Precision measurement and sensing technologies provider Vishay Precision (NYSE: VPG) reported revenue ahead of Wall Street’s expectations in Q2 CY2025, but sales fell by 2.8% year on year to $75.16 million. Guidance for next quarter’s revenue was better than expected at $77 million at the midpoint, 0.6% above analysts’ estimates. Its non-GAAP profit of $0.17 per share was significantly above analysts’ consensus estimates.

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StockStory’s Take

Vishay Precision’s second quarter results were marked by a year-on-year sales decline but exceeded Wall Street’s revenue and profit expectations, prompting a positive market response. Management pointed to solid sequential order growth, with consolidated bookings up 7.5% and a book-to-bill ratio above 1.0, as evidence of strengthening demand across key segments. CEO Ziv Shoshani highlighted progress in both business development initiatives and cost optimization, while acknowledging that recent tariffs weighed modestly on gross margins. Notably, the Weighing Solutions segment achieved a record adjusted gross margin, reflecting favorable product mix and operational improvements.

Looking ahead, Vishay Precision’s guidance reflects expectations for continued order momentum and improved pricing as tariff-related headwinds are addressed. Management is focused on the ramp-up of new business, particularly within industrial applications and early-stage humanoid robotics. Shoshani emphasized, “We are optimistic about the long-term potential for this market,” referencing the company’s design wins and readiness to scale production if customers accelerate volume. The company is also prioritizing cost-reduction initiatives and operational efficiency, positioning itself to capitalize on any rebound in demand and to support the evolving needs of its customers globally.

Key Insights from Management’s Remarks

Management attributed the quarter’s results to robust sequential growth in bookings, cost-control progress, and strategic focus on emerging end-markets such as robotics and advanced materials testing.

• Order growth in key segments: Order momentum was strongest in the Measurement Systems and Sensors divisions, where book-to-bill ratios exceeded 1.1, signaling demand improvement in applications like AMS (aerospace, military, and space) and industrial weighing.
• Humanoid robotics traction: Vishay Precision has secured follow-on orders from a lead customer in the humanoid robot market, with CEO Shoshani noting $1.5 million in orders this past quarter and optimism for further expansion as the market matures.
• Tariff impact and mitigation: Tariff changes negatively impacted quarterly gross margins by $500,000, but management expects this to be offset by pricing adjustments in subsequent quarters as new prices take effect.
• Cost reduction initiatives: The company is on track to achieve $5 million in annual fixed cost savings by the end of the year, driven by production consolidation and operational efficiencies, with $2.8 million already realized in the first half.
• New product development: The beta installation of the UHTC system for ultra-high temperature testing at the University of Alabama is progressing, targeting advanced materials markets such as hypersonics and avionics, with discussions underway for additional pilot deployments.

Drivers of Future Performance

Management expects future results to be shaped by recovery in key industrial markets, successful execution of business development goals, and operational efficiency gains.

• Business development pipeline: The company aims to secure $30 million in new orders from either new customers or applications by year-end, leveraging digital marketing and improved sales processes to broaden its reach across industries.
• Scaling with robotics customers: Vishay Precision is preparing for larger-volume orders from humanoid robotics clients as their projects move from prototype to production stages, with infrastructure and capacity planning to support rapid scaling if required.
• Margin recovery and cost discipline: Management anticipates that cost-reduction actions and price adjustments will drive improved margins, particularly as volumes rebound and tariff-related pricing takes effect, though ongoing macro uncertainties and tariff policy changes remain risks.

Catalysts in Upcoming Quarters

In the coming quarters, the StockStory team will be monitoring (1) whether order momentum in Measurement Systems, Sensors, and Weighing Solutions translates to sustained revenue growth; (2) the pace of commercialization in humanoid robotics and new advanced materials testing applications; and (3) the realization of targeted cost savings and associated margin improvements. Progress on managing tariff impacts and executing new product launches will also be important milestones.

Vishay Precision currently trades at $27.10, up from $26.07 just before the earnings. Is there an opportunity in the stock?The answer lies in our full research report (it’s free).

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