Financial Data and Key Metrics Changes - Q4 2025 revenues were $80.6 million, up 11% year-over-year and 1% sequentially, marking solid execution across the portfolio [2][3] - Adjusted gross margin for Q4 was 37%, down from 40.5% in Q3, impacted by $3 million in headwinds [15][17] - GAAP net loss was $1.9 million, or $0.14 per diluted share, while adjusted diluted EPS was $0.07 [16][17] - Adjusted EBITDA was $6 million, or 7.5% of revenue, compared to $9.2 million or 11.5% of revenue in Q3 [17] Business Line Data and Key Metrics Changes - **Sensors Segment**: Q4 revenue declined 4% sequentially but was up 18% year-over-year; bookings rose 4% sequentially, resulting in a book-to-bill of 1.15 [4][5] - **Weighing Solutions Segment**: Q4 sales increased modestly from Q3 and grew 7.8% from the prior year; orders were up 14.9% sequentially, resulting in a book-to-bill of 1.02 [7][8] - **Measurement Systems Segment**: Q4 revenue was $22.4 million, up 9% sequentially and 6% year-over-year; however, orders declined 16% from Q3, resulting in a book-to-bill of 0.81 [9] Market Data and Key Metrics Changes - Total Sensors orders were up 18% in the second half of 2025 compared to the first half, with backlog at the highest level since Q3 2023 [5][6] - Weighing Solutions showed strength in precision agriculture, medical, construction, and e-bike applications, while transportation orders increased for onboard weighing systems [8] Company Strategy and Development Direction - The company is focusing on accelerating growth through the creation of two new senior executive positions: the Office of the Chief Business and Product Officer and the Office of Chief Operating Officer [10][11] - Aiming for a mid- to high-single-digit revenue growth in 2026, with a target of $45 million from business development initiatives, representing a 20% increase from 2025 [14][39] - Emphasis on Physical AI technologies and humanoid robotics as key growth areas, with expectations for continued momentum in 2026 [13][14] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism regarding recovery in the marketplace, particularly in the Sensors and Weighing Solutions segments, despite softness in the steel market [21][22] - Anticipated improved gross margins in Q1 2026, with no lingering impacts from unusual headwinds identified in Q4 [23][27] - The company is prepared to support customer production demands in the humanoid robotics market, which is expected to see significant developments in 2026 [6][7] Other Important Information - The company generated adjusted free cash flow of $1.3 million in Q4, down from $7.4 million in Q3 [17] - As of the end of Q4, the cash position was $87.4 million, with long-term debt of $20.6 million, resulting in a net cash position of $66.8 million [18] Q&A Session Summary Question: Revenue guidance and its bias towards the sensor segment - Management is optimistic about recovery signs in the marketplace, particularly in Sensors, and expects higher revenues in the second half of the year [21][22] Question: Gross margin impact and lingering effects - Management identified a $3 million unusual effect in Q4, which is not expected to persist into Q1, leading to improved gross margins [23][27] Question: Organizational changes and financial targets - The new organizational structure aims to standardize processes and improve operational efficiency, with expected cost savings of $6 million in 2026 [36][39] Question: Details on new humanoid development customer - The new customer is smaller and still in the design stage, with no clear timeline for ramp-up, but the company is prepared to support them [40][41] Question: Discussions with other humanoid developers - The company is in dialogue with multiple humanoid manufacturers and hopes to report prototype orders from them in the future [42]

Vishay Precision Group (NYSE:VPG) Q4 2025 Earnings call February 11, 2026 09:00 AM ET Speaker4I will now hand over to Steve Cantor, Senior Director, Investor Relations at VPG, to begin. Please go.Speaker5Thank you, Claire. Good morning, everyone. Welcome to VPG's 2025 fourth quarter earnings conference call. Our Q4 press release and slides have been posted on VPG's website. An audio recording of today's call will be available on the internet for a limited time and can also be accessed on our website. Today' ...

4Q25 Earnings Call This presentation includes discussion of adjusted free cash flow, adjusted gross profit and adjusted operating income and their corresponding margins, as well as adjusted net earnings, EBITDA, adjusted EBITDA, and adjusted net diluted earnings per share. These are financial measures that were not prepared in accordance with generally accepted accounting principles in the United States (non-GAAP measures). Management believes that these non-GAAP measures are useful to investors because eac ...

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 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]