I like Vishay Precision Group, Inc. ( VPG )’s business trajectory this year. It has steadier orders, the Sensors engine is finally pulling some real weight, and margins are still steady, even with some noise around FX and productI’m Emmanuel Onwusah—a financial analyst, writer, and recovering engineer. I hold FMVA® and BIDA® certifications from the Corporate Finance Institute, and I spend most of my time creating pitch decks, building models, analyzing companies, and trying to make sense of where value meet ...

Investors with an interest in Electronics - Miscellaneous Components stocks have likely encountered both Alps Electric (APELY) and Vishay Precision (VPG) . But which of these two companies is the best option for those looking for undervalued stocks? Let's take a closer look.Everyone has their own methods for finding great value opportunities, but our model includes pairing an impressive grade in the Value category of our Style Scores system with a strong Zacks Rank. The proven Zacks Rank puts an emphasis on ...

Summary of Vishay Precision Group (VPG) FY Conference Call Company Overview - **Company Name**: Vishay Precision Group (NYSE: VPG) - **Industry**: Sensor technology, focusing on weight, force, torque, and pressure measurement - **Market Size**: Global sensor market estimated at $250 billion annually, growing in high single digits [2][3] Core Business Segments - **Segments**: - Sensors: Components for modules or systems, including precision resistors and strain gauge sensors - Weighing Solutions: Modules incorporating sensors for OEM equipment in various industries - Measurement Systems: Standalone systems for specific applications [5][6] Financial Highlights and Targets - **Long-term Financial Targets**: - Revenue growth in low teens (organic and inorganic) - Gross margin target: 45% - Operating margin target: 18% - EBITDA margin target: 22% [6][7] - **Recent Performance**: Achieved record gross margin in 2024; improved operational efficiency allows for achieving targets at lower revenue levels [16][26] Growth Opportunities - **Emerging Trends**: - Electrification, digital transformation, industrial automation, defense, and space technology are driving new opportunities [8][9] - **Specific Applications**: - Testing for electric vehicles (EVs) and batteries - Robotics, including humanoid robots and medical robots - Precision agriculture and advanced manufacturing automation [10][11][12] Business Development Initiatives - **New Customer Acquisition**: Focus on formalizing business development initiatives with accountability at the board level; target of generating $30 million in orders from new initiatives [18][19] - **Key Opportunities**: - Humanoid robots: $3.6 million in orders for prototypes in 2025; working on torque and tactile sensors [20][21] - Testing new ceramics for defense applications, with a platform that increases test throughput significantly [23][25] Operational Improvements - **Capital Investment**: $53 million invested from 2021 to 2023 in upgrading manufacturing capabilities [16] - **Efficiency Gains**: Enhanced operational platform leading to record gross margins and improved cost structure [16][26] Market Dynamics - **Defense Sector**: Approximately 9% of revenue from avionics, military, and space; potential growth from increased defense budgets despite some near-term disruptions [11][27] - **Competitive Landscape**: Focus on North American and European developers in humanoid robotics; limited competition in high-performance sensor technology [30][32] Conclusion - **Outlook**: Positive growth prospects driven by operational excellence, new business initiatives, and emerging market trends; expectation of improved performance in cyclical markets over time [37]

Core Viewpoint - Vishay Precision Group, Inc. (VPG) will present at the Southwest IDEAS Investor Conference on November 20, 2025, highlighting its leadership in precision measurement and sensing technologies [1]. Group 1: Company Presentation - The presentation is scheduled for 7:55 a.m. CT and will be available via live and on-demand webcast [2]. - Interested parties can access the webcast through a provided link or VPG's website [2]. Group 2: Conference Overview - The IDEAS Investor Conferences aim to provide independent venues for quality companies to present their investment merits to investment professionals [3]. - These conferences are sponsored by investors for the benefit of regional investment communities and are produced by Three Part Advisors, LLC [3]. Group 3: Company Background - VPG specializes in precision measurement and sensing technologies, offering sensors, weighing solutions, and measurement systems that enhance product performance across various markets [4]. - The company emphasizes its role in making the world safer, smarter, and more productive [4].

Financial Data and Key Metrics Changes - Third quarter revenue was $79.7 million, reflecting a 6.1% increase from the second quarter and a 5.3% increase year-over-year [3][4] - Adjusted gross margin was 40.5%, impacted by $600,000 from unfavorable foreign exchange and $800,000 from unfavorable product mix [16][18] - Adjusted operating margin improved to 6.2%, up from 4.8% in the previous year [18][19] - Net earnings were $7.8 million, or $0.58 per diluted share, with adjusted net earnings of $3.5 million, or $0.26 per diluted share [19][20] - Adjusted EBITDA was $9.2 million, representing 11.5% of revenue, compared to $7.9 million or 10.5% in the second quarter [20] Business Line Data and Key Metrics Changes Sensors Segment - Revenue increased 19.1% sequentially, driven by higher sales of precision resistors and stringages [6][7] - Sensor bookings rose 13.5% sequentially, achieving a book to bill of 1.07 [6] Weighing Solutions Segment - Sales decreased 6.4% from the second quarter, with orders down about 10%, resulting in a book to bill of 0.89 [9][10] - The decline was attributed to lower sales in the transportation and construction markets [9] Measurement Systems Segment - Revenue increased 7.3% sequentially, with orders decreasing 6.9%, resulting in a book to bill of 1.04 [10][11] - Ongoing softness in DTS due to delays in defense and space government projects was noted [11] Market Data and Key Metrics Changes - The overall market environment was described as stable, with mixed trends globally [4][5] - The European economy showed improvement, impacting the onboard weighing business positively [23] Company Strategy and Development Direction - The company aims to achieve $30 million in business development orders for 2025, having generated approximately $26 million in the first nine months [12][37] - Cost efficiency goals include $5 million in annualized cost reductions by year-end [12][27] - The company is exploring M&A opportunities to enhance growth and profitability [13][14] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the long-term potential in humanoid robotics, with initial deployments expected in 2026 [7][8] - The company anticipates stable, moderately improved business conditions moving forward [15] - The impact of the U.S. Government shutdown on the Measurement Systems division was acknowledged, with potential revenue effects in the hundreds of thousands of dollars [38][39] Other Important Information - The company appointed two new executives to enhance leadership and operational excellence [14] - The cash position at the end of the third quarter was $86.3 million, with long-term debt of $20.5 million [20] Q&A Session Summary Question: Disconnect in Weighing Solutions business - Management explained that the Weighing Solutions business is stable but relies on large companies that are experiencing a slowdown due to interest rates [23] Question: Sustainability of gross margin - Management indicated that gross margin of 40.3% is sustainable due to ongoing cost reduction initiatives [24][26] Question: Humanoid robotics shipment ramp-up - Management confirmed discussions regarding higher volume production but could not provide specifics on ramp-up timelines [28][30] Question: New customer opportunities - Management is engaged in engineering dialogues with potential new customers but noted the proprietary nature of their design processes [35][36] Question: Impact of U.S. Government shutdown - Management estimated the impact on the Measurement Systems division to be significant, particularly for the DTS product line [38][39]

Financial Data and Key Metrics Changes - Third quarter revenue was $79.7 million, reflecting a 6.1% increase from the second quarter and a 5.3% increase year-over-year [4][12] - Adjusted gross margin was 40.5%, down from 41% in the second quarter, impacted by unfavorable foreign exchange and product mix [12] - Adjusted operating margin improved to 6.2% from 4.8% in the second quarter [12] - Net earnings were $7.8 million or $0.58 per diluted share, with adjusted net earnings of $3.5 million or $0.26 per diluted share [14] - Adjusted EBITDA was $9.2 million, representing 11.5% of revenue, up from $7.9 million or 10.5% of revenue in the second quarter [14] Business Line Data and Key Metrics Changes - Sensor segment revenue increased 19.1% sequentially, driven by higher sales of precision resistors and strain gauges [5][6] - Weighing solutions segment sales decreased 6.4% from the second quarter, with orders down about 10% [7] - Measurement systems segment revenue increased 7.3% sequentially, but orders decreased 6.9%, resulting in a book-to-bill of 1.04 [8] Market Data and Key Metrics Changes - The overall bookings for sensors and measurement systems segments were stable, with a book-to-bill ratio of 1.07 and 1.04 respectively [4][8] - The weighing solutions segment experienced a book-to-bill of 0.89, indicating a decline in orders [7] Company Strategy and Development Direction - The company aims to achieve $30 million in business development orders for 2025, having generated approximately $26 million in the first nine months [9] - Cost efficiency goals include $5 million in annualized cost reductions by year-end, with $4 million already realized [19] - The company is expanding its leadership team with new C-suite roles to enhance growth and operational excellence [10][11] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the long-term potential in humanoid robotics, with $3.6 million in orders year-to-date [6][10] - The company anticipates stable revenue for the fourth quarter, projecting net revenues between $75 million and $81 million [15] - Management noted that the U.S. government shutdown may impact the measurement systems division, particularly the DTS product line [29] Other Important Information - The company successfully mitigated tariff costs through price adjustments to customers [5] - Cash position at the end of the third quarter was $86.3 million, with long-term debt of $20.5 million, resulting in a net cash position of $65.8 million [14] Q&A Session Summary Question: Disconnect in the weighing solutions business - Management explained that the weighing solutions business is stable but affected by a slowdown in OEM sectors due to interest rates [17] Question: Sustainability of record gross margin - Management indicated that the gross margin of 40.3% is sustainable due to ongoing cost reduction initiatives [18] Question: Realization of cost savings - Management confirmed that they expect to meet the $5 million cost savings target by year-end, with $4 million already achieved [19] Question: Ramp-up in humanoid robotics - Management discussed ongoing discussions with customers regarding higher volume production but could not provide specifics on ramp-up timelines [22] Question: New customer opportunities in humanoid robotics - Management stated they are in engineering dialogues with potential new customers but cannot predict approval timelines due to proprietary processes [26] Question: Impact of U.S. government shutdown - Management estimated that the impact on the measurement systems division would be in the hundreds of thousands of dollars due to the shutdown [29]

Financial Performance - 3Q25 revenue reached $79.7 million, a 6.1% sequential increase[6] - Orders totaled $79.7 million, consistent with 2Q25[7] - Adjusted net earnings per diluted share increased from $0.17 in 2Q25 to $0.26 in 3Q25[8] - Adjusted EBITDA was $9.2 million, representing 11.5% of revenue[8] Segment Highlights - Sensors segment revenue grew 19.1% sequentially[16], reaching $31.6 million[13], with a book-to-bill ratio of 1.07[10, 14] - Weighing Solutions segment revenue declined 6.4% sequentially but increased 9.4% year-over-year[21], reaching $27.5 million[18], with a record gross margin of 40.3%[21] - Measurement Systems segment revenue grew 7.3% sequentially but decreased 8.0% year-over-year[27], reaching $20.6 million[24], with a book-to-bill ratio of 1.04[26] Strategic Initiatives - The company completed the sale of a building for $10.8 million as part of manufacturing consolidations[28] - Targeted annual fixed cost reductions of $5 million are on track[28]

Company Performance - Vishay Precision (VPG) reported quarterly earnings of $0.26 per share, exceeding the Zacks Consensus Estimate of $0.21 per share, and up from $0.19 per share a year ago, representing an earnings surprise of +23.81% [1] - The company posted revenues of $79.73 million for the quarter ended September 2025, surpassing the Zacks Consensus Estimate by 3.50% and increasing from $75.73 million year-over-year [2] - Over the last four quarters, Vishay has surpassed consensus EPS estimates two times and topped consensus revenue estimates twice [2] Stock Performance - Vishay shares have increased approximately 62% since the beginning of the year, significantly outperforming the S&P 500's gain of 16.5% [3] - The current consensus EPS estimate for the upcoming quarter is $0.27 on revenues of $79.73 million, and for the current fiscal year, it is $0.69 on revenues of $303.66 million [7] Industry Outlook - The Electronics - Miscellaneous Components industry, to which Vishay belongs, is currently ranked in the top 15% of over 250 Zacks industries, indicating a favorable outlook [8] - Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions, suggesting that industry performance can materially impact stock performance [5][8]

Financial Performance - Third-quarter sales increased by 5.3% year-over-year to $79.7 million, with a sequential growth of 6.1%[2] - Net earnings attributable to VPG stockholders for the third quarter were $7.8 million, or $0.59 per diluted share, compared to a net loss of $1.4 million, or $0.10 per diluted share, in the same quarter last year[5] - Adjusted EBITDA for the third quarter was $9.2 million, with an adjusted EBITDA margin of 11.5%[8] - Net earnings attributable to VPG stockholders decreased to $7,164, down 21.6% from $9,143 in the same period last year[26] - Basic earnings per share attributable to VPG stockholders were $0.54, a decrease of 20.6% from $0.68 in the prior year[26] - For the three months ended September 27, 2025, VPG reported a net earnings attributable to stockholders of $7,858,000, compared to a loss of $1,351,000 for the same period in 2024[30] - The diluted earnings per share for the quarter was $0.59, compared to a loss of $0.10 per share in the same quarter last year[30] Segment Performance - The Sensors segment revenue grew by 12.1% year-over-year to $31.6 million, driven by higher sales of precision resistors and strain gages[10] - The Weighing Solutions segment revenue increased by 9.4% year-over-year to $27.5 million, primarily due to higher sales in the Transportation market[12] - The Measurement Systems segment revenue decreased by 8.0% year-over-year to $20.6 million, attributed to lower sales in the AMS market[14] - Net revenues for the Sensors segment increased to $31,624,000, up from $28,201,000 in the same quarter last year, reflecting a growth of 8.6%[31] - The Weighing Solutions segment reported net revenues of $27,538,000, an increase from $25,175,000, representing a growth of 9.3% year-over-year[31] - The Measurement Systems segment experienced a decline in net revenues to $20,566,000 from $22,352,000, a decrease of 8.0% compared to the previous year[31] Cash Flow and Assets - The company reported a net cash position of $66 million, supporting its growth strategy[2] - Adjusted free cash flow for the third quarter was $7.4 million[8] - Total current assets increased to $252,338, up 6.4% from $236,949 as of December 31, 2024[27] - Cash and cash equivalents rose to $86,253, an increase of 8.3% from $79,272 at the end of 2024[27] - Net cash provided by operating activities was $9,954, a decrease of 23.9% from $13,039 in the prior year[29] - Capital expenditures for the nine months were $4,953, down 29% from $6,965 in the same period last year[29] Operational Changes - The company appointed two new executives to C-Suite positions to enhance operational excellence and accelerate growth[3] - The company incurred restructuring costs of $214,000 in the latest quarter, compared to $82,000 in the same quarter last year[32] - Start-up costs for the quarter were $37,000, compared to no start-up costs in the same period last year[32] Profitability Metrics - Gross profit decreased to $89,764, down 8.1% from $97,761 in the prior year[26] - Operating income fell to $12,807, representing a decline of 23.1% compared to $16,665 in the previous year[26] - The gross profit margin for the same quarter was 40.3%, slightly up from 40.0% in the previous year[30] - Adjusted EBITDA for the quarter was $9,152,000, with an adjusted EBITDA margin of 11.5%, compared to 10.7% in the prior year[32] - The adjusted gross profit margin for the Sensors segment was 33.7%, up from 31.0% in the previous year[31] Future Outlook - The company expects fourth-quarter net revenues to be in the range of $75 million to $81 million, based on current market conditions and backlog[16]

Core Insights - Vishay Precision Group, Inc. has appointed Yair Alcobi as Chief Business and Product Officer and promoted Rafi Ouzan to Chief Operating Officer, both effective immediately [1][2][3] - The changes in senior management aim to enhance operational and product development capabilities to target faster-growing markets and streamline cross-divisional processes for accelerated growth [2] Management Appointments - Yair Alcobi will oversee sales, marketing, product strategy, and business development, bringing over 25 years of experience in industrial technology [2] - Rafi Ouzan will manage the integration of company operations, focusing on quality management and supply chain optimization, with over 30 years of management experience [3] Company Overview - Vishay Precision Group, Inc. specializes in precision measurement and sensing technologies, providing solutions that enhance product performance across various markets [4]