Vishay Precision Group Reports Q2 Net Loss, Profitability Declines Despite Strong Orders
VPG has more than doubled off its 52-week low of $25.58.
Summary
Vishay Precision Group reported a net loss of $0.13 per share for Q2 2026, a significant decline from prior year earnings, driven by unfavorable foreign exchange and delayed shipments, despite strong order momentum and revenue growth.
Key Events · Earnings and Guidance · VPG
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Q2 Net Loss Reported
The company reported a diluted net loss of $0.13 per share for the second fiscal quarter of 2026, a significant decline compared to diluted net earnings of $0.02 per share in the prior-year period. Adjusted diluted net earnings per share also fell to $0.04 from $0.21.
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Profitability Decline
Gross profit margin decreased to 38.6% from 40.7%, and operating margin dropped to (0.4%) from 3.6% year-over-year. Adjusted EBITDA was $5.5 million, down from $8.356 million in the comparable prior-year period.
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Revenue Growth & Strong Orders
Net revenues increased 11.7% to $83.9 million. Bookings were strong at $95.5 million, resulting in a book-to-bill ratio of 1.14, driven by record orders for precision resistors serving AI-related semiconductor, data center, aerospace, and defense applications.
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Profit Headwinds Identified
Q2 profits were negatively impacted by $3.3 million from unfavorable foreign exchange movements and approximately $3.0 million in delayed shipments in the steel-related systems business due to ERP system implementation. These delayed orders are in backlog and expected to ship by year-end.
Analysis · VPG · Manufacturing
The company's second-quarter results show a substantial deterioration in profitability, with a GAAP net loss and a sharp drop in adjusted earnings per share, operating margin, and adjusted EBITDA. While revenue grew and order bookings remained strong, the impact of unfavorable foreign exchange rates and supply chain issues in the steel-related systems business significantly eroded profits. The positive outlook for full-year revenue growth and new humanoid robotics customer nomination provide some long-term optimism, but the immediate financial performance is a concern.
At the time of this filing, VPG was trading at $78.75 on NYSE in the Manufacturing sector, with a market capitalization of approximately $1.3B. The 52-week trading range was $25.58 to $151.78. This filing was assessed with negative market sentiment and an importance score of 8 out of 10.