Earnings Recap — Q2 FY2026
CY Q3 2026 · Reported July 28, 2026 · Beat 6 of last 7 quarters
The Buildout is a website built on agentic AI tools, currently in beta, and could have factual errors.
Rogers is positioning itself as a supplier to AI data center thermal management and high-frequency circuit materials, with customer sampling and validation progressing. While AI-related revenue is not yet material, the company's engagement with multiple customers signals potential future content in next-generation AI infrastructure. The company's global manufacturing footprint could benefit from regional supply chain shifts driven by geopolitical uncertainty.
Rogers delivered Q2 sales of $216.8M, up 6.9% YoY, with growth in industrial, automotive, and electronics & communications, while aerospace & defense declined slightly due to defense timing. Adjusted EBITDA rose 550 bps to 17.3% of sales, and adjusted EPS grew 171% to $0.92, though below midpoint due to supply chain headwinds, a small plant fire, and higher OpEx. The company continued to ramp its new China factory, which was a $1M EBITDA headwind, and repurchased $3M of shares. Management highlighted progress on microchannel coolers and high-frequency circuit materials for AI data centers, with customer sampling underway.
Management guided Q3 revenue to $233M-$243M (midpoint +10% YoY), with growth across all four end markets and particular strength in aerospace & defense and general industrial. Adjusted EBITDA is expected to be $44M-$50M (19.7% margin at midpoint, +250 bps YoY), with adjusted EPS of $1.10-$1.30. Gross margin is guided to 33.2%-34.2%, with continued headwinds from China factory underutilization (~85 bps) and commodity costs. Management reiterated momentum from design wins and share gains, and expects defense sales to improve significantly in H2. They also announced an Analyst & Investor Day on September 30, 2026, to detail strategy, AI data center opportunities, and capital allocation.
“We are making substantial progress with our customers and feedback on the differentiated performance of our solutions remain highly encouraging.”
on AI data center thermal management
“We are now actively sampling these materials with multiple prospective customers and initial feedback has been very positive.”
on High-frequency circuit materials for data centers
“We have not seen any major shift or changes either in customer sentiment or in their interaction with us or the new programs that's expected that we're working on.”
on Customer demand stability
Can you elaborate on the supply chain challenges and the one-time event, and whether those issues have been resolved?
Ali explained raw material shortages (silver, copper) and freight delays due to Middle East situation, with transit times extending from 4-6 weeks to over 12 weeks. A small fire at one plant suspended manufacturing for a few days but was resolved; freight and raw material tightness persist, though 'light at the end of the tunnel' on raw materials.
What are the biggest contributors to the accelerating growth, and are the drivers longer-lived or seasonal?
Ali attributed growth to market share gains, new program wins launching in Q3/Q4 and into 2027, and improved operational performance (shorter lead times, customer responsiveness). He characterized the growth as broad-based and not seasonal, with momentum expected to continue.
Is the A&D timing a big part of the sequential acceleration, and where are you on the $13M cost-saving program?
Ali said defense was lower than expected but timing-related, with backlog showing significant growth in H2. Laura confirmed the restructuring program at the German facility is on track to deliver $13M annualized savings by Q4, with some savings already materializing.