We analyze a dimension splitting scheme for the time integration of linear Maxwell equations in a heterogeneous cuboid. The domain contains several homogeneous subcuboids, and serves as a model for a rectangular embedded waveguide. Due to discontinuities of the material parameters and irregular initial data, the solution of the Maxwell system has regularity below H1. The splitting scheme is adapted to the arising singularities, and is shown to converge with order one in L2. The error result only imposes assumptions on the model parameters and the initial data, but not on the unknown solution. To achieve this result, the regularity of the Maxwell system is analyzed in detail, giving rise to sharp explicit regularity statements. In particular, the regularity parameters are given in explicit terms of the largest jump of the material parameters. The analysis is based on semigroup theory, interpolation theory, and regularity analysis for elliptic transmission problems