Vishay Precision Group(US:VPG)2026-02-11 15:02Financial 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]