Engineered materials manufacturer Rogers (NYSE: ROG) reported Q4 CY2025 results exceeding the market’s revenue expectations, with sales up 4.8% year on year to $201.5 million. On the other hand, next quarter’s revenue guidance of $200.5 million was less impressive, coming in 2.9% below analysts’ estimates. Its non-GAAP profit of $0.89 per share was 48.3% above analysts’ consensus estimates.

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Company Overview

With roots dating back to 1832, making it one of America's oldest continuously operating companies, Rogers (NYSE: ROG) designs and manufactures specialized engineered materials and components used in electric vehicles, telecommunications, renewable energy, and other high-performance applications.

Revenue Growth

Examining a company’s long-term performance can provide clues about its quality. Any business can put up a good quarter or two, but the best consistently grow over the long haul.

With $810.8 million in revenue over the past 12 months, Rogers is a small player in the business services space, which sometimes brings disadvantages compared to larger competitors benefiting from economies of scale and numerous distribution channels.

As you can see below, Rogers struggled to increase demand as its $810.8 million of sales for the trailing 12 months was close to its revenue five years ago. This shows demand was soft, a poor baseline for our analysis.

Long-term growth is the most important, but within business services, a half-decade historical view may miss new innovations or demand cycles. Rogers’s recent performance shows its demand remained suppressed as its revenue has declined by 5.5% annually over the last two years.

This quarter, Rogers reported modest year-on-year revenue growth of 4.8% but beat Wall Street’s estimates by 2.5%. Company management is currently guiding for a 5.2% year-on-year increase in sales next quarter.

Looking further ahead, sell-side analysts expect revenue to grow 6.8% over the next 12 months, an improvement versus the last two years. This projection is above the sector average and suggests its newer products and services will spur better top-line performance.

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Operating Margin

Operating margin is a key measure of profitability. Think of it as net income - the bottom line - excluding the impact of taxes and interest on debt, which are less connected to business fundamentals.

Rogers was profitable over the last five years but held back by its large cost base. Its average operating margin of 8% was weak for a business services business.

Looking at the trend in its profitability, Rogers’s operating margin decreased by 8.1 percentage points over the last five years. Rogers’s performance was poor no matter how you look at it - it shows that costs were rising and it couldn’t pass them onto its customers.

This quarter, Rogers generated an operating margin profit margin of 3.5%, up 1.7 percentage points year on year. This increase was a welcome development and shows it was more efficient.

Earnings Per Share

We track the long-term change in earnings per share (EPS) for the same reason as long-term revenue growth. Compared to revenue, however, EPS highlights whether a company’s growth is profitable.

Sadly for Rogers, its EPS declined by 13.9% annually over the last five years while its revenue was flat. This tells us the company struggled because its fixed cost base made it difficult to adjust to choppy demand.

Diving into the nuances of Rogers’s earnings can give us a better understanding of its performance. As we mentioned earlier, Rogers’s operating margin expanded this quarter but declined by 8.1 percentage points over the last five years. This was the most relevant factor (aside from the revenue impact) behind its lower earnings; interest expenses and taxes can also affect EPS but don’t tell us as much about a company’s fundamentals.

Like with revenue, we analyze EPS over a more recent period because it can provide insight into an emerging theme or development for the business.

For Rogers, its two-year annual EPS declines of 20.3% show it’s continued to underperform. These results were bad no matter how you slice the data.

In Q4, Rogers reported adjusted EPS of $0.89, up from $0.46 in the same quarter last year. This print easily cleared analysts’ estimates, and shareholders should be content with the results. Over the next 12 months, Wall Street expects Rogers’s full-year EPS of $2.40 to grow 41.3%.

Key Takeaways from Rogers’s Q4 Results

It was good to see Rogers beat analysts’ EPS expectations this quarter. We were also glad its revenue outperformed Wall Street’s estimates. On the other hand, its revenue guidance for next quarter missed and its EPS guidance for next quarter fell short of Wall Street’s estimates. Overall, this was a softer quarter. The stock traded up 2% to $105.17 immediately following the results.

So should you invest in Rogers right now? When making that decision, it’s important to consider its valuation, business qualities, as well as what has happened in the latest quarter. We cover that in our actionable full research report which you can read here (it’s free).