Vishay Precision Group 2025 Q2 Earnings Sharp Drop in Net Income

Vishay Precision Group (VPG) reported mixed results for its fiscal 2025 Q2 on August 5, 2025, with a notable decline in net income despite positive sequential sales growth and margin improvements. The company's revenue fell 2.8% year-over-year, and earnings per share dropped 94.1%, missing expectations. No formal guidance was provided for future periods.

Revenue
Vishay Precision Group's total revenue declined by 2.8% to $75.16 million in Q2 2025, compared to $77.36 million in the same period last year. The Sensors segment generated $27.04 million, while the Weighing Solutions segment reported $29.79 million. Measurement Systems contributed $19.17 million, and corporate/other segments added a negative $834,000. The decline was driven by lower sales in the Sensors and Measurement Systems segments, partially offset by strong growth in Weighing Solutions.

Earnings/Net Income
The company's net income plummeted to $304,000 in Q2 2025, a 93.5% decline from $4.64 million in Q2 2024. Earnings per share (EPS) fell 94.1% to $0.02 from $0.34. The sharp drop in profitability highlights the company's challenges in maintaining margins amid cost pressures and lower revenue. This represents a significant underperformance compared to the prior-year period.

Price Action
The stock price of Vishay Precision Group has experienced a downward trend in recent periods, with a 7.72% drop during the latest trading day, 3.23% over the most recent trading week, and a steeper 9.87% decline month-to-date. The stock's performance reflects investor concern over the earnings shortfall and broader market sentiment.

Post-Earnings Price Action Review
A strategy of buying Vishay Precision Group shares 30 days after its earnings report following a three-year period of revenue growth delivered moderate returns but underperformed the benchmark. The strategy recorded a CAGR of 2.01%, a total return of 5.94%, and a Sharpe ratio of 0.16, indicating reasonable risk-adjusted returns. However, the benchmark outperformed it significantly with a 48.58% total return. The strategy also avoided major downturns, with a maximum drawdown of 0.00%.

CEO Commentary
Ziv Shoshani, Chief Executive Officer, noted a positive sequential trend in the quarter, with sales increasing 4.8% from the previous quarter. Total orders rose 7.5% sequentially for the third consecutive quarter, resulting in a book-to-bill ratio of 1.06. He highlighted improved adjusted gross margin, adjusted operating margin, and adjusted EBITDA compared to Q1 2025, despite a $500,000 negative impact from tariffs. The Weighing Solutions segment achieved a record quarterly gross margin, and the company completed a $10.8 million building sale, which reduced revolver debt and is expected to save $700,000 in annual interest expenses.

Guidance
The company did not provide specific forward-looking guidance or quantitative expectations for future periods in the provided text. No explicit guidance on revenue, earnings, or operational targets for upcoming quarters was included in the filing.

Additional News
On August 5, 2025, Vishay Precision Group reported its fiscal 2025 second-quarter results. The company saw a 2.8% decline in net revenue to $75.2 million compared to the prior-year period. Gross profit margin was 40.7%, down from 41.9% in the previous year, while adjusted gross profit margin stood at 41.0%. Operating margin decreased to 3.6% compared to 7.6%, and adjusted operating margin was 4.8%. Diluted net earnings per share fell to $0.02 from $0.34, while adjusted diluted net earnings per share were $0.17, down from $0.31. The company’s EBITDA was $5.2 million with an EBITDA margin of 7.0%, and adjusted EBITDA was $7.9 million with an adjusted EBITDA margin of 10.5%. Operating cash flow was $6.0 million, and adjusted free cash flow was $4.7 million. Vishay Precision Group also held a conference call to discuss these results and provided replay details for interested parties.