Rogers Corp Q2 2025 Earnings: Revenue Surpasses Estimates, Adjusted EPS Falls Short

Rogers Corp reported Q2 2025 revenue of $202.8 million, a 6.5% increase from Q1, beating analyst estimates. However, the company faced a net loss of $73.6 million due to impairment charges and restructuring expenses, resulting in a GAAP loss per diluted share of $4.00. Adjusted EPS increased to $0.34, up 25.9% sequentially, but fell short of the annual estimate of $2.48.

Title: Rogers Corp Reports Mixed Q2 2025 Financials; Revenue Surpasses Expectations Despite EPS Miss

Rogers Corporation (ROG) reported its second-quarter (Q2) 2025 earnings on July 31, with a mixed performance that saw revenue exceed expectations but earnings per share (EPS) fall short. The company reported a revenue of $202.8 million, a 6.5% increase from the previous quarter, surpassing analyst estimates of $198.75 million [1]. However, the company faced a net loss of $73.6 million due to impairment charges and restructuring expenses, resulting in a GAAP loss per diluted share of $4.00. Adjusted EPS increased to $0.34, up 25.9% sequentially, but fell short of the annual estimate of $2.48 [1].

The company’s stock price dropped by 1.23% in after-hours trading following the announcement, closing at $66.4. The stock remains within its 52-week range, with a high of $121.87 and a low of $51.43. Despite the EPS miss, InvestingPro analysis suggests that the stock appears undervalued at current levels, with a strong buy consensus [1].

Rogers Corp highlighted that sales were driven by a stronger industrial portable electronics, A and D, and ADAS end markets. The company expects a more modest increase in revenue for the third quarter but anticipates stronger increases in gross margin and adjusted EPS due to ongoing cost and expense containment initiatives [1].

Looking ahead, Rogers Corp provided guidance for Q3, expecting revenue between $200 million and $215 million, with an adjusted EPS projected between $0.50 and $0.90. The company remains focused on organic growth and operational improvements, with a full-year tax rate estimated at approximately 30% [1].

Executive Commentary
Interim CEO Ali Elhaj emphasized the company’s global strategy and expressed optimism about future growth. He noted, "We are building a global company with local experts" and anticipated "meaningful growth quarter after quarter" [1].

Risks and Challenges
The company faces several challenges, including pricing pressure in power substrates, losing market share to Asian manufacturers, restructuring costs projected at $12-20 million over 2025-2026, and regional EV market growth disparities. Supply chain adjustments are also necessary in response to manufacturing capacity rebalancing [1].

References
[1] https://www.investing.com/news/transcripts/earnings-call-transcript-rogers-corp-q2-2025-misses-eps-stock-dips-93CH-4164721