Vishay Precision Group(VPG) - 2025 Q2 - Quarterly Results

Press Release & Executive Summary Second Fiscal Quarter Highlights VPG reported positive sequential sales and order growth in Q2 2025, improving adjusted margins and EBITDA, and reduced debt through an asset sale - Sequential sales grew 4.8% in Q2 2025 compared to Q1 2025[3] - Total orders increased 7.5% sequentially, marking the third consecutive quarter of growth[3] Key Operational Metrics (Q2 2025) | Metric | Value | | :-------------------- | :------ | | Book-to-bill | 1.06 | | Measurement Systems book-to-bill | 1.20 | | Sensors book-to-bill | 1.12 | - Adjusted gross margin, operating margin, and EBITDA improved sequentially despite a $0.5 million tariff impact[3] - A July 2025 building sale generated $10.8 million net, reducing bank debt and saving $0.7 million annually in interest[3] Company Overview Vishay Precision Group, Inc. (VPG) leads in precision measurement and sensing technologies, optimizing customer product performance across diverse markets - VPG leads in precision measurement and sensing technologies[19] - Products encompass sensors, weighing solutions, and measurement systems[19] - Mission is to optimize customer product performance across diverse markets for a safer, smarter, and more productive world[19] Financial Performance Second Fiscal Quarter Financial Trends VPG reported a significant year-over-year decrease in GAAP net earnings and diluted EPS for Q2 2025, with adjusted metrics also declining, and net revenues down 2.8% YoY GAAP Financials (Q2 2025 vs Q2 2024, in millions) | Metric | Q2 2025 | Q2 2024 | Change (YoY) | | :--------------------------------- | :-------- | :-------- | :----------- | | Net revenues | $75.2 | $77.4 | -2.8% | | Gross profit margin | 40.7% | 41.9% | -1.2 pp | | Operating margin | 3.6% | 7.6% | -4.0 pp | | Net earnings attributable to VPG stockholders | $0.3 | $4.6 | -93.5% | | Diluted net earnings per share | $0.02 | $0.34 | -94.1% | | EBITDA | $5.2 | $11.5 | -54.7% | | EBITDA Margin | 7.0% | 14.8% | -7.8 pp | Adjusted Financials (Q2 2025 vs Q2 2024, in millions) | Metric | Q2 2025 | Q2 2024 | Change (YoY) | | :--------------------------------- | :-------- | :-------- | :----------- | | Adjusted gross profit margin | 41.0% | 41.9% | -0.9 pp | | Adjusted operating margin | 4.8% | 7.6% | -2.8 pp | | Adjusted net earnings | $2.3 | $4.2 | -45.2% | | Adjusted diluted net earnings per share | $0.17 | $0.31 | -45.2% | | Adjusted EBITDA | $7.9 | $10.2 | -22.5% | | Adjusted EBITDA Margin | 10.5% | 13.2% | -2.7 pp | - Cash from operating activities was $6.0 million in Q2 2025[8] - Adjusted free cash flow was $4.7 million in Q2 2025[8] Six-Month Financial Trends For the first six fiscal months of 2025, VPG reported a net loss attributable to stockholders, a significant decline from prior year net earnings, with adjusted net earnings also decreasing GAAP Financials (Six Months 2025 vs Six Months 2024, in millions) | Metric | 6M 2025 | 6M 2024 | Change (YoY) | | :--------------------------------- | :-------- | :-------- | :----------- | | Net revenues | $146.9 | $158.1 | -7.1% | | Gross profit margin | 39.2% | 42.7% | -3.5 pp | | Operating income | $2.6 | $12.8 | -79.7% | | Net (loss) earnings attributable to VPG stockholders | $(0.7) | $10.5 | N/A (loss from profit) | | Diluted (loss) earnings per share | $(0.05) | $0.78 | N/A (loss from profit) | Adjusted Financials (Six Months 2025 vs Six Months 2024, in millions) | Metric | 6M 2025 | 6M 2024 | Change (YoY) | | :--------------------------------- | :-------- | :-------- | :----------- | | Adjusted net earnings | $2.7 | $9.8 | -72.4% | | Adjusted diluted net earnings per share | $0.21 | $0.73 | -71.2% | Segment Performance Segment performance was mixed in Q2 2025, with Sensors revenue decreasing, Weighing Solutions increasing, and Measurement Systems revenue decreasing year-over-year but increasing sequentially, alongside varied gross margins Sensors Segment Performance Sensors Segment Revenue (Q2 2025, in millions) | Metric | Q2 2025 | Q2 2024 | Q1 2025 | | :-------------------- | :-------- | :-------- | :-------- | | Revenue | $26.6 | $28.9 | $27.1 | | Change (YoY) | -8.0% | N/A | N/A | | Change (QoQ) | -1.8% | N/A | N/A | - Year-over-year revenue decreased due to lower strain gage sales in consumer applications, partially offset by Test and Measurement market growth[7] - Sequential revenue decreased mainly due to lower precision resistor sales in the Test and Measurement market[7] Sensors Segment Gross Profit Margin | Metric | Q2 2025 | Q2 2024 | Q1 2025 | | :-------------------- | :-------- | :-------- | :-------- | | Gross Profit Margin | 32.0% | 38.3% | 30.1% | | Adjusted Gross Margin | 32.2% | 38.3% | 30.8% | - Adjusted gross profit margin decreased year-over-year due to lower volume, net tariffs, and inefficiencies, partially offset by inventory increase[9] - Adjusted gross profit margin increased sequentially due to higher inventories and favorable foreign currency exchange rates, despite lower volume and net tariff costs[9] Weighing Solutions Segment Performance Weighing Solutions Segment Revenue (Q2 2025, in millions) | Metric | Q2 2025 | Q2 2024 | Q1 2025 | | :-------------------- | :-------- | :-------- | :-------- | | Revenue | $29.4 | $27.4 | $26.4 | | Change (YoY) | +7.2% | N/A | N/A | | Change (QoQ) | +11.3% | N/A | N/A | - Year-over-year revenue increased primarily from higher sales in the Transportation and Other markets[10] - Sequential revenue increased driven by higher sales in Transportation, Industrial Weighing, and Other markets (medical, precision agriculture)[10] Weighing Solutions Segment Gross Profit Margin | Metric | Q2 2025 | Q2 2024 | Q1 2025 | | :-------------------- | :-------- | :-------- | :-------- | | Gross Profit Margin | 39.6% | 37.6% | 36.8% | | Adjusted Gross Margin | 40.2% | 37.6% | 37.8% | - Gross profit margin increased year-over-year due to higher volume, favorable foreign exchange rates, and cost reductions[11] - Gross profit margin increased sequentially due to higher volume and favorable foreign exchange rates, despite net tariff costs[11] Measurement Systems Segment Performance Measurement Systems Segment Revenue (Q2 2025, in millions) | Metric | Q2 2025 | Q2 2024 | Q1 2025 | | :-------------------- | :-------- | :-------- | :-------- | | Revenue | $19.2 | $21.0 | $18.2 | | Change (YoY) | -8.9% | N/A | N/A | | Change (QoQ) | +5.1% | N/A | N/A | - Year-over-year revenue decreased mainly due to lower Steel market revenue, partially offset by higher Transportation and AMS sales[12] - Sequential revenue increased primarily from higher AMS market sales, offsetting declines in Transportation and Steel markets[12] Measurement Systems Segment Gross Profit Margin | Metric | Q2 2025 | Q2 2024 | Q1 2025 | | :-------------------- | :-------- | :-------- | :-------- | | Gross Profit Margin | 54.6% | 52.4% | 50.3% | - Gross profit margin increased year-over-year due to a favorable product mix[13] - Gross profit margin increased sequentially due to higher volume and a favorable product mix[13] Business Outlook & Non-GAAP Definitions Near-Term Outlook VPG anticipates Q3 2025 net revenues between $73 million and $81 million, based on current backlog and market conditions at constant Q2 2025 foreign currency exchange rates - Expected net revenues for Q3 2025 are $73 million to $81 million[14] - Outlook is based on current backlog and market conditions, using constant Q2 2025 foreign currency exchange rates[14] Use of Non-GAAP Financial Information VPG utilizes non-GAAP measures like adjusted margins, net earnings, EBITDA, and free cash flow to present core operating results by excluding non-core items - Adjusted gross profit margin excludes start-up costs[15] - Adjusted operating margin excludes start-up, restructuring, and severance costs[15] - Adjusted net earnings and diluted EPS exclude start-up, restructuring, severance, foreign currency exchange impacts, and related tax effects[15] - EBITDA is earnings before interest, taxes, depreciation, and amortization[15] - Adjusted EBITDA excludes interest, taxes, depreciation, amortization, start-up, restructuring, severance, and foreign currency exchange impacts[15] - Adjusted free cash flow for Q2 2025 is operating cash flow of $6.0 million less capital expenditures of $1.3 million, net of asset sale proceeds[16] - Management considers these non-GAAP measures useful for investors to evaluate core operating profitability and performance trends by excluding non-core events[17] Consolidated Financial Statements (GAAP) Consolidated Condensed Statements of Operations The consolidated statements of operations show a significant decline in net earnings and net revenues for both the second fiscal quarter and six-month period ended June 28, 2025, compared to the prior year Fiscal Quarter Ended June 28, 2025 vs. June 29, 2024 Consolidated Condensed Statements of Operations (Q2, in thousands) | Metric | June 28, 2025 | June 29, 2024 | | :--------------------------------- | :------------ | :------------ | | Net revenues | $75,161 | $77,359 | | Costs of products sold | $44,567 | $44,952 | | Gross profit | $30,594 | $32,407 | | Selling, general and administrative expenses | $27,701 | $26,501 | | Restructuring costs | $185 | — | | Operating income | $2,708 | $5,906 | | Other (expense) income | $(1,812) | $1,052 | | Income before taxes | $896 | $6,958 | | Income tax expense | $592 | $2,316 | | Net earnings | $304 | $4,642 | | Less: net earnings attributable to noncontrolling interests | $56 | $39 | | Net earnings attributable to VPG stockholders | $248 | $4,603 | | Basic earnings per share | $0.02 | $0.34 | | Diluted earnings per share | $0.02 | $0.34 | Six Fiscal Months Ended June 28, 2025 vs. June 29, 2024 Consolidated Condensed Statements of Operations (Six Months, in thousands) | Metric | June 28, 2025 | June 29, 2024 | | :--------------------------------- | :------------ | :------------ | | Net revenues | $146,902 | $158,142 | | Costs of products sold | $89,262 | $90,641 | | Gross profit | $57,640 | $67,501 | | Selling, general and administrative expenses | $54,412 | $53,895 | | Restructuring costs | $580 | $782 | | Operating income | $2,648 | $12,824 | | Other (expense) income | $(3,039) | $2,284 | | (Loss) Income before taxes | $(391) | $15,108 | | Income tax expense | $260 | $4,634 | | Net (loss) earnings | $(651) | $10,474 | | Less: net earnings (loss) attributable to noncontrolling interests | $43 | $(20) | | Net (loss) earnings attributable to VPG stockholders | $(694) | $10,494 | | Basic (loss) earnings per share | $(0.05) | $0.78 | | Diluted (loss) earnings per share | $(0.05) | $0.78 | Consolidated Condensed Balance Sheets As of June 28, 2025, VPG's total assets increased slightly compared to December 31, 2024, driven by higher cash and inventories, with modest increases in total liabilities and equity Consolidated Condensed Balance Sheets (in thousands) | Metric | June 28, 2025 | December 31, 2024 | | :--------------------------------- | :------------ | :---------------- | | Assets: | | | | Cash and cash equivalents | $90,375 | $79,272 | | Accounts receivable, net | $51,985 | $51,200 | | Inventories, net | $86,329 | $84,160 | | Total current assets | $252,871 | $236,949 | | Property and equipment, net | $77,339 | $79,501 | | Goodwill | $47,376 | $46,819 | | Total assets | $465,554 | $450,935 | | Liabilities and Equity: | | | | Total current liabilities | $58,108 | $53,039 | | Long-term debt | $31,526 | $31,441 | | Total liabilities | $134,299 | $129,075 | | Total Vishay Precision Group, Inc. stockholders' equity | $331,211 | $321,967 | | Total equity | $331,255 | $321,860 | | Total liabilities and equity | $465,554 | $450,935 | Consolidated Condensed Statements of Cash Flows For the six fiscal months ended June 28, 2025, net cash from operating activities decreased, while investing and financing activities used less cash, leading to a substantial increase in cash and cash equivalents Consolidated Condensed Statements of Cash Flows (Six Months, in thousands) | Activity | June 28, 2025 | June 29, 2024 | | :--------------------------------- | :------------ | :------------ | | Net (loss) earnings | $(651) | $10,474 | | Net cash provided by operating activities | $11,211 | $13,870 | | Net cash used in investing activities | $(2,740) | $(4,831) | | Net cash used in financing activities | $(148) | $(6,781) | | Effect of exchange rate changes on cash and cash equivalents | $2,780 | $(2,095) | | Increase in cash and cash equivalents | $11,103 | $163 | | Cash and cash equivalents at end of period | $90,375 | $84,128 | - Capital expenditures for the six months ended June 28, 2025, were $2.76 million, a decrease from $5.18 million in the prior year[26] - No treasury stock was purchased in the six months ended June 28, 2025, compared to $5.89 million in the prior year[26] Non-GAAP Reconciliations Reconciliation of Consolidated Adjusted Metrics (Gross Profit, Operating Income, Net Earnings, EPS) This section reconciles GAAP to adjusted non-GAAP metrics for gross profit, operating income, net earnings, and diluted EPS for both fiscal quarter and six-month periods, detailing adjustments for non-core items and their tax effects Q2 2025 Reconciliation (in thousands) | Metric | GAAP | Start-up | Restructuring | Severance | FX Loss (Gain) | Tax Effect | Adjusted Non-GAAP | | :--------------------------------- | :----- | :------- | :------------ | :-------- | :------------- | :--------- | :---------------- | | Gross Profit | $30,594 | $257 | — | — | — | — | $30,851 | | Operating Income | $2,708 | $257 | $185 | $443 | — | — | $3,593 | | Net Earnings Attributable to VPG Stockholders | $248 | $257 | $185 | $443 | $1,763 | $(624) | $2,272 | | Diluted EPS | $0.02 | $0.02 | $0.02 | $0.03 | $0.13 | $(0.05) | $0.17 | Six Months 2025 Reconciliation (in thousands) | Metric | GAAP | Start-up | Restructuring | Severance | FX Loss (Gain) | Tax Effect | Adjusted Non-GAAP | | :--------------------------------- | :----- | :------- | :------------ | :-------- | :------------- | :--------- | :---------------- | | Gross Profit | $57,640 | $720 | — | — | — | — | $58,360 | | Operating Income | $2,648 | $720 | $580 | $443 | — | — | $4,391 | | Net (Loss) Earnings Attributable to VPG Stockholders | $(694) | $720 | $580 | $443 | $2,735 | $(1,044) | $2,740 | | Diluted EPS | $(0.05) | $0.06 | $0.04 | $0.03 | $0.21 | $(0.08) | $0.21 | Reconciliation of Adjusted Gross Profit by Segment This section details the reconciliation of GAAP gross profit to adjusted non-GAAP gross profit for each of VPG's segments for Q2 2025, Q2 2024, and Q1 2025, primarily adjusting for start-up costs Sensors Segment Gross Profit Reconciliation (in thousands) | Metric | Q2 2025 | Q2 2024 | Q1 2025 | | :--------------------------------- | :------ | :------ | :------ | | GAAP Gross Profit | $8,487 | $11,066 | $8,147 | | GAAP Gross Profit Margins | 32.0% | 38.3% | 30.1% | | Start-up costs | $79 | — | $187 | | Adjusted Non-GAAP Gross Profit | $8,566 | $11,066 | $8,334 | | Adjusted Non-GAAP Gross Profit Margins | 32.2% | 38.3% | 30.8% | Weighing Solutions Segment Gross Profit Reconciliation (in thousands) | Metric | Q2 2025 | Q2 2024 | Q1 2025 | | :--------------------------------- | :------ | :------ | :------ | | GAAP Gross Profit | $11,646 | $10,310 | $9,717 | | GAAP Gross Profit Margins | 39.6% | 37.6% | 36.8% | | Start-up costs | $178 | — | $276 | | Adjusted Non-GAAP Gross Profit | $11,825 | $10,310 | $9,993 | | Adjusted Non-GAAP Gross Profit Margins | 40.2% | 37.6% | 37.8% | Measurement Systems Segment Gross Profit Reconciliation (in thousands) | Metric | Q2 2025 | Q2 2024 | Q1 2025 | | :--------------------------------- | :------ | :------ | :------ | | GAAP Gross Profit | $10,461 | $11,031 | $9,182 | | GAAP Gross Profit Margins | 54.6% | 52.4% | 50.3% | | Adjusted Non-GAAP Gross Profit | $10,461 | $11,031 | $9,182 | | Adjusted Non-GAAP Gross Profit Margins | 54.6% | 52.4% | 50.3% | Reconciliation of Adjusted EBITDA This section reconciles GAAP net earnings to EBITDA and Adjusted EBITDA for the fiscal quarter ended June 28, 2025, June 29, 2024, and March 29, 2025, including adjustments for interest, tax, depreciation, amortization, restructuring, severance, start-up costs, and foreign currency exchange EBITDA Reconciliation (in thousands) | Metric | Q2 2025 | Q2 2024 | Q1 2025 | | :--------------------------------- | :------ | :------ | :------ | | Net earnings (loss) attributable to VPG stockholders | $248 | $4,603 | $(942) | | Interest Expense | $550 | $649 | $550 | | Income tax (benefit) expense | $592 | $2,316 | $(332) | | Depreciation | $2,872 | $2,992 | $3,056 | | Amortization | $982 | $924 | $979 | | EBITDA | $5,244 | $11,484 | $3,311 | | EBITDA Margin | 7.0% | 14.8% | 4.6% | Adjusted EBITDA Reconciliation (in thousands) | Metric | Q2 2025 | Q2 2024 | Q1 2025 | | :--------------------------------- | :------ | :------ | :------ | | EBITDA | $5,244 | $11,484 | $3,311 | | Restructuring costs | $185 | — | $395 | | Severance cost | $443 | — | — | | Start-up costs | $257 | — | $463 | | Foreign currency exchange loss (gain) | $1,763 | $(1,289) | $972 | | ADJUSTED EBITDA | $7,892 | $10,196 | $5,141 | | ADJUSTED EBITDA MARGIN | 10.5% | 13.2% | 7.2% | Corporate Information Conference Call and Webcast Details VPG hosted a conference call and webcast on August 5, 2025, to discuss Q2 2025 results, with replay information provided for both phone and webcast - Conference call held on Tuesday, August 5, 2025, at 9:00 a.m. ET (8:00 a.m. CT)[18] - Access available via phone (US: 1-833-470-1428, International: +1-404-975-4839, passcode 010019) or ir.vpgsensors.com[18] - Replay available approximately one hour post-call via phone (US: 1-866-813-9403, International: 1-929-458-6194, passcode 958597) or the VPG investor relations website[18] Forward-Looking Statements This section contains a standard disclaimer regarding forward-looking statements, highlighting various risks and uncertainties that could cause actual results to differ materially from expectations - Information may contain forward-looking statements subject to risks and uncertainties that could cause actual results to differ materially[20] - Key factors include economic conditions, tariffs, inflation, supply chain issues, acquisition difficulties, new product development, foreign currency fluctuations, geopolitical instabilities, cost reduction challenges, and compliance risks[20] - The company undertakes no obligation to publicly update or revise any forward-looking statements[20] Contact Information Contact details for investor inquiries are provided - Contact Person: Steve Cantor, Vishay Precision Group, Inc.[21] - Phone: 781-222-3516[21] - Email: info@vpgsensors.com[21]