[10-Q] Vishay Precision Group, Inc. Quarterly Earnings Report
Smith+Nephew (NYSE:SNN) delivered a robust H1 2025. Revenue rose 4.7% YoY to $2.96 bn (underlying +5.0%) despite two fewer trading days; Q2 revenue climbed 7.8% to $1.55 bn (underlying +6.7%).
Trading profit grew 11.2% to $523 m, expanding the trading margin 100 bp to 17.7%. Operating profit jumped 30.6% to $429 m. EPS advanced 36.6% to 33.5垄; adjusted EPSA increased 14.1% to 42.9垄. Free cash flow soared to $244 m from $39 m, lifting cash conversion to 93% and supporting a new $500 m share buyback plus a 4.2% higher interim dividend of 15.0垄.
All three business units grew: Orthopaedics +5.0% underlying, Sports Medicine & ENT +5.7% (+10.2% ex-China), and Advanced Wound Management +10.2%. Established Markets rose 8.2% underlying, while Emerging Markets dipped 0.2% due to China VBP pressure. Inventory days fell 46 and restructuring spend dropped to $8 m; net debt/EBITDA remained 1.8脳.
2025 outlook unchanged: underlying revenue growth ~5% (reported ~5.5%) and trading margin 19鈥�20%, absorbing a $15鈥�20 m tariff headwind. Management sees further margin expansion beyond 2025 as the 12-Point Plan efficiencies continue.
Smith+Nephew (NYSE:SNN) ha registrato un solido primo semestre 2025. I ricavi sono aumentati del 4,7% su base annua, raggiungendo 2,96 miliardi di dollari (sotto-jacente +5,0%), nonostante due giorni di negoziazione in meno; i ricavi del secondo trimestre sono saliti del 7,8% a 1,55 miliardi di dollari (sotto-jacente +6,7%).
Il profitto operativo 猫 cresciuto dell'11,2% a 523 milioni di dollari, con un margine operativo che si 猫 ampliato di 100 punti base al 17,7%. L'utile operativo 猫 aumentato del 30,6% a 429 milioni di dollari. L'utile per azione (EPS) 猫 salito del 36,6% a 33,5 centesimi; l'EPS rettificato (EPSA) 猫 cresciuto del 14,1% a 42,9 centesimi. Il flusso di cassa libero 猫 schizzato a 244 milioni da 39 milioni, portando la conversione di cassa al 93% e sostenendo un nuovo riacquisto di azioni per 500 milioni di dollari oltre a un dividendo intermedio aumentato del 4,2% a 15,0 centesimi.
Tutte e tre le divisioni aziendali hanno registrato crescita: Ortopedia +5,0% sotto-jacente, Medicina dello Sport e Otorinolaringoiatria +5,7% (+10,2% esclusa la Cina), e Gestione Avanzata delle Ferite +10,2%. I mercati consolidati sono cresciuti dell'8,2% sotto-jacente, mentre i mercati emergenti sono diminuiti dello 0,2% a causa della pressione del VBP in Cina. I giorni di inventario sono diminuiti di 46 e la spesa per ristrutturazioni 猫 scesa a 8 milioni; il rapporto debito netto/EBITDA 猫 rimasto a 1,8脳.
Previsioni 2025 invariate: crescita dei ricavi sotto-jacente intorno al 5% (riportata circa 5,5%) e margine operativo tra il 19 e il 20%, assorbendo un impatto negativo da dazi di 15-20 milioni di dollari. Il management prevede un ulteriore ampliamento del margine oltre il 2025 grazie alle efficienze del Piano a 12 Punti in corso.
Smith+Nephew (NYSE:SNN) present贸 un s贸lido primer semestre de 2025. Los ingresos aumentaron un 4,7% interanual hasta 2.960 millones de d贸lares (subyacente +5,0%) a pesar de dos d铆as de negociaci贸n menos; los ingresos del segundo trimestre subieron un 7,8% hasta 1.550 millones de d贸lares (subyacente +6,7%).
El beneficio operativo creci贸 un 11,2% hasta 523 millones de d贸lares, ampliando el margen operativo 100 puntos b谩sicos hasta el 17,7%. El beneficio operativo aument贸 un 30,6% hasta 429 millones de d贸lares. Las ganancias por acci贸n (EPS) avanzaron un 36,6% hasta 33,5 centavos; el EPS ajustado (EPSA) creci贸 un 14,1% hasta 42,9 centavos. El flujo de caja libre se dispar贸 a 244 millones desde 39 millones, elevando la conversi贸n de efectivo al 93% y apoyando una nueva recompra de acciones de 500 millones de d贸lares adem谩s de un dividendo intermedio un 4,2% mayor, de 15,0 centavos.
Las tres unidades de negocio crecieron: Ortopedia +5,0% subyacente, Medicina Deportiva y Otorrinolaringolog铆a +5,7% (+10,2% excluyendo China), y Gesti贸n Avanzada de Heridas +10,2%. Los mercados consolidados aumentaron un 8,2% subyacente, mientras que los mercados emergentes bajaron un 0,2% debido a la presi贸n del VBP en China. Los d铆as de inventario disminuyeron en 46 y el gasto en reestructuraci贸n baj贸 a 8 millones; la deuda neta/EBITDA se mantuvo en 1,8脳.
Perspectivas para 2025 sin cambios: crecimiento de ingresos subyacente alrededor del 5% (reportado aproximadamente 5,5%) y margen operativo entre 19 y 20%, absorbiendo un impacto negativo por aranceles de 15-20 millones. La direcci贸n prev茅 una mayor expansi贸n del margen m谩s all谩 de 2025 gracias a las eficiencias continuas del Plan de 12 Puntos.
Smith+Nephew (NYSE:SNN)電� 2025雲� 靸侂皹旮办棎 瓴碃頃� 鞁れ爜鞚� 旮半頄堨姷雼堧嫟. 毵れ稖鞚� 鞝勲厔 霃欔赴 雽�牍� 4.7% 歃濌皜頃� 29鞏� 6觳滊 雼煬(旮办爛 旮办 +5.0%)毳� 雼劚頄堨溂氅�, 瓯半灅鞚� 靾橁皜 2鞚� 鞝侅棃鞚岇棎霃� 攵堦惮頃橁碃 靸侅姽頄堨姷雼堧嫟. 2攵勱赴 毵れ稖鞚� 7.8% 歃濌皜頃� 15鞏� 5觳滊 雼煬(旮办爛 旮办 +6.7%)毳� 旮半頄堨姷雼堧嫟.
鞓侅梾鞚挫澋鞚� 11.2% 歃濌皜頃� 5鞏� 2,300毵� 雼煬搿�, 鞓侅梾鞚挫澋毳犾潃 100bp 靸侅姽頃� 17.7%毳� 旮半頄堨姷雼堧嫟. 鞓侅梾鞚挫澋鞚� 30.6% 歃濌皜頃� 4鞏� 2,900毵� 雼煬鞐� 雼枅鞀惦媹雼�. 欤茧嫻靾滌澊鞚�(EPS)鞚� 36.6% 歃濌皜頃� 33.5靹柬姼, 臁办爼 EPSA電� 14.1% 歃濌皜頃� 42.9靹柬姼毳� 旮半頄堨姷雼堧嫟. 鞛愳湢順勱笀頋愲鞚� 3,900毵� 雼煬鞐愳劀 2鞏� 4,400毵� 雼煬搿� 旮夓頃� 順勱笀 鞝勴櫂鞙潉 93%搿� 雭岇柎鞓牳鞙茧┌, 鞁犼窚 5鞏� 雼煬 攴滊鞚� 鞛愳偓欤� 毵れ瀰瓿� 4.2% 鞚胳儊霅� 欷戧皠 氚半嫻旮� 15靹柬姼毳� 歆�鞗愴枅鞀惦媹雼�.
靹� 臧� 靷梾 攵�氍� 氇憪 靹膘灔頄堨姷雼堧嫟: 鞝曧槙鞕戈臣電� 旮办爛 旮办 5.0%, 鞀ろ彫旄� 鞚橅暀 氚� 鞚措箘鞚疙泟瓿茧姅 5.7%(欷戧淡 鞝滌櫢 鞁� 10.2%), 瓿犼笁 靸侅矘 甏�毽� 攵�氍胳潃 10.2% 靹膘灔頄堨姷雼堧嫟. 靹犾 鞁滌灔鞚� 旮办爛 旮办 8.2% 歃濌皜頄堨溂雮�, 欷戧淡 VBP 鞎曤牓鞙茧 鞁犿潵 鞁滌灔鞚� 0.2% 臧愳唽頄堨姷雼堧嫟. 鞛碃 鞚检垬電� 46鞚� 欷勳棃瓿� 甑“臁办爼 牍勳毄鞚� 800毵� 雼煬搿� 臧愳唽頄堨溂氅�, 靾滊秬毂�/EBITDA 牍勳湪鞚� 1.8氚半ゼ 鞙犾頄堨姷雼堧嫟.
2025雲� 鞝勲鞚� 氤�頃梿鞚�: 旮办爛 毵れ稖 靹膘灔毳� 鞎� 5%(氤搓碃 旮办 鞎� 5.5%) 氚� 19~20%鞚� 鞓侅梾鞚挫澋毳犾潉 鞓堨儊頃橂┌, 1,500毵寏2,000毵� 雼煬鞚� 甏�靹� 攵�雼挫潉 頋§垬頃� 鞓堨爼鞛呺媹雼�. 瓴届榿歆勳潃 12韽澑韸� 瓿勴殟鞚� 須湪靹膘澊 歆�靻嶋惃鞐� 霐半澕 2025雲� 鞚错泟鞐愲弰 毵堨鞚� 於旉皜搿� 頇曤寑霅� 瓴冹溂搿� 氤搓碃 鞛堨姷雼堧嫟.
Smith+Nephew (NYSE:SNN) a publi茅 un solide premier semestre 2025. Le chiffre d'affaires a augment茅 de 4,7 % en glissement annuel pour atteindre 2,96 milliards de dollars (sous-jacent +5,0 %) malgr茅 deux jours de bourse en moins ; le chiffre d'affaires du deuxi猫me trimestre a progress茅 de 7,8 % pour atteindre 1,55 milliard de dollars (sous-jacent +6,7 %).
Le b茅n茅fice d'exploitation a augment茅 de 11,2 % pour atteindre 523 millions de dollars, portant la marge op茅rationnelle 脿 17,7 %, en hausse de 100 points de base. Le b茅n茅fice op茅rationnel a bondi de 30,6 % 脿 429 millions de dollars. Le BPA a progress茅 de 36,6 % 脿 33,5 cents ; le BPA ajust茅 (EPSA) a augment茅 de 14,1 % 脿 42,9 cents. La tr茅sorerie disponible a explos茅 脿 244 millions contre 39 millions, portant le taux de conversion de tr茅sorerie 脿 93 % et soutenant un nouveau rachat d鈥檃ctions de 500 millions de dollars ainsi qu鈥檜n dividende int茅rimaire en hausse de 4,2 % 脿 15,0 cents.
Les trois unit茅s commerciales ont enregistr茅 une croissance : Orthop茅die +5,0 % sous-jacent, M茅decine du sport & ORL +5,7 % (+10,2 % hors Chine), et Gestion avanc茅e des plaies +10,2 %. Les march茅s 茅tablis ont progress茅 de 8,2 % sous-jacent, tandis que les march茅s 茅mergents ont recul茅 de 0,2 % en raison de la pression du VBP en Chine. Les jours de stock ont diminu茅 de 46 et les d茅penses de restructuration sont tomb茅es 脿 8 millions ; le ratio dette nette/EBITDA est rest茅 脿 1,8脳.
Perspectives 2025 inchang茅es : croissance sous-jacente du chiffre d'affaires d鈥檈nviron 5 % (rapport茅 environ 5,5 %) et marge op茅rationnelle entre 19 et 20 %, absorbant un impact tarifaire n茅gatif de 15 脿 20 millions de dollars. La direction pr茅voit une expansion suppl茅mentaire de la marge au-del脿 de 2025 gr芒ce aux gains d鈥檈fficacit茅 du Plan des 12 points.
Smith+Nephew (NYSE:SNN) lieferte ein robustes erstes Halbjahr 2025 ab. Der Umsatz stieg im Jahresvergleich um 4,7 % auf 2,96 Mrd. USD (unterliegend +5,0 %), trotz zwei Handelstagen weniger; der Umsatz im zweiten Quartal kletterte um 7,8 % auf 1,55 Mrd. USD (unterliegend +6,7 %).
Der Handelsgewinn wuchs um 11,2 % auf 523 Mio. USD, der Handelsmargenanstieg betrug 100 Basispunkte auf 17,7 %. Der operative Gewinn sprang um 30,6 % auf 429 Mio. USD. Das Ergebnis je Aktie (EPS) stieg um 36,6 % auf 33,5 Cent; das bereinigte EPSA erh枚hte sich um 14,1 % auf 42,9 Cent. Der freie Cashflow schoss von 39 Mio. auf 244 Mio. USD in die H枚he, was die Cash Conversion auf 93 % anhob und einen neuen Aktienr眉ckkauf in H枚he von 500 Mio. USD sowie eine um 4,2 % h枚here Zwischenzahlung von 15,0 Cent unterst眉tzte.
Alle drei Gesch盲ftsbereiche wuchsen: Orthop盲die +5,0 % unterliegend, Sportmedizin & HNO +5,7 % (+10,2 % ohne China) und Advanced Wound Management +10,2 %. Die etablierten M盲rkte stiegen unterliegend um 8,2 %, w盲hrend die Schwellenm盲rkte aufgrund des VBP-Drucks in China um 0,2 % zur眉ckgingen. Die Lagerbest盲nde sanken um 46 Tage, und die Restrukturierungskosten fielen auf 8 Mio. USD; das Netto-Schulden/EBITDA-Verh盲ltnis blieb bei 1,8脳.
Ausblick 2025 unver盲ndert: Unterliegendes Umsatzwachstum von etwa 5 % (berichtigt etwa 5,5 %) und Handelsmarge von 19鈥�20 %, wobei ein Tarifgegenwind von 15鈥�20 Mio. USD absorbiert wird. Das Management erwartet eine weitere Margenausweitung 眉ber 2025 hinaus, da die Effizienzma脽nahmen des 12-Punkte-Plans fortgesetzt werden.
- Trading margin expanded 100 bp to 17.7%, showing effective cost control.
- Free cash flow up 528% YoY to $244 m, driving 93% cash conversion.
- $500 m share buyback announced, equivalent to ~3% of market cap.
- Interim dividend raised 4.2%, reinforcing capital-return commitment.
- Net debt/EBITDA steady at 1.8脳, leaving ample balance-sheet flexibility.
- Emerging Markets revenue 鈥�0.2% underlying, hurt by China VBP pressure.
- Sports Medicine & ENT margin 鈥�130 bp YoY due to China pricing headwinds.
- Guidance maintained rather than increased despite Q2 acceleration, implying cautious H2 outlook.
- Expected $15鈥�20 m tariff headwind could temper 2025 profitability.
Insights
TL;DR Strong beat on cash flow & margin; capital return accelerates.
Revenue and margin trends outperformed peers, especially in Advanced Wound (+10% underlying). 100 bp margin gain plus 528% FCF jump underpin a $500 m buyback鈥攁bout 3% of market cap鈥攕ignalling confidence in pipeline-driven growth. Unchanged guidance is conservative but de-risks H2 amid China/VBP and tariff noise. Overall, the print supports multiple expansion.
TL;DR Operational execution high, but China drag and tariff risks persist.
Emerging-market revenue fell and Sports Medicine margin compressed 130 bp from VBP, highlighting geographic concentration risk. Yet leverage held at 1.8脳 and inventory reduction freed $69 m cash, improving resilience. Tariff impact ($15鈥�20 m) is modest versus $523 m trading profit. Risk-return skews positive given healthy liquidity and shareholder returns.
Smith+Nephew (NYSE:SNN) ha registrato un solido primo semestre 2025. I ricavi sono aumentati del 4,7% su base annua, raggiungendo 2,96 miliardi di dollari (sotto-jacente +5,0%), nonostante due giorni di negoziazione in meno; i ricavi del secondo trimestre sono saliti del 7,8% a 1,55 miliardi di dollari (sotto-jacente +6,7%).
Il profitto operativo 猫 cresciuto dell'11,2% a 523 milioni di dollari, con un margine operativo che si 猫 ampliato di 100 punti base al 17,7%. L'utile operativo 猫 aumentato del 30,6% a 429 milioni di dollari. L'utile per azione (EPS) 猫 salito del 36,6% a 33,5 centesimi; l'EPS rettificato (EPSA) 猫 cresciuto del 14,1% a 42,9 centesimi. Il flusso di cassa libero 猫 schizzato a 244 milioni da 39 milioni, portando la conversione di cassa al 93% e sostenendo un nuovo riacquisto di azioni per 500 milioni di dollari oltre a un dividendo intermedio aumentato del 4,2% a 15,0 centesimi.
Tutte e tre le divisioni aziendali hanno registrato crescita: Ortopedia +5,0% sotto-jacente, Medicina dello Sport e Otorinolaringoiatria +5,7% (+10,2% esclusa la Cina), e Gestione Avanzata delle Ferite +10,2%. I mercati consolidati sono cresciuti dell'8,2% sotto-jacente, mentre i mercati emergenti sono diminuiti dello 0,2% a causa della pressione del VBP in Cina. I giorni di inventario sono diminuiti di 46 e la spesa per ristrutturazioni 猫 scesa a 8 milioni; il rapporto debito netto/EBITDA 猫 rimasto a 1,8脳.
Previsioni 2025 invariate: crescita dei ricavi sotto-jacente intorno al 5% (riportata circa 5,5%) e margine operativo tra il 19 e il 20%, assorbendo un impatto negativo da dazi di 15-20 milioni di dollari. Il management prevede un ulteriore ampliamento del margine oltre il 2025 grazie alle efficienze del Piano a 12 Punti in corso.
Smith+Nephew (NYSE:SNN) present贸 un s贸lido primer semestre de 2025. Los ingresos aumentaron un 4,7% interanual hasta 2.960 millones de d贸lares (subyacente +5,0%) a pesar de dos d铆as de negociaci贸n menos; los ingresos del segundo trimestre subieron un 7,8% hasta 1.550 millones de d贸lares (subyacente +6,7%).
El beneficio operativo creci贸 un 11,2% hasta 523 millones de d贸lares, ampliando el margen operativo 100 puntos b谩sicos hasta el 17,7%. El beneficio operativo aument贸 un 30,6% hasta 429 millones de d贸lares. Las ganancias por acci贸n (EPS) avanzaron un 36,6% hasta 33,5 centavos; el EPS ajustado (EPSA) creci贸 un 14,1% hasta 42,9 centavos. El flujo de caja libre se dispar贸 a 244 millones desde 39 millones, elevando la conversi贸n de efectivo al 93% y apoyando una nueva recompra de acciones de 500 millones de d贸lares adem谩s de un dividendo intermedio un 4,2% mayor, de 15,0 centavos.
Las tres unidades de negocio crecieron: Ortopedia +5,0% subyacente, Medicina Deportiva y Otorrinolaringolog铆a +5,7% (+10,2% excluyendo China), y Gesti贸n Avanzada de Heridas +10,2%. Los mercados consolidados aumentaron un 8,2% subyacente, mientras que los mercados emergentes bajaron un 0,2% debido a la presi贸n del VBP en China. Los d铆as de inventario disminuyeron en 46 y el gasto en reestructuraci贸n baj贸 a 8 millones; la deuda neta/EBITDA se mantuvo en 1,8脳.
Perspectivas para 2025 sin cambios: crecimiento de ingresos subyacente alrededor del 5% (reportado aproximadamente 5,5%) y margen operativo entre 19 y 20%, absorbiendo un impacto negativo por aranceles de 15-20 millones. La direcci贸n prev茅 una mayor expansi贸n del margen m谩s all谩 de 2025 gracias a las eficiencias continuas del Plan de 12 Puntos.
Smith+Nephew (NYSE:SNN)電� 2025雲� 靸侂皹旮办棎 瓴碃頃� 鞁れ爜鞚� 旮半頄堨姷雼堧嫟. 毵れ稖鞚� 鞝勲厔 霃欔赴 雽�牍� 4.7% 歃濌皜頃� 29鞏� 6觳滊 雼煬(旮办爛 旮办 +5.0%)毳� 雼劚頄堨溂氅�, 瓯半灅鞚� 靾橁皜 2鞚� 鞝侅棃鞚岇棎霃� 攵堦惮頃橁碃 靸侅姽頄堨姷雼堧嫟. 2攵勱赴 毵れ稖鞚� 7.8% 歃濌皜頃� 15鞏� 5觳滊 雼煬(旮办爛 旮办 +6.7%)毳� 旮半頄堨姷雼堧嫟.
鞓侅梾鞚挫澋鞚� 11.2% 歃濌皜頃� 5鞏� 2,300毵� 雼煬搿�, 鞓侅梾鞚挫澋毳犾潃 100bp 靸侅姽頃� 17.7%毳� 旮半頄堨姷雼堧嫟. 鞓侅梾鞚挫澋鞚� 30.6% 歃濌皜頃� 4鞏� 2,900毵� 雼煬鞐� 雼枅鞀惦媹雼�. 欤茧嫻靾滌澊鞚�(EPS)鞚� 36.6% 歃濌皜頃� 33.5靹柬姼, 臁办爼 EPSA電� 14.1% 歃濌皜頃� 42.9靹柬姼毳� 旮半頄堨姷雼堧嫟. 鞛愳湢順勱笀頋愲鞚� 3,900毵� 雼煬鞐愳劀 2鞏� 4,400毵� 雼煬搿� 旮夓頃� 順勱笀 鞝勴櫂鞙潉 93%搿� 雭岇柎鞓牳鞙茧┌, 鞁犼窚 5鞏� 雼煬 攴滊鞚� 鞛愳偓欤� 毵れ瀰瓿� 4.2% 鞚胳儊霅� 欷戧皠 氚半嫻旮� 15靹柬姼毳� 歆�鞗愴枅鞀惦媹雼�.
靹� 臧� 靷梾 攵�氍� 氇憪 靹膘灔頄堨姷雼堧嫟: 鞝曧槙鞕戈臣電� 旮办爛 旮办 5.0%, 鞀ろ彫旄� 鞚橅暀 氚� 鞚措箘鞚疙泟瓿茧姅 5.7%(欷戧淡 鞝滌櫢 鞁� 10.2%), 瓿犼笁 靸侅矘 甏�毽� 攵�氍胳潃 10.2% 靹膘灔頄堨姷雼堧嫟. 靹犾 鞁滌灔鞚� 旮办爛 旮办 8.2% 歃濌皜頄堨溂雮�, 欷戧淡 VBP 鞎曤牓鞙茧 鞁犿潵 鞁滌灔鞚� 0.2% 臧愳唽頄堨姷雼堧嫟. 鞛碃 鞚检垬電� 46鞚� 欷勳棃瓿� 甑“臁办爼 牍勳毄鞚� 800毵� 雼煬搿� 臧愳唽頄堨溂氅�, 靾滊秬毂�/EBITDA 牍勳湪鞚� 1.8氚半ゼ 鞙犾頄堨姷雼堧嫟.
2025雲� 鞝勲鞚� 氤�頃梿鞚�: 旮办爛 毵れ稖 靹膘灔毳� 鞎� 5%(氤搓碃 旮办 鞎� 5.5%) 氚� 19~20%鞚� 鞓侅梾鞚挫澋毳犾潉 鞓堨儊頃橂┌, 1,500毵寏2,000毵� 雼煬鞚� 甏�靹� 攵�雼挫潉 頋§垬頃� 鞓堨爼鞛呺媹雼�. 瓴届榿歆勳潃 12韽澑韸� 瓿勴殟鞚� 須湪靹膘澊 歆�靻嶋惃鞐� 霐半澕 2025雲� 鞚错泟鞐愲弰 毵堨鞚� 於旉皜搿� 頇曤寑霅� 瓴冹溂搿� 氤搓碃 鞛堨姷雼堧嫟.
Smith+Nephew (NYSE:SNN) a publi茅 un solide premier semestre 2025. Le chiffre d'affaires a augment茅 de 4,7 % en glissement annuel pour atteindre 2,96 milliards de dollars (sous-jacent +5,0 %) malgr茅 deux jours de bourse en moins ; le chiffre d'affaires du deuxi猫me trimestre a progress茅 de 7,8 % pour atteindre 1,55 milliard de dollars (sous-jacent +6,7 %).
Le b茅n茅fice d'exploitation a augment茅 de 11,2 % pour atteindre 523 millions de dollars, portant la marge op茅rationnelle 脿 17,7 %, en hausse de 100 points de base. Le b茅n茅fice op茅rationnel a bondi de 30,6 % 脿 429 millions de dollars. Le BPA a progress茅 de 36,6 % 脿 33,5 cents ; le BPA ajust茅 (EPSA) a augment茅 de 14,1 % 脿 42,9 cents. La tr茅sorerie disponible a explos茅 脿 244 millions contre 39 millions, portant le taux de conversion de tr茅sorerie 脿 93 % et soutenant un nouveau rachat d鈥檃ctions de 500 millions de dollars ainsi qu鈥檜n dividende int茅rimaire en hausse de 4,2 % 脿 15,0 cents.
Les trois unit茅s commerciales ont enregistr茅 une croissance : Orthop茅die +5,0 % sous-jacent, M茅decine du sport & ORL +5,7 % (+10,2 % hors Chine), et Gestion avanc茅e des plaies +10,2 %. Les march茅s 茅tablis ont progress茅 de 8,2 % sous-jacent, tandis que les march茅s 茅mergents ont recul茅 de 0,2 % en raison de la pression du VBP en Chine. Les jours de stock ont diminu茅 de 46 et les d茅penses de restructuration sont tomb茅es 脿 8 millions ; le ratio dette nette/EBITDA est rest茅 脿 1,8脳.
Perspectives 2025 inchang茅es : croissance sous-jacente du chiffre d'affaires d鈥檈nviron 5 % (rapport茅 environ 5,5 %) et marge op茅rationnelle entre 19 et 20 %, absorbant un impact tarifaire n茅gatif de 15 脿 20 millions de dollars. La direction pr茅voit une expansion suppl茅mentaire de la marge au-del脿 de 2025 gr芒ce aux gains d鈥檈fficacit茅 du Plan des 12 points.
Smith+Nephew (NYSE:SNN) lieferte ein robustes erstes Halbjahr 2025 ab. Der Umsatz stieg im Jahresvergleich um 4,7 % auf 2,96 Mrd. USD (unterliegend +5,0 %), trotz zwei Handelstagen weniger; der Umsatz im zweiten Quartal kletterte um 7,8 % auf 1,55 Mrd. USD (unterliegend +6,7 %).
Der Handelsgewinn wuchs um 11,2 % auf 523 Mio. USD, der Handelsmargenanstieg betrug 100 Basispunkte auf 17,7 %. Der operative Gewinn sprang um 30,6 % auf 429 Mio. USD. Das Ergebnis je Aktie (EPS) stieg um 36,6 % auf 33,5 Cent; das bereinigte EPSA erh枚hte sich um 14,1 % auf 42,9 Cent. Der freie Cashflow schoss von 39 Mio. auf 244 Mio. USD in die H枚he, was die Cash Conversion auf 93 % anhob und einen neuen Aktienr眉ckkauf in H枚he von 500 Mio. USD sowie eine um 4,2 % h枚here Zwischenzahlung von 15,0 Cent unterst眉tzte.
Alle drei Gesch盲ftsbereiche wuchsen: Orthop盲die +5,0 % unterliegend, Sportmedizin & HNO +5,7 % (+10,2 % ohne China) und Advanced Wound Management +10,2 %. Die etablierten M盲rkte stiegen unterliegend um 8,2 %, w盲hrend die Schwellenm盲rkte aufgrund des VBP-Drucks in China um 0,2 % zur眉ckgingen. Die Lagerbest盲nde sanken um 46 Tage, und die Restrukturierungskosten fielen auf 8 Mio. USD; das Netto-Schulden/EBITDA-Verh盲ltnis blieb bei 1,8脳.
Ausblick 2025 unver盲ndert: Unterliegendes Umsatzwachstum von etwa 5 % (berichtigt etwa 5,5 %) und Handelsmarge von 19鈥�20 %, wobei ein Tarifgegenwind von 15鈥�20 Mio. USD absorbiert wird. Das Management erwartet eine weitere Margenausweitung 眉ber 2025 hinaus, da die Effizienzma脽nahmen des 12-Punkte-Plans fortgesetzt werden.
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM
(Mark One)
| | QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
For the quarterly period ended
| | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
For the transition period from _____ to _____
Commission File Number
VISHAY PRECISION GROUP, INC.
(Exact name of registrant as specified in its charter)
| | | |||
| (State or Other Jurisdiction of Incorporation) | (I.R.S. Employer Identification Number) | |||
| | ||||
| | | |||
| (Address of Principal Executive Offices) (Zip Code) | (Registrant’s Telephone Number, including area code) |
Securities registered pursuant to Section 12(b) of the Act:
| Title of each class | Trading Symbol(s) | Name of each exchange on which registered |
| | | |
Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. ☒
Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (section 232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files. ☒
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer”, “accelerated filer”, “smaller reporting company”, and "emerging growth company" in Rule 12b-2 of the Exchange Act.
| Large accelerated filer | ☐ | | ☒ | |
| Non-accelerated filer | ☐ | Smaller reporting company | ||
| Emerging growth company | ||||
| If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐ | ||||
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).
As of August 5, 2025, the registrant had
VISHAY PRECISION GROUP, INC.
FORM 10-Q
June 28, 2025
CONTENTS
| Page Number |
||
| PART I. |
FINANCIAL INFORMATION |
|
| Item 1. |
Financial Statements |
|
| Consolidated Condensed Balance Sheets – June 28, 2025 (Unaudited) and December 31, 2024 |
3 |
|
| Consolidated Condensed Statements of Operations (Unaudited) – Fiscal Quarters Ended June 28, 2025 and June 29, 2024 |
5 |
|
| Consolidated Condensed Statements of Operations (Unaudited) – Six Fiscal Months Ended June 28, 2025 and June 29, 2024 |
||
| Consolidated Condensed Statements of Comprehensive Income (Loss) (Unaudited) – Fiscal Quarter Ended June 28, 2025 and June 29, 2024 |
7 |
|
| Consolidated Condensed Statements of Comprehensive Income (Loss) (Unaudited) – Six Fiscal Months Ended June 28, 2025 and June 29, 2024 |
||
| Consolidated Condensed Statements of Cash Flows (Unaudited) – Six Fiscal Months Ended June 28, 2025 and June 29, 2024 |
9 |
|
| Consolidated Condensed Statements of Equity (Unaudited) – Fiscal Quarter Ended June 28, 2025 and June 29, 2024 |
10 |
|
| Consolidated Condensed Statements of Equity (Unaudited) – Six Fiscal Months Ended June 28, 2025 and June 29, 2024 |
||
| Notes to Unaudited Consolidated Condensed Financial Statements |
12 |
|
| Item 2. |
Management’s Discussion and Analysis of Financial Condition and Results of Operations |
24 |
| Item 3. |
Quantitative and Qualitative Disclosures About Market Risk |
36 |
| Item 4. |
Controls and Procedures |
36 |
| PART II. |
OTHER INFORMATION |
|
| Item 1. |
Legal Proceedings |
37 |
| Item 1A. |
Risk Factors |
37 |
| Item 2. |
Unregistered Sales of Equity Securities and Use of Proceeds |
37 |
| Item 3. |
Defaults Upon Senior Securities |
37 |
| Item 4. |
Mine Safety Disclosures |
37 |
| Item 5. |
Other Information |
37 |
| Item 6. |
Exhibits |
38 |
| SIGNATURES |
39 |
PART I - FINANCIAL INFORMATION
Item 1. FINANCIAL STATEMENTS
| VISHAY PRECISION GROUP, INC. Consolidated Condensed Balance Sheets (In thousands) |
| June 28, 2025 |
December 31, 2024 |
|||||||
| (Unaudited) |
||||||||
| Assets |
||||||||
| Current assets: |
||||||||
| Cash and cash equivalents |
$ | $ | ||||||
| Accounts receivable, net |
||||||||
| Inventories: |
||||||||
| Raw materials |
||||||||
| Work in process |
||||||||
| Finished goods |
||||||||
| Inventories, net |
||||||||
| Prepaid expenses and other current assets |
||||||||
| Assets held for sale |
||||||||
| Total current assets |
||||||||
| Property and equipment: |
||||||||
| Land |
||||||||
| Buildings and improvements |
||||||||
| Machinery and equipment |
||||||||
| Software |
||||||||
| Construction in progress |
||||||||
| Accumulated depreciation |
( |
) | ( |
) | ||||
| Property and equipment, net |
||||||||
| Goodwill |
||||||||
| Intangible assets, net |
||||||||
| Operating lease right-of-use assets |
||||||||
| Other assets |
||||||||
| Total assets |
$ | $ | ||||||
See accompanying notes.
VISHAY PRECISION GROUP, INC.
Consolidated Condensed Balance Sheets
(In thousands)
| June 28, 2025 |
December 31, 2024 |
|||||||
| (Unaudited) |
||||||||
| Liabilities and equity |
||||||||
| Current liabilities: |
||||||||
| Trade accounts payable |
$ | $ | ||||||
| Payroll and related expenses |
||||||||
| Other accrued expenses |
||||||||
| Income taxes |
||||||||
| Current portion of operating lease liabilities |
||||||||
| Total current liabilities |
||||||||
| Long-term debt |
||||||||
| Deferred income taxes |
||||||||
| Operating lease liabilities |
||||||||
| Other liabilities |
||||||||
| Accrued pension and other postretirement costs |
||||||||
| Total liabilities |
||||||||
| Equity: |
||||||||
| Common stock |
||||||||
| Class B convertible common stock |
||||||||
| Treasury stock |
( |
) | ( |
) | ||||
| Capital in excess of par value |
||||||||
| Retained earnings |
||||||||
| Accumulated other comprehensive loss |
( |
) | ( |
) | ||||
| Total Vishay Precision Group, Inc. stockholders' equity |
||||||||
| Noncontrolling interests |
( |
) | ||||||
| Total equity |
||||||||
| Total liabilities and equity |
$ | $ | ||||||
See accompanying notes.
VISHAY PRECISION GROUP, INC.
Consolidated Condensed Statements of Operations
(Unaudited - In thousands, except per share amounts)
| Fiscal Quarter Ended |
||||||||
| June 28, 2025 |
June 29, 2024 |
|||||||
| Net revenues |
$ | $ | ||||||
| Costs of products sold |
||||||||
| Gross profit |
||||||||
| Selling, general and administrative expenses |
||||||||
| Restructuring costs |
||||||||
| Operating income |
||||||||
| Other (expense) income: |
||||||||
| Interest expense |
( |
) | ( |
) | ||||
| Other |
( |
) | ||||||
| Other (expense) income |
( |
) | ||||||
| Income before taxes |
||||||||
| Income tax expense |
||||||||
| Net earnings |
||||||||
| Less: net earnings attributable to noncontrolling interests |
||||||||
| Net earnings attributable to VPG stockholders |
$ | $ | ||||||
| Basic earnings per share attributable to VPG stockholders |
$ | $ | ||||||
| Diluted earnings per share attributable to VPG stockholders |
$ | $ | ||||||
| Weighted average shares outstanding - basic |
||||||||
| Weighted average shares outstanding - diluted |
||||||||
See accompanying notes.
VISHAY PRECISION GROUP, INC.
Consolidated Condensed Statements of Operations
(Unaudited - In thousands, except per share amounts)
| Six Fiscal Months Ended |
||||||||
| June 28, 2025 |
June 29, 2024 |
|||||||
| Net revenues |
$ | $ | ||||||
| Costs of products sold |
||||||||
| Gross profit |
||||||||
| Selling, general and administrative expenses |
||||||||
| Restructuring costs |
||||||||
| Operating income |
||||||||
| Other (expense) income : |
||||||||
| Interest expense |
( |
) | ( |
) | ||||
| Other |
( |
) | ||||||
| Other (expense) income |
( |
) | ||||||
| (Loss) Income before taxes |
( |
) | ||||||
| Income tax expense |
||||||||
| Net (loss) earnings |
( |
) | ||||||
| Less: net earnings (loss) attributable to noncontrolling interests |
( |
) | ||||||
| Net (loss) earnings attributable to VPG stockholders |
$ | ( |
) | $ | ||||
| Basic (loss) earnings per share attributable to VPG stockholders |
$ | ( |
) | $ | ||||
| Diluted (loss) earnings per share attributable to VPG stockholders |
$ | ( |
) | $ | ||||
| Weighted average shares outstanding - basic |
||||||||
| Weighted average shares outstanding - diluted |
||||||||
See accompanying notes.
VISHAY PRECISION GROUP, INC.
Consolidated Condensed Statements of Comprehensive Income (Loss)
(Unaudited - In thousands)
| Fiscal Quarter Ended | ||||||||
| June 28, 2025 |
June 29, 2024 |
|||||||
| Net earnings |
$ | $ | ||||||
| Other comprehensive income (loss), net of tax: |
||||||||
| Foreign currency translation adjustment |
( |
) | ||||||
| Pension and other postretirement actuarial items |
( |
) | ||||||
| Other comprehensive income (loss) |
( |
) | ||||||
| Comprehensive income |
||||||||
| Less: comprehensive income attributable to noncontrolling interests |
||||||||
| Comprehensive income attributable to VPG stockholders |
$ | $ | ||||||
See accompanying notes.
VISHAY PRECISION GROUP, INC.
Consolidated Condensed Statements of Comprehensive Income (Loss)
(Unaudited - In thousands)
| Six Fiscal Months Ended |
||||||||
| June 28, 2025 |
June 29, 2024 |
|||||||
| Net (loss) earnings |
$ | ( |
) | $ | ||||
| Other comprehensive income (loss), net of tax: |
||||||||
| Foreign currency translation adjustment |
( |
) | ||||||
| Pension and other postretirement actuarial items |
( |
) | ||||||
| Other comprehensive income (loss) |
( |
) | ||||||
| Comprehensive income |
||||||||
| Less: comprehensive income (loss) attributable to noncontrolling interests |
( |
) | ||||||
| Comprehensive income attributable to VPG stockholders |
$ | $ | ||||||
See accompanying notes.
VISHAY PRECISION GROUP, INC.
Consolidated Condensed Statements of Cash Flows
(Unaudited - In thousands)
| Six Fiscal Months Ended |
||||||||
| June 28, 2025 |
June 29, 2024 |
|||||||
| Operating activities |
||||||||
| Net (loss) earnings |
$ | ( |
) | $ | ||||
| Adjustments to reconcile net earnings to net cash provided by operating activities: |
||||||||
| Depreciation and amortization |
||||||||
| Loss (gain) on sale of property and equipment |
( |
) | ||||||
| Share-based compensation expense |
||||||||
| Inventory write-offs for obsolescence |
||||||||
| Deferred income taxes |
( |
) | ||||||
| Foreign currency impacts and other items |
( |
) | ||||||
| Net changes in operating assets and liabilities: |
||||||||
| Accounts receivable |
||||||||
| Inventories |
( |
) | ( |
) | ||||
| Prepaid expenses and other current assets |
( |
) | ( |
) | ||||
| Trade accounts payable |
||||||||
| Other current liabilities |
( |
) | ||||||
| Other non current assets and liabilities, net |
( |
) | ( |
) | ||||
| Accrued pension and other postretirement costs, net |
( |
) | ||||||
| Net cash provided by operating activities |
||||||||
| Investing activities |
||||||||
| Capital expenditures |
( |
) | ( |
) | ||||
| Proceeds from sale of property and equipment |
||||||||
| Net cash used in investing activities |
( |
) | ( |
) | ||||
| Financing activities |
||||||||
| Purchase of treasury stock |
( |
) | ||||||
| Distributions to noncontrolling interests | ( |
) | ||||||
| Payments of employee taxes on certain share-based arrangements |
( |
) | ( |
) | ||||
| Net cash used in financing activities |
( |
) | ( |
) | ||||
| Effect of exchange rate changes on cash and cash equivalents |
( |
) | ||||||
| Increase in cash and cash equivalents |
||||||||
| Cash and cash equivalents at beginning of period |
||||||||
| Cash and cash equivalents at end of period |
$ | $ | ||||||
| Supplemental disclosure of investing transactions: |
||||||||
| Capital expenditures accrued but not yet paid |
$ | $ | ||||||
| Supplemental disclosure of financing transactions: |
||||||||
| Excise tax on net share repurchases accrued but not yet paid |
||||||||
See accompanying notes.
VISHAY PRECISION GROUP, INC.
Consolidated Condensed Statements of Equity
(Unaudited - In thousands, except share amounts)
| Fiscal Quarter Ended | ||||||||||||||||||||||||||||||||||||
| June 28, 2025 | ||||||||||||||||||||||||||||||||||||
| Class B | Accumulated | |||||||||||||||||||||||||||||||||||
| Convertible | Capital in | Other | Total VPG Inc. | |||||||||||||||||||||||||||||||||
| Common | Common | Treasury | Excess of | Retained | Comprehensive | Stockholders' | Noncontrolling | Total | ||||||||||||||||||||||||||||
| Stock | Stock | Stock | Par Value | Earnings | Income (Loss) | Equity | Interests | Equity | ||||||||||||||||||||||||||||
| Balance at March 29, 2025 | $ | $ | $ | ( | ) | $ | $ | $ | ( | ) | $ | $ | $ | |||||||||||||||||||||||
| Net earnings | ||||||||||||||||||||||||||||||||||||
| Other comprehensive income | ||||||||||||||||||||||||||||||||||||
| Share-based compensation expense | ||||||||||||||||||||||||||||||||||||
| Restricted stock issuances (18,679 shares) | ( | ) | ( | ) | ( | ) | ||||||||||||||||||||||||||||||
| Excise tax on net share repurchase | ||||||||||||||||||||||||||||||||||||
| Distributions to noncontrolling interests | ( | ) | ( | ) | ||||||||||||||||||||||||||||||||
| Balance at June 28, 2025 | $ | $ | $ | ( | ) | $ | $ | $ | ( | ) | $ | $ | $ | |||||||||||||||||||||||
| Fiscal Quarter Ended | ||||||||||||||||||||||||||||||||||||
| June 29, 2024 | ||||||||||||||||||||||||||||||||||||
| Class B | Accumulated | |||||||||||||||||||||||||||||||||||
| Convertible | Capital in | Other | Total VPG Inc. | |||||||||||||||||||||||||||||||||
| Common | Common | Treasury | Excess of | Retained | Comprehensive | Stockholders' | Noncontrolling | Total | ||||||||||||||||||||||||||||
| Stock | Stock | Stock | Par Value | Earnings | Income (Loss) | Equity | Interests | Equity | ||||||||||||||||||||||||||||
| Balance at March 30, 2024 | $ | $ | $ | ( | ) | $ | $ | $ | ( | ) | $ | $ | ( | ) | $ | |||||||||||||||||||||
| Net earnings | ||||||||||||||||||||||||||||||||||||
| Other comprehensive loss | ( | ) | ( | ) | ( | ) | ||||||||||||||||||||||||||||||
| Share-based compensation expense | ||||||||||||||||||||||||||||||||||||
| Restricted stock issuances (16,612 shares) | ( | ) | ||||||||||||||||||||||||||||||||||
| Purchase of treasury stock. (96,710 shares) | ( | ) | ( | ) | ( | ) | ||||||||||||||||||||||||||||||
| Excise tax on net share repurchase | ( | ) | ( | ) | ( | ) | ||||||||||||||||||||||||||||||
| Distributions to noncontrolling interests | ( | ) | ( | ) | ||||||||||||||||||||||||||||||||
| Balance at June 29, 2024 | $ | $ | $ | ( | ) | $ | $ | $ | ( | ) | $ | $ | $ | |||||||||||||||||||||||
See accompanying notes.
VISHAY PRECISION GROUP, INC.
Consolidated Condensed Statements of Equity
(Unaudited - In thousands, except share amounts)
| Six Fiscal Months Ended June 28, 2025 | ||||||||||||||||||||||||||||||||||||
| Class B | Accumulated | |||||||||||||||||||||||||||||||||||
| Convertible | Capital in | Other | Total VPG Inc. | |||||||||||||||||||||||||||||||||
| Common | Common | Treasury | Excess of | Retained | Comprehensive | Stockholders' | Noncontrolling | Total | ||||||||||||||||||||||||||||
| Stock | Stock | Stock | Par Value | Earnings | Income (Loss) | Equity | Interests | Equity | ||||||||||||||||||||||||||||
| Balance at December 31, 2024 | $ | $ | $ | ( | ) | $ | $ | $ | ( | ) | $ | $ | ( | ) | $ | |||||||||||||||||||||
| Net loss | ( | ) | ( | ) | ( | ) | ||||||||||||||||||||||||||||||
| Other comprehensive income | ||||||||||||||||||||||||||||||||||||
| Share-based compensation expense | ||||||||||||||||||||||||||||||||||||
| Restricted stock issuances (37,464 shares) | ( | ) | ( | ) | ( | ) | ||||||||||||||||||||||||||||||
| Excise tax on net share repurchase | ||||||||||||||||||||||||||||||||||||
| Distributions to noncontrolling interests | ||||||||||||||||||||||||||||||||||||
| Balance at June 28, 2025 | $ | $ | $ | ( | ) | $ | $ | $ | ( | ) | $ | $ | $ | |||||||||||||||||||||||
| Six Fiscal Months Ended June 29, 2024 | ||||||||||||||||||||||||||||||||||||
| Class B | Accumulated | |||||||||||||||||||||||||||||||||||
| Convertible | Capital in | Other | Total VPG Inc. | |||||||||||||||||||||||||||||||||
| Common | Common | Treasury | Excess of | Retained | Comprehensive | Stockholders' | Noncontrolling | Total | ||||||||||||||||||||||||||||
| Stock | Stock | Stock | Par Value | Earnings | Income (Loss) | Equity | Interests | Equity | ||||||||||||||||||||||||||||
| Balance at December 31, 2023 | $ | $ | $ | ( | ) | $ | $ | $ | ( | ) | $ | $ | $ | |||||||||||||||||||||||
| Net earnings | ( | ) | ||||||||||||||||||||||||||||||||||
| Other comprehensive loss | ( | ) | ( | ) | ( | ) | ||||||||||||||||||||||||||||||
| Share-based compensation expense | ||||||||||||||||||||||||||||||||||||
| Restricted stock issuances (55,219 shares) | ( | ) | ( | ) | ( | ) | ||||||||||||||||||||||||||||||
| Purchase of treasury stock (181,475 shares) | ( | ) | ( | ) | ( | ) | ||||||||||||||||||||||||||||||
| Excise tax on net share repurchase | ( | ) | ( | ) | ( | ) | ||||||||||||||||||||||||||||||
| Distributions to noncontrolling interests | ( | ) | ( | ) | ||||||||||||||||||||||||||||||||
| Balance at June 29, 2024 | $ | $ | $ | ( | ) | $ | $ | $ | ( | ) | $ | $ | $ | |||||||||||||||||||||||
See accompanying notes.
Vishay Precision Group, Inc.
Notes to Unaudited Consolidated Condensed Financial Statements
Note 1 – Basis of Presentation
Background
Vishay Precision Group, Inc. (“VPG” or the “Company”) is a global leader in precision measurement and sensing technologies that help power the future by bridging the physical world with the digital one. Many of our specialized sensors, weighing solutions, and measurement systems are “designed-in” by our customers, and address growing applications across a diverse array of industries and markets. Our products are marketed under brand names that we believe are characterized as having a very high level of precision and quality, and we employ an operationally diversified structure to manage our businesses.
Interim Financial Statements
These unaudited consolidated condensed financial statements have been prepared pursuant to the rules and regulations of the Securities and Exchange Commission ("SEC") for interim financial statements and therefore do not include all information and footnotes necessary for the presentation of financial position, results of operations, and cash flows required by accounting principles generally accepted in the United States for complete financial statements. The information furnished reflects all normal recurring adjustments which are, in the opinion of management, necessary for a fair summary of the financial position, results of operations, and cash flows for the interim periods presented. These consolidated condensed financial statements should be read in conjunction with the consolidated financial statements and notes thereto as of December 31, 2024 and 2023 and for each of the three years in the period ended December 31, 2024, included in VPG’s Annual Report on Form 10-K for the fiscal year ended December 31, 2024, filed with the SEC on February 25, 2025. The results of operations for the fiscal quarter ended June 28, 2025 are not necessarily indicative of the results to be expected for the full year. VPG reports interim financial information for 13-week periods beginning on a Sunday and ending on a Saturday, except for the first quarter, which always begins on January 1, and the fourth quarter, which always ends on December 31. The four fiscal quarters in 2025 and 2024 end on the following dates:
| 2025 | 2024 | |||
| Quarter 1 | March 29, | March 30, | ||
| Quarter 2 | June 28, | June 29, | ||
| Quarter 3 | September 27, | September 28, | ||
| Quarter 4 | December 31, | December 31, |
Recent Accounting Pronouncements
The Company evaluates the applicability and impact of all Accounting Standards Updates ("ASUs") issued by the Financial Accounting Standards Board ("FASB").
In November 2023, the FASB issued ASU 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures. The ASU expands public entities’ segment disclosures by requiring disclosure of significant segment expenses that are regularly reviewed by the chief operating decision maker ("CODM") and included within each reported measure of segment profit or loss, an amount and description of its composition for other segment items, and interim disclosures of a reportable segment’s profit or loss and assets. The ASU also allows, in addition to the measure that is most consistent with U.S. GAAP, the disclosure of additional measures of segment profit or loss that are used by the CODM in assessing segment performance and deciding how to allocate resources. The ASU is effective for the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2024, and subsequent interim periods, with early adoption permitted. As part of the Annual Report for the year ended December 31, 2024, which was filed on February 25, 2025, the Company adopted ASU 2023-07, which was applied retrospectively to all prior periods presented. Refer to Note 14 herein for further details regarding this adoption.
In December 2023, the FASB issued ASU No. 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures. This ASU requires disclosure of specific categories in the rate reconciliation and additional information for reconciling items that meet a quantitative threshold. The amendment also includes other changes to improve the effectiveness of income tax disclosures, including further disaggregation of income taxes paid for individually significant jurisdictions. This ASU is effective for annual periods beginning after December 15, 2024. Early adoption is permitted. Adoption of this ASU should be applied on a prospective basis, although retrospective application is permitted. The Company is currently evaluating the impact of adopting this ASU on its consolidated financial statements and disclosures.
In November 2024, the FASB issued ASU No. 2024-03, Income Statement—Reporting Comprehensive Income—Expense Disaggregation Disclosures (Subtopic 220-40), Disaggregation of Income Statement Expenses. This update aims to enhance the transparency of financial reporting by requiring public business entities (PBEs) to provide disaggregated disclosure of certain income statement expense captions into specified categories in disclosures within the footnotes to the financial statements. The ASU is effective for annual fiscal years beginning after December 15, 2026, and interim periods within fiscal years beginning after December 15, 2027. Early adoption is permitted. Adoption of this ASU should be applied on a prospective basis, although retrospective application is permitted. The Company is currently evaluating the impact of adopting this ASU on its consolidated financial statements and disclosures.
Note 2 – Revenues
Revenue Recognition
The following table disaggregates net revenue by geographic region from contracts with customers based on net revenues generated by subsidiaries within that geographic location (in thousands):
| Fiscal Quarter Ended | Fiscal Quarter Ended | |||||||||||||||||||||||||||||||
| June 28, 2025 |
June 29, 2024 |
|||||||||||||||||||||||||||||||
| Sensors |
Weighing Solutions |
Measurement Systems |
Total |
Sensors |
Weighing Solutions |
Measurement Systems |
Total |
|||||||||||||||||||||||||
| United States |
$ | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||||||
| Europe |
||||||||||||||||||||||||||||||||
| Asia |
||||||||||||||||||||||||||||||||
| Canada |
||||||||||||||||||||||||||||||||
| Israel |
||||||||||||||||||||||||||||||||
| Total |
$ | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||||||
| Six Fiscal Months Ended June 28, 2025 |
Six Fiscal Months Ended June 29, 2024 |
|||||||||||||||||||||||||||||||
| Sensors |
Weighing Solutions |
Measurement Systems |
Total |
Sensors |
Weighing Solutions |
Measurement Systems |
Total |
|||||||||||||||||||||||||
| United States |
$ | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||||||
| Europe |
||||||||||||||||||||||||||||||||
| Asia |
||||||||||||||||||||||||||||||||
| Canada |
||||||||||||||||||||||||||||||||
| Israel |
||||||||||||||||||||||||||||||||
| Total |
$ | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||||||
The following table disaggregates net revenue from contracts with customers by market sector (in thousands).
| Fiscal Quarter Ended | Six Fiscal Months Ended |
|||||||||||||||
| June 28, 2025 |
June 29, 2024 |
June 28, 2025 |
June 29, 2024 |
|||||||||||||
| Test & Measurement |
$ | $ | $ | $ | ||||||||||||
| Avionics, Military & Space |
||||||||||||||||
| Transportation |
||||||||||||||||
| Other Markets |
||||||||||||||||
| Industrial Weighing |
||||||||||||||||
| General Industrial |
||||||||||||||||
| Steel |
||||||||||||||||
| Total |
$ | $ | $ | $ | ||||||||||||
Contract Assets & Liabilities
Contract assets are established when revenues are recognized prior to a contractual payment due from the customer. When a payment becomes due based on the contract terms, the Company will reduce the contract asset and record a receivable. Contract liabilities are deferred revenues that are recorded when cash payments are received or due in advance of our performance obligations. Our payment terms vary by the type and location of the products offered. The term between invoicing and when payment is due is not significant.
The outstanding contract assets and liability accounts were as follows (in thousands):
| Contract Asset |
Contract Liability |
|||||||
| Accrued |
||||||||
| Unbilled |
Customer |
|||||||
| Revenue |
Advances |
|||||||
| Balance at December 31, 2024 |
$ | $ | ||||||
| Balance at June 28, 2025 |
||||||||
| Increase (decrease) |
$ | $ | ( |
) | ||||
The amount of revenue recognized during the six fiscal months ended June 28, 2025 that was included in the contract liability balance at December 31, 2024 was $
Note 3 – Assets held for sale
During the fourth quarter of 2024, the Company committed to a plan to sell its manufacturing facility located at Kent, Washington (Weighing Solutions Segment) as part of the Company’s ongoing strategy to focus on core operations and optimize its asset base utilization.
The Company determined that the criteria for classifying the asset as held for sale as of December 31, 2024, had been met. Accordingly, the carrying value of the asset as of June 28, 2025 is presented separately as a current asset in the consolidated balance sheet.
A summary of the assets held for sale as of June 28, 2025 is included in the table below:
| Location |
Asset Category |
Cost |
Accumulated Depreciation |
Net Carrying Value |
|||||||||
| Kent, Washington |
Land |
$ | $ | $ | |||||||||
| Building & Improvements |
$ | $ | $ | ||||||||||
| $ | $ | $ | |||||||||||
The Company completed the sale during July 2025 at a price which is higher than the carrying value of the asset (see Note 18 - Subsequent event).
Note 4 – Goodwill
The Company tests the goodwill in each of its goodwill reporting units for impairment at least annually, as of the first day of its fourth quarter, and whenever events or changes in circumstances occur indicating that a possible impairment may have been incurred.
The change in the carrying amount of goodwill by reporting unit is as follows (in thousands):
| Total | Measurement Systems | Weighing Solutions | ||||||||||
| Steel | Nokra | DSI | DTS | On-board weighing | ||||||||
| Balance at December 31, 2024 | $ 46,819 | $ 5,964 | $ 1,633 | $ 16,878 | $ 16,033 | $ 6,311 | ||||||
| Adjustment (1) | $ — | $ 1,633 | $ (1,633) | $ — | $ — | $ — | ||||||
| Foreign currency translation adjustment | $ 557 | $ 513 | $ — | $ 44 | $ — | $ — | ||||||
| Balance at June 28, 2025 | $ 47,376 | $ 8,110 | $ — | $ 16,922 | $ 16,033 | $ 6,311 | ||||||
(1) The goodwill resulting from the acquisition of Nokra in September 2024, was allocated to the Steel reporting unit.
Note 5 – Leases
The Company primarily leases office and manufacturing facilities in addition to vehicles, which have remaining terms ranging from less than one year to eleven years, four months.
The Company has no finance leases.
Leases recorded on the balance sheet consist of the following (in thousands):
| Leases | June 28, 2025 | December 31, 2024 | ||||||
| Assets | ||||||||
| Operating lease right of use asset | $ | $ | ||||||
| Liabilities | ||||||||
| Operating lease - current | $ | $ | ||||||
| Operating lease - non-current | $ | $ | ||||||
Other information related to lease term and discount rate is as follows:
| June 28, 2025 | ||||
| Operating leases weighted average remaining lease term (in years) | ||||
| Operating leases weighted average discount rate | % | |||
The components of lease expense are as follows (in thousands):
| Fiscal Quarter Ended | Six Fiscal Months Ended | |||||||||||||||
| June 28, 2025 | June 29, 2024 | June 28, 2025 | June 29, 2024 | |||||||||||||
| Operating lease cost | $ | $ | $ | $ | ||||||||||||
| Short-term lease cost | ||||||||||||||||
| Sublease income | ( | ) | ( | ) | ( | ) | ( | ) | ||||||||
| Total net lease cost | $ | $ | $ | $ | ||||||||||||
Right of use assets obtained in exchange for new operating lease liability during the six fiscal months ended June 28, 2025 were $
Undiscounted maturities of operating lease payments as of June 28, 2025 are summarized as follows (in thousands):
| 2025 | $ | |||
| 2026 | ||||
| 2027 | ||||
| 2028 | ||||
| 2029 | ||||
| Thereafter | ||||
| Total future minimum lease payments | $ | |||
| Less: amount representing interest | ( | ) | ||
| Present value of future minimum lease payments | $ |
Note 6 – Income Taxes
For the fiscal quarter ended June 28, 2025, the Company reported tax expenses, and its effective tax rate was
The effective tax rate for the fiscal quarter ended June 28, 2025 resulted primarily from our foreign income being taxed at varying tax rates and changes in our valuation allowance on deferred tax assets. The effective tax rate for the fiscal quarter ended June 29, 2024 resulted primarily from our foreign income being taxed at varying tax rates and changes in our valuation allowance on deferred tax assets.
For the six months ended June 28, 2025, the Company reported income taxes at an effective tax rate of (
The change in effective tax rate in the six months ended June 28, 2025 compared to the corresponding period in the prior fiscal year is mainly due to fiscal year 2025 second quarter profits that increased the Company’s tax expenses, in addition to the effect of foreign currency exchange rates on tax provisions in our non-US entities, and the valuation allowance on part of our deferred tax assets.
On July 4, 2025, the One Big Beautiful Bill Act (the “OBBBA”) was enacted into law, extending key provisions of the 2017 Tax Cuts and Jobs Act. The OBBBA provides for accelerated depreciation for property acquired and placed in service after January 19, 2025, and restores expensing of domestic research expenditures for years beginning after December 31, 2024. Additionally, the OBBBA restores the EBITDA-based interest expense limitation and includes changes related to the U.S. taxation of the income of our foreign subsidiaries and certain foreign derived income, and the base erosion and anti-abuse tax. The legislation has multiple effective dates, with certain provisions effective in 2025 and others implemented through 2027. The Company is continuing to evaluate the impact of the OBBBA on the consolidated financial statements.
The Company and its subsidiaries are subject to income taxes imposed by the U.S., various states, and the foreign jurisdictions in which we operate. Each jurisdiction establishes rules that set forth the years which are subject to examination by its tax authorities. While the Company believes the tax positions taken on its tax returns for each jurisdiction are supportable, they may still be challenged by the jurisdiction's tax authorities. In anticipation of such challenges, the Company has established reserves for tax-related uncertainties. These liabilities are based on the Company’s best estimate of the potential tax exposures in each respective jurisdiction. It may take a number of years for a final tax liability in a jurisdiction to be determined, particularly in the event of an audit. If an uncertain matter is determined favorably, there could be a reduction in the Company’s tax expense. An unfavorable determination could increase tax expense and could require a cash payment, including interest and penalties.
Note 7 – Long-Term Debt
Long-term debt consists of the following (in thousands):
| June 28, 2025 |
December 31, 2024 |
|||||||
| Credit Agreement - Revolving Facility |
$ | $ | ||||||
| Deferred financing costs |
( |
) | ( |
) | ||||
| Total long-term debt |
$ | $ | ||||||
2024 Credit Agreement
On August 15, 2024, the Company entered into a Fourth Amended and Restated Credit Agreement (the “2024 Credit Agreement”) among the Company, the lenders party thereto, JPMorgan Chase Bank, N.A., Wells Fargo Bank, N.A. and HSBC as joint lead arrangers and joint bookrunner, and JPMorgan Chase Bank, N.A., as agent for such lenders, pursuant to which its previously existing credit agreement, was amended and restated to, among other things, extend the maturity date from March 20, 2025 to August 15, 2029 and adjust the interest rate and commitment fee. The 2024 Credit Agreement provides for a multi-currency, secured credit facility (the “2024 Revolving Facility”) in an aggregate principal amount of $
Amounts borrowed under the 2024 Revolving Facility accrue interest in an amount equal to a floating rate plus a specified margin. Such floating rates are (i) for loans denominated in US Dollars, at the Company’s option, either (a) the greatest of: the Agent’s prime rate, the Federal Funds rate, or a
The obligations of the Company under the 2024 Credit Agreement are secured by pledges of stock in certain domestic and foreign subsidiaries, as well as guarantees by substantially all of the Company’s domestic subsidiaries. The obligations of the Company and the guarantors under the 2024 Credit Agreement are secured by substantially all the assets (excluding real estate) of the Company and such guarantors. The 2024 Credit Agreement restricts the Company from paying cash dividends and requires the Company to comply with other customary covenants, representations, and warranties, including the maintenance of specific financial ratios. The financial maintenance covenants include an interest coverage ratio and a leverage ratio. The Company was in compliance with its financial maintenance covenants at June 28, 2025. If the Company is not in compliance with any of these covenant restrictions, the 2024 Revolving Facility could be terminated by the lenders, and all amounts outstanding pursuant to the 2024 Revolving Facility could become immediately payable.
Note 8 – Accumulated Other Comprehensive Income (Loss)
The components of accumulated other comprehensive income (loss), net of tax, consist of the following (in thousands):
| Foreign |
Pension |
|||||||||||
| Currency |
and Other |
|||||||||||
| Translation |
Postretirement |
|||||||||||
| Adjustment |
Actuarial Items |
Total |
||||||||||
| Balance at January 1, 2025 |
$ | ( |
) | $ | $ | ( |
) | |||||
| Other comprehensive income before reclassifications |
||||||||||||
| Amounts reclassified from accumulated other comprehensive income |
||||||||||||
| Balance at June 28, 2025 |
$ | ( |
) | $ | $ | ( |
) | |||||
| Foreign |
Pension |
|||||||||||
| Currency |
and Other |
|||||||||||
| Translation |
Postretirement |
|||||||||||
| Adjustment |
Actuarial Items |
Total |
||||||||||
| Balance at January 1, 2024 |
$ | ( |
) | $ | $ | ( |
) | |||||
| Other comprehensive loss before reclassifications |
( |
) | ( |
) | ||||||||
| Amounts reclassified from accumulated other comprehensive loss |
( |
) | ( |
) | ||||||||
| Balance at June 29, 2024 |
$ | ( |
) | $ | $ | ( |
) | |||||
Reclassifications of pension and other postretirement actuarial items out of accumulated other comprehensive income (loss) are included in the computation of net periodic benefit cost (see Note 9).
Note 9 – Pension and Other Postretirement Benefits
Employees of VPG participate in various defined benefit pension and other postretirement benefit ("OPEB") plans. The following table sets forth the components of the net periodic benefit cost for the Company's defined benefit pension and OPEB plans (in thousands):
| Fiscal Quarter Ended | Fiscal Quarter Ended | |||||||||||||||
| June 28, 2025 |
June 29, 2024 |
|||||||||||||||
| Pension |
OPEB |
Pension |
OPEB |
|||||||||||||
| Plans |
Plans |
Plans |
Plans |
|||||||||||||
| Net service cost |
$ | $ | $ | $ | ||||||||||||
| Interest cost |
||||||||||||||||
| Expected return on plan assets |
( |
) | ( |
) | ||||||||||||
| Amortization of actuarial losses (gains) |
( |
) | ( |
) | ||||||||||||
| Net periodic benefit cost |
$ | $ | $ | $ | ||||||||||||
| Six Fiscal Months Ended |
Six Fiscal Months Ended |
|||||||||||||||
| June 28, 2025 |
June 29, 2024 |
|||||||||||||||
| Pension |
OPEB |
Pension |
OPEB |
|||||||||||||
| Plans |
Plans |
Plans |
Plans |
|||||||||||||
| Net service cost |
$ | $ | $ | $ | ||||||||||||
| Interest cost |
$ | $ | ||||||||||||||
| Expected return on plan assets |
$ | ( |
) | $ | ( |
) | ||||||||||
| Amortization of actuarial losses (gains) |
( |
) | ( |
) | ||||||||||||
| Net periodic benefit cost |
$ | $ | $ | $ | ||||||||||||
Note 10 – Share-Based Compensation
The Vishay Precision Group, Inc. 2022 Stock Incentive Plan (the "2022 plan") permits issuance of up to
On February 25, 2025 and in accordance with their respective employment agreements, VPG’s three executive officers were granted annual equity awards in the form of RSUs, of which
On February 25, 2025 certain non-executive VPG employees were granted annual equity awards in the form of RSUs. Certain employees received awards, of which
On May 21, 2025, and in accordance with the Company's 2025 Non-Employee Director Compensation Plan, the Board of Directors ("Board") approved the issuance of an aggregate of
The awards had an aggregate grant-date fair value of $
The amount of compensation cost related to share-based payment transactions is measured based on the grant-date fair value of the equity instruments issued. VPG determines compensation cost for RSUs based on the grant-date fair value of the underlying common stock. The Company recognizes compensation cost for RSUs that are expected to vest and for which performance criteria are expected to be met. The following table summarizes share-based compensation expense recognized (in thousands):
| Fiscal Quarter Ended | Six Fiscal Months Ended | |||||||||||||||
| June 28, 2025 | June 29, 2024 | June 28, 2025 | June 29, 2024 | |||||||||||||
| Share-based compensation expense | $ | $ | $ | $ | ||||||||||||
Note 11– Segment Information
VPG reports in three reporting segments: Sensors, Weighing Solutions, and Measurement Systems. The Sensors segment is comprised of the foil resistor and strain gage operating segments. The Weighing Solutions segment is comprised of specialized modules and systems used to precisely measure weight, force torque, and pressure. The Measurement Systems segment is comprised of highly specialized systems for steel production, materials development, and safety testing.
The chief operating decision maker ("CODM") is our chief executive officer. The evaluation of the segments' performance is based on multiple performance measures including revenues and operating income, exclusive of certain items. Management believes that evaluating segment performance, excluding items such as restructuring, severance, impairment of goodwill and indefinite-lived intangible assets and amortization of intangible assets, acquisition costs, and other items is meaningful because they relate to occurrences or events that are outside of our core operations, and management believes that the use of these measures provides a consistent basis to evaluate our operating profitability and performance trends across comparable periods.
Note 11– Segment Information (continued)
The following table sets forth reporting segment information (in thousands):
| Sensors |
Weighing Solutions |
Measurement Systems |
Corporate/ Other |
Total |
||||||||||||||||
| Three Fiscal Months Ended June 28, 2025 |
||||||||||||||||||||
| Net third-party revenues |
$ | $ | $ | $ | $ | |||||||||||||||
| Intersegment revenues |
( |
) | ||||||||||||||||||
| Total revenues |
( |
) | ||||||||||||||||||
| Costs of products sold |
( |
) | ||||||||||||||||||
| Gross profit |
||||||||||||||||||||
| Research and development expenses |
||||||||||||||||||||
| Segment selling, general, and administrative expenses (1) |
||||||||||||||||||||
| Segment operating income |
||||||||||||||||||||
| Other supplemental information: |
||||||||||||||||||||
| Restructuring costs |
( |
) | ||||||||||||||||||
| Depreciation and amortization expense |
||||||||||||||||||||
| Capital expenditures |
||||||||||||||||||||
| Three Fiscal Months Ended June 29, 2024 |
||||||||||||||||||||
| Net third-party revenues |
$ | $ | $ | $ | $ | |||||||||||||||
| Intersegment revenues |
( |
) | ||||||||||||||||||
| Total revenues |
( |
) | ||||||||||||||||||
| Costs of products sold |
( |
) | ||||||||||||||||||
| Gross profit |
||||||||||||||||||||
| Research and development expenses |
||||||||||||||||||||
| Segment selling, general, and administrative expenses (1) |
||||||||||||||||||||
| Segment operating income |
||||||||||||||||||||
| Other supplemental information: |
||||||||||||||||||||
| Restructuring costs |
||||||||||||||||||||
| Depreciation and amortization expense |
||||||||||||||||||||
| Capital expenditures |
||||||||||||||||||||
| Sensors |
Weighing Solutions |
Measurement Systems |
Corporate/ Other |
Total |
||||||||||||||||
| Six Fiscal Months Ended June 28, 2025 |
||||||||||||||||||||
| Net third-party revenues |
$ | $ | $ | $ | $ | |||||||||||||||
| Intersegment revenues |
( |
) | ||||||||||||||||||
| Total revenues |
( |
) | ||||||||||||||||||
| Costs of products sold |
( |
) | ||||||||||||||||||
| Gross profit |
||||||||||||||||||||
| Research and development expenses |
||||||||||||||||||||
| Segment selling, general, and administrative expenses (1) |
||||||||||||||||||||
| Segment operating income |
||||||||||||||||||||
| Other supplemental information: |
||||||||||||||||||||
| Restructuring costs |
||||||||||||||||||||
| Depreciation and amortization expense |
||||||||||||||||||||
| Capital expenditures |
||||||||||||||||||||
| Six Fiscal Months Ended June 29, 2024 |
||||||||||||||||||||
| Net third-party revenues |
$ | $ | $ | $ | $ | |||||||||||||||
| Intersegment revenues |
( |
) | ||||||||||||||||||
| Total revenues |
( |
) | ||||||||||||||||||
| Costs of products sold |
( |
) | ||||||||||||||||||
| Gross profit |
||||||||||||||||||||
| Research and development expenses |
||||||||||||||||||||
| Segment selling, general, and administrative expenses (1) |
||||||||||||||||||||
| Segment operating income |
||||||||||||||||||||
| Other supplemental information: |
||||||||||||||||||||
| Restructuring costs |
||||||||||||||||||||
| Depreciation and amortization expense |
||||||||||||||||||||
| Capital expenditures |
||||||||||||||||||||
(1)
Note 11– Segment Information (continued)
The following table reconciles segment profit to consolidated income before taxes (in thousands):
| Fiscal Quarter Ended | Six Fiscal Months Ended |
|||||||||||||||
| June 28, 2025 |
June 29, 2024 |
June 28, 2025 |
June 29, 2024 |
|||||||||||||
| Segment operating income |
$ | $ | $ | $ | ||||||||||||
| Restructuring costs |
$ | $ | $ | $ | ||||||||||||
| Unallocated G&A expenses |
$ | $ | $ | $ | ||||||||||||
| Operating income |
$ | $ | $ | $ | ||||||||||||
| Other (expense) income |
$ | ( |
) | $ | $ | ( |
) | $ | ||||||||
| Income (loss) before taxes |
$ | $ | $ | ( |
) | $ | ||||||||||
Products are transferred between segments on a basis intended to reflect, as nearly as practicable, the market value of the products. The table below summarizes intersegment sales (in thousands):
| Fiscal Quarter Ended | Six Fiscal Months Ended |
|||||||||||||||
| June 28, 2025 |
June 29, 2024 |
June 28, 2025 |
June 29, 2024 |
|||||||||||||
| Sensors to Weighing Solutions |
$ | $ | $ | $ | ||||||||||||
| Sensors to Measurement Systems |
||||||||||||||||
Note 12 – Earnings Per Share
The following table sets forth the computation of basic and diluted earnings per share attributable to VPG stockholders (in thousands, except earnings per share):
| Fiscal Quarter Ended |
Six Fiscal Months Ended |
|||||||||||||||
| June 28, 2025 |
June 29, 2024 |
June 28, 2025 |
June 29, 2024 |
|||||||||||||
| Numerator: |
||||||||||||||||
| Numerator for basic earnings per share: |
||||||||||||||||
| Net earnings (loss) attributable to VPG stockholders |
$ | $ | $ | ( |
) | $ | ||||||||||
| Denominator: |
||||||||||||||||
| Denominator for basic earnings per share: |
||||||||||||||||
| Weighted average shares |
||||||||||||||||
| Effect of dilutive securities: |
||||||||||||||||
| Restricted stock units |
||||||||||||||||
| Dilutive potential common shares |
||||||||||||||||
| Denominator for diluted earnings per share: |
||||||||||||||||
| Adjusted weighted average shares |
||||||||||||||||
| Basic earnings (loss) per share attributable to VPG stockholders |
$ | $ | $ | ( |
) | $ | ||||||||||
| Diluted earnings (loss) per share attributable to VPG stockholders |
$ | $ | $ | ( |
) | $ | ||||||||||
The Company’s potentially dilutive securities were not included in the calculation of diluted loss per share for the six fiscal months ended June 28, 2025 as the effect would be anti-dilutive. The number of restricted stock units with a potentially dilutive impact was
Note 13 – Additional Financial Statement Information
Other Income (Expense) Other
The caption “Other” on the consolidated condensed statements of operations consists of the following (in thousands):
| Fiscal Quarter Ended | Six Fiscal Months Ended |
|||||||||||||||
| June 28, 2025 |
June 29, 2024 |
June 28, 2025 |
June 29, 2024 |
|||||||||||||
| Foreign currency exchange (loss) gain |
$ | ( |
) | $ | $ | ( |
) | $ | ||||||||
| Interest income |
||||||||||||||||
| Pension expense |
( |
) | ( |
) | ( |
) | ( |
) | ||||||||
| Other |
( |
) | ( |
) | ( |
) | ( |
) | ||||||||
| $ | ( |
) | $ | $ | ( |
) | $ | |||||||||
Foreign currency exchange gain or loss is due to volatility in the global currency markets. For the quarter ended and six fiscal months ended June 28, 2025 the foreign currency exchange loss was largely due to the fluctuation of the Japanese yen and the Israeli Shekel against the U.S. dollar.
Other Accrued Expenses
Other accrued expenses consist of the following (in thousands):
| June 28, 2025 |
December 31, 2024 |
|||||||
| Customer advance payments |
$ | $ | ||||||
| Accrued restructuring |
||||||||
| Goods received, not yet invoiced |
||||||||
| Accrued taxes, other than income taxes |
||||||||
| Accrued commissions |
||||||||
| Accrued professional fees |
||||||||
| Accrued technical warranty |
||||||||
| Current accrued pensions and other post retirement costs |
||||||||
| Other |
||||||||
| $ | $ | |||||||
Note 14 – Fair Value Measurements
ASC Topic 820, Fair Value Measurement, establishes a valuation hierarchy of the inputs used to measure fair value. This hierarchy prioritizes the inputs to valuation techniques used to measure fair value into three broad levels. The following is a brief description of those three levels:
Level 1: Observable inputs such as quoted prices (unadjusted) in active markets for identical assets or liabilities.
Level 2: Inputs other than quoted prices that are observable for the asset or liability, either directly or indirectly. These include quoted prices for similar assets or liabilities in active markets and quoted prices for identical or similar assets or liabilities in markets that are not active.
Level 3: Unobservable inputs that reflect the Company’s own assumptions.
An asset or liability’s classification within the hierarchy is determined based on the lowest level input that is significant to the fair value measurement.
The following table provides the financial assets and liabilities carried at fair value measured on a recurring basis (in thousands):
| Fair value measurements at reporting date using: |
||||||||||||||||
| Total |
Level 1 |
Level 2 |
Level 3 |
|||||||||||||
| Fair Value |
Inputs |
Inputs |
Inputs |
|||||||||||||
| June 28, 2025 |
||||||||||||||||
| Assets |
||||||||||||||||
| Assets held in rabbi trusts |
$ | $ | $ | $ | ||||||||||||
| December 31, 2024 |
||||||||||||||||
| Assets |
||||||||||||||||
| Assets held in rabbi trusts |
$ | $ | $ | $ | ||||||||||||
The Company maintains non-qualified trusts, referred to as “rabbi” trusts, to fund payments under deferred compensation and non-qualified pension plans. Rabbi trust assets consist primarily of marketable securities, classified as available-for-sale money market funds at June 28, 2025 and December 31, 2024, and company-owned life insurance assets. The marketable securities held in the rabbi trusts are valued using quoted market prices on the last business day of the period. The company-owned life insurance assets are valued in consultation with the Company’s insurance brokers using the value of underlying assets of the insurance contracts. The fair value measurement of the cash equivalents held in the rabbi trust are considered a Level 1 measurement and the measurement of the company-owned life insurance assets is considered a Level 2 measurement within the fair value hierarchy.
The fair value of the long-term debt, excluding capitalized deferred financing costs, at June 28, 2025 and December 31, 2024 approximates its carrying value as the revolving debt is reset on a monthly basis based on current market rates, plus a base rate as specified in the debt agreement. The fair value of long-term debt is considered a Level 2 measurement within the fair value hierarchy. The Company’s financial instruments include cash and cash equivalents, accounts receivable, short-term notes payable, and accounts payable. The carrying amounts for these financial instruments reported in the consolidated condensed balance sheets approximate their fair values.
Note 15 – Restructuring Costs
Restructuring costs primarily relate to cost reduction programs implemented by the Company. Restructuring costs are expensed during the period in which the Company determines it will incur those costs and all requirements for accrual are met. Because these costs are recorded based upon estimates, actual expenditures for the restructuring activities may differ from the initially recorded costs. If the initial estimates are too low or too high, the Company could be required either to record additional expense in future periods or to reverse part of the previously recorded charges.
The Company recorded $
The following table summarizes recent activity related to all restructuring programs. The accrued restructuring liability balance as of June 28, 2025 and December 31, 2024, respectively, is included in Other accrued expenses in the accompanying consolidated condensed balance sheets (in thousands):
| Balance at December 31, 2024 |
||||
| Restructuring charges in 2025 |
||||
| Cash payments |
( |
) | ||
| Foreign currency exchange translation |
( |
) | ||
| Balance at June 28, 2025 |
Note 16 – Stockholder's Equity
On August 8, 2022, the Board of the Company authorized the repurchase of up to
Note 17 – Commitments and Contingencies
Tax Assessment
During the second quarter of 2024, the Israel Tax Authority has issued a Value Added Tax (VAT) assessment to the Company, in the amount of ILS
The Company believes that the liability for the assessment is not probable and has filed an appeal against this assessment.
Given the stage of this matter, the Company is currently unable to predict the likely outcome or estimate the potential financial impact, if any, of this matter.
Note 18 – Subsequent Event
Sale of Manufacturing Facility in Kent, Washington
On July 10, 2025, as part of the Company’s ongoing strategy to focus on core operations and optimize its asset base utilization, the Company completed the sale of its manufacturing facility located at Kent, Washington (Weighing Solutions Segment) for total proceeds of $
The carrying value of the asset was classified as assets held for sale under current asset in the consolidated balance sheet as of December 31, 2024. The Company expects to recognize a gain related to this transaction of approximately $
Item 2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS
Overview
VPG is a global leader in precision measurement and sensing technologies that help power the future by bridging the physical world with the digital one. Many of our specialized sensors, weighing solutions, and measurement systems are “designed-in” by our customers, and address growing applications across a diverse array of industries and markets. Our products are marketed under brand names that we believe are characterized as having a very high level of precision and quality, and we employ an operationally diversified structure to manage our businesses.
Driven by the continued proliferation of data generated by the expanding use of sensors across a widening array of industrial and non-industrial applications, precision measurement and sensing technologies help ensure and deliver required levels of quality of mission-critical or high-value data. VPG’s products are often at the first stage of a data value chain (i.e., the process of converting the physical world into a digital format that can be used for a specific purpose) and as such impact the effectiveness of vast number of critical, high-value downstream processes. Over the past few years, we have seen a broadening of precision sensing applications in both our traditional industrial markets and new markets, due to the development of higher functionality in our customers' end products. Our precision measurement solutions are used across a wide variety of end markets upon which we focus, including industrial, industrial automation and robotics, test and measurement, transportation, steel, medical, agriculture, avionics, military and space, and consumer product applications. The Company has a long heritage of innovation in sensor technologies that provide accuracy, reliability and repeatability that make our customers' products safer, smarter, and more productive. As the functionality of customers' products continues to increase, and they integrate more precision measurement sensors and related systems into their solutions, we believe this will offer substantial growth opportunities for our products and expertise.
The impact of the recent wars in Israel on our operations
In October 2023, Hamas terrorists infiltrated Israel’s southern border from the Gaza Strip and conducted a series of attacks on civilian and military targets, resulting in extensive casualties and military engagement. In addition, Hezbollah, another terrorist organization based in Lebanon, began attacking Israel. While Israel has entered into certain ceasefire agreements regarding the conflicts, the threat of new attacks remains, including from additional extremist groups.
On June 13, 2025, Israel launched a preemptive strike on Iran, with military support from the United States. Iran retaliated with ballistic missile and drone strikes targeting both civilian and military sites in Israel. A ceasefire between Israel and Iran was reached on June 23, 2025, although there is no assurance that the ceasefire will continue. Israel’s airspace and maritime zones, which were closed to commercial traffic during the period between June 13 and June 23, 2025, are fully open as of August 5, 2025.
As of August 5, 2025 (the date of this filing), our operations in Israel are operating at normal levels. The extent and duration of the current conflicts, as well as the possibility of further spread of the conflicts to other countries in the region and involving other political and military entities in the Middle East, poses risks to our operations and may lead to disruptions which could adversely affect our business, prospects, financial condition and results of operations.
While sales to customers in Israel account for a relatively small portion of our revenues, our operations in Israel include executive offices, which are the workplace for key executives including our chief executive officer, as well as two manufacturing facilities located in the central part of Israel that manufacture products representing approximately 26% of our total worldwide revenues in the six fiscal months ended June 28, 2025. As of August 5, 2025, these facilities remain open and operational. We have implemented a contingency plan that, in the event conditions in Israel deteriorate such that we no longer operate there at normal levels, we believe will provide for securing supply of materials and logistics by producing a safety stock of finished goods and transferring these goods to our distribution centers outside of Israel, while continuing to take measures with regards to the safety of our employees. We may, however, determine to temporarily discontinue production in Israel for the safety of our employees. We could also face future production slowdowns or interruptions at either manufacturing location in Israel due to the impacts of the conflicts, including personnel absences as a number of our employees have been called to active military duty, or due to other resource constraints such as the inability to source materials for production.
The impact of recent changes in tariffs
We have manufacturing operations in India, China, Japan, Europe, Canada, Israel and the United States, as well as in other countries.
The current political environment in the United States and internationally has resulted in uncertainty surrounding the state of the global economy particularly due to existing and potential changes to U.S. policies related to global trade and tariffs, The tariff changes have been set at various rates, with exemptions applicable to certain categories of imports and exports.
VPG continues to actively monitor and evaluate the ongoing situation, focusing on quickly responding to cost and price adjustments.
Overview of Financial Results
VPG reports in three product segments: Sensors, Weighing Solutions, and Measurement Systems. The Sensors segment is comprised of the foil resistor and strain gage operating segments. The Weighing Solutions segment is comprised of specialized modules and systems used to precisely measure weight, force torque, and pressure. The Measurement Systems segment is comprised of highly specialized systems for steel production, materials development, and safety testing.
Net revenues for the fiscal quarter ended June 28, 2025 were $75.2 million versus $77.4 million for the comparable prior year period. Net profit attributable to VPG stockholders for the fiscal quarter ended June 28, 2025 was $0.3 million, or $0.02 per diluted share, compared to net earnings of $4.6 million, or $ 0.34 per diluted share, for the comparable prior year period.
Net revenues for the six fiscal months ended June 28, 2025 were $146.9 million versus $158.1 million for the comparable prior year period. Net loss attributable to VPG stockholders for the six fiscal months ended June 28, 2025 was $0.7 million, or $ 0.05 per diluted share, compared to net earnings of $10.5 million, or $0.78 per diluted share, for the comparable prior year period.
The results of operations for the fiscal quarters ended June 28, 2025 and June 29, 2024 include items affecting comparability as listed in the reconciliations below. The reconciliations below include certain financial measures which are not recognized in accordance with U.S. generally accepted accounting principles ("GAAP"), including adjusted gross profits, adjusted gross profit margin, adjusted operating income, adjusted operating margin, adjusted net earnings, adjusted net earnings per diluted share, EBITDA, and adjusted EBITDA. These non-GAAP measures should not be viewed as an alternative to GAAP measures of performance. Non-GAAP measures such as adjusted gross profits, adjusted gross profit margin, adjusted operating income, adjusted operating margin, adjusted net earnings, adjusted net earnings per diluted share, EBITDA, and adjusted EBITDA do not have uniform definitions. These measures, as calculated by VPG, may not be comparable to similarly titled measures used by other companies. Management believes that these non-GAAP measures are useful to investors because each presents what management views as our core operating results for the relevant period. The adjustments to the applicable GAAP measures relate to occurrences or events that are outside of our core operations, and management believes that the use of these non-GAAP measures provides a consistent basis to evaluate our operating profitability and performance trends across comparable periods. In addition, the Company has historically provided these or similar non-GAAP measures and understands that some investors and financial analysts find this information helpful in analyzing the Company’s performance and in comparing the Company’s financial performance to that of its peer companies and competitors. Management believes that the Company’s non-GAAP measures are regarded as supplemental to its GAAP financial results.
| Gross Profit |
Operating Income |
Net Earnings Attributable to VPG Stockholders |
Diluted Earnings Per share |
|||||||||||||||||||||||||||||
| Three months ended |
June 28, 2025 |
June 29, 2024 |
June 28, 2025 |
June 29, 2024 |
June 28, 2025 |
June 29, 2024 |
June 28, 2025 |
June 29, 2024 |
||||||||||||||||||||||||
| As reported - GAAP |
$ | 30,594 | $ | 32,407 | $ | 2,708 | $ | 5,906 | $ | 248 | $ | 4,603 | $ | 0.02 | $ | 0.34 | ||||||||||||||||
| As reported - GAAP Margins |
40.7 | % | 41.9 | % | 3.6 | % | 7.6 | % | — | % | ||||||||||||||||||||||
| Start-up costs (a) |
257 | — | 257 | — | 257 | — | 0.02 | — | ||||||||||||||||||||||||
| Restructuring costs | — | — | 185 | — | 185 | — | 0.02 | — | ||||||||||||||||||||||||
| Severance cost |
— | — | 443 | — | 443 | — | 0.03 | — | ||||||||||||||||||||||||
| Foreign currency exchange loss (gain) (b) |
— | — | — | — | 1,763 | (1,289 | ) | 0.13 | (0.10 | ) | ||||||||||||||||||||||
| Less: Tax effect of reconciling items and discrete tax items |
— | — | — | — | 624 | (836 | ) | 0.05 | (0.06 | ) | ||||||||||||||||||||||
| As Adjusted - Non GAAP |
$ | 30,851 | $ | 32,407 | $ | 3,593 | $ | 5,906 | $ | 2,272 | $ | 4,150 | $ | 0.17 | $ | 0.31 | ||||||||||||||||
| As Adjusted - Non GAAP Margins |
41.0 | % | 41.9 | % | 4.8 | % | 7.6 | % | ||||||||||||||||||||||||
| Gross Profit |
Operating Income |
Net (Loss) Earnings Attributable to VPG Stockholders |
Diluted Earnings Per share |
|||||||||||||||||||||||||||||
| Six Fiscal Months Ended |
June 28, 2025 |
June 29, 2024 |
June 28, 2025 |
June 29, 2024 |
June 28, 2025 |
June 29, 2024 |
June 28, 2025 |
June 29, 2024 |
||||||||||||||||||||||||
| As reported - GAAP |
$ | 57,640 | $ | 67,501 | $ | 2,648 | $ | 12,824 | $ | (694 | ) | $ | 10,494 | $ | (0.05 | ) | $ | 0.78 | ||||||||||||||
| As reported - GAAP Margins |
39.2 | % | 42.7 | % | 1.8 | % | 8.1 | % | ||||||||||||||||||||||||
| Start-up costs (a) |
720 | — | 720 | — | 720 | — | 0.06 | — | ||||||||||||||||||||||||
| Restructuring costs |
— | — | 580 | 782 | 580 | 782 | 0.04 | 0.06 | ||||||||||||||||||||||||
| Severance cost |
— | — | 443 | 347 | 443 | 347 | 0.03 | 0.03 | ||||||||||||||||||||||||
| Foreign currency exchange loss (gain) (b) |
— | — | — | — | 2,735 | (2,878 | ) | 0.21 | (0.21 | ) | ||||||||||||||||||||||
| Less: Tax effect of reconciling items and discrete tax items |
— | — | — | — | 1,044 | (1,074 | ) | 0.08 | (0.08 | ) | ||||||||||||||||||||||
| As Adjusted - Non GAAP |
$ | 58,360 | $ | 67,501 | $ | 4,391 | $ | 13,953 | $ | 2,740 | $ | 9,819 | $ | 0.21 | $ | 0.74 | ||||||||||||||||
| As Adjusted - Non GAAP Margins |
39.2 | % | 42.7 | % | 2.2 | % | 8.8 | % | ||||||||||||||||||||||||
| Fiscal Quarter Ended | For the Six Fiscal Months Ended fiscal months ended |
|||||||||||||||
| June 28, 2025 |
June 29, 2024 |
June 28, 2025 |
June 29, 2024 |
|||||||||||||
| Net earnings (loss) earnings attributable to VPG stockholders |
$ | 248 | $ | 4,603 | $ | (694 | ) | $ | 10,494 | |||||||
| Interest Expense |
550 | 649 | 1,101 | 1,277 | ||||||||||||
| Income tax expense |
592 | 2,316 | 260 | 4,634 | ||||||||||||
| Depreciation |
2,872 | 2,992 | 5,928 | 6,008 | ||||||||||||
| Amortization |
982 | 924 | 1,960 | 1,851 | ||||||||||||
| EBITDA |
5,244 | 11,484 | 8,555 | 24,264 | ||||||||||||
| EBITDA MARGIN |
7.0 | % | 14.8 | % | 5.8 | % | 15.3 | % | ||||||||
| Restructuring costs |
185 | — | 580 | 782 | ||||||||||||
| Severance cost |
443 | — | 443 | 347 | ||||||||||||
| Start-up costs (a) |
257 | — | 720 | — | ||||||||||||
| Foreign currency exchange loss (gain) (b) |
1,763 | (1,289 | ) | 2,735 | (2,878 | ) | ||||||||||
| ADJUSTED EBITDA |
$ | 7,892 | $ | 10,196 | $ | 13,033 | $ | 22,515 | ||||||||
| ADJUSTED EBITDA MARGIN |
10.5 | % | 13.2 | % | 8.9 | % | 14.2 | % | ||||||||
(a) Start-up cost 2025
(b) Impact of foreign currency exchange rates on assets and liabilities.
Financial Metrics
We utilize several financial measures and metrics to evaluate performance and assess the future direction of our business. These key financial measures and metrics include net revenues, gross profit margin, end-of-period backlog, book-to-bill ratio, and inventory turnover.
Gross profit margin is computed as gross profit as a percentage of net revenues. Gross profit is generally net revenues less costs of products sold, but could also include certain other period costs. Gross profit margin is a function of net revenues, but also reflects our cost-cutting programs and our ability to contain fixed costs.
End-of-period backlog is one indicator of potential future sales. We include in our backlog only open orders that have been released by the customer for shipment in the next twelve months. If demand falls below customers’ forecasts, or if customers do not control their inventory effectively, they may cancel or reschedule the shipments that are included in our backlog, in many instances without the payment of any penalty. Therefore, backlog is not necessarily indicative of the results expected for future periods.
Another important indicator of demand in our industry is the book-to-bill ratio, which is the ratio of the amount of product ordered during a period compared with the amount of product shipped during that period. A book-to-bill ratio that is greater than one indicates that revenues may increase in future periods. Conversely, a book-to-bill ratio that is less than one is an indicator of lower demand and may foretell declining sales. The book-to-bill ratio is also impacted by the timing of orders, particularly from our project-based product lines.
We focus on inventory turnover as a measure of how well we manage our inventory. We define inventory turnover for a financial reporting period as our costs of products sold for the four fiscal quarters ending on the last day of the reporting period divided by our average inventory (computed using each quarter-end balance) for this same period. A higher level of inventory turnover reflects more efficient use of our capital.
The quarter-to-quarter trends in these financial metrics can also be an important indicator of the likely direction of our business. The following tables show net revenues, gross profit margin, end-of-period backlog, book-to-bill ratio, and inventory turnover for our business as a whole and by segment during the five quarters beginning with the second quarter of 2024 through the second quarter of 2025.
| 2nd Quarter |
3rd Quarter |
4th Quarter |
1st Quarter |
2nd Quarter |
||||||||||||||||
| (dollars in thousands) |
2024 |
2024 |
2024 |
2025 |
2025 |
|||||||||||||||
| Net revenues |
$ | 77,359 | $ | 75,727 | $ | 72,653 | $ | 71,741 | $ | 75,161 | ||||||||||
| Gross profit margin |
41.9 | % | 40.0 | % | 38.2 | % | 37.7 | % | 40.7 | % | ||||||||||
| End-of-period backlog |
$ | 104,858 | $ | 100,191 | $ | 96,189 | $ | 100,300 | $ | 108,201 | ||||||||||
| Book-to-bill ratio |
0.95 | 0.91 | 1.00 | 1.04 | 1.06 | |||||||||||||||
| Inventory turnover |
1.99 | 2.01 | 2.06 | 2.12 | 2.09 | |||||||||||||||
| 2nd Quarter |
3rd Quarter |
4th Quarter |
1st Quarter |
2nd Quarter |
||||||||||||||||
| (dollars in thousands) |
2024 |
2024 |
2024 |
2025 |
2025 |
|||||||||||||||
| Sensors |
||||||||||||||||||||
| Net revenues |
$ | 28,869 | $ | 28,201 | $ | 25,755 | $ | 27,055 | $ | 26,563 | ||||||||||
| Gross profit margin |
38.3 | % | 31.0 | % | 32.0 | % | 30.1 | % | 32.0 | % | ||||||||||
| End-of-period backlog |
$ | 41,627 | $ | 39,995 | $ | 39,605 | $ | 42,049 | $ | 46,661 | ||||||||||
| Book-to-bill ratio |
0.90 | 0.89 | 1.04 | 1.06 | 1.12 | |||||||||||||||
| Inventory turnover |
2.02 | 2.28 | 2.15 | 2.38 | 2.27 | |||||||||||||||
| Weighing Solutions |
||||||||||||||||||||
| Net revenues |
$ | 27,447 | $ | 25,174 | $ | 25,739 | $ | 26,439 | $ | 29,428 | ||||||||||
| Gross profit margin |
37.6 | % | 35.1 | % | 34.1 | % | 36.8 | % | 39.6 | % | ||||||||||
| End-of-period backlog |
$ | 25,077 | $ | 25,590 | $ | 28,003 | $ | 28,241 | $ | 26,734 | ||||||||||
| Book-to-bill ratio |
0.93 | 1.00 | 1.12 | 0.99 | 0.92 | |||||||||||||||
| Inventory turnover |
2.20 | 2.10 | 2.35 | 2.50 | 2.62 | |||||||||||||||
| Measurement Systems |
||||||||||||||||||||
| Net revenues |
$ | 21,043 | $ | 22,352 | $ | 21,160 | $ | 18,247 | $ | 19,170 | ||||||||||
| Gross profit margin |
52.4 | % | 56.8 | % | 50.9 | % | 50.3 | % | 54.6 | % | ||||||||||
| End-of-period backlog |
$ | 38,154 | $ | 34,605 | $ | 28,581 | $ | 30,010 | $ | 34,805 | ||||||||||
| Book-to-bill ratio |
1.04 | 0.82 | 0.78 | 1.07 | 1.20 | |||||||||||||||
| Inventory turnover |
1.65 | 1.55 | 1.62 | 1.41 | 1.33 | |||||||||||||||
Net revenues for the second fiscal quarter of 2025 increased 4.8% from the first fiscal quarter of 2025 due to increases in the Measurement Systems and Weighing Solutions reporting segments which were partially offset by a decrease in revenues in the Sensors reporting segment. Net revenues for the second fiscal quarter of 2025 decreased 2.8% from the second fiscal quarter of 2024 in the Sensors and Measurement Systems reporting segments which were partially offset by an increase in revenues in the Weighing Solutions reporting segment.
Net revenues in the Sensors reporting segment decreased 1.8% compared to $27.1 million in the first fiscal quarter of 2025 and decreased 8.0% from $28.9 million in the second fiscal quarter of 2024. The year-over-year decrease in revenues was primarily attributable to lower sales of strain gages in our Other markets for consumer applications which offset higher sales in the Test & Measurement market. Sequentially, the decrease primarily reflected lower sales of precision resistors in the Test and Measurement market.
Net revenues in the Weighing Solutions reporting segment increased 11.3% from the first fiscal quarter of 2025 and increased 7.2% from the second fiscal quarter of 2024. The year-over-year increase in revenues was mainly attributable to higher sales in the Transportation market, as well as in our Other markets. Sequentially, the increase in revenues was primarily due to higher sales in the Transportation and Industrial Weighing, and in our Other markets for medical and precision agriculture applications.
Net revenues in the Measurement Systems reporting segment increased 5.1% from the first fiscal quarter of 2025 and decreased 8.9% from the second fiscal quarter of 2024. The year-over-year decrease was primarily attributable to decreased revenue in the Steel market, which offset higher sales in the Transportation and Avionics, Military and Space ("AMS") markets. Sequentially, the increase in revenue was primarily due to higher sales in the AMS market, which offset lower sales to the Transportation and Steel markets.
Overall gross profit margin in the second fiscal quarter of 2025 increased 3.0% as compared to the first fiscal quarter of 2025 and decreased 1.2% from the second fiscal quarter of 2024 across all three reporting segments.
Optimize Core Competence
The Company’s core competencies include our innovative deep technical and applications-specific expertise to add value to our customers' products, our strong brands and customer relationships, our focus on operational excellence, our ability to select and develop our management teams, and our proven M&A strategy. We continue to optimize all aspects of our development, manufacturing and sales processes, including by increasing our technical sales efforts; continuing to innovate in product performance and design; and refining our manufacturing processes.
Our Sensors segment research group developed innovations that enhance the capability and performance of our strain gages, while simultaneously reducing their size and power consumption as part of our advanced sensors product line. We believe this unique foil technology will create new markets as customers “design in” these next generation products in existing and new applications. Our development engineering team is also responsible for creating new processes to further automate manufacturing and improve productivity and quality. Our advanced sensors manufacturing technology also offers us the capability to produce high-quality foil strain gages in a highly automated environment, which we believe results in reduced manufacturing and lead times, improved quality and increased margins. As a sign of our commitment to these businesses, we signed a long-term lease for a state-of-the-art facility that has been constructed in Israel.
Our design, research, and product development teams, in partnership with our marketing teams, drive our efforts to bring innovations to market. We intend to leverage our insights into customer demand to continually develop and roll out new, innovative products within our existing lines and to modify our existing core products in ways that make them more appealing, addressing changing customer needs and industry trends in terms of form, fit, and function.
We also seek to achieve significant production cost savings through the transfer, expansion, and construction of manufacturing operations in countries such as India, Japan, and Israel, where we can benefit from improved efficiencies or available tax and other government-sponsored incentives. In the past several years, we incurred restructuring expense related to closing and downsizing of facilities as part of the manufacturing transitions of our load cell products to facilities in India and China, which marked key milestones in our ongoing strategic initiatives to align and consolidate our manufacturing footprint.
Acquisition Strategy
We expect to continue to make strategic acquisitions where opportunities present themselves to grow and expand our segments. Historically, our growth and acquisition strategy had been largely focused on vertical product integration, using our foil strain gages in our load cell products, and incorporating those products into our weighing solutions. In recent years, we widened our acquisition strategy to include a broader set of precision measurement systems and product companies.
We expect to expand our expertise, and our acquisition focus, outside our traditional vertical approach to other precision measurement solutions, including in the fields of measurement of force, weight, pressure, torque, tilt, motion, and acceleration. We believe acquired businesses will benefit from improvements we implement to reduce redundant functions and from our current global manufacturing and distribution footprint. On September 30, 2024, the Company acquired Nokra Optische Prueftechnik und Automation GmbH, a Germany-based, privately held maker of precision measuring and testing equipment for manufacturing. Please see our Form 8-K dated September 30, 2024, for more information.
Research and Development
Research and development (“R&D”) will continue to play a key role in our efforts to introduce innovative products to generate new sales and to improve profitability. We expect to continue to expand our position as a leading supplier of precision foil technology products. We believe our R&D efforts should provide us with a variety of opportunities to leverage technology, products, and our manufacturing base in order to ultimately improve our financial performance.
Cost Management
To be successful, we believe we must seek new strategies for controlling operating costs. Through automation in our plants, we believe we can optimize our capital and labor resources in production, inventory management, quality control, and warehousing. We are in the process of moving some manufacturing to more cost-effective locations. This may enable us to become more efficient and cost competitive and also maintain tighter controls of the operation.
Production transfers, facility consolidations, and other long-term cost-cutting measures require us to initially incur significant severance and other exit costs. We are realizing the benefits of our restructuring through lower labor costs and other operating expenses and expect to continue reaping these benefits in future periods. However, these programs to improve our profitability also involve certain risks which could materially impact our future operating results, as further detailed in Part I, Item 1A “Risk Factors” of our Annual Report on Form 10-K, filed with the Securities and Exchange Commission on February 25, 2025.
We are evaluating plans to further reduce our costs by consolidating additional manufacturing operations. These plans may require us to incur restructuring and severance costs in future periods. While streamlining and reducing fixed overhead, we are exercising caution so that we will not negatively impact our customer service or our ability to further develop products and processes.
Goodwill
We test the goodwill in each of our reporting units for impairment at least annually, as of the first day of our fourth quarter, and whenever events or changes in circumstances occur indicating that a possible impairment may have been incurred. Determining whether to test goodwill for impairment, and the application of goodwill impairment tests, require significant management judgment, including the identification of reporting units, assigning assets and liabilities to reporting units, assigning goodwill to reporting units, and determining the fair value of each reporting unit. Changes in these estimates could materially affect the determination of fair value for each reporting unit. A slowdown or deferral of orders for a business, with which we have goodwill associated, could impact our valuation of that goodwill.
Foreign Currency
We are exposed to foreign currency exchange rate risks, particularly due to transactions in currencies other than the functional currencies of certain subsidiaries. U.S. GAAP requires that entities identify the “functional currency” of each of their subsidiaries and measure all elements of the financial statements in that functional currency. A subsidiary’s functional currency is the currency of the primary economic environment in which it operates. In cases where a subsidiary is relatively self-contained within a particular country, the local currency is generally deemed to be the functional currency. However, a foreign subsidiary that is a direct and integral component or extension of the parent company’s operations generally would have the parent company’s currency as its functional currency. We have subsidiaries that fall into each of these categories.
Foreign Subsidiaries which use the Local Currency as the Functional Currency
Our operations in Europe, Canada, and certain locations in Asia primarily generate and expend cash using local currencies, and accordingly, these subsidiaries utilize the local currency as their functional currency. For those subsidiaries where the local currency is the functional currency, assets and liabilities in the consolidated condensed balance sheets have been translated at the rate of exchange as of the balance sheet date. Translation adjustments do not impact the results of operations and are reported as a separate component of equity.
For those subsidiaries where the local currency is the functional currency, revenues and expenses are translated at the average exchange rate for the period. While the translation of revenues and expenses into U.S. dollars does not directly impact the consolidated condensed statement of operations, the translation effectively increases or decreases the U.S. dollar equivalent of revenues generated and expenses incurred in those foreign currencies.
Foreign Subsidiaries which use the U.S. Dollar as the Functional Currency
Our operations in Israel and certain locations in Asia primarily generate cash in U.S. dollars, and accordingly, these subsidiaries utilize the U.S. dollar as their functional currency. For those foreign subsidiaries where the U.S. dollar is the functional currency, all foreign currency financial statement amounts are remeasured into U.S. dollars. Exchange gains and losses arising from remeasurement of foreign currency-denominated monetary assets and liabilities are included in the results of operations. While these subsidiaries transact most business in U.S. dollars, they may have significant costs, particularly related to payroll, which are incurred in the local currency and significant lease assets and liabilities.
Effects of Foreign Currency Exchange Rate on Operations
For the fiscal quarter ended June 28, 2025, the effect of foreign currency exchange rates increased net revenues by $1.2 million, and increased costs of products sold and selling, general, and administrative expenses by $1.6 million, when compared to the comparable prior year period.
For the six fiscal months ended June 28, 2025, the effect of foreign currency exchange rates increased net revenues by $0.2 million, and increased costs of products sold and selling, general, and administrative expenses by $1.2 million, when compared to the comparable prior year period.
Results of Operations
Statement of operations’ captions as a percentage of net revenues and the effective tax rates were as follows:
| Fiscal Quarter Ended | Six Fiscal Months Ended |
|||||||||||||||
| June 28, 2025 |
June 29, 2024 |
June 28, 2025 |
June 29, 2024 |
|||||||||||||
| Costs of products sold |
59.3 | % | 58.1 | % | 60.8 | % | 57.3 | % | ||||||||
| Gross profit |
40.7 | % | 41.9 | % | 39.2 | % | 42.7 | % | ||||||||
| Selling, general, and administrative expenses |
36.9 | % | 34.3 | % | 37.0 | % | 34.1 | % | ||||||||
| Operating income |
3.6 | % | 7.6 | % | 1.8 | % | 8.1 | % | ||||||||
| (Loss) income before taxes |
1.2 | % | 9.0 | % | (0.3 | )% | 9.6 | % | ||||||||
| Net (loss) earnings |
0.4 | % | 6.0 | % | (0.4 | )% | 6.6 | % | ||||||||
| Net (loss) earnings attributable to VPG stockholders |
0.3 | % | 6.0 | % | (0.5 | )% | 6.6 | % | ||||||||
| Effective tax rate |
66.0 | % | 33.30 | % | (66.5 | )% | 30.70 | % | ||||||||
Net Revenues
Net revenues were as follows (dollars in thousands):
| Fiscal Quarter Ended | Six Fiscal Months Ended |
|||||||||||||||
| June 28, 2025 |
June 29, 2024 |
June 28, 2025 |
June 29, 2024 |
|||||||||||||
| Net revenues |
$ | 75,161 | $ | 77,359 | $ | 146,902 | $ | 158,142 | ||||||||
| Change versus comparable prior year period |
$ | (2,198 | ) | $ | (11,240 | ) | ||||||||||
| Percentage change versus prior year period |
(2.8 | )% | (7.1 | )% | ||||||||||||
Changes in net revenues were attributable to the following:
| vs. prior year |
vs. prior year |
|||||||
| quarter |
to-date |
|||||||
| Change attributable to: |
||||||||
| Change in volume |
(4.5 | )% | (7.4 | )% | ||||
| Change in average selling prices |
0.3 | % | 0.2 | % | ||||
| Foreign currency effects |
1.4 | % | 0.1 | % | ||||
| Net change |
(2.8 | )% | (7.1 | )% | ||||
During the quarter ended and six fiscal months ended June 28, 2025, net revenues decreased by 2.8% and 7.1% as compared to the comparable prior year periods, mainly due to lower volume on the Measurements systems and the Sensors segments.
Gross Profit Margin
Gross profit as a percentage of net revenues was as follows:
| Fiscal Quarter Ended | Six Fiscal Months Ended |
|||||||||||||||
| June 28, 2025 |
June 29, 2024 |
June 28, 2025 |
June 29, 2024 |
|||||||||||||
| Gross profit margin |
40.7 | % | 41.9 | % | 39.2 | % | 42.7 | % | ||||||||
The gross profit margin for the fiscal quarter ended June 28, 2025, decreased by 1.2% and for the six fiscal months ended June 28, 2025 decreased 3.5% as compared to the comparable prior year periods. For the second fiscal quarter of 2025, Weighing Solutions and Measurement Systems reporting segments had higher gross profit margins compared to the prior year period.
Segments
Analysis of revenues and gross profit margins for each of our reportable segments is provided below.
Sensors
Net revenues of the Sensors segment were as follows (dollars in thousands):
| Fiscal Quarter Ended | Six Fiscal Months Ended |
|||||||||||||||
| June 28, 2025 |
June 29, 2024 |
June 28, 2025 |
June 29, 2024 |
|||||||||||||
| Net revenues |
$ | 26,563 | $ | 28,869 | $ | 53,620 | $ | 58,283 | ||||||||
| Change versus comparable prior year period |
$ | (2,306 | ) | $ | (4,663 | ) | ||||||||||
| Percentage change versus prior year period |
(8.0 | )% | (8.0 | )% | ||||||||||||
Changes in Sensors segment net revenues were attributable to the following:
| vs. prior year |
vs. prior year |
|||||||
| quarter |
to-date |
|||||||
| Change attributable to: |
||||||||
| Change in volume |
(3.1 | )% | (7.6 | )% | ||||
| Change in average selling prices |
(1.3 | )% | (0.7 | )% | ||||
| Foreign currency effects |
(3.5 | )% | 0.3 | % | ||||
| Net change |
(8.0 | )% | (8.0 | )% | ||||
The Sensors segment revenue of $26.6 million in the second fiscal quarter of 2025 decreased 8.0% from $28.9 million in the second fiscal quarter of 2024; sequentially, revenue decreased 1.8% compared to $27.1 million in the first fiscal quarter of 2025. The year-over-year decrease in revenues was primarily attributable to lower sales of strain gages in our markets for consumer applications which offset higher sales in the Test & Measurement market. Sequentially, the decrease primarily reflected lower sales of precision resistors in the Test and Measurement market.
Gross profit as a percentage of net revenues for the Sensors segment was as follows:
| Fiscal Quarter Ended | Six Fiscal Months Ended |
|||||||||||||||
| June 28, 2025 |
June 29, 2024 |
June 28, 2025 |
June 29, 2024 |
|||||||||||||
| Gross profit margin |
32.0 | % | 38.3 | % | 31.0 | % | 37.4 | % | ||||||||
Gross profit margin for the Sensors segment was 32.0% for the second fiscal quarter of 2025, as compared to 38.3% in the second fiscal quarter of 2024, and increased compared to 30.1% in the first fiscal quarter of 2025. The year-over-year decrease in gross profit margin was primarily due to lower volume, net tariffs cost, and manufacturing inefficiencies, partially offset by an increase in inventories. Sequentially, the higher gross profit margin was primarily due to an increase in inventories and favorable foreign currency exchange rates, which offset the impact of lower volume and net tariff costs.
Weighing Solutions
Net revenues of the Weighing Solutions segment were as follows (dollars in thousands):
| Fiscal Quarter Ended | Six Fiscal Months Ended |
|||||||||||||||
| June 28, 2025 |
June 29, 2024 |
June 28, 2025 |
June 29, 2024 |
|||||||||||||
| Net revenues |
$ | 29,428 | $ | 27,447 | $ | 55,866 | $ | 56,292 | ||||||||
| Change versus comparable prior year period |
$ | 1,981 | $ | (426 | ) | |||||||||||
| Percentage change versus prior year period |
7.2 | % | (0.8 | )% | ||||||||||||
Changes in Weighing Solutions segment net revenues were attributable to the following:
| vs. prior year |
vs. prior year |
|||||||
| quarter |
to-date |
|||||||
| Change attributable to: |
||||||||
| Change in volume |
3.4 | % | (2.0 | )% | ||||
| Change in average selling prices |
1.0 | % | 0.6 | % | ||||
| Foreign currency effects |
2.8 | % | 0.6 | % | ||||
| Net change |
7.2 | % | (0.8 | )% | ||||
The Weighing Solutions segment revenue of $29.4 million in the second fiscal quarter of 2025 increased 7.2% compared to $27.5 million in the second fiscal quarter of 2024 and was 11.3% higher than $26.4 million in the first fiscal quarter of 2025. The year-over-year increase in revenues was mainly attributable to higher sales in the Industrial Weighing and Transportation markets, as well as in our Other markets. Sequentially, the increase in revenues was primarily attributable to higher sales in the Transportation and Industrial Weighing, and in our Other markets for precision agriculture and medical applications.
Gross profit as a percentage of net revenues for the Weighing Solutions segment was as follows:
| Fiscal Quarter Ended | Six Fiscal Months Ended |
|||||||||||||||
| June 28, 2025 |
June 29, 2024 |
June 28, 2025 |
June 29, 2024 |
|||||||||||||
| Gross profit margin |
39.6 | % | 37.6 | % | 38.2 | % | 38.3 | % | ||||||||
Gross profit margin for the Weighing Solutions segment was 39.6% for the second fiscal quarter of 2025, which increased compared to 37.6% in the second fiscal quarter of 2024, and increased compared to 36.8% in the first fiscal quarter of 2025. The year-over-year increase in gross profit margin was primarily due to higher volume, favorable foreign exchange rates, and cost reduction. The sequential increase in gross profit margin primarily reflected higher volume and favorable foreign exchange rates, which offset the impact of net tariff costs.
Measurement Systems
Net revenues of the Measurement Systems segment were as follows (dollars in thousands):
| Fiscal Quarter Ended | Six Fiscal Months Ended |
|||||||||||||||
| June 28, 2025 |
June 29, 2024 |
June 28, 2025 |
June 29, 2024 |
|||||||||||||
| Net revenues |
$ | 19,170 | $ | 21,043 | $ | 37,416 | $ | 43,567 | ||||||||
| Change versus comparable prior year period |
$ | (1,873 | ) | $ | (6,151 | ) | ||||||||||
| Percentage change versus prior year period |
(8.9 | )% | (14.1 | )% | ||||||||||||
Changes in Measurement Systems segment net revenues were attributable to the following:
| vs. prior year |
vs. prior year |
|||||||
| quarter |
to-date |
|||||||
| Change attributable to: |
||||||||
| Change in volume |
(9.9 | )% | (14.2 | )% | ||||
| Change in average selling prices |
1.4 | % | 1.0 | % | ||||
| Foreign currency effects |
(0.4 | )% | (0.9 | )% | ||||
| Net change |
(8.9 | )% | (14.1 | )% | ||||
The Measurement Systems segment revenue of $19.2 million in the second fiscal quarter of 2025 decreased 8.9% year-over-year from $21.0 million in the second fiscal quarter of 2024 and increased 5.1% from $18.3 million in the first fiscal quarter of 2025. The year-over-year decrease was primarily attributable to decreased revenue in the Steel market. which offset higher sales in the Transportation and Avionics, Military and Space ("AMS") markets. Sequentially, the increase in revenue was primarily due to higher sales in the AMS market, which offset lower sales to the Transportation and Steel markets.
Gross profit as a percentage of net revenues for the Measurement Systems segment were as follows:
| Fiscal Quarter Ended | Six Fiscal Months Ended |
|||||||||||||||
| June 28, 2025 |
June 29, 2024 |
June 28, 2025 |
June 29, 2024 |
|||||||||||||
| Gross profit margin |
54.6 | % | 52.4 | % | 52.5 | % | 55.4 | % | ||||||||
Gross profit margin for the Measurement Systems segment was 54.6%, compared to 52.4% in the second fiscal quarter of 2024, and 50.3% in the first fiscal quarter of 2025. The year-over-year increase in gross profit margin was primarily due to favorable product mix. The sequentially higher gross profit margin reflected higher volume and favorable product mix.
Selling, General, and Administrative Expenses
Selling, general, and administrative (“SG&A”) expenses are summarized as follows (dollars in thousands):
| Fiscal Quarter Ended | Six Fiscal Months Ended |
|||||||||||||||
| June 28, 2025 |
June 29, 2024 |
June 28, 2025 |
June 29, 2024 |
|||||||||||||
| Total SG&A expenses |
$ | 27,701 | $ | 26,501 | $ | 54,412 | $ | 53,895 | ||||||||
| As a percentage of net revenues |
36.9 | % | 34.3 | % | 37.0 | % | 34.1 | % | ||||||||
SG&A expenses for the fiscal quarter and six fiscal months ended June 28, 2025 increased $1.2 million and $0.5 million, respectively, compared to the comparable prior year period.
Restructuring Costs
Restructuring costs reflect the cost reduction programs implemented by the Company. Restructuring costs are expensed during the period in which the Company determines it will incur those costs and all requirements for accrual are met. Because these costs are recorded based upon estimates, actual expenditures for the restructuring activities may differ from the initially recorded costs. If the initial estimates are too low or too high, the Company could be required either to record additional expense in future periods or to reverse part of the previously recorded charges.
The Company recorded $0.2 million and $0.0 million of restructuring costs during the fiscal quarter ended June 28, 2025 and June 29, 2024, respectively, and $0.6 million and $0.8 million of restructuring costs during the six fiscal months ended June 28, 2025 and June 29, 2024, respectively. Restructuring costs were comprised primarily of employee termination costs, including severance and statutory retirement allowances, in connection with various cost reduction programs.
Other Income (Expense)
The following table analyzes the components of the line “Other” on the consolidated condensed statements of operations (in thousands):
| Fiscal Quarter Ended | ||||||||||||
| June 28, 2025 |
June 29, 2024 |
Change |
||||||||||
| Foreign currency exchange (loss) gain |
$ | (1,763 | ) | $ | 1,287 | $ | (3,050 | ) | ||||
| Interest income |
549 | 499 | 50 | |||||||||
| Pension expense |
(11 | ) | (10 | ) | (1 | ) | ||||||
| Other |
(37 | ) | (75 | ) | 38 | |||||||
| $ | (1,262 | ) | $ | 1,701 | $ | (2,963 | ) | |||||
| Six Fiscal Months Ended |
||||||||||||
| June 28, 2025 |
June 29, 2024 |
Change |
||||||||||
| Foreign currency exchange (loss) gain |
$ | (2,735 | ) | $ | 2,877 | $ | (5,612 | ) | ||||
| Interest income |
869 | 822 | 47 | |||||||||
| Pension expense |
(22 | ) | (20 | ) | (2 | ) | ||||||
| Other |
(50 | ) | (118 | ) | 68 | |||||||
| $ | (1,938 | ) | $ | 3,561 | $ | (5,499 | ) | |||||
Foreign currency exchange gain or loss are due to volatility in the global currency markets. For the fiscal quarter ended June 28, 2025 the foreign currency exchange loss was largely due to the fluctuation of the Israeli Shekel against the U.S. dollar. For the six fiscal months ended June 28, 2025 the foreign currency exchange loss was largely due to the fluctuation of the Japanese yen, Israeli Shekel and the British pound against the U.S. dollar.
Income Taxes
For the fiscal quarter ended June 28, 2025, the Company reported income tax expense, and its effective tax rate was 66.0% compared to the fiscal quarter ended June 29, 2024, where the Company reported income taxes and its effective tax rate was 33.3%.
The effective tax rate for the fiscal quarter ended June 28, 2025, resulted primarily from our foreign income being taxed at varying tax rates and changes in valuation allowance on deferred tax assets. The effective tax rate for the fiscal quarter ended June 29, 2024 resulted primarily from the foreign income taxed at varying tax rates and changes in the valuation allowance on deferred tax assets.
For the six months ended June 28, 2025, the Company reported income taxes at an effective tax rate of (66.5)%, compared to the six months ended June 29, 2024, where the Company reported income taxes at an effective tax rate of 30.7%.
The change in effective tax rate in the six months ended June 28, 2025, compared to the corresponding period in the prior fiscal year is mainly due to fiscal year 2025 second quarter that increased the Company's tax expenses, in addition to the effect of foreign currency exchange rates effect on tax provisions in our non-US entities, and the valuation allowance on part of our deferred tax assets.
On July 4, 2025, the One Big Beautiful Bill Act (the “OBBBA”) was enacted into law, extending key provisions of the 2017 Tax Cuts and Jobs Act. The OBBBA provides for accelerated depreciation for property acquired and placed in service after January 19, 2025, and restores expensing of domestic research expenditures for years beginning after December 31, 2024. Additionally, the OBBBA restores the EBITDA-based interest expense limitation and includes changes related to the U.S. taxation of the income of our foreign subsidiaries and certain foreign derived income and the base erosion and anti-abuse tax. The legislation has multiple effective dates, with certain provisions effective in 2024 and other implemented through 2027. The Company is continuing to evaluate the impact of the OBBBA on its tax expenses.
The Company and its subsidiaries are subject to income taxes imposed by the U.S., various states, and the foreign jurisdictions in which we operate. Each jurisdiction establishes rules that set forth the years which are subject to examination by its tax authorities. While the Company believes the tax positions taken on its tax returns for each jurisdiction are supportable, they may still be challenged by the jurisdiction's tax authorities. In anticipation of such challenges, the Company has established reserves for tax-related uncertainties. These liabilities are based on the Company’s best estimate of the potential tax exposures in each respective jurisdiction. It may take a number of years for a final tax liability in a jurisdiction to be determined, particularly in the event of an audit. If an uncertain matter is determined favorably, there could be a reduction in the Company’s tax expense. An unfavorable determination could increase tax expense and could require a cash payment, including interest and penalties.
Financial Condition, Liquidity, and Capital Resources
We believe that our current cash and cash equivalents, credit facilities and projected cash from operations will be sufficient to meet our liquidity needs for at least the next 12 months.
On August 15, 2024, the Company entered into a Fourth Amended and Restated Credit Agreement (the “2024 Credit Agreement”) among the Company, the lenders party thereto, JPMorgan Chase Bank, N.A., Wells Fargo Bank, N.A. and HSBC as joint lead arrangers and joint bookrunner, and JPMorgan Chase Bank, N.A, as agent for such lenders, pursuant to which the 2020 Credit Agreement, as amended, was amended and restated to, among other things, extend the maturity date from March 20, 2025 to August 15, 2029 and adjust the interest rate and commitment fee. The 2024 Credit Agreement provides for a multi-currency, secured credit facility (the “2024 Revolving Facility”) in an aggregate principal amount of $75.0 million, with a sublimit of $10.0 million which can be used for letters of credit for the account of the Company or its subsidiaries that are parties to the 2024 Credit Agreement, the proceeds of which may be used for working capital and general corporate purposes, and a portion of which were used to refinance the Company’s previously existing credit agreement. The Company may elect to make loans under the 2024 Revolving Facility in US Dollars, Euros, Canadian Dollars, Sterling, Japanese Yen or such other freely convertible foreign currency.
The obligations of the Company under the 2024 Credit Agreement are secured by pledges of stock in certain domestic and foreign subsidiaries, as well as guarantees by substantially all of the Company’s domestic subsidiaries. The obligations of the Company and the guarantors under the 2024 Credit Agreement are secured by substantially all the assets (excluding real estate) of the Company and such guarantors. The 2024 Credit Agreement restricts the Company from paying cash dividends and requires the Company to comply with other customary covenants, representations, and warranties, including the maintenance of specific financial ratios. The financial maintenance covenants include an interest coverage ratio and a leverage ratio. The Company was in compliance with its financial maintenance covenants at June 28, 2025. If the Company is not in compliance with any of these covenant restrictions, the credit facility could be terminated by the lenders, and all amounts outstanding pursuant to the credit facility could become immediately payable.
Our business has historically generated significant cash flow. For the six fiscal months ended June 28, 2025, cash provided by operating activities was $11.2 million compared to $13.9 million in the comparable prior year period. Our net cash used in investing activities for the six fiscal months ended June 28, 2025 was lower compared to the prior year period mainly due to lower capital spending. Our net cash used in financing activities for the six fiscal months ended June 28, 2025 was significantly lower when compared with the prior year period, due to expiration of the stock repurchase plan in accordance with its terms on August 9, 2024.
Approximately 92% and 94% of our cash and cash equivalents balance at June 28, 2025 and December 31, 2024, respectively, was held by our non-U.S. subsidiaries.
See the following table for the percentage of cash and cash equivalents, by region, at June 28, 2025 and December 31, 2024:
| June 28, 2025 |
December 31, 2024 |
|||||||
| Israel |
39 | % | 56 | % | ||||
| Asia |
23 | % | 21 | % | ||||
| Europe |
25 | % | 14 | % | ||||
| United States |
8 | % | 6 | % | ||||
| Canada |
5 | % | 3 | % | ||||
| 100 | % | 100 | % | |||||
We earn a significant amount of our operating income outside the United States, the majority of which is deemed to be indefinitely reinvested in foreign jurisdictions. As a result, as discussed above, a significant portion of our cash and short-term investments are held by foreign subsidiaries. The Company will continue to evaluate its cash needs, however we currently do not intend, nor do we foresee a need, to repatriate funds in excess of what is already planned. The Company will evaluate the possibility of repatriating future cash provided such repatriation can be accomplished in a tax efficient manner. In addition, we expect existing domestic cash, short-term investments, and cash flows from operations to continue to be sufficient to fund our domestic operating activities and cash commitments for investing and financing activities, such as debt repayment and capital expenditures, for at least the next 12 months and thereafter for the foreseeable future.
If we should require more capital in the United States than is generated by our domestic operations, for example, to fund significant discretionary activities, such as business acquisitions, we could elect to repatriate future earnings from foreign jurisdictions or raise capital in the United States through debt or equity issuances. These alternatives could result in higher tax expense, increased interest expense, or dilution of our earnings. We consider the majority of the undistributed earnings of our foreign subsidiaries, as of June 28, 2025, to be indefinitely reinvested.
Adjusted free cash flow generated during the six fiscal months ended June 28, 2025, was $8.5 million. We refer to the amount of cash provided by operating activities ($11.2 million) in excess of our capital expenditures ($2.7 million), net of proceeds, if any, from the sale of assets as “adjusted free cash flow.”
The following table summarizes the components of net cash at June 28, 2025 and December 31, 2024 (in thousands):
| June 28, 2025 |
December 31, 2024 |
|||||||
| Cash and cash equivalents |
$ | 90,375 | $ | 79,272 | ||||
| Third-party long-term debt: |
||||||||
| Revolving debt |
32,000 | 32,000 | ||||||
| Deferred financing costs |
(474 | ) | (559 | ) | ||||
| Total third-party debt |
31,526 | 31,441 | ||||||
| Net cash |
$ | 58,849 | $ | 47,831 | ||||
Measurements such as “adjusted free cash flow” and “net cash" do not have uniform definitions and are not recognized in accordance with U.S. GAAP. Such measures should not be viewed as alternatives to GAAP measures of performance or liquidity. However, management believes that “adjusted free cash flow” is a meaningful measure of our ability to fund acquisitions, and that an analysis of “net cash” assists investors in understanding aspects of our cash and debt management. These measures, as calculated by us, may not be comparable to similarly titled measures used by other companies.
Our financial condition as of June 28, 2025 remains strong, with a current ratio (current assets to current liabilities) of 4.4 to 1.0, as compared to a ratio of 4.5 to 1.0 at December 31, 2024.
Cash paid for property and equipment for the six fiscal months ended June 28, 2025 was $2.8 million compared to $5.2 million in the comparable prior year period.
As of June 28, 2025 and December 31, 2024, we did not have any off-balance sheet arrangements.
Safe Harbor Statement
From time to time, information provided by us, including, but not limited to, statements in this report, or other statements made by or on our behalf, may contain or constitute "forward-looking" information within the meaning of the Private Securities Litigation Reform Act of 1995. Such statements involve a number of risks, uncertainties, and contingencies, many of which are beyond our control, which may cause actual results, performance, or achievements to differ materially from those anticipated.
Such statements are based on current expectations only, and are subject to certain risks, uncertainties, and assumptions. Should one or more of these risks or uncertainties materialize, or should underlying assumptions prove incorrect, actual results may vary materially from those anticipated, expected, estimated, or projected. Among the factors that could cause actual results to materially differ include: general business and economic conditions; significant developments from the recent and potential changes in tariffs and trade regulation; impact of inflation; potential issues respecting the United States federal government debt ceiling; global labor and supply chain challenges; difficulties or delays in identifying, negotiating and completing acquisitions and integrating acquired companies; the inability to realize anticipated synergies and expansion possibilities; difficulties in new product development; changes in competition and technology in the markets that we serve and the mix of our products required to address these changes; changes in foreign currency exchange rates; political, economic, and health (including pandemics) instabilities; instability or disruption caused by military hostilities in the regions or countries in which we operate (including Israel); difficulties in implementing our cost reduction strategies, such as underutilization of production facilities, labor unrest or legal challenges to our lay-off or termination plans, operation of redundant facilities due to difficulties in transferring production to achieve efficiencies; compliance issues under applicable laws, such as export control laws, including the outcome of our voluntary self-disclosure of export control non-compliance; our ability to execute our new corporate strategy and business continuity, operational and budget plans; and other factors affecting our operations, markets, products, services, and prices that are set forth in our Annual Report on Form 10-K for the fiscal year ended December 31, 2024. We caution you not to place undue reliance on forward-looking statements, which speak only as of the date of this report or as of the dates otherwise indicated in such forward-looking statements. We undertake no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events, or otherwise.
Item 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK
There have been no material changes in the market risks previously disclosed in Part II, Item 7A “Quantitative and Qualitative Disclosures About Market Risk” of our Annual Report on Form 10-K for the fiscal year ended December 31, 2024, filed with the SEC on February 25, 2025.
Item 4. CONTROLS AND PROCEDURES
Disclosure Controls and Procedures
An evaluation was performed under the supervision and with the participation of our management, including the Chief Executive Officer (“CEO”) and Chief Financial Officer (“CFO”), of the effectiveness of the design and operation of our disclosure controls and procedures, as such term is defined under Rule 13a-15(e) and Rule 15d-15(e) promulgated under the Securities Exchange Act of 1934, as amended (the “Exchange Act”). Based on that evaluation, our CEO and CFO concluded that our disclosure controls and procedures were effective as of the end of the period covered by this quarterly report to ensure that information required to be disclosed in reports that we file or submit under the Exchange Act are: (1) recorded, processed, summarized, and reported within the time periods specified in the SEC’s rules and forms; and (2) accumulated and communicated to our management, including our CEO and CFO, as appropriate to allow timely decisions regarding required disclosure.
Our management, including our CEO and CFO, believes that any disclosure controls and procedures or internal controls and procedures, no matter how well conceived and operated, can provide only reasonable, not absolute, assurance that the objectives of the control system are met. Further, the design of a control system must consider the benefits of controls relative to their costs. Inherent limitations within a control system include the realities that judgments in decision-making can be faulty, and that breakdowns can occur because of a simple error or mistake. Additionally, controls can be circumvented by the individual acts of some persons, by collusion of two or more people, or by unauthorized override of the control. While the design of any system of controls is to provide reasonable assurance of the effectiveness of disclosure controls, such design is also based in part upon certain assumptions about the likelihood of future events, and such assumptions, while reasonable, may not take into account all potential future conditions. Accordingly, because of the inherent limitations in a cost effective control system, misstatements due to error or fraud may occur and may not be prevented or detected.
Changes in Internal Control over Financial Reporting
During our last fiscal quarter ended June 28, 2025, there was no change in our internal control over financial reporting that materially affected, or is reasonable likely to materially affect, internal control over financial reporting.
PART II - OTHER INFORMATION
Item 1. LEGAL PROCEEDINGS
The Company is subject to various legal proceedings that constitute ordinary, routine litigation incidental to its business. The Company believes that the foregoing matters will not have a material adverse effect on the Company’s business or its financial condition, results of operations, and cash flows.
Item 1A. RISK FACTORS
In addition to the other information set forth in this Form 10-Q, you should carefully consider the factors discussed in Part I, Item 1A “Risk Factors” of our Annual Report on Form 10-K for the fiscal year ended December 31, 2024, filed with the SEC on February 25, 2025. There have been no material changes in reported risk factors from the information reported in our Annual Report on Form 10-K for the fiscal year ended December 31, 2024.
Item 2. UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS
None.
Item 3. DEFAULTS UPON SENIOR SECURITIES
None.
Item 4. MINE SAFETY DISCLOSURES
Not applicable.
Item 5. OTHER INFORMATION
During the fiscal quarter ended June 28, 2025, none of the Company’s directors or officers (as defined in Rule 16a-1(f) of the Securities Exchange Act of 1934, as amended) adopted or terminated a Rule 10b5-1 trading arrangement or non-Rule 10b5-1 trading arrangement (as such terms are defined in Item 408 of Regulation S-K of the Securities Act of 1933, as amended).
Item 6. EXHIBITS
| 31.1 |
Certification pursuant to Rule 13a-14(a) or 15d-14(a) under the Securities Exchange Act of 1934, as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 – Ziv Shoshani, Chief Executive Officer. |
|
| 31.2 |
Certification pursuant to Rule 13a-14(a) or 15d-14(a) under the Securities Exchange Act of 1934, as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 – William M. Clancy, Chief Financial Officer. |
|
| 32.1 |
Certification Pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 – Ziv Shoshani, Chief Executive Officer. |
|
| 32.2 |
Certification Pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 – William M. Clancy, Chief Financial Officer. |
|
| 101 |
Interactive Data File (Quarterly Report on Form 10-Q, for the quarterly period ended June 28, 2025, furnished in iXBRL (Inline eXtensible Business Reporting Language). |
|
| 104 |
Cover Page Interactive Data File formatted as Inline XBRL and contained in Exhibit 101. |
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.
| VISHAY PRECISION GROUP, INC. |
|
| /s/ William M. Clancy |
|
| William M. Clancy |
|
| Executive Vice President and Chief Financial Officer |
|
| (as a duly authorized officer and principal financial and accounting officer) |
Date: August 5, 2025
Source:
FAQ
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