Vishay Precision Group (VPG) Q2 2024 earnings summary

Executive summary

• Q2 2024 revenues were $77.4M, down 14.8% year-over-year and 4.2% sequentially, reflecting mixed market conditions and segment declines.

• Gross margin was 41.9%, down from 43.4% in Q1 and 42.6% a year ago; adjusted net earnings per diluted share were $0.31, with GAAP EPS at $0.34.

• Cost reduction programs, business development, and innovation remain key management priorities.

• Strong balance sheet with $84.1M in cash and $31.9M in debt supports organic and inorganic growth strategies.

• Ongoing stock repurchase program, with $3.1M repurchased in Q2 and 455,101 shares repurchased as of June 29, 2024.

Financial highlights

• Adjusted EBITDA for Q2 2024 was $10.2M (13.2% margin); adjusted net earnings were $4.2M ($0.31 per diluted share).

• Operating margin was 7.6%, down from 13.0% last year; adjusted operating margin was 7.6% vs. 13.2%.

• Adjusted free cash flow was $4.9M; cash from operations was $7.5M in Q2.

• End-of-period backlog was $104.9M, down from $139.7M a year ago.

• Book-to-bill ratio was 0.95, slightly up from 0.94 in Q1.

Outlook and guidance

• Q3 2024 net revenues expected between $70M and $78M at constant Q2 exchange rates.

• Macro environment expected to remain stable but with continued mixed trends through year-end.

• Orders anticipated to be flat for the rest of 2024; recovery in key markets now expected in 2025, not H2 2024.

• Management focused on cost management, manufacturing consolidation, and innovation to improve profitability.