ROG · 10-Q · 2026Q1 · Full report

Gross Margin Drivers

ROGERS CORP · 2026-04-29 · Importance 61 · Surprise 58

Company gross margin rose approximately 230 basis points to 32.2% of net sales in Q1 2026 from 29.9% in Q1 2025, equating to gross profit of $64.6 million versus $57.0 million. Management attributes the improvement to higher net sales, favorable product mix, and cost savings from the manufacturing footprint consolidation in Belgium. AES gross margin improved to 29.2% in Q1 2026 from 27.9% in Q1 2025, driven primarily by Belgium consolidation cost savings but partially offset by lower utilization on a new production line. EMS gross margin improved to 35.4% in Q1 2026 from 32.3% in Q1 2025, driven by increased sales volume, utilization benefits and favorable mix.

Key facts

• Gross margin for the first quarter of 2026 was $64.6 million, or 32.2% of net sales, up approximately 230 basis points from 29.9% in the first quarter of 2025.
• EMS gross margin in Q1 2026 was $31.3 million, or 35.4% of EMS net sales, up from $26.7 million, or 32.3% in Q1 2025.
• Gross margin in Q1 2026 increased due to higher net sales, favorable mix, and cost savings following manufacturing footprint consolidation in Belgium.
• AES gross margin in Q1 2026 was $31.4 million, or 29.2% of AES net sales, up from $29.1 million, or 27.9% of AES net sales, in Q1 2025.
• AES gross margin improvement was primarily due to cost savings following manufacturing footprint consolidation in Belgium, partially offset by lower utilization from a new production line.
• EMS gross margin improvement was primarily due to increased sales volume, related utilization benefits and favorable mix.

Impact estimates