Rogers Corp Swings to $66.4M Loss on Hefty Impairment Charges

TL;DR

**ROG is a sell; massive impairment charges signal deep operational issues despite a slight quarterly sales bump.**

AI Summary

Rogers Corporation reported a net loss of $66.4 million for the nine months ended September 30, 2025, a significant decline from a net income of $26.6 million in the prior year period. This substantial loss was primarily driven by $89.1 million in restructuring and impairment charges during the nine-month period, a sharp increase from $7.8 million in the same period of 2024. Despite the nine-month loss, the company achieved a net income of $8.6 million for the three months ended September 30, 2025, though this was down from $10.7 million in the comparable 2024 quarter. Net sales for the nine months decreased to $609.3 million from $637.9 million year-over-year, while quarterly net sales saw a slight increase to $216.0 million from $210.3 million. Operating income for the quarter improved to $15.7 million from $14.6 million, but the nine-month operating results swung to a loss of $52.1 million from an income of $37.6 million. Cash provided by operating activities also decreased to $54.3 million for the nine months, down from $93.4 million in the prior year.

Why It Matters

Rogers Corporation's significant net loss of $66.4 million for the nine months, primarily due to $89.1 million in restructuring and impairment charges, signals substantial operational challenges and strategic shifts. This could impact investor confidence, potentially leading to stock price volatility as the market digests the long-term implications of these charges. For employees, these charges often precede or accompany workforce reductions or facility closures, creating job insecurity. Customers might experience disruptions if these changes affect production or product lines, while the broader market could see shifts in supply chain dynamics within the advanced electronics and elastomeric materials sectors, especially given Rogers' role in EV/HEV and ADAS. Competitively, this could open opportunities for rivals if Rogers struggles to regain profitability and market share.

Risk Assessment

Risk Level: high — The risk level is high due to a substantial net loss of $66.4 million for the nine months ended September 30, 2025, primarily driven by $89.1 million in restructuring and impairment charges. This represents a significant deterioration from a net income of $26.6 million in the prior year and indicates fundamental operational challenges.

Analyst Insight

Investors should consider reducing exposure to ROG given the significant nine-month net loss and substantial impairment charges. Monitor future filings for details on how the company plans to mitigate these operational issues and return to sustained profitability.

Financial Highlights

revenue

$609.3M

total Assets

$1,446.0M

net Income

($66.4M)

eps

($3.63)

gross Margin

31.7%

cash Position

$167.8M

revenue Growth

-4.5%

Revenue Breakdown

Key Numbers

• $609.3M — Net sales for nine months ended Sep 30, 2025 (Decreased from $637.9M in prior year period)
• $216.0M — Net sales for three months ended Sep 30, 2025 (Increased from $210.3M in prior year quarter)
• ($66.4M) — Net loss for nine months ended Sep 30, 2025 (Significant decline from $26.6M net income in prior year period)
• $8.6M — Net income for three months ended Sep 30, 2025 (Decreased from $10.7M in prior year quarter)
• $89.1M — Restructuring and impairment charges for nine months ended Sep 30, 2025 (Major increase from $7.8M in prior year period, driving net loss)
• ($52.1M) — Operating loss for nine months ended Sep 30, 2025 (Swing from $37.6M operating income in prior year period)
• $15.7M — Operating income for three months ended Sep 30, 2025 (Increased from $14.6M in prior year quarter)
• $54.3M — Net cash provided by operating activities for nine months ended Sep 30, 2025 (Decreased from $93.4M in prior year period)
• $167.8M — Cash and cash equivalents as of Sep 30, 2025 (Increased from $159.8M as of Dec 31, 2024)
• 17,984,499 — Shares outstanding as of Oct 24, 2025 (Reflects share repurchases)

Key Players & Entities

• ROGERS CORPORATION (company) — Registrant
• JPMorgan Chase Bank, N.A. (company) — Administrative Agent for Fifth Amended Credit Agreement
• HSBC Bank USA, National Association (company) — Co-Syndication Agent for Fifth Amended Credit Agreement
• Wells Fargo Bank, National Association (company) — Co-Syndication Agent for Fifth Amended Credit Agreement
• Citibank, N.A. (company) — Co-Syndication Agent for Fifth Amended Credit Agreement
• Citizens Bank, N.A. (company) — Co-Syndication Agent for Fifth Amended Credit Agreement
• INOAC Corporation (company) — Joint venture partner
• U.S. Securities and Exchange Commission (regulator) — Filing oversight
• Financial Accounting Standards Board (regulator) — Accounting standards setter

FAQ

Risk Factors

• Significant Restructuring and Impairment Charges [high — financial]: The company incurred $89.1 million in restructuring and impairment charges for the nine months ended September 30, 2025, a substantial increase from $7.8 million in the prior year period. This directly contributed to a net loss of $66.4 million for the period.
• Deterioration in Operating Income [high — financial]: Operating income for the nine months ended September 30, 2025, swung to a loss of $52.1 million from an income of $37.6 million in the prior year. This indicates a significant weakening of core operational profitability.
• Reduced Cash Flow from Operations [medium — financial]: Net cash provided by operating activities decreased to $54.3 million for the nine months ended September 30, 2025, down from $93.4 million in the prior year. This reduction in operating cash flow could impact liquidity and investment capacity.
• Goodwill Impairment Risk [medium — operational]: Goodwill on the balance sheet decreased from $357.6 million at December 31, 2024, to $303.5 million at September 30, 2025. While this indicates some impairment has been recognized, further impairments could arise if business unit performance deteriorates.
• Asbestos-Related Liabilities [low — regulatory]: The company continues to carry asbestos-related insurance recoverables on its balance sheet ($48.0 million non-current, $4.3 million current). While offset by recoverables, potential future liabilities or changes in insurance coverage could pose a risk.

Industry Context

Rogers Corporation operates in the advanced materials and components sector, serving diverse markets including mobility, interconnections, and specialty communications. The industry is characterized by rapid technological advancements, demand for high-performance materials, and global supply chain dynamics. Competitors often focus on innovation, customization, and cost-efficiency to gain market share.

Regulatory Implications

The company must comply with various financial reporting regulations, including GAAP. Any significant changes in accounting standards or increased scrutiny on impairment testing could impact future financial statements. Additionally, environmental regulations related to manufacturing processes and product lifecycle management are relevant.

What Investors Should Do

1. Monitor Restructuring and Impairment Charges
2. Analyze Operating Income Trends
3. Evaluate Cash Flow Generation
4. Assess Goodwill Valuation

Key Dates

• 2025-09-30: End of Nine-Month Period — Reporting period for significant net loss driven by restructuring charges and a decline in year-over-year sales.
• 2025-09-30: End of Third Quarter — Reported net income for the quarter, but it was lower than the prior year's comparable quarter. Operating income improved sequentially.
• 2024-09-30: End of Nine-Month Period (Prior Year) — Reported net income of $26.6 million and positive operating income, contrasting sharply with the current year's results.
• 2024-12-31: End of Fiscal Year (Prior) — Balance sheet comparison point for cash, goodwill, and other assets/liabilities.

Glossary

Restructuring and impairment charges

Costs associated with significant reorganizations, layoffs, or write-downs of asset values. These can include severance pay, facility closure costs, and reductions in the carrying value of assets like goodwill or property. (These charges were the primary driver of the company's net loss for the nine-month period, increasing from $7.8 million to $89.1 million.)

Operating income (loss)

Profitability of a company's core business operations before accounting for interest, taxes, and other non-operating income or expenses. (The company experienced a significant swing from operating income of $37.6 million to an operating loss of $52.1 million for the nine-month period.)

Net sales

The total revenue generated from the sale of goods or services, net of returns, allowances, and discounts. (Net sales declined year-over-year for the nine-month period but saw a slight increase for the third quarter.)

Cash provided by operating activities

The net amount of cash generated from a company's normal business operations over a period. (This metric decreased significantly for the nine-month period, indicating less cash generated from core operations compared to the prior year.)

Goodwill

An intangible asset that arises when one company acquires another for a price greater than the fair market value of its identifiable net assets. It represents the future economic benefits arising from assets acquired in a business combination that are not individually identified and separately recognized. (Goodwill decreased by $54.1 million during the nine-month period, suggesting potential impairment charges or divestitures.)

Year-Over-Year Comparison

Compared to the prior year's nine-month period, Rogers Corporation has experienced a significant downturn. Net sales decreased by 4.5% ($637.9M to $609.3M), and the company swung from a net income of $26.6 million to a net loss of $66.4 million. This loss was heavily influenced by a dramatic increase in restructuring and impairment charges, which rose from $7.8 million to $89.1 million. Operating income also deteriorated, moving from a profit of $37.6 million to a loss of $52.1 million. While quarterly net sales showed a modest increase and operating income improved sequentially, the year-over-year nine-month performance indicates substantial challenges.

Key Financial Figures

• $1.00 — registered Capital Stock, par value $1.00 per share ROG New York Stock Exchange

Filing Documents

• rog-20250930.htm (10-Q) — 1544KB
• rog-20250930ex102.htm (EX-10.2) — 62KB
• rog-20250930x10ex311.htm (EX-31.1) — 9KB
• rog-20250930x10ex312.htm (EX-31.2) — 9KB
• rog-20250930x10ex32.htm (EX-32) — 5KB
• 0000084748-25-000066.txt ( ) — 10145KB
• rog-20250930.xsd (EX-101.SCH) — 62KB
• rog-20250930_cal.xml (EX-101.CAL) — 101KB
• rog-20250930_def.xml (EX-101.DEF) — 267KB
• rog-20250930_lab.xml (EX-101.LAB) — 709KB
• rog-20250930_pre.xml (EX-101.PRE) — 515KB
• rog-20250930_htm.xml (XML) — 1971KB

– Financial Information

Part I – Financial Information Item 1. Condensed Consolidated Financial Statements (Unaudited): Condensed Consolidated Statements of Operations 4 Condensed Consolidated Statements of Comprehensive Income (Loss) 5 Condensed Consolidated Statements of Financial Position 6 Condensed Consolidated Statements of Shareholders' Equity 7 Condensed Consolidated Statements of Cash Flows 8 Notes to Condensed Consolidated Financial Statements 9 Item 2.

Management's Discussion and Analysis of Results of Operations and Financial Position

Management's Discussion and Analysis of Results of Operations and Financial Position 27 Item 3.

Quantitative and Qualitative Disclosures About Market Risk

Quantitative and Qualitative Disclosures About Market Risk 35 Item 4.

Controls and Procedures

Controls and Procedures 35

– Other Information

Part II – Other Information Item 1.

Legal Proceedings

Legal Proceedings 36 Item 1A.

Risk Factors

Risk Factors 36 Item 2. Unregistered Sales of Equity Securities and Use of Proceeds 36 Item 5. Other Information 36 Item 6. Exhibits 37

Forward-Looking Statements

Forward-Looking Statements This Quarterly Report on Form 10-Q (this "Form 10-Q") contains "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Refer to "Forward-Looking Statements" in Item 2, Management's Discussion and Analysis of Results of Operations and Financial Position for additional information. 2 ROGERS CORPORATION Defined Terms (1) Term Definition ADAS Advanced driver assistance systems AES Advanced Electronics Solutions APAC Asia - Pacific ASC Accounting Standards Codification ASU Accounting Standards Update CODM Chief Operating Decision Maker EMEA Europe, the Middle East and Africa EMS Elastomeric Material Solutions ERP Enterprise resource planning EURIBOR Euro Interbank Offered Rate EV/HEV Electric Vehicles/Hybrid Electric Vehicles Exchange Act Securities Exchange Act of 1934, as amended FASB Financial Accounting Standards Board Fifth Amended Credit Agreement Fifth Amended and Restated Credit Agreement, dated as of March 24, 2023, among Rogers Corporation, the lenders from time to time party hereto, JPMorgan Chase Bank, N.A., as Administrative Agent and HSBC Bank USA, National Association, Wells Fargo Bank, National Association, Citibank, N.A. and Citizens Bank, N.A., as Co-Syndication Agents Guarantors Existing and future material domestic subsidiaries INOAC INOAC Corporation JV Joint venture OECD Organization for Economic Co-operation and Development R&D Research and development RIC Rogers INOAC Corporation RIS Rogers INOAC Suzhou Corporation SEC U.S. Securities and Exchange Commission SG&A Selling, general and administrative SOFR Secured Overnight Financing Rate TIBOR Tokyo Interbank Offered Rate Union Plan Rogers Corporation Employees' Pension Plan U.S. United States of America U.S. GAAP Accounting principles generally accepted in the United States (1) Certain terms used within this Form 10-Q a

– Financial Information

Part I – Financial Information

Financial Statements

Item 1. Financial Statements ROGERS CORPORATION CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) (Dollars and shares in millions, except per share amounts) Three Months Ended Nine Months Ended September 30, 2025 September 30, 2024 September 30, 2025 September 30, 2024 Net sales $ 216.0 $ 210.3 $ 609.3 $ 637.9 Cost of sales 143.7 136.2 416.0 422.5 Gross margin 72.3 74.1 193.3 215.4 Selling, general and administrative expenses 41.6 45.1 134.6 143.5 Research and development expenses 7.4 8.1 21.5 26.5 Restructuring and impairment charges 7.1 6.3 89.1 7.8 Other operating (income) expense, net 0.5 — 0.2 — Operating income (loss) 15.7 14.6 ( 52.1 ) 37.6 Equity income in unconsolidated joint ventures — 0.4 — 1.2 Other income (expense), net 0.4 ( 1.5 ) ( 3.4 ) ( 0.8 ) Interest income (expense), net 0.2 — 0.9 ( 1.0 ) Income (loss) before income taxes 16.3 13.5 ( 54.6 ) 37.0 Income tax (benefit) expense 7.7 2.8 11.8 10.4 Net income (loss) $ 8.6 $ 10.7 $ ( 66.4 ) $ 26.6 Basic earnings (loss) per share $ 0.48 $ 0.58 $ ( 3.63 ) $ 1.43 Diluted earnings (loss) per share $ 0.48 $ 0.58 $ ( 3.63 ) $ 1.43 Shares used in computing: Basic earnings (loss) per share 18.1 18.6 18.3 18.6 Diluted earnings (loss) per share 18.1 18.6 18.3 18.6 The accompanying notes are an integral part of the condensed consolidated financial statements. 4 ROGERS CORPORATION CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) (Unaudited) (Dollars in millions) Three Months Ended Nine Months Ended September 30, 2025 September 30, 2024 September 30, 2025 September 30, 2024 Net income (loss) $ 8.6 $ 10.7 $ ( 66.4 ) $ 26.6 Foreign currency translation adjustment ( 3.3 ) 25.8 47.9 10.9 Pension and other postretirement benefits: Amortization of loss, net of tax (Note 2) — 0.1 0.2 0.3 Other comprehensive income (loss) ( 3.3 ) 25.9 48.1 11.2 Comprehensive income (loss) $ 5.3 $ 36.6 $ ( 18.3 ) $ 37.8 The accompanying notes are an integral part of

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View this 10-Q filing on SEC EDGAR