ROGERS CORP
For the period ended Jun 30, 2026. Filed Jul 29, 2026.
View on SEC.govAbout this filing
A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Jun 30, 2026 · Filed Jul 29, 2026
ROG$121.96+5.4%Stored close · as of Nov 6, 2026
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-Q
Period ended 2026-03-31; filed 2026-04-29.
0000084748-26-000023
Item 2. Management’s Discussion and Analysis of Results of Operations and Financial PositionCurrent report: 10-Q
Period ended 2026-06-30; filed 2026-07-29.
0000084748-26-000048
Item 2. Management’s Discussion and Analysis of Results of Operations and Financial PositionThe baseline is this issuer’s latest earlier reporting period of the same form that was filed before the current report. A previous 10-Q is a different quarter, not a year-over-year comparison. Amendments are excluded.
Compared 68 previous paragraphs and 83 current paragraphs.
46 unchanged; 19 reworded; 16 added; 3 removed; 0 previous and 2 current paragraphs rearranged.
Tables are not compared: 14 previous and 14 current tables excluded. Dates, whitespace, punctuation and numbering changes are ignored; changes to financial figures remain significant.
A changed paragraph is not evidence that risk increased or decreased. An unchanged paragraph does not establish that risk stayed the same.
Added paragraphs (16)
Current report
•We repurchased 22.6 thousand shares of our capital stock for $3.0 million in the second quarter of 2026.
Current report
Net sales increased in the second quarter by 6.9%, or $14.0 million, of which $8.7 million was driven by higher demand and $5.3 million of currency benefit. By end market, sales increased in the electronics and communications, industrial, and automotive markets, partially offset by lower net sales in the aerospace and defense market, in the second quarter of 2026 compared to the second quarter of 2025.
Current report
Net sales increased in the first six months by 6.1%, or $24.0 million, of which $10.9 million was driven by higher demand and $13.1 million of currency benefit. By end market, sales increased in the electronics and communications and industrial markets, partially offset by lower net sales in the automotive market, in the six months ended June 30, 2026 compared to the six months ended June 30, 2025.
Current report
Gross margin as a percentage of net sales increased approximately 160 basis points to 32.4% in the six months ended June 30, 2026 compared to 30.8% in the six months ended June 30, 2025. Gross margin in the six months ended June 30, 2026 increased due to higher sales volume, favorable mix, and productivity improvements from cost savings following our manufacturing footprint consolidation in Belgium and Germany, partially offset by increased raw material costs.
Current report
SG&A expenses decreased 10.3% in the six months ended June 30, 2026 from the six months ended June 30, 2025, primarily due to a $2.2 million reduction in total compensation and benefit expense, a $4.6 million reduction in professional services costs, and a $1.4 million reduction in software costs.
Current report
R&D expenses decreased 0.7% in the six months ended June 30, 2026 from the six months ended June 30, 2025, primarily due to a $1.1 million decrease in compensation and benefits expense, partially offset by a $0.2 million increase in professional services and a $0.5 million increase in R&D trials for product development.
Current report
We had a negative tax rate of 6.2% in the second quarter of 2025 due to tax expense on a pre-tax book loss. Our income tax expense for the second quarter of 2025 of $4.3 million was comprised primarily of an increase in the valuation allowance attributable to loss jurisdictions in which no tax benefit is anticipated to be realized. Our effective tax rate was also unfavorably impacted by the $67.3 million goodwill impairment in curamik® for which no tax benefit is available.
Current report
We had a tax rate of 44.6% in the six months ended June 30, 2026. The effective rate for the first six months of 2026 was unfavorably impacted by an increase in the valuation allowance attributable to loss jurisdictions in which no tax benefit is anticipated to be realized.
Current report
We had a negative tax rate of 5.8% for the six months ended June 30, 2025 due to tax expense on a pre-tax book loss. Our income tax expense for the six months ended June 30, 2025 of $4.1 million was comprised primarily of an increase in the valuation allowance attributable to loss jurisdictions in which no tax benefit is anticipated to be realized. Our effective tax rate was also unfavorably impacted by the $67.3 million goodwill impairment in curamik® for which no tax benefit is available.
Current report
AES net sales increased in the first six months by 5.6%, or $12.0 million, of which $3.5 million was driven by higher demand and $8.5 million of currency benefit. By end market, sales increased for electronics and communications, automotive, and industrial, while sales in the aerospace and defense market were lower, in the six months ended June 30, 2026 compared to the six months ended June 30, 2025.
Current report
Our AES operating and reportable segment gross margin as a percentage of net sales in the second quarter of 2026 was 28.5% as compared to 28.3% in the second quarter of 2025. Gross margin improved primarily due to higher sales volume and favorable mix, partially offset by increased raw material costs.
Current report
EMS net sales increased in the first six months by 6.5%, or $11.2 million, of which $6.9 million was driven by higher demand and $4.3 million of currency benefit. By end market, sales increased in the industrial, electronics and communications, and aerospace and defense markets, partially offset by lower sales in the automotive market, in the six months ended June 30, 2026 compared to the six months ended June 30, 2025.
Current report
Our EMS operating and reportable segment gross margin as a percentage of net sales in the six months ended June 30, 2026 was 36.2% as compared to 33.8% in the six months ended June 30, 2025. Gross margin improved primarily due to increased sales volume and related utilization benefits and productivity improvements.
Current report
•Short-term investments were $30.0 million as compared to nil as of December 31, 2025. The addition of short-term investments was due to the purchase of time deposits with original maturities of more than three months and less than twelve months at the date of purchase, as of June 30, 2026.
Current report
•Net cash used in investing activities was $40.3 million as compared to $3.4 million as of June 30, 2025, an increase in net cash used of $36.9 million. This increase in net cash used was primarily due to purchases of short-term investments, which consists of time deposits with original maturities of more than three months and less than twelve months at the date of purchase.
Current report
•Net cash used in financing activities was $4.6 million as compared to $29.6 million as of June 30, 2025, a decrease in net cash used of $25.0 million. This decrease in net cash used was primarily due to a lower level of share repurchase activity.
Removed paragraphs (3)
Previous report
•We recognized restructuring charges of $5.7 million in the first quarter of 2026 due to our manufacturing footprint consolidation in our Eschenbach, Germany facility, our executive leadership transition and additional reduction in force actions.
Previous report
Net sales increased by 5.2%, or $10.0 million, inclusive of a $7.9 million benefit from the appreciation of the euro and Chinese yuan relative to the U.S. dollar. By end market, sales increased in the industrial and electronics and communications markets, partially offset by lower net sales in the automotive market, in the first quarter of 2026 compared to the first quarter of 2025.
Previous report
We had a tax rate of 12.5% in the first quarter of 2025 when we incurred a loss before income taxes of $1.6 million, which, when taxed at the 21% U.S. statutory federal income tax rate, resulted in an immaterial income tax benefit, partially offset by insignificant tax adjustments that caused the effective tax rate to differ from the statutory rate.
Reworded paragraphs (19)
Previous wording
•In the first quarter of 2026 as compared to the first quarter of 2025, our net sales increased approximately 5.2% to $200.5 million, our gross margin increased approximately 230 basis points to 32.2% from 29.9%, and we had an operating margin of 5.3% compared to an operating loss of 0.2%.
Current wording
•In the second quarter of 2026 as compared to the second quarter of 2025, our net sales increased approximately 6.9% to $216.8 million, our gross margin increased approximately 90 basis points to 32.5% from 31.6%, and we had an operating margin of 9.2% compared to an operating loss of 33.3%.
Previous wording
Gross margin as a percentage of net sales increased approximately 230 basis points to 32.2% in the first quarter of 2026 compared to 29.9% in the first quarter of 2025. Gross margin in the first quarter of 2026 increased due to higher net sales, favorable mix, and cost savings following our manufacturing footprint consolidation in Belgium.
Current wording
Gross margin as a percentage of net sales increased approximately 90 basis points to 32.5% in the second quarter of 2026 compared to 31.6% in the second quarter of 2025. Gross margin in the second quarter of 2026 increased due to higher sales volume, favorable mix, and operational efficiencies, partially offset by increased raw material costs.
Previous wording
SG&A expenses decreased 7.4% in the first quarter of 2026 from the first quarter of 2025, primarily due to a $2.3 million reduction in professional services costs, and a $0.9 million reduction in software costs.
Current wording
SG&A expenses decreased 13.0% in the second quarter of 2026 from the second quarter of 2025, primarily due to a $2.1 million reduction in professional services costs, a $2.2 million reduction in total compensation and benefit expense, and a $0.5 million reduction in software costs.
Previous wording
R&D expenses decreased 5.6% in the first quarter of 2026 from the first quarter of 2025, primarily due to a reduction in employee compensation and benefits.
Current wording
R&D expenses increased 4.3% in the second quarter of 2026 from the second quarter of 2025, primarily due to a $0.5 million increase in R&D trials for product development, partially offset by a $0.4 million decrease in compensation and benefits expense.
Previous wording
We incurred restructuring and impairment charges of $5.9 million in the three months ended March 31, 2026, due to our footprint consolidation actions in our Eschenbach, Germany facility, the executive leadership transition an additional reduction in force, and the impairment of our Mexico facility lease. For additional information, refer to “Note 13 – Supplemental Financial Information” to the condensed consolidated financial statements in Part I, Item 1, of this Form 10-Q.
Current wording
We incurred restructuring and impairment charges of $0.7 million and $6.6 million in the three and six months ended June 30, 2026, due to our footprint consolidation actions in our Eschenbach, Germany facility, the executive leadership transition, additional reduction in forces, and the impairment of our Mexico facility lease. For additional information, refer to “Note 13 – Supplemental Financial Information” to the condensed consolidated financial statements in Part I, Item 1, of this Form 10-Q.
Previous wording
Other income (expense), net was income of $0.3 million in the first quarter of 2026 compared to expense of $1.6 million in the first quarter of 2025. The increase was primarily due to $2.6 million of favorable year-over-year changes in impacts from foreign currency transactions, partially offset by $1.0 million in unfavorable performance on foreign exchange and copper derivative contracts.
Current wording
Other income (expense), net was income of $1.1 million in the second quarter of 2026 compared to expense of $2.2 million in the second quarter of 2025. The increase was primarily due to $3.8 million of favorable year-over-year changes in impacts from foreign currency transactions combined with $0.6 million for our copper derivative, partially offset by $1.0 million in unfavorable performance on foreign exchange derivative contracts.
Previous wording
Interest income, net, was flat year-over-year.
Current wording
Interest income, net, was flat for the three and six months ended June 30, 2026 compared to the three and six months ended June 30, 2025.
Previous wording
Compared to the 21% U.S. statutory federal income tax rate, we had a tax rate of 60.2% in the first quarter of 2026. During the quarter, our effective tax rate was unfavorably impacted by an increase in the valuation allowance attributable to loss jurisdictions in which no tax benefit is anticipated to be realized.
Current wording
Compared to the 21% U.S. statutory federal income tax rate, we had a tax rate of 36.4% in the second quarter of 2026. During the quarter, our effective tax rate was unfavorably impacted by an increase in the valuation allowance attributable to loss jurisdictions in which no tax benefit is anticipated to be realized.
Previous wording
AES net sales increased by 3.4%, or $3.5 million, inclusive of a $5.3 million benefit from the appreciation of the euro and Chinese yuan relative to the U.S. dollar. Inclusive of the foreign currency benefits, net sales by end market increased for electronics and communications, and industrial, while net sales in the aerospace and defense market were lower, in the first quarter of 2026 compared to the first quarter of 2025.
Current wording
AES net sales increased in the second quarter by 7.8%, or $8.5 million, of which $5.2 million was driven by higher demand and $3.3 million of currency benefit. By end market, sales increased for electronics and communications, and automotive, while sales in the aerospace and defense market were lower, in the second quarter of 2026 compared to the second quarter of 2025.
Previous wording
Our AES operating and reportable segment gross margin as a percentage of net sales in the first quarter of 2026 was 29.2% as compared to 27.9% in the first quarter of 2025. Gross margin improved primarily due to cost savings following our manufacturing footprint consolidation in Belgium, partially offset by lower utilization from a new production line.
Current wording
Our AES operating and reportable segment gross margin as a percentage of net sales in the six months ended June 30, 2026 was 28.8% as compared to 28.1% in the six months ended June 30, 2025. Gross margin improved primarily due to higher sales volume, favorable mix, and productivity improvements from cost savings following our manufacturing footprint consolidation in Belgium and Germany, partially offset by lower utilization from a new production line and increased raw material costs.
Previous wording
EMS net sales increased by 7.0%, or $5.8 million, including $2.5 million of favorable impact from the appreciation of the euro and Chinese yuan relative to the U.S. dollar. By end market, sales increased in the industrial, electronics and communications, and aerospace and defense markets, partially offset by lower sales in the automotive market, in the first quarter of 2026 compared to the first quarter of 2025.
Current wording
EMS net sales increased in the second quarter by 6.0%, or $5.4 million, of which $3.6 million was driven by higher demand and $1.8 million of currency benefit. By end market, sales increased in the industrial, electronics and communications, and aerospace and defense markets, partially offset by lower sales in the automotive market, in the second quarter of 2026 compared to the second quarter of 2025.
Previous wording
Our EMS operating and reportable segment gross margin as a percentage of net sales in the first quarter of 2026 was 35.4% as compared to 32.3% in the first quarter of 2025. Gross margin improved primarily due to increased sales volume and related utilization benefits and favorable mix.
Current wording
Our EMS operating and reportable segment gross margin as a percentage of net sales in the second quarter of 2026 was 36.9% as compared to 35.2% in the second quarter of 2025. Gross margin improved primarily due to increased sales volume and related utilization benefits and operational efficiencies.
Previous wording
Approximately $86.5 million of our cash and cash equivalents were held by non-U.S. subsidiaries as of March 31, 2026. We did not make any changes in the three months ended March 31, 2026 to our position on the permanent reinvestment of our earnings from foreign operations. With the exception of certain of our Chinese subsidiaries, where a substantial portion of our cash and cash equivalents located in Asia are held, we continue to assert that historical foreign earnings are indefinitely reinvested.
Current wording
Approximately $107.1 million of our cash and cash equivalents were held by non-U.S. subsidiaries as of June 30, 2026. We did not make any changes in the six months ended June 30, 2026 to our position on the permanent reinvestment of our earnings from foreign operations. With the exception of certain of our Chinese subsidiaries, where a substantial portion of our cash and cash equivalents located in Asia are held, we continue to assert that historical foreign earnings are indefinitely reinvested.
Previous wording
Changes in key financial position accounts and other significant changes in our statements of financial position from December 31, 2025 to March 31, 2026 were as follows:
Current wording
Changes in key financial position accounts and other significant changes in our condensed consolidated statements of financial position from December 31, 2025 to June 30, 2026 were as follows:
Previous wording
•Cash and cash equivalents were $195.8 million as compared to $197.0 million as of December 31, 2025, a decrease of $1.2 million, or 0.6%. This decrease was primarily due to cash used in investing and financing activities, partially offset by cash provided by operations and favorable impacts of exchange rates on cash.
Current wording
•Cash and cash equivalents were $181.4 million as compared to $197.0 million as of December 31, 2025, a decrease of $15.6 million, or 7.9%. This decrease was primarily due to cash used in investing and financing activities, partially offset by cash provided by operations and favorable impacts of exchange rates on cash.
Previous wording
•Accounts receivable, net increased 8.8% to $142.1 million as of March 31, 2026 from $130.6 million as of December 31, 2025. The increase was primarily due to higher net sales in the last month of the first quarter of 2026 compared to the last month of the fourth quarter of 2025.
Current wording
•Accounts receivable, net increased 14.2% to $149.2 million as of June 30, 2026 from $130.6 million as of December 31, 2025. The increase was primarily due to higher net sales in the last month of the second quarter of 2026 compared to the last month of the fourth quarter of 2025.
Previous wording
•Inventories were $127.5 million as of March 31, 2026, compared to $125.0 million as of December 31, 2025. The change was due to higher levels of raw materials and work-in-process inventory, offset by lower levels of finished goods.
Current wording
•Inventories were $130.0 million as of June 30, 2026, compared to $125.0 million as of December 31, 2025. The change was due to higher levels of raw materials inventory, offset by lower levels of work-in-process and finished goods inventory.
Previous wording
In 2026, we expect capital spending to be in the range of approximately $30.0 million to $40.0 million. We plan to fund our capital spending in 2026 with cash from operations and cash on-hand.
Current wording
In 2026, we expect capital spending to be in the range of approximately $30.0 million to $35.0 million. We plan to fund our capital spending in 2026 with cash from operations and cash on hand.
Previous wording
During the first quarter of 2026, we did not become aware of any material developments related to environmental matters disclosed in our Annual Report, our asbestos litigation or other material contingencies previously disclosed or incur any material costs or capital expenditures related to such matters. Refer to “Note 9 – Commitments and Contingencies” to the condensed consolidated financial statements in Part I, Item 1 of this Form 10-Q for further discussion of these contingencies.
Current wording
During the second quarter of 2026, we did not become aware of any material developments related to environmental matters disclosed in our Annual Report, our asbestos litigation or other material contingencies previously disclosed or incur any material costs or capital expenditures related to such matters. Refer to “Note 9 – Commitments and Contingencies” to the condensed consolidated financial statements in Part I, Item 1 of this Form 10-Q for further discussion of these contingencies.
Rearranged current paragraphs (2)
Current report — wording carried from elsewhere
Other income (expense), net was income of $1.4 million in the six months ended June 30, 2026 compared to expense of $3.8 million in the six months ended June 30, 2025. The increase was primarily due to $6.4 million of favorable year-over-year changes in impacts from foreign currency transactions, partially offset by $1.8 million in unfavorable performance on foreign exchange derivative contracts.
Current report — wording carried from elsewhere
Changes in key cash flow measures and other significant changes in our condensed consolidated statements of cash flows from June 30, 2025 to June 30, 2026 were as follows: