Rogers Reports Q2 2025 Results; Net Sales Up 6.5%

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Rogers Corporation announced financial results for the second quarter of 2025.

"As anticipated, second quarter sales increased sequentially due to incremental improvements across most end markets,” stated Ali El-Haj, Rogers' Interim President and CEO. "Sales, gross margin and adjusted earnings per share were all within our guidance ranges for the quarter. We also utilized our strong balance sheet to repurchase $28 million of shares in Q2.

"Looking ahead to the third quarter we expect further improvement in our results from slightly higher sales and cost reduction measures. Today we also announced further cost savings initiatives targeted to our AES curamik® business, in response to evolving market conditions. We are intently focused on achieving more significant improvements in the Company’s performance over the coming quarters as we improve sales growth with a more agile organization and increased speed of execution."

Q2 2025 Summary of Results

Net sales of $202.8 million increased 6.5% versus the prior quarter. Advanced Electronics Solutions (AES) net sales increased by 4.6% primarily related to higher industrial, ADAS and aerospace and defense (A&D) sales, partially offset by lower wireless infrastructure sales. Elastomeric Material Solutions (EMS) net sales increased by 8.2% primarily from stronger industrial, portable electronics and A&D sales. Currency exchange rates favorably affected total company net sales in the second quarter of 2025 by $3.6 million compared to the prior quarter.

Restructuring and impairment charges were $76.1 million in the second quarter an increase of $70.2 million from the prior quarter. The higher charges were primarily due to a non-cash goodwill impairment charge of $67.3 million, resulting from the lowered outlook for the curamik® business in our AES operating segment.

GAAP losses per diluted share were $(4.00) compared to losses per diluted share of $(0.08) in the previous quarter. The increased loss was due to the increase in restructuring and impairment charges and higher tax expense. Tax expense increased from the prior quarter related to a $3.8 million valuation allowance recorded against deferred tax assets for certain European jurisdictions. On an adjusted basis, earnings were $0.34 per diluted share compared to earnings of $0.27 per diluted share in the prior quarter.

Ending cash and cash equivalents were $157.2 million, a decrease of $18.4 million versus the prior quarter. Net cash provided by operating activities in the second quarter was $13.7 million and capital expenditures were $8.1 million. Share repurchases totaled $28.1 million in the second quarter.

Profitability Improvement Initiatives

Today the Company announced initiatives to reduce costs in the curamik® business in the AES operating segment. These adjustments are in response to market conditions and once fully implemented they are expected to reduce manufacturing costs and operating expenses in excess of $13 million on an annual run-rate basis. Total restructuring charges related to these actions are anticipated to be between $12 to $20 million, spread over the next several quarters.

Financial Outlook

Guidance for the third quarter is based on global tariff policies in place as of July 31, 2025. Rogers has implemented actions that are expected to largely offset the impact of tariffs in the third quarter.

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