VPG Reports Fiscal 2025 Second Quarter Results

Core Insights - Vishay Precision Group, Inc. (VPG) reported a net earnings of $0.3 million or $0.02 per diluted share for the second fiscal quarter of 2025, a significant decrease from $4.6 million or $0.34 per diluted share in the same period last year [2][20] - The company experienced a 4.8% sequential growth in sales and a 7.5% increase in total orders, marking the third consecutive quarter of order growth [1][12] - Adjusted net earnings for the second fiscal quarter were $2.3 million or $0.17 per adjusted diluted share, down from $4.2 million or $0.31 per adjusted diluted share in the prior year [4][28] Financial Performance - Total net revenues for the second fiscal quarter of 2025 were $75.2 million, a decrease of 2.8% compared to $77.4 million in the same quarter of 2024 [6][19] - The company reported a gross profit margin of 40.7%, down from 41.9% year-over-year, while the adjusted gross profit margin was 41.0% [6][28] - Operating income for the second quarter was $2.7 million, compared to $5.9 million in the same quarter of the previous year, reflecting an operating margin of 3.6% [6][20] Segment Performance - The Sensors segment revenue decreased by 8.0% year-over-year to $26.6 million, primarily due to lower sales of strain gages in consumer applications [5][30] - The Weighing Solutions segment saw a revenue increase of 7.2% year-over-year to $29.4 million, driven by higher sales in the Transportation market [8][31] - The Measurement Systems segment revenue decreased by 8.9% year-over-year to $19.2 million, attributed to decreased revenue in the Steel market [10][31] Cost Management and Efficiency - The company completed the sale of a building for $10.8 million in net proceeds, which will be used to pay down bank debt, expected to save approximately $700 thousand in annual interest expense [1][12] - Adjusted EBITDA for the second fiscal quarter was $7.9 million, with an adjusted EBITDA margin of 10.5% [6][32] Outlook - VPG anticipates net revenues for the third fiscal quarter of 2025 to be in the range of $73 million to $81 million, based on current market conditions and backlog [12]