Vishay Precision Group, Inc. VPG used its second-quarter fiscal 2026 earnings call to emphasize record Sensors orders, AI-related demand and a humanoid robotics production ramp. Those indicators contrasted with an earnings miss and margin pressure.
Executives said that full-year organic growth should exceed the 8-10% range in the three-year model, while outlining work on foreign exchange, product mix, ERP-related shipment delays and cost execution.
VPG Orders Point to Broader AI Exposure
CEO and president Ziv Shoshani said that orders reached $95.5 million, producing a 1.14 book-to-bill ratio. That marked the seventh consecutive quarter at or above 1.0.
Shoshani said Sensors bookings rose 6% sequentially to a record $48.1 million, with book-to-bill at 1.44. Demand centered on precision resistors for semiconductor equipment, data centers, fiber optics, aerospace and defense.
Business development initiatives generated $11.6 million of bookings in the quarter and $21.6 million in the first half. Shoshani said that VPG remained on track for its $45 million full-year target.
Vishay Precision Group Advances Humanoid Ramp
Shoshani highlighted a vendor nomination from VPG’s initial humanoid robotics customer. It positions VPG for the customer’s production ramp in the second half of fiscal 2026.
Humanoid bookings were about $500,000, and sales were $320,000. Shoshani said that VPG had hired personnel, made capital investments and ordered raw materials to support the program.
A Lake Street Capital Markets analyst asked about the pipeline. Shoshani said that the first customer expects production to move from tens of robots per week toward hundreds and thousands by year-end, while VPG is also working with additional developers.
VPG Margins Absorb FX and Mix Headwinds
Revenues rose 11.7% year over year to $83.9 million but missed the Zacks Consensus Estimate of $87.4 million. Adjusted earnings of $0.04 per share missed the consensus mark of $0.19.
Executive vice president and CFO William Clancy said that gross margin was 38.6% and adjusted operating margin was 1.7%. Foreign exchange reduced operating profit by $900,000 sequentially and $3.3 million year over year.
A new ERP implementation delayed about $3 million of KELK shipments. Shoshani said that the issue had been addressed, with some recovery expected in the third fiscal quarter and a larger contribution in the fourth fiscal quarter.
Vishay Precision Group Sets a Higher Growth Bar
Clancy guided revenues for the third quarter of fiscal 2026 to $84-$89 million at constant second-quarter exchange rates. The range reflects European seasonality and excludes profit-neutral tariff refunds.
Shoshani said fiscal 2026 organic revenue growth should exceed the 8% to 10% annual range in VPG’s three-year model. Clancy described the full-year expectation as double-digit revenue growth.
A B. Riley analyst asked about softer trends outside Sensors. CEO Shoshani said that the second-half environment should improve for Weighing Solutions and Measurement Systems, but not sharply without lower interest rates.
VPG Q&A Sharpens Pricing and Savings Plans
A Sidoti analyst asked how VPG would counter higher labor and material costs. CEO Shoshani said that selective price increases should contribute hundreds of thousands of dollars in the third quarter of fiscal 2026.
The near-term benefit is constrained by a $135.8 million backlog because increases apply only to new orders. Shoshani said that backlog grew by about $10 million to $11 million sequentially.
Cost reductions reached $1 million in the second quarter and $1.6 million in the first half. Shoshani stated that VPG plans to reach $6 million in fiscal 2026, the first stage of a three-year, $20 million program.
Vishay Precision Group Keeps Execution in Focus
CEO Shoshani and CFO Clancy centered the closing message on converting strong demand into higher output and profitability. Priorities include adding Sensors capacity, clearing KELK shipments and improving manufacturing efficiency.
VPG’s direction remains anchored in AI infrastructure, aerospace and defense, and emerging physical AI applications. Pricing, cost savings and capacity utilization remain central to the operating plan.
VPG’s Zacks Signals Remain Mixed
VPG carries a Zacks Rank #3 (Hold) at present. It has a Value Score of F, a Growth Score of F, a Momentum Score of C and a VGM Score of F, pairing a neutral Rank with weak value, growth and combined style characteristics. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
The Zacks Style Score uses an A-to-F scale, with A and B representing the strongest profiles and C occupying the middle. VPG’s current mix lacks broad style strength, while the Zacks Rank can change as earnings estimates are revised after the reported results.
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Vishay Precision Group, Inc. (VPG): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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