Vishay Precision Group Reports Q2 Earnings with Strong Growth and Positive Outlook

Vishay Precision Group reported Q2 revenue of $75.2 million, a 4.8% increase from Q1. The Weighing Solutions segment achieved a record quarterly adjusted gross margin, while positive booking trends and strong order trends across key markets indicate healthy demand for the company's products. VPG entered the humanoid robot market, securing $1.5 million in orders, and is on track to reduce fixed costs by approximately $5 million by 2025. However, tariff changes have negatively impacted gross margin by $500,000, and the global steel market remains soft.

Vishay Precision Group (VPG), a leading manufacturer of precision sensors and measurement systems, reported its Q2 2025 financial results, showcasing a mixed performance amidst various challenges. The company's revenue reached $75.2 million, a 4.8% increase from the previous quarter but down 2.8% year-over-year [1].

The Weighing Solutions segment stood out as a bright spot, achieving a record quarterly adjusted gross margin of 40.2% and driving revenue growth of 7.2% year-over-year. This segment's performance was bolstered by higher volumes and positive currency effects. On the other hand, the Sensors division saw a 8.0% decline in revenue due to lower consumer demand for strain gages, while the Measurement Systems segment posted an 8.9% decline in revenue, reflecting slower steel industry demand [1].

VPG's adjusted operating margin softened to 4.8% for Q2 2025, compared to 7.6% for the same period last year, primarily due to start-up, restructuring, and severance costs, as well as unfavorable tariffs. The company generated $4.7 million in adjusted free cash flow and completed a building sale in July 2025, generating approximately $11 million in net proceeds to reduce bank revolver balance and annual interest expense by about $700,000 [1].

The company secured $1.5 million in orders for humanoid robotics applications, marking its entry into this market. Management expects to achieve $30 million in new orders from customers or applications by the end of 2025, with $17 million already secured in the first half of the year. Additionally, VPG aims to reduce fixed costs by approximately $5 million compared to the prior year (excluding inflation) [2].

Looking ahead, VPG expects net revenues to range between $73 million and $81 million for Q3 2025, assuming stable currency rates. Investors should monitor the speed of margin recovery, ongoing tariff impacts, and the performance of the Weighing Solutions segment. The company's trajectory towards the $30 million new order goal and cost reduction initiatives will also be important indicators of its future performance [2].

References:
[1] https://www.nasdaq.com/articles/vishay-precision-vpg-q2-revenue-3
[2] https://seekingalpha.com/news/4479408-vishay-precision-group-targets-30m-in-new-orders-for-2025-as-business-development-accelerates