Vishay Precision Group, Inc.

What they do

VPG designs and manufactures non-commodity precision measurement and sensing products, including foil resistors, foil strain gages, load cell-based weighing solutions, and specialized measurement systems. Products are often designed into customer equipment and sold into test and measurement, industrial, transportation, steel, avionics, military and space, agriculture, consumer and medical markets. The company operates manufacturing and sales facilities in Canada, China, France, Germany, India, Israel, Japan, Sweden, Taiwan, the United Kingdom and the United States.

Revenue drivers

• Sensors segment — Comprised of foil resistor and strain gage operations; second quarter fiscal 2026 revenue was $33.4 million, up 25.8% year over year, driven by precision resistors in Test and Measurement and AMS and strain gages in AMS and Other.
• Weighing Solutions segment — Specialized modules and systems that precisely measure weight, force, torque and pressure; the 10-K describes the transducer/load cell market as highly fragmented and very competitive.
• Measurement Systems segment — Highly specialized systems for steel production, materials development and safety testing; second quarter 2026 revenue was reduced by approximately $3.0 million of delayed steel-related system shipments tied to an ERP implementation.

Recent performance

Second quarter fiscal 2026 net revenues were $83.9 million, up 11.7% year over year, with gross profit margin of 38.6% versus 40.7% and an operating margin of negative 0.4% versus positive 3.6%. The quarter produced a net loss attributable to VPG stockholders of $1.7 million, or $0.13 per diluted share, compared to net earnings of $0.3 million, or $0.02 per diluted share, a year earlier. Unfavorable foreign exchange reduced profits by $3.3 million versus the prior-year period and $0.9 million sequentially, and $3.0 million of steel-related system shipments were delayed by ERP-related supply chain issues. Adjusted diluted net earnings per share were $0.04 versus $0.21, and adjusted EBITDA was $5.5 million at a 6.5% margin. For the six months ended July 4, 2026, the net loss was $2.0 million, or $0.15 per diluted share.

Strategy

In the fourth quarter of 2025 VPG refined its business strategy to pursue accelerated growth, and each segment maintains distinct go-to-market, technical and capital approaches. The company continues to invest in growth initiatives while targeting approximately $6 million of cost savings in 2026 as part of a three-year goal of $20 million in cost reductions. It also states an intent to augment organic growth with acquisitions of complementary precision measurement and sensing businesses. Management is positioning VPG for new demand tied to AI-related semiconductor, data center, aerospace and defense applications, and expects humanoid robotics bookings as its initial robotics customer ramps production.

Risks

• Competition from low-cost producers — VPG is a leading supplier of foil resistors and foil strain gages, but those products are also made by competitors principally located in China, and foil strain gages compete with semiconductor strain gages VPG does not manufacture.
• Foreign exchange volatility — Unfavorable currency movements reduced second quarter 2026 profits by $3.3 million versus the prior-year quarter and $4.6 million over the first six months, driving much of the earnings decline.
• Tariffs and trade measures — New U.S. tariffs imposed beginning in the second quarter of 2025, and reciprocal tariffs and other retaliatory measures by several countries, affect VPG given its manufacturing footprint in India, China, Japan, Europe, Canada, Israel and the United States.
• Geopolitical exposure in Israel — The company states that its Israel operations have operated at normal levels following the recent war in Israel, but further spread of conflict in the Middle East poses risks of disruption to the business.

Outlook

With second quarter bookings of $95.5 million and a book-to-bill ratio of 1.14, management says it believes VPG is positioned to deliver organic annual revenue growth in fiscal 2026 above the previously outlined 8% to 10% range in its three-year model. The company expects the delayed steel-related system shipments, approximately $3.0 million, to be completed by the end of the year. It also cites expected humanoid bookings and a growing backlog, and reiterates roughly $6 million of 2026 cost savings toward a $20 million three-year target.