Vishay Precision Group (NYSE:VPG) reported fourth-quarter 2025 results that included its fifth consecutive quarter with a consolidated book-to-bill ratio above 1.0, led by continued strength in its Sensors segment. Management said it expects gross margin to improve in the first quarter of 2026 and anticipates higher shipments beginning in the second quarter as Sensors production ramps and backlog sits at a multi-year high.
Fourth-quarter results and booking trends
Revenue in the fourth quarter was $80.6 million, up 11% year-over-year and up 1% sequentially. Consolidated orders were $81.3 million, up 2% sequentially, producing a book-to-bill of 1.01. CFO Bill Clancy noted this marked the first time quarterly bookings exceeded $80 million since the second quarter of 2023.
Segment performance: Sensors strength, mixed trends elsewhere
Sensors revenue declined 4% sequentially but rose 18% year-over-year. Management said strength in test and measurement tied to semiconductor equipment was offset by softer sales to aerospace, medical, and space (AMS) and general industrial markets. Bookings reached their highest level in 13 quarters, rising 4% sequentially and 30% year-over-year, for a book-to-bill of 1.15. The company said Sensors orders were up 18% in the second half of 2025 versus the first half, with backlog at its highest level since Q3 2023. Shoshani said VPG is hiring to increase production capacity and expects higher sales beginning in Q2.
Weighing Solutions sales increased modestly from the third quarter and rose 7.8% year-over-year. Orders increased 14.9% sequentially to $28.2 million, resulting in a book-to-bill of 1.02. Management cited strength in precision agriculture, medical, construction, and e-bike applications, as well as increased orders for transportation onboard weighing systems for heavy-use trucks. Shoshani said there were signs some end markets may have reached a cyclical bottom, though trends across OEM customers remained mixed.
Measurement Systems revenue was $22.4 million, up 9% sequentially and up 6% year-over-year. The sequential increase reflected record-high sales for a DSI R&D tool used in the development of new metal alloys, along with higher AMS sales related to testing new avionics platforms. Orders were $18.1 million, down 16% sequentially, producing a book-to-bill of 0.81. Management attributed the softer orders to lower steel-sector demand amid a soft global steel market and project timing, partially offset by stronger DTS crash safety testing product demand. The company said its pipeline remains healthy and it expects to return to a positive book-to-bill in the first quarter.
Humanoid robotics and business development initiatives
VPG highlighted progress in its business development initiatives, including humanoid robots and semiconductor equipment. These initiatives generated $11.8 million in orders in the fourth quarter and $37.8 million for full-year 2025, exceeding the company’s stated $30 million goal.
Within humanoid robotics, VPG said it received $800,000 in humanoid-related orders in the fourth quarter, including follow-on bookings from its first two customers and an initial prototype order for a third customer. Shoshani described the third customer as an emerging robotics company developing humanoids for home and warehouse productivity use cases. He also said VPG received a follow-on order of approximately $1 million in January from one of the first two humanoid customers.
Management characterized 2026 as a potentially pivotal year for the humanoid robotics market as companies move from prototype toward early production and deployment, though Shoshani said the timing and scale of ramps remain unclear. In response to analyst questions, he added that the third humanoid customer is smaller than the other two and remains in the design configuration stage, and that VPG is in dialogue with additional humanoid manufacturers globally even if they have not yet requested prototype orders.
Costs, profitability, cash, and Q1 2026 outlook
Adjusted operating margin was 2.3%, excluding $697,000 of restructuring costs and $110,000 of purchase accounting adjustments. SG&A expense was $27.9 million, or 34.7% of revenue, modestly higher than the third quarter due to hiring for the new organizational structure and higher travel and commission costs. Clancy said unfavorable foreign exchange impacted adjusted operating margin by $600,000 in the quarter and $4.7 million for full-year 2025.
GAAP net loss was $1.9 million, or $0.14 per diluted share, while adjusted diluted EPS was $0.07. Adjusted EBITDA was $6.0 million (7.5% of revenue), down from $9.2 million (11.5% of revenue) in the third quarter. Adjusted free cash flow was $1.3 million in the quarter. VPG ended the quarter with $87.4 million in cash and $20.6 million in long-term debt, for net cash of $66.8 million, which management said supports business needs and M&A.
For the first quarter of 2026, VPG guided revenue to a range of $74 million to $80 million, assuming constant exchange rates versus the fourth quarter of 2025.
On strategy, Shoshani discussed organizational changes announced in November, including the creation of the Office of the Chief Business and Product Officer and the Office of the Chief Operating Officer, aimed at standardizing cross-company processes, improving operational readiness, and accelerating growth initiatives. The company expects an additional $3 million of SG&A costs in 2026 to support the new structure and IT platforms, alongside $2 million in savings from cost-reduction initiatives, for a net increase of $1 million. In Q&A, Shoshani also said the company expects $6 million of cost savings to be realized in the 2026 P&L.
Management said it has set an internal goal to grow top-line revenue in the mid- to high-single digits, expecting a stronger second half, and set a 2026 target of $45 million in orders from business development initiatives, a 20% increase from 2025.
About Vishay Precision Group (NYSE:VPG)
Vishay Precision Group (NYSE: VPG) specializes in the design, manufacture and calibration of precision sensors, instrumentation and measurement systems used in a broad range of applications. Its product portfolio includes load cells, tension links, weighing modules, torque transducers, digital indicators and data acquisition systems. These solutions serve critical requirements for accuracy, reliability and repeatability in sectors such as industrial automation, test and measurement, medical devices, food and beverage processing, aerospace and defense.
The company traces its roots to the sensor and measurement division of Vishay Intertechnology, Inc, from which it was spun off as an independent public company in March 2016.
