Want to see ROG full AI Analyst Report?
Rogers (ROG) Q3 2026 Earnings Report
ROG Q3 2026 EPS Results
- Actual EPS
- $1.39
- Consensus EPS
- $1.19
- Beat/Miss
- Beat by +$0.20
- One Year Ago EPS
- $0.90
ROG Q3 2026 Revenue Results
- Actual Revenue
- $236.10M
- Expected Revenue
- $238.00M
- Beat/Miss
- Missed by -$1.90M
- YoY Revenue Growth
- +9.31%
Earnings Announcement Details
- Quarter
- Q3 2026
- Date
- 10/27/2026
- Time
- After Close
- Conference Call
- Tuesday, October 27, 2026
Rogers's next earnings date is estimated for February 23, 2027, based on past reporting schedules.
Q3 2026 Earnings Call Audio
Q3 2026 Earnings Slide Deck
Q3 2026 Earnings Call Summary
The call was strongly positive, with broad year-over-year sales growth, significant adjusted EPS and EBITDA improvement, a five-year-high EBITDA margin, strong cash generation, new design wins and increasing customer activity across data-center, automotive, battery-safety and EMI-shielding opportunities. The main challenges were supply limitations, commodity-cost headwinds, higher Suzhou facility costs, lower smartphone sales, a seasonally expected sequential Q4 revenue decline and higher taxes. Highlights significantly outweighed the lowlights.
For the fourth quarter, management expects approximately 9% revenue growth, 12% adjusted EPS growth and a 16% increase in adjusted EBITDA year over year, with sales forecast to decline sequentially and revenues between $215 million and $225 million; aerospace and defense and industrial are expected to deliver year over year growth. Gross margin is guided to 32.5% to 33.5%, adjusted operating expenses are expected to increase modestly year over year while improving by more than 100 basis points as a percent of sales, adjusted EPS is forecasted to range from $0.90 to $1.10, adjusted EBITDA is anticipated to range from $37 million to $43 million, equating to 16% increase versus the fourth quarter of 2025 at the midpoint of the range, and the non-GAAP full-year tax rate is projected to be approximately 31%. Management expects growth to continue in 2027, versus organic growth of about 5% per year indicated at Investor Day, and expects some new products to launch in the second half of next year, towards Q3, Q4; it remains confident in $100 million of revenue by 2028 and its objective internally is to beat $450 million by 2030.
- Strong Third-Quarter Financial ImprovementThird-quarter sales were $236 million, up 9% from the prior year. Adjusted EPS increased 54% to $1.39, the highest quarterly earnings since 2022, while adjusted EBITDA increased 28% to $48 million, representing greater than 20% of sales.
- Five-Year High in EBITDA MarginAdjusted EBITDA was $47.7 million versus $37.2 million in the prior-year quarter, and adjusted EBITDA margin expanded 300 basis points to 20.2%, its highest level since 2020 and the highest EBITDA margin achieved in the last 5 years.
- Gross Margin ExpansionGross margin increased 70 basis points year over year to 34.2%. The improvement resulted from higher volume and mix, partially offset by increases in commodity costs.
- Growth Across All Major End MarketsSales increased across all end markets, reflecting improved demand, new program activities and continued execution against commercial priorities.
- Industrial and Automotive PerformanceIndustrial, representing 34% of third-quarter sales, improved slightly year over year, with higher sales into renewable energy and other applications and modest increases in all regions. Automotive, representing 24% of sales, increased at a high single-digit rate, driven by improved demand for ADAS applications and stronger sales into both ICE and electric vehicle platforms.
- Electronics, Communications and Aerospace GrowthElectronics and communications, representing 20% of sales, delivered strong growth driven by higher sales of laminate circuit materials for wireless infrastructure. Aerospace and defense, representing 15% of sales, grew at a mid-single-digit rate due to higher sales into both defense and commercial aerospace applications.
- Strong EES and EMS ResultsEES sales increased 13.5% year over year, with improvement across all end markets and particular strength in electronics and communications. EMS sales increased 4.3%, driven by higher sales in automotive and aerospace and defense.
- Positive Fourth-Quarter Growth OutlookManagement expects approximately 9% revenue growth, 12% adjusted EPS growth and a 16% increase in adjusted EBITDA in the fourth quarter on a year-over-year basis. Q4 revenue is guided to $215 million to $225 million, adjusted EPS to $0.90 to $1.10, and adjusted EBITDA to $37 million to $43 million.
- Q4 Margin and Operating-Leverage ExpectationsFourth-quarter gross margin is guided to 32.5% to 33.5%, with the midpoint 150 basis points higher than the prior year. Adjusted operating expenses are expected to increase modestly year over year while improving by more than 100 basis points as a percentage of sales. Adjusted EBITDA at the midpoint represents a 16% increase versus the fourth quarter of 2025.
- New Design Wins Across Core MarketsRogers secured new design awards in aerospace and defense for a drone detection system, in automotive for elastomeric materials used in an EV battery pack and ceramic A and B substrates used in multiple electric vehicle models, and in data centers for silicon materials used to safeguard sensitive server-tray components. The company also secured meaningful energy-storage-system design wins in both AES and EMS.
- Material Design-Win Revenue OpportunitiesManagement stated that two of the highlighted opportunities are material and sizable. Revenue is expected from both in Q2 and Q3 of 2027, with one opportunity beginning a slow ramp in Q4 2026 and expected to reach full volumes by Q2 2027.
- Progress in Data-Center SolutionsCustomer engagement, technical validation, sampling and testing continued for signal-integrity and chip-cooling solutions. Customers are sampling laminate circuit materials for high-speed digital applications, feedback remained positive, and multiple generations of micro-channel-cooler prototypes continued to validate differentiated performance for rising AI-chip power density.
- Battery Safety and EMI-Shielding DevelopmentRogers completed benchmarking testing for its thermal-runaway-protection solution and began customer sampling. The company also identified priority customers and applications for EMI-shielding technology, with initial customer sampling targeted for early 2027.
- Growth Strategy and Customer MomentumManagement said new-business wins are consistent with, and probably ahead of, the Investor Day schedule. The company indicated that projected growth of about 9% in Q3 and Q4 is ahead of the approximately 5% annual organic-growth rate presented at Investor Day and expects growth to continue in 2027. Customer activity is increasing, including more samples, product testing and second- and third-generation designs.
- Operational Improvement and Cost DisciplineHigher sales and improved product mix contributed approximately $11 million to adjusted EBITDA versus the prior year, while lower adjusted operating expenses also contributed. The company reported meaningful operational-improvement savings and said restructuring activities representing $45 million historically are effectively complete, with $13 million not fully crystallizing in 2026 results but expected to be fully achieved as the company exits the year.
- Strong Cash Flow and Balance SheetCash and short-term investments were $236.4 million at September 30, increasing $25 million from the end of the second quarter. Cash provided by operating activities was $41.4 million and free cash flow was $35.4 million, strengthening the balance sheet and increasing strategic flexibility.
- Share Repurchases and Capital Allocation FlexibilityRogers repurchased $9.3 million of shares during the quarter and said it will continue balancing shareholder returns with organic-growth investments and other strategic priorities. Management said it will remain opportunistic regarding additional share repurchases.
- Active M&A PipelineManagement said it is more active in its M&A funnel and is evaluating a couple of opportunities. At least one, and potentially both, could be actionable within the next couple of quarters, subject to strategic fit, capability expansion, favorable mid- to long-term financial contribution and appropriate diligence.
- Long-Term Adjacent-Market ConfidenceData center is expected to be the largest of the three major growth opportunities, with high-speed digital and cooling identified as the largest opportunities within data center. Automotive is expected to be the second-largest opportunity, while EMI shielding can span data center, automotive and electronics. Management remained confident in the Investor Day 2028 targets and said its internal objective is to exceed the 2030 targets.
ROG Earnings History
| Report Date | Fiscal Quarter | Forecast / EPS | Last Year's EPS | EPS YoY Change | Press Release |
|---|---|---|---|---|---|
| Feb 23, 2027 | 2026 (Q4) | 1.00- | 0.89 | ― | ― |
| Oct 27, 2026 | 2026 (Q3) | 1.191.39 | 0.9 | 54.44% (+0.49) | |
| Jul 28, 2026 | 2026 (Q2) | 0.990.92 | 0.34 | 170.59% (+0.58) | |
| Apr 28, 2026 | 2026 (Q1) | 0.670.75 | 0.27 | 177.78% (+0.48) | |
| Feb 17, 2026 | 2025 (Q4) | 0.600.89 | 0.46 | 93.48% (+0.43) | |
| Oct 29, 2025 | 2025 (Q3) | 0.690.90 | 0.98 | -8.16% (-0.08) | |
| Jul 31, 2025 | 2025 (Q2) | 0.500.34 | 0.69 | -50.72% (-0.35) | |
| Apr 29, 2025 | 2025 (Q1) | 0.250.27 | 0.58 | -53.45% (-0.31) | |
| Feb 19, 2025 | 2024 (Q4) | 0.430.46 | 0.6 | -23.33% (-0.14) | |
| Oct 24, 2024 | 2024 (Q3) | 0.850.98 | 1.24 | -20.97% (-0.26) |
The table shows recent earnings report dates and whether the forecast was beat or missed. See the change in forecast and EPS from the previous year.
