Vishay Precision Group Q2 2025 Earnings Report

Vishay Precision Group EPS Results

• Actual EPS: $0.17
• Consensus EPS: $0.04
• Beat/Miss: Beat by +$0.13
• One Year Ago EPS: N/A

Vishay Precision Group Revenue Results

• Actual Revenue: $75.16 million
• Expected Revenue: $72.93 million
• Beat/Miss: Beat by +$2.23 million
• YoY Revenue Growth: N/A

Vishay Precision Group Announcement Details

• Quarter: Q2 2025
• Date: 8/5/2025
• Time: Before Market Opens
• Conference Call Date: Tuesday, August 5, 2025
• Conference Call Time: 9:00AM ET

Vishay Precision Group (NYSE:VPG) (NYSE: VPG) specializes in the design, manufacture and calibration of precision sensors, instrumentation and measurement systems used in a broad range of applications. Its product portfolio includes load cells, tension links, weighing modules, torque transducers, digital indicators and data acquisition systems. These solutions serve critical requirements for accuracy, reliability and repeatability in sectors such as industrial automation, test and measurement, medical devices, food and beverage processing, aerospace and defense.

The company traces its roots to the sensor and measurement division of Vishay Intertechnology, Inc., from which it was spun off as an independent public company in March 2016. Since then, VPG has focused on expanding its in-house engineering, calibration and manufacturing capabilities to ensure tight tolerances and full compliance with international quality standards. Its headquarters and primary R&D center are located in Raleigh, North Carolina, supported by additional manufacturing and service facilities across Europe and Asia Pacific.

VPG serves a global customer base through direct sales offices and distribution partners on five continents. The organization maintains accredited calibration laboratories that support custom configurations and on-site services, enabling rapid turnaround for critical applications. By integrating sensor design, electronics and software, Vishay Precision Group offers end-to-end weighing and test solutions tailored to the specific performance requirements of OEMs, system integrators and end users.

Vishay Precision Group Q2 2025 Earnings Call Transcript

Key Takeaways

• Positive Sentiment: In Q2, VPG delivered $75.2M in revenue (+4.8% sequentially), 7.5% order growth (book-to-bill of 1.06), a 41% adjusted gross margin with a record in Wind Solutions, and generated $6M cash from operations and $4.7M in free cash flow.
• Negative Sentiment: Tariff changes created a $0.5M drag on Q2 gross margin, though price adjustments are expected to close most of the gap in Q3.
• Positive Sentiment: Sensors bookings rose 3.7% to a six-quarter high (book-to-bill 1.12), including a $1.5M fiber-optics order and $1.5M in follow-on humanoid robotics orders, highlighting long-term market potential.
• Positive Sentiment: Measurement Systems orders jumped 18.1% (book-to-bill 1.2), driven by AMS and steel demand, and VPG began beta testing its UHTC system at the University of Alabama to enable tenfold ultrahigh-temperature throughput gains.
• Positive Sentiment: Through H1, VPG secured $17M in new-business orders toward its $30M 2025 goal, is targeting $5M in fixed-cost savings, and continues disciplined pursuit of strategic acquisitions.

Presentation

[Operator]

Hello, everyone, and welcome to the VPG Second Quarter twenty twenty five Earnings Call. My name is Ezra, and I will be your coordinator today. I will now hand you over to our host, Steve Cantor, Senior Director of Investor Relations to begin. Please go ahead.

[Steve Cantor, Senior Director - Investor Relations & Marketing Communications at Vishay Precision Group]

Thank you, Ezra, and good morning, everyone. Welcome to VPG's twenty twenty five second quarter earnings call. Our Q2 press release and slides have been posted on our website at vpgsensors.com. An audio recording of today's call will be available on the Internet for a limited time and also can be accessed on our website. Today's remarks are governed by the Safe Harbor provisions of the 1995 Private Securities Litigation Reform Act.

[Steve Cantor, Senior Director - Investor Relations & Marketing Communications at Vishay Precision Group]

Our actual results may vary from forward looking statements. For a discussion of the risks associated with VPG's operations, we encourage you to refer to our SEC filings, especially the Form 10 ks for the year ended 12/31/2024, and our other recent SEC filings. On the call today are Ziv Shashani, CEO and President and Bill Clancy, CFO. And now I'll turn the call to Ziv for some prepared remarks. Please refer to Slide three of the quarterly presentation. Ziv?

[Ziv Shoshani, CEO, President & Director at Vishay Precision Group]

Thank you, Steve. I will begin with some commentary on our results and trends for the second quarter. Bill will then provide financial details about the quarter and our outlook for the 2025. Moving to Slide three. Beginning with revenue, second quarter revenue of $75,200,000 grew 4.8% from the first quarter.

[Ziv Shoshani, CEO, President & Director at Vishay Precision Group]

We are pleased to report continued positive bookings trends across several key markets, reflecting a moderately improved business environment. Our consolidated orders grew 7.5% sequentially, making the third consecutive quarter of sequential growth. This resulted in a consolidated book to bill of 1.06 with Measurement Systems and Sensors segments reporting a book to bill of one point two and one point one two respectively. Adjusted gross margin improved to 41, driven by sequentially stronger performance across all three business segments. I want to highlight the Wind Solutions segment in particular, which delivered a record quarterly adjusted gross margin.

[Ziv Shoshani, CEO, President & Director at Vishay Precision Group]

We continue to advance our business development and cost optimization initiatives. Our operation execution translated into a solid cash generation with $6,000,000 in cash from operation and $4,700,000 in adjusted free cash flow. Before reviewing our sales and orders performance by division segment, I want to comment on the impact of tariffs on our second quarter results. Tariff changes impacted our gross margin negatively by approximately $500,000 due to the timing of our offsetting price increases. We expect this gap to narrow in the third quarter as our price adjustments becomes effective.

[Ziv Shoshani, CEO, President & Director at Vishay Precision Group]

While tariff policies continue to change and are difficult to predict, we are confident in our ability to respond given our manufacturing footprint, the geographical distribution and our sales and our deep customer relationships. Moving to Slide four. Beginning with our Sensors segment, second quarter revenue decreased 1.8% sequentially, reflecting mixed trends across its markets. As higher sales of strain gauges products were offset by lower sales for precision resistors. Sensors booking rose 3.7% sequentially, reaching the highest level in six quarters and resulting in a book to bill of 1.12.

[Ziv Shoshani, CEO, President & Director at Vishay Precision Group]

The bookings growth was driven by higher orders in the Test and Measurement for precision resistors and higher demand for Stringage's sensors in AMS and Industrial Weighing, which was partially offset by lower orders for the test and measurement. For precision resistors, we recorded a $1,500,000 of order for fiber optics data center application, and we expect an additional order in Q3. Regarding humanoid robots, from April 2025 through July, we received approximately $1,500,000 in follow on orders from our initial humanoid customer. The humanoid robot market is still in its infancy and the initial real world deployment of this robot is expected now in 2026. As the technology and use case continues to develop, we are optimistic about the long term potential for this market has for VPG and we focus on high precision, high performance segment of this rapidly evolving market.

[Ziv Shoshani, CEO, President & Director at Vishay Precision Group]

Moving to Slide five, turning to our weighing solutions segment. Second quarter sales increased 11.3% from the first quarter. The increase was driven primarily by higher sales in the transportation and industrial weighing markets and in our other markets for medical and precision agriculture applications. WAN solution orders grew 3.6% sequentially to 27,200,000.0 resulting in a book to bill of 0.92. Higher orders for Precision Agriculture and Medical Applications and Industrial Weing offset lower orders in the Transportation and General Industrial.

[Ziv Shoshani, CEO, President & Director at Vishay Precision Group]

Moving to Slide six. Turning to our Measurement Systems segment. Revenue in the second quarter of nineteen point two million dollars increased 5.1% sequentially. The increase reflected higher sales of DTS data acquisition modules in the AMS market, which offset lower sales to the transportation and steel markets. Second quarter Measurement Systems orders of $23,000,000 increased 18.1% sequentially and resulted in a book to bill of 1.2.

[Ziv Shoshani, CEO, President & Director at Vishay Precision Group]

Bookings reflected higher demand primarily in the AMS and steel markets. In the current quarter, we expect to complete the beta installation at the University of Alabama of our new UHTC system. This system is designed to perform band testing on nonconductive materials such as ceramics, which are used in critical high performance applications such as for hypersonic missiles in aerospace as well as in avionics, energy and industrial applications. We believe our differentiated solution can increase test throughput by tenfold while testing materials at ultra high temperature of around 2,000 degrees C that is required for these advanced applications. We are now in discussion with the second university regarding beta testing for this system.

[Ziv Shoshani, CEO, President & Director at Vishay Precision Group]

Moving to Slide seven, I would like to provide a brief update on our three top strategic priorities for 2025. First, we are encouraged by our business development initiatives, which generated orders of approximately $17,000,000 through the first half of this year. This puts on track to achieve our goal for 2025 of securing $30,000,000 of orders for either new customers or new application with existing customers. What is significant is not only the magnitude of these orders, but the breadth which runs across our businesses. To support these initiatives, we are continuing to improve our sales processes and systems as well as our use of digital marketing channels.

[Ziv Shoshani, CEO, President & Director at Vishay Precision Group]

Second, we continue to reduce costs and increase operational efficiencies through product relocation and efficiency improvements. The measure we have taken through the 2025 put us on course to reduce fixed costs by about 5,000,000 for the full 2025 compared to prior year excluding inflation. These measures entail mainly the consolidated of production and shared services to lower cost countries. Third, we continue to pursue high quality acquisitions to build scale and expand our cash flow. We remain disciplined and patient in our search for the right opportunity.

[Ziv Shoshani, CEO, President & Director at Vishay Precision Group]

In summary, we are pleased with the positive order trends, which have continued for the third consecutive quarter and our ongoing progress with our growth and cost initiatives. Global economic activity has remained stable in 2025 and improved modestly in several areas. Despite the ongoing macro uncertainties due to tariffs, trade policies and geopolitical tensions. I will now turn it over to Bill Clancy. Bill?

[William Clancy, EVP & CFO at Vishay Precision Group]

Thank you, Steve. Referring to Slide eight and the reconciliation tables of the slide deck, our second quarter twenty twenty five revenues were $75,200,000 Adjusted gross margin of 41% in the second quarter increased by two seventy basis points from 38.3% in the first quarter, reflecting higher volume, favorable product mix and favorable exchange rates, which offset net tariff costs. Sequentially by segment, adjusted gross margin for Sensors of 32.2% increased due to an increase in inventories and favorable FX rates, which offset the impact of lower volume and net tariff costs. Wane Solutions adjusted gross margin of 40.2% increased from the first quarter and reached an all time record, primarily due to higher volume and favorable foreign exchange rates, which offset the impact of net tariff costs. Gross margin for Measurement Systems of 54.6% increased from the first quarter due to higher volume and favorable product mix.

[William Clancy, EVP & CFO at Vishay Precision Group]

Moving to Slide nine. Our adjusted operating margin of 4.8%, which excluded start up and restructuring costs amounting to 885,000 improved from 1.1% in the 2025. Selling, general and administrative expense for the second quarter was $27,700,000 with 36.9% of revenues, which increased from 26,700,000 with 34.5% of revenues for the 2025. On an adjusted basis, second quarter twenty twenty five SG and A was approximately $27,100,000 or 36% of sales, excluding approximately $500,000 of severance costs. The increase in SG and A is mainly due to unfavorable foreign exchange rates.

[William Clancy, EVP & CFO at Vishay Precision Group]

The operational tax rate in the second quarter was 31% and for the full year of 2025, we are forecasting an operational tax rate of approximately 28. We reported net earnings of $248,000 or $02 per diluted share. Adjusting for manufacturing startup costs, restructuring, severance costs and foreign currency exchange losses, adjusted net earnings for the second quarter was $2,300,000 or $0.17 per diluted share compared to $468,000 or $04 per diluted share in the 2025. Moving to Slide 10. Adjusted EBITDA was $7,900,000 or 10.5% of revenue compared to 5,100,000 or 7.2% of revenue in the first quarter.

[William Clancy, EVP & CFO at Vishay Precision Group]

Capital expenditures in the second quarter was $1,300,000 For 2025, we are forecasting $10,000,000 to $12,000,000 for capital expenditures. We generated adjusted free cash flow of $4,700,000 for the second quarter, which compared to $3,700,000 in the first quarter. As of the end of the second quarter, our cash position was $90,300,000 an increase of $6,400,000 from the first quarter. As part of our ongoing cost reduction and efficiency initiatives, in July 2025, we completed the sale of a building which generated approximately $11,000,000 in net proceeds. We used these proceeds to reduce our outstanding bank revolver balance, which will reduce our annual interest expense by about $700,000 Regarding the outlook, for the 2025 at constant 2025 exchange rates, we expect net revenue to be in the range of 73,000,000 to $81,000,000 In summary, bookings of $79,900,000 grew sequentially for the third straight quarter resulting in a book to bill of 1.06.

[William Clancy, EVP & CFO at Vishay Precision Group]

Our business development initiatives continued to advance and we generated solid cash flow as we continue to implement our cost reduction programs. With that, let's open the lines for questions. Thank you.

[Operator]

Thank you very much. We will now open the floor for the Q and A session. Our first question comes from Josh Nichols with B. Riley. Your line is now open. Please go ahead.

[Josh Nichols, Senior Research Analyst at B.Riley Securities]

Yes. Thanks for the question and great to see the continued trend in improving business activity. Just want to touch on for a minute, I think you mentioned you received $17,000,000 of this business development revenue. You have a goal of getting to $30,000,000 this year. Presumably, do you expect some additional revenue from humanoid robot some of your humanoid robotics customers later this year?

[Josh Nichols, Senior Research Analyst at B.Riley Securities]

And then you mentioned one customer is expected to move into production next year. How do you expect the size of those orders would change relative to what you're getting today, assuming that that customer does move into production versus earlier stage demo today orders that you guys are doing?

[Ziv Shoshani, CEO, President & Director at Vishay Precision Group]

Good morning. Regarding the humanoid robotics project, as we indicated, we have received a $1,500,000 order from April to July. We are pleased with the progress of this customer and our design position on their robot. At the same time, we have to continue and support the production schedule, which are still changing by our customers. So we may expect to get more orders.

[Ziv Shoshani, CEO, President & Director at Vishay Precision Group]

At this point in time, the customer continues to evaluate based on their schedule. But if but potentially, we could see an order, it really depends on the customer. This is regarding the first humanoid customer. The second humanoid customer, I did indicate in prior calls that we did provide an initial prototype lines, prototype products. The feedback was good and we are expecting to provide another we are expecting to see a larger order in the near future.

[Ziv Shoshani, CEO, President & Director at Vishay Precision Group]

Regarding 2026, we Vishay Precision Group is set to support our customers regardless of the volume. We are set regarding the infrastructure. And once the customer is ready to ramp up on higher volume, the company is ready to support their production. So based on prior discussions that we had with the customer, once and if there would be changes in volume, we are ready to support those customers. We do hope to see those higher volume orders coming in 2026, but it really depends on the customer schedule.

[Josh Nichols, Senior Research Analyst at B.Riley Securities]

Thanks. And just to drill down into that a little bit. I think you previously mentioned somewhere in the range of like $500 to $1,200 per robot. Is that still what you're expecting? And is the margin profile for these customers relatively in line with the corporate average or a little bit better?

[Josh Nichols, Senior Research Analyst at B.Riley Securities]

Or how is that going to impact the businesses at scale?

[Ziv Shoshani, CEO, President & Director at Vishay Precision Group]

Okay. I did provide a price range given the volume that has been discussed naturally. Once higher volume would be discussed, We already we understand that probably a different pricing model will have to be supported and the company is prepared for that. Regarding the profit schedule, I think it's a little bit premature still to provide this type of information.

[Josh Nichols, Senior Research Analyst at B.Riley Securities]

Fair enough. Appreciate the detail there. I guess just one more question. I mean, the business activity has been improving, but if you look like I mean, the company has been coming off an extended downturn and now things are starting to pick up. We've seen a healthy uptick in operating income.

[Josh Nichols, Senior Research Analyst at B.Riley Securities]

Meanwhile, you've been cash flow positive even throughout the more challenging times. How do you see like the scalability of the business in terms of EBITDA and operating margin as your sales get back up to a higher level of cadence next year and think about the scale that comes into play on the margin front?

[Ziv Shoshani, CEO, President & Director at Vishay Precision Group]

As you know, our financial profile is such that for every incremental dollar of revenue, we do expect it to be around about, I would say, $0.03 0 to $0.40 drop to the pretax level. So this model, we do expect to continue once we would see an upturn in revenue. I should say that given all the cost initiatives that the company has taken during the last two years, we should be even in a better cost position to capitalize profitability once the volume rebound. So if there was a certain schedule regarding the profitability improvements. Once the volume increased historically, we should be in a better position, meaning we the profitability level should be accelerated in respect to the past once volume would rebound.

[Josh Nichols, Senior Research Analyst at B.Riley Securities]

Appreciate it. Thanks. I'll hop back in the queue.

[Operator]

Thank you very much. Our next question comes from John Franzreb with Sidoti and Company. Your line is now open. Please go ahead.

[John Franzreb, Senior Equity Analyst at Sidoti & Company]

Hello, everybody, and thanks for taking my questions. I'd like to start with the quarter that we just finished. Ziv, it seems like there is a fair amount of variability in the transportation market for you. Weighing Systems had some good revenue numbers flow through. Measurement Systems didn't.

[John Franzreb, Senior Equity Analyst at Sidoti & Company]

I wonder if you could just talk about what's going on, what are seeing in the transportation side of your business?

[Ziv Shoshani, CEO, President & Director at Vishay Precision Group]

Okay. Great. So regarding transportation, let me start with Measurement Systems. On the Measurement Systems, the upside that we have seen this quarter is coming mainly in the steel, mainly the DSI, the project related AMS and to an extent also the DTS automotive business. What we can or what we have identified is kind of a slower demand in weighing solution is due to the fact that in the first quarter, there were very high orders of transportation for our onboard weighing, which did not repeat itself in the second quarter.

[Ziv Shoshani, CEO, President & Director at Vishay Precision Group]

So as a matter of fact, it's not that the business has been slowing down, It's just that we did not repeat those large orders in Q1.

[John Franzreb, Senior Equity Analyst at Sidoti & Company]

So do you think that was just catch up from delayed orders from 2024 in Q1 and now they're at equilibrium? Any kind of greater Okay.

[Ziv Shoshani, CEO, President & Director at Vishay Precision Group]

So I so the Q1 orders were considered to be six to nine months orders that the customer has placed in Q1 is expected to continue sales are expected to continue in the coming months.

[John Franzreb, Senior Equity Analyst at Sidoti & Company]

Got it. Got it. And can you talk a little bit also about the steel market? It seems like the order bookings in steel were weak, and I was kind of hopeful maybe that they'd be a little bit stronger given what we're seeing as far as the macro conditions.

[Ziv Shoshani, CEO, President & Director at Vishay Precision Group]

Okay. So regarding steel, as you know, there are a few moving parts in steel. First, the global steel market as a whole continues to be soft, reflecting slow automotive production and demand and push outs for some electric vehicle model production. Secondly, the tariffs, which are very high on steel and steel related products also makes a significant effect. Our the orders that we have received for steel are not have not been necessarily on our kelp, which is in line or in line equipment inspection in steel mills, but it's more on the R and D for DSI product.

[Ziv Shoshani, CEO, President & Director at Vishay Precision Group]

So there is still a lot of tailwind once the steel business would rebound.

[John Franzreb, Senior Equity Analyst at Sidoti & Company]

Got it. That helps. And in regards to the $5,000,000 in cost savings, would that program be completed by the third quarter? Or is that going to take to the full year end?

[Ziv Shoshani, CEO, President & Director at Vishay Precision Group]

The $5,000,000 are expected to end in Q4. And I believe that for the first six months, we have captured $2,800,000 out of the $5,000,000

[John Franzreb, Senior Equity Analyst at Sidoti & Company]

$2,800,000

[John Franzreb, Senior Equity Analyst at Sidoti & Company]

Got it. And just a little bit of thought about how July looks, the trends for the company overall compared to what you saw the monthly trends in June I mean, I'm sorry, in the second quarter?

[Ziv Shoshani, CEO, President & Director at Vishay Precision Group]

I would regarding July at this point in time, I would say since it's already providing information regarding the third quarter, at this point, I could say there are no surprises to us.

[John Franzreb, Senior Equity Analyst at Sidoti & Company]

One last question. One last question. Should the robotics actually begin production in 2026? At what point would you actually have to add capacity to meet some of the projections for 02/1930? Have you I'm sure you thought about that, but can you maybe share with us what that what the ramp would look like as far as you're concerned?

[Ziv Shoshani, CEO, President & Director at Vishay Precision Group]

As I indicated, the ramp up I mean, the ramp up schedule is very much dependent on our customers. Share with our customers capacity, equipment capacity and our headcount, and we are working hand to hand that our capabilities and capacities would be in line with their demand. So to that extent, I think there is a very good collaboration between the two companies. And they would give us enough heads up and enough information that we would be there with enough capacity to support them. We are not going to be the bottleneck.

[Ziv Shoshani, CEO, President & Director at Vishay Precision Group]

Now regarding the timing and the schedule, it's up to them. We do hope that it would be sooner rather than later. It's really

[Steve Cantor, Senior Director - Investor Relations & Marketing Communications at Vishay Precision Group]

Fair enough.

[John Franzreb, Senior Equity Analyst at Sidoti & Company]

Guys, finish, Steve. I think I lost you.

[Ziv Shoshani, CEO, President & Director at Vishay Precision Group]

Sorry? I'm sorry.

[John Franzreb, Senior Equity Analyst at Sidoti & Company]

I'm sorry. I think I lost you.

[William Clancy, EVP & CFO at Vishay Precision Group]

I think was finished, John.

[John Franzreb, Senior Equity Analyst at Sidoti & Company]

Okay. I'll get back into queue and somebody else takes questions. Thank you, guys.

[Operator]

Thank you very much. We currently have no further questions. So I will hand back over to Steve for any closing remarks.

[Steve Cantor, Senior Director - Investor Relations & Marketing Communications at Vishay Precision Group]

Thank you. Before concluding our call today, I want to note that we will be participating in two upcoming investor conferences, the three part Advisors' Ideas Conference in Chicago on August 27 and the Jefferies Industrials Conference in New York on September 3. You can contact us for more information about them. And with that, thank you for joining our call today.

[Operator]

Thank you very much, Steve, and thank you everyone for joining. That concludes today's call. You may now disconnect your lines.

Participants

Executives

• Steve Cantor, Senior Director - Investor Relations & Marketing Communications
• Ziv Shoshani, CEO, President & Director
• William Clancy, EVP & CFO

Analysts

• Josh Nichols, Senior Research Analyst at B.Riley Securities
• John Franzreb, Senior Equity Analyst at Sidoti & Company