Rogers Corporation — Third Quarter 2026 Earnings Summary

Financial Performance:

• Net sales reached $236.1 million, an increase of 9.3% year-over-year compared to $216.0 million in Q3 2025.
• Gross margin improved to 34.2%, up 70 basis points from 33.5% in Q3 2025.
• Net income increased to $22.6 million, a $14.0 million year-over-year improvement from $8.6 million in Q3 2025.
• Diluted earnings per share (EPS) were $1.26, up $0.78 from $0.48 in Q3 2025.
• Adjusted EPS was $1.39, an increase of $0.49 year-over-year from $0.90 in Q3 2025.
• Adjusted EBITDA rose to $47.7 million, an increase of $10.5 million from $37.2 million in Q3 2025.
• Net cash provided by operating activities was $41.4 million, compared to $28.9 million in Q3 2025.
• Free cash flow totaled $35.4 million, up from $21.2 million in Q3 2025.
• Capital expenditures were $6.0 million.
• Share repurchases totaled $9.3 million.

Guidance and Future Outlook:

• Q4 2026 net sales are expected to range between $215 million and $225 million.
• Q4 2026 gross margin is projected to be between 32.5% and 33.5%.
• Q4 2026 adjusted EPS guidance is set at $0.90 to $1.10.
• Q4 2026 adjusted EBITDA guidance is $37 million to $43 million.
• Full-year 2026 capital expenditures are forecasted between $30 million and $35 million.
• Management expects further year-over-year improvement in financial performance for the fourth quarter, driven by commercial execution and operational effectiveness.

Business Segments and Product Lines:

• Sales growth was primarily concentrated in the electronics, communications, and automotive end markets.
• Currency exchange rates favorably impacted net sales by $2.4 million in the third quarter of 2026 compared to the prior year.
• Rogers Corporation operates as a global leader in engineered materials for power, protection, and connectivity, serving applications including EV/HEV, automotive safety, radar systems, mobile devices, renewable energy, wireless infrastructure, and energy-efficient motor drives.

Market and Competitive Landscape:

• The company leverages proven capabilities and deep customer relationships to drive growth in core markets and high-potential adjacent opportunities.
• Management cited improved execution and closer customer engagement as key drivers for stronger results.

Risks and Challenges:

• Forward-looking statements are subject to risks including volatility in growth opportunities, delays in technology adoption, and the ability to realize benefits from cost reduction and restructuring initiatives.
• Risks include uncertain business, economic, and political conditions in specific regions (China, Germany, England, Belgium, South Korea, and Hungary).
• Potential impacts from global trade policy dynamics, tariffs, supply chain decoupling, and foreign currency fluctuations are noted.
• Other risks involve raw material supply constraints, business interruptions from catastrophes, sanctions, litigation outcomes (including asbestos-related product liability), and cybersecurity breaches.

Management Commentary and Tone:

• Ali El-Haj, President and CEO, stated that third-quarter results demonstrate continued strengthening of financial performance with year-over-year growth in sales, adjusted EBITDA, and adjusted earnings per share.
• Management attributed the improved results to better execution, closer customer engagement, and a more efficient operating structure.
• The tone is confident, emphasizing a disciplined focus on execution and a healthy balance sheet to translate growth opportunities into stronger earnings and shareholder returns.

Other Key Points:

• Cash and cash equivalents at the end of the third quarter were $206.1 million, with short-term investments of $30.3 million, representing a $25.0 million increase from the prior quarter.
• The company reported a significant reduction in restructuring and impairment charges to $1.0 million in Q3 2026, down from $7.1 million in Q3 2025.
• Asbestos-related insurance recoverables totaled $52.8 million ($4.7 million current, $48.1 million non-current) as of September 30, 2026.
• A conference call to discuss results was held on October 27, 2026, at 5:00 pm ET.