Rogers Corporation

Good afternoon. My name is Diego and I will be your conference operator today. At this time, I would like to welcome everyone to the Rogers Corporation Second Quarter 2026 Earnings Conference Call. I will now turn the call over to your host, Mr. Steve Haymore, Senior Director of Investor Relations. Mr. Haymore, you may begin.

Good afternoon and welcome to the Rogers Corporation Second Quarter 2026 Earnings Conference Call. The slides for today's call can be found in the investor section of our website along with the news release that was issued earlier today. Please turn to slide two. Before we begin, I'd like to note that statements in this conference call that are not strictly historical are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 and should be considered a subject to the many uncertainties that exist and Rogers Operations and Environment. These uncertainties include economic conditions, market demands and competitive factors. Such factors could cause actual results to differ materially from those in any forward-looking statement made today. Please turn to slide three. The discussions during this conference call will also reference certain financial measures that were not prepared in accordance with U.S. generally accepted accounting principles. The reconciliation of those non-GAAP measures to the most directly comparable GAAP financial measures can be found in the slide deck for today's call. With me today are Ali El-Haj, President and CEO, and Laura Russell, Senior Vice President and CFO. I will now turn the call over to Ali.

Thank you, Steve, and thank you everyone for joining us today. I'll begin on slide four. We delivered another quarter of solid progress as our commercial and profitability initiatives continued to gain traction across all business units. Sales were at 216.8 million, up 6.9% from the prior year and above the midpoint of our guidance. This longer top line reflects both improving demand and share gains. Adjusted EBITDA increased to 38 million, or 17.3% of sales and adjusted EPS of 92 cents was significantly higher than the level we reported a year ago. The result mark another quarter of meaningful year over year improvement in growth and profitability. Over the last several quarters, we have focused on creating a more agile customer focused organization while improving our operating efficiency. We are making progress and continue to focus on driving action that will translate into further improvements in our financial performance and position Rogers for sustainable value creation. While the overall results reflect improvements, adjusted EPS was below the midpoint of guidance, primarily due to supply chain headwinds and a one-time facility event. The outlook for the third quarter is strong with sales expected to increase 10% versus the prior year. We expect sales to grow in all end markets with particular strength in A and D, industrial and electronics and communication end markets. Adjusted EBITDA margins are projected to reach 20% and increased year over year by 250 basis points. On slide five. Industrial remained our largest end market at approximately 37% of year-to-date sales and delivered high single-digit growth compared to the second quarter of last year. Performance was driven by continued improvement in EMS general industrial demand in both the United States and Europe. This growth was led by our silicon solution business which is experiencing healthy demand and gaining market share. Mass transit was also strong led by rail applications in the United States. The broad-based nature of this growth is encouraging and reflect both improving market conditions and the benefits of our intense commercial initiatives. Automotive represented approximately 25% of sales during the quarter. Revenue increased at a low single digit rate year over year, supported by higher sales of ADAS and ICE vehicle applications. Sales into the EV market were flat versus the prior year, as improved power substrate revenues were offset by lower orders of materials for EV batteries. On a sequential basis, EV and HEV battery sales improved. Helped by recent design wins, we expect stronger second half EV Sales as the new programs continue to ramp up. Electronics and communications accounted for approximately 18% of sales and was one of our strongest performing end markets during the quarters. Revenue increased at a double digit rate year over year from higher sales into the wireless infrastructure and smartphone markets. Smartphone sales increased versus Q2 of 25 from a favorable mix of higher end devices and continued benefits from customer share gains. Lastly, aerospace and defense sales accounted for 15% of revenue and decreased slightly from last year. Defense sales were lower due to normal variability in customer order and patterns and were partly offset by improved commercial aerospace sales in the AMS business. We expect defense sales to improve significantly while commercial aerospace demand remains strong in the second half of the year. Overall, we are pleased with the progress across our portfolio. The three largest end markets delivered year-over-year growth during the quarter, and our third quarter outlook reflects growth across all end markets. Next, I will update the progress we are making on the new products in our R&D pipeline. First, testing and validation of our microchannel cooler technology for high power AI and data center applications continue to advance with multiple customers. We are making substantial progress with our customers and feedback on the differentiated performance of our solutions remain highly encouraging. Customer evaluations continue to provide independent validation of our ability to address the demanding and many more. Thank you. Thank you. This growing engagement reflects the increasing need for advanced circuit materials capable of addressing the signal integrity challenges associated with next generation AI server architectures. Alongside these programs, we continue to advance other high potential opportunities in other markets, including EV and industrial. Turning to slide six. We are pleased to announce that Rogers will host an Analyst and Investor Day on September 30, 2026 in New York City. This event will provide a comprehensive update on our strategy, growth opportunities, and innovation initiatives. We will also outline our value creation framework, including capital allocation priorities and long-term financial planning. Additionally, we will provide greater detail on how Rogers is positioned to accelerate top-line growth from opportunities tied to AI data centers, vehicle electrification, and other attractive growth markets. I will now turn it over to Laura to discuss our Q2 financial performance and Q3 outlook.