Vishay Precision Group Reports Decline in Revenue and Earnings for Fiscal Quarter

Vishay Precision Group, Inc. (VPG) reported a decline in financial performance for the fiscal quarter and six months ended June 28, 2025, compared to the same periods in the previous year. Net revenues for the second quarter were $75.2 million, down 2.8% from $77.4 million in the prior year, while net revenues for the six-month period totaled $146.9 million, a decrease of 7.1% from $158.1 million. The company attributed these declines primarily to lower sales volumes in its Sensors and Measurement Systems segments. Net earnings attributable to VPG stockholders for the second quarter were $0.3 million, or $0.02 per diluted share, compared to $4.6 million, or $0.34 per diluted share, in the prior year. For the six-month period, VPG reported a net loss of $0.7 million, or $0.05 per diluted share, compared to net earnings of $10.5 million, or $0.78 per diluted share, in the previous year.

The company's operational metrics reflected significant changes, with gross profit margins decreasing to 40.7% in the second quarter from 41.9% in the prior year. The decline in profitability was influenced by increased costs of products sold, which rose to 59.3% of net revenues in the second quarter, compared to 58.1% in the same period last year. Selling, general, and administrative expenses also increased, totaling $27.7 million for the quarter, up from $26.5 million a year earlier. The company recorded restructuring costs of $0.2 million in the second quarter, reflecting ongoing efforts to streamline operations.

VPG's strategic developments included the completion of the sale of its manufacturing facility in Kent, Washington, for $11.5 million, which is expected to yield a gain of approximately $5.6 million. The company continues to focus on optimizing its core competencies and enhancing its product offerings, particularly in the Sensors segment, where innovations in strain gage technology are being developed. Additionally, VPG is pursuing an acquisition strategy aimed at expanding its precision measurement capabilities, having acquired Nokra Optische Prueftechnik und Automation GmbH in September 2024.

Operationally, VPG reported a current ratio of 4.4 to 1.0 as of June 28, 2025, indicating a strong liquidity position. Cash and cash equivalents increased to $90.4 million from $79.3 million at the end of the previous fiscal year. The company generated $11.2 million in cash from operating activities during the first half of 2025, although this was lower than the $13.9 million generated in the same period last year. VPG's long-term debt remained stable at $31.5 million, reflecting its ongoing commitment to managing its capital structure effectively.

Looking ahead, VPG remains cautious about the potential impacts of geopolitical tensions, particularly in Israel, where it has significant operations. The company has implemented contingency plans to mitigate risks associated with these conflicts. Additionally, VPG is closely monitoring changes in global trade policies and tariffs that could affect its operations. The company anticipates that its strategic initiatives, including cost management and product innovation, will position it for improved performance in the future, despite the current challenges.