Vishay Precision Group Q1 Earnings Call Highlights

Key Points

• Vishay Precision Group posted a strong first quarter, with revenue up 18% year over year to $84.4 million and orders rising 26% sequentially to $102.1 million, lifting the book-to-bill ratio to 1.21, its best since 2022.
• The Sensor segment was the main growth driver, with bookings hitting a 15-quarter high and demand improving across AI-related semiconductor equipment, data centers, aerospace, defense, and humanoid robotics applications.
• VPG also outlined a new three-year operating model targeting 8% to 10% annual organic revenue growth and higher margins, while guiding second-quarter revenue to $85 million to $90 million and noting continued optimism despite limited visibility.

Vishay Precision Group NYSE: VPG reported a stronger start to 2026, with first-quarter revenue and orders rising sharply as demand improved across its three operating segments and bookings topped $100 million for the first time since 2022.

Chief Executive Officer and President Ziv Shoshani said first-quarter revenue was $84.4 million, up 18% from a year earlier, reflecting “broad-based growth across all three segments.” Orders totaled $102.1 million, up 26% sequentially, producing a book-to-bill ratio of 1.21, which Shoshani said was the company’s strongest since 2022.

Shoshani said the higher orders increased backlog, especially in the Sensor segment, and positioned the company for growth in the second quarter and the second half of the year. He cited demand for precision resistors used in semiconductor equipment, data centers and fiber optics equipment tied to artificial intelligence infrastructure, as well as improving orders in avionics, military and space markets.

Sensor Segment Leads Order Momentum

VPG’s Sensor segment posted first-quarter revenue growth of 10% sequentially and 23% from a year earlier. Shoshani said sales increased for precision resistors in test and measurement and aerospace, military and space markets, as well as for strain gages in general industrial markets.

Sensor bookings totaled $45.2 million, up 29% sequentially and the highest level in 15 quarters, resulting in a book-to-bill ratio of 1.36. Shoshani said the segment benefited from “strong broad-based demand driven by the industry-wide ramp up in AI adoption.”

Orders grew for precision resistors used in front-end and back-end semiconductor equipment supporting AI-related chips and systems, as well as for data center and fiber optics equipment. VPG also saw strong defense demand for precision resistors and continued interest in strain gages used in humanoid robot pre-production prototypes.

Shoshani said Sensor backlog reached its highest level since the first quarter of 2023, prompting the company to accelerate hiring and training for manufacturing personnel to support planned production ramps.

Humanoid Robotics Revenue Expected to Rise

VPG shipped approximately $600,000 of product to humanoid robot makers in the first quarter and expects to more than double that amount in the second quarter, Shoshani said. He added that customer forecasts point to a more significant production ramp in the second half of the year, though he cautioned that “the precise timing and scale of production ramps remain unclear.”

The company also began early discussions with a fourth humanoid robot maker, described by Shoshani as a startup developing platforms for defense, home use and industrial applications.

During the question-and-answer session, Shoshani said VPG is still in pre-production levels with two more established humanoid customers. He said the company used 2025 humanoid revenue of $4 million as the baseline for its three-year model and assumed about 50% annual growth from that level. When an analyst estimated that could imply more than $5 million in 2026 humanoid revenue and low-teens millions in later years, Shoshani said the math “sounds right,” while emphasizing that the assumptions were intended to be reasonable and not speculative.

Asked about pricing pressure in humanoid robotics, Shoshani said the market is competitive. He said that at production levels of tens of robots per week, sensing content per robot could be roughly $400 to $500, while at volumes of many hundreds of robots or more, expectations could move to approximately $150 to $250.

Weighing and Measurement Systems Also Post Order Gains

In Weighing Solutions, first-quarter sales rose 9% sequentially and 14% year-over-year. Shoshani said the sequential growth was driven by higher sales in medical equipment, precision agriculture equipment, consumer bicycles and heavy-duty trucks. Orders increased 17% sequentially to $32.9 million, producing a book-to-bill ratio of 1.09.

Measurement Systems revenue was $21 million, down 7% sequentially but up 14% from a year earlier. Shoshani said sales of DTS ruggedized miniature data acquisition modules reached a record high, driven by defense missile test projects, but were offset by lower sales to the steel market.

Measurement Systems orders rose 32% sequentially to $24 million, with a book-to-bill ratio of 1.15. Shoshani said the increase reflected higher DTS and Pacific Instruments orders in aerospace, military and space applications, including testing for military jet engines and hypersonic missiles.

Margins Improve, but SG&A Rises

In prepared financial remarks, VPG said first-quarter gross margin was 39%, improving from the fourth quarter. Sensor gross margin was 34.8%, Weighing Solutions gross margin was 34.2%, and Measurement Systems gross margin was 52.6%.

First-quarter operating margin was 0.4%. Adjusted for $449,000 in restructuring costs and $837,000 of stock-based compensation, adjusted operating margin was 1.9%. Selling, general and administrative expense was $32.1 million, or 38% of revenue, rising from the fourth quarter due to hiring for the new organizational structure, incentive compensation accruals and unfavorable foreign exchange.

VPG reported a GAAP loss of $319,000, or $0.02 per diluted share. Adjusted net earnings were $907,000, or $0.07 per diluted share. Adjusted EBITDA was $5.9 million, or 7% of revenue, compared with $6.2 million, or 7.8% of revenue, in the fourth quarter.

The company reported first-quarter capital expenditures of $3 million and expects 2026 capital expenditures of $14 million to $16 million. Adjusted free cash flow was negative $3.7 million due to the GAAP net loss and higher working capital needed to support demand. VPG ended the quarter with $82.5 million in cash and $20.6 million in long-term debt, for a net cash position of $62 million.

Company Outlines New Three-Year Operating Model

VPG introduced an updated target operating model calling for compounded annual organic revenue growth of 8% to 10% over the next three years, with Sensors and Measurement Systems expected to grow at or above those rates. The model targets gross margin of 46.5%, operating margin of 14.5% to 15.5% and EBITDA margin of 18.5% to 20.5%.

Shoshani said the model includes about $5 million of annual incremental cost tied to the company’s new Chief Business and Product Officer and Chief Operating Officer organizations, IT investments and new incentive compensation plans. He said VPG also plans to deliver more than $20 million in cost reductions and efficiency improvements over the next three years through manufacturing footprint optimization, automation and procurement efficiencies.

For the second quarter of 2026, VPG guided for net revenue of $85 million to $90 million, assuming constant first-quarter exchange rates. Shoshani said the company remains optimistic about continued positive booking trends into the second quarter, though he noted visibility remains limited.

About Vishay Precision Group NYSE: VPG

Vishay Precision Group NYSE: VPG specializes in the design, manufacture and calibration of precision sensors, instrumentation and measurement systems used in a broad range of applications. Its product portfolio includes load cells, tension links, weighing modules, torque transducers, digital indicators and data acquisition systems. These solutions serve critical requirements for accuracy, reliability and repeatability in sectors such as industrial automation, test and measurement, medical devices, food and beverage processing, aerospace and defense.

The company traces its roots to the sensor and measurement division of Vishay Intertechnology, Inc, from which it was spun off as an independent public company in March 2016.

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