Vishay Precision Group (VPG) Q2 2026 earnings summary

Executive summary

• Net revenues for Q2 2026 were $83.9 million, up 11.7% year-over-year and flat sequentially, with all segments contributing to growth; revenue was impacted by $3 million in delayed shipments due to ERP implementation.

• Orders reached $95.5 million, driven by strong Sensors segment and AI-related markets, with a backlog of $136 million positioning for growth in 2H26.

• Book-to-bill ratio was 1.14 overall and 1.44 in Sensors, marking seven consecutive quarters at or above 1.0.

• Operational improvements and cost savings initiatives yielded nearly $1 million in Q2, with a target of $6 million for 2026 and $20 million over three years.

• Strategic investments in capacity, personnel, and R&D support growth in AI, data center, and defense markets.

Financial highlights

• Gross margin was 38.6%, flat sequentially and down from 40.7% year-over-year; Sensors gross margin declined to 31.5%, Weighing Solutions improved to 37.3%, and Measurement Systems held at 52.5%.

• Operating margin was -0.4%; adjusted operating margin was 1.7% after restructuring and stock-based compensation.

• GAAP net loss was $1.7 million ($0.13 per share); adjusted net earnings were $586,000 ($0.04 per share).

• Adjusted EBITDA was $5.5 million (6.5% of revenue), down from $8.4 million (11.1%) in Q2 2025.

• Cash and cash equivalents at quarter-end were $75.7 million; net cash position was $60 million.

Outlook and guidance

• Q3 2026 net revenues expected between $84 million and $89 million, assuming constant FX and excluding tariff refunds.

• Organic annual revenue growth for fiscal 2026 is expected to exceed the 8%-10% target, with double-digit growth anticipated.

• Price increases on select products expected to benefit H2 results, though impact limited by backlog.

• Humanoid robotics production ramp and deferred KELK orders expected to ship by end of Q4, with some improvement in Q3.

• Strategic focus remains on operational efficiency, cost management, and leveraging R&D for new product development.