 million in Q4 2025.

Capital Expenditures: $4.7 million in Q1, with a full-year expectation of $30 million to $40 million unchanged.

2Strategic Updates and Business Highlights

Market Segmentation: Streamlined reporting into four primary end markets: Industrial (37% of sales), Automotive (24%), Electronics and Communications (18%), and Aerospace and Defense (15%).

Growth in Industrial: Double-digit growth driven by increased demand and market share gains.

Automotive Segment: Experienced a high single-digit decline due to lower global light vehicle production; however, positive design wins are expected to drive future growth.

Electronics and Communications: Saw a double-digit increase, driven by higher smartphone and wireless infrastructure sales.

Aerospace and Defense: Slight year-over-year improvement, with expectations for continued growth.

R&D Initiatives: Progress in microchannel cooler technology for data centers and high-frequency circuit materials, with customer sampling expected in the next two quarters.

3Forward Guidance and Outlook

Q2 Sales Forecast: Expected to be between $210 million and $220 million, representing a 6% year-over-year increase.

Adjusted EPS Guidance: Projected to range from $0.90 to $1.10, compared to $0.34 in Q2 2025.

Adjusted EBITDA: Anticipated to range from $35 million to $41 million, with an EBITDA margin of approximately 17.7%.

Continued Focus: On improving profitability and executing growth initiatives, including potential M&A opportunities.

4Bad News, Challenges, or Points of Concern

Supply Chain Disruptions: Adverse weather and supplier disruptions impacted Q1 operations, which could have led to higher sales if not for these issues.

Automotive Market Weakness: Decline in automotive sales due to lower production and regulatory challenges, particularly affecting the EV market in the U.S. and China.

Cash Flow Decline: Significant drop in cash provided by operations compared to the previous quarter, driven by inventory reductions not expected to repeat in Q1 2026.

Restructuring Costs: Ongoing restructuring in Germany with associated costs impacting financials.

5Notable Q&A Insights

Design Wins: Several design wins in EV and ADAS expected to convert to revenue between Q2 and Q4 2026, with significant potential in data center applications, although initial revenues will be modest.

Capacity Management: Sufficient capacity to meet demand for the next 6-8 quarters, with a focus on geographical rebalancing rather than new investments.

Pricing Strategy: Pricing adjustments will be market-driven, with a preference for internal cost management before passing on increases to customers.

Outlook on Defense: No change in growth expectations for aerospace and defense despite geopolitical tensions, with a positive outlook for restocking and project timing. This summary encapsulates the key points from the earnings call, providing a balanced view of Rogers Corporation's performance and outlook.