MALVERN, PA — Vishay Precision Group, Inc. (NYSE: VPG) reported a decline in second quarter earnings as market headwinds, tariff impacts, and lower demand in key segments weighed on performance. While sequential indicators showed modest improvement, year-over-year comparisons painted a weaker picture.
Net revenue for the quarter ended June 28, 2025, totaled $75.2 million, down 2.8% from the same period in 2024. Gross profit margin narrowed to 40.7%, compared to 41.9% a year ago. Diluted earnings per share dropped to $0.02 from $0.34, while adjusted diluted EPS fell to $0.17 from $0.31.
CEO Ziv Shoshani highlighted signs of a gradual turnaround, noting a 4.8% sequential increase in revenue and a third consecutive quarter of order growth. “We were pleased with the positive sequential trends in the quarter, which reflected a moderately improved business climate,” said Shoshani. He added that backlog strength and cost control measures helped the company weather a $500,000 tariff impact during the quarter.
Segment results were mixed:
- Sensors revenue fell 8.0% year-over-year to $26.6 million, with gross margin declining to 32.0%. The drop was attributed to softer sales in consumer-related markets and ongoing manufacturing inefficiencies.
- Weighing Solutions posted a 7.2% revenue gain to $29.4 million, driven by transportation and industrial applications. The segment saw its gross margin climb to 39.6%, aided by favorable foreign exchange and cost savings.
- Measurement Systems revenue declined 8.9% to $19.2 million, largely due to weakness in the steel sector. However, its gross margin improved to 54.6%, reflecting a more favorable sales mix.
Adjusted EBITDA for the quarter was $7.9 million, representing a margin of 10.5%. The company generated $6.0 million in operating cash flow and $4.7 million in adjusted free cash flow. Additionally, VPG used proceeds from a recent $10.8 million building sale to reduce debt, expecting to save approximately $700,000 in annual interest.
Looking ahead, the company projects third-quarter revenue between $73 million and $81 million, assuming constant foreign exchange rates.
Despite ongoing challenges, Shoshani emphasized operational progress: “Compared to the first quarter of 2025, we improved our adjusted gross margin, adjusted operating margin, and adjusted EBITDA.” He pointed to continued investments in product innovation and efficiency as key to positioning VPG for long-term resilience.
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