Q2 2026 Vishay Precision Group Inc Earnings Call Transcript
Key Points
- Vishay Precision Group Inc (VPG) delivered another quarter of strong order momentum, with consolidated book-to-bill ratio of 1.14, marking the seventh consecutive quarter at or above 1.0.
- The Sensors segment achieved an all-time quarterly record for bookings at $48.1 million, with a very strong book-to-bill ratio of 1.44, driven by robust demand from AI-related markets.
- Vishay Precision Group Inc (VPG) received an official vendor nomination letter from its initial humanoid robotics customer, positioning the company to support a production ramp beginning in the second half of 2026.
- The company's operational improvement initiatives are gaining traction, generating nearly $1 million in cost savings during Q2 and remaining on track to achieve approximately $6 million in savings for the year.
- Vishay Precision Group Inc (VPG) expects fiscal 2026 organic growth to exceed the 8% to 10% annual growth target outlined in its three-year plan, supported by strong order trends and backlog.
- The company's backlog increased to $135.8 million, providing strong visibility into future revenue, and it has implemented selective price increases expected to benefit the P&L in the second half of the year.
- Vishay Precision Group Inc (VPG) experienced a temporary delay of approximately $3 million in shipments at its CALC business due to supply chain challenges from a new ERP system implementation.
- Foreign exchange rates remained a significant headwind, reducing operating profit by approximately $900,000 sequentially and $3.3 million compared with the prior year period.
- The company reported a GAAP loss of $1.7 million, or a loss of $0.13 per diluted share, for the second quarter of 2026.
- The Measurement Systems segment saw orders decline 22% sequentially, reflecting the timing of DSI customer projects and continued challenges in the global steel market.
- The Weighing Solutions segment experienced a 13% sequential decline in orders, impacted by higher oil prices and softer demand in industrial markets, resulting in a book-to-bill ratio of 0.94.
- Gross margin for the Sensors segment decreased sequentially due to unfavorable foreign currency exchange rates, higher material costs, and wage increases from hiring additional personnel.
Good morning and welcome everyone to the VPG Second Quarter 2026 Earnings Call.
(Operator Instructions)
At this time, I would like to turn the conference over to Steve Cantor Investor Relations and Corporate Communications.
Good morning, everyone. Welcome to VPG's second quarter 2026 earnings conference call. Our press release and slides have been posted on our website at vpgsensors.com.
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.
Before beginning the call, today's remarks are governed by the safe harbor provisions of the 1995 Private Securities Litigation Reform Act. Our actual results may vary from forward-looking statements and there can be no assurance that such results, including the targets described in our updated operating model, can be achieved.
Will, for a discussion of the risks associated with VPG's operations, we encourage you to
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