fiscal 2026 second quarter
Filed Aug 5, 2026VPG Reports Fiscal 2026 Second Quarter Results; Orders of $96 Million Reflect Continued Strength in Key Markets
Revenue and orders increased, led by Sensors, but gross and operating margins declined and the company reported a net loss amid foreign exchange pressure, delayed shipments and unfavorable mix.
Key metrics
shortened, hover for the filing’s print| Metric | Value | q/q | y/y |
|---|---|---|---|
| Net revenues, second fiscal quarter 2026GAAP | $83.9M | – | 11.7% |
| Gross profit margin, second fiscal quarter 2026GAAP | 38.6% | – | – |
| Adjusted gross profit margin, second fiscal quarter 2026non-GAAP | 38.6% | – | – |
| Operating margin, second fiscal quarter 2026GAAP | (0.4%) | – | – |
| Adjusted operating margin, second fiscal quarter 2026non-GAAP | 1.7% | – | – |
| Net loss attributable to VPG stockholders, second fiscal quarter 2026GAAP | $1.7M | – | – |
| Diluted net loss per share, second fiscal quarter 2026GAAP | $0.13 | – | – |
| Adjusted net earnings, second fiscal quarter 2026non-GAAP | $600K | – | – |
| Adjusted diluted net earnings per share, second fiscal quarter 2026non-GAAP | $0.04 | – | – |
| Adjusted EBITDA, second fiscal quarter 2026non-GAAP | $5.5M | – | – |
| Adjusted EBITDA margin, second fiscal quarter 2026non-GAAP | 6.5% | – | – |
| Net loss attributable to VPG stockholders, six fiscal months ended July 4, 2026GAAP | $2M | – | – |
| Diluted net loss per share, six fiscal months ended July 4, 2026GAAP | $0.15 | – | – |
| Adjusted net earnings, six fiscal months ended July 4, 2026non-GAAP | $1.5M | – | – |
| Adjusted diluted net earnings per share, six fiscal months ended July 4, 2026non-GAAP | $0.11 | – | – |
| Sensors gross profit margin, second fiscal quarter 2026GAAP | 31.5% | – | – |
| Sensors adjusted gross margin, second fiscal quarter of 2025non-GAAP | 32.2% | – | – |
| Weighing Solutions gross profit margin, second fiscal quarter 2026GAAP | 37.3% | – | – |
| Measurement Systems gross profit margin, second fiscal quarter 2026GAAP | 52.5% | – | – |
| Bookings, second fiscal quarter 2026other | $95.5M | – | – |
| Book-to-bill ratio, second fiscal quarter 2026other | 1.14 | – | – |
| Orders, headlineother | $96M | – | – |
Segments
| Segment | Revenue | q/q | y/y |
|---|---|---|---|
| SensorsThe year-over-year increase was primarily attributable to higher sales of precision resistors in the Test and Measurement and AMS and higher sales of strain gage sensors in the AMS and Other markets. Sequentially, higher sales of precision resistors in the Test & Measurement and AMS markets were mostly offset by lower sales of strain gages in the Test and Measurement market. | $33.4M | 0.3% | 25.8% |
| Weighing SolutionsThe year-over-year increase was mainly attributable to higher sales in the General Industrial market for process weighing applications. Sequentially, higher revenue in the Transportation market was offset by lower revenue in Other markets. | $30.3M | 0.4% | 3.1% |
| Measurement SystemsThe year-over-year increase was primarily attributable to higher revenue in the AMS and Steel markets, which offset lower sales in the Transportation market. Sequentially, lower sales in the AMS and Transportation markets were partially offset by higher sales in the Steel market. | $20.2M | (3.1%) | 5.2% |
third fiscal quarter of 2026 at constant second fiscal quarter 2026 foreign currency exchange rates outlook
- Revenue$84 million to $89 million
- NoteGuidance excludes third-quarter tariff refunds to customers which have no impact on profits.
What drove it
- Bookings of $95.5 million and a book-to-bill ratio of 1.14 were driven by record quarterly orders for precision resistors serving AI-related semiconductor, data center, aerospace and defense applications.
- The company received a vendor nomination letter from its initial humanoid robotics customer, positioning it to support a planned production ramp in the second half of 2026.
- The company expects to deliver approximately $6 million of cost savings in 2026 as part of its three-year goal of achieving $20 million in cost reductions.
- The company stated that continued demand trends in key growth markets, expected humanoid bookings and a growing backlog position it to deliver organic annual revenue growth in fiscal 2026 above the 8% to 10% range previously outlined in its three-year model.
Concerns
- Second-quarter revenue was impacted by approximately $3.0 million of delayed shipments in the steel-related systems business due to supply chain challenges from implementing a new ERP system.
- Unfavorable foreign exchange movements reduced profits by $3.3 million compared with the prior-year period and by $0.9 million sequentially.
- Second-quarter results were affected by delayed shipments and unfavorable product mix.
- Gross profit margin declined in all three segments from the comparable prior-year period.
What to watch
- Completion of delayed steel-related systems shipments, which the company expects by the end of the year.
- The trajectory of foreign currency exchange rates, which materially affected second-quarter and six-month operating results.
- Conversion of backlog and expected humanoid robotics bookings into revenue.
- Execution of the approximately $6 million of planned 2026 cost savings.
- Third-quarter revenue performance against the $84 million to $89 million guidance range, including seasonal impacts in European operations.
Balance sheet and cash flow
- Cash generated from operating activities: $0.3 million.
- Capital expenditures: $(2.0) million.
- Proceeds from the sale of assets: $0.3 million.
- The company defines adjusted free cash flow for the second fiscal quarter of 2026 as cash generated from operating activities in excess of capital expenditures, net of proceeds, if any, from the sale of assets.
Analysis
VPG reported second fiscal-quarter net revenues of $83.9 million, up 11.7%, while bookings were $95.5 million and the book-to-bill ratio was 1.14. Management attributed order momentum to record quarterly precision-resistor orders for AI-related semiconductor, data center, aerospace and defense applications. It also cited a vendor nomination letter from its initial humanoid robotics customer and a growing backlog as support for organic annual revenue growth above the 8% to 10% range previously outlined in its three-year model.
Sensors was the principal revenue-growth contributor, with revenue of $33.4 million, up 25.8% year over year and 0.3% sequentially. Weighing Solutions revenue was $30.3 million, up 3.1% year over year and 0.4% sequentially. Measurement Systems revenue was $20.2 million, up 5.2% year over year but decreased 3.1% sequentially. The company said approximately $3.0 million of second-quarter revenue was delayed in its steel-related systems business because of supply chain challenges associated with a new ERP implementation; these orders remain in backlog and shipments are expected to be completed by the end of the year.
Profitability deteriorated despite revenue growth. Gross profit margin was 38.6%, compared with 40.7%, and operating margin was (0.4%), compared with 3.6%. Adjusted gross profit margin was 38.6%, compared with 41.0%, while adjusted operating margin was 1.7%, compared with 5.4%. Net loss attributable to VPG stockholders was $1.7 million, or $0.13 per diluted share, versus net earnings of $0.3 million, or $0.02 per diluted share. Adjusted net earnings were $0.6 million, or $0.04 per adjusted diluted share, compared with $2.7 million, or $0.21 per adjusted diluted share.
Foreign exchange was a major profit headwind, reducing second-quarter profits by $3.3 million compared with the prior-year period and by $0.9 million sequentially. Management also cited delayed shipments and unfavorable product mix. Segment gross margins declined year over year across Sensors, Weighing Solutions and Measurement Systems. The company continued strategic growth investments while targeting approximately $6 million of cost savings in 2026 as part of a three-year goal of $20 million in cost reductions.
For the third fiscal quarter of 2026, at constant second fiscal quarter 2026 foreign currency exchange rates, VPG expects net revenues of $84 million to $89 million despite seasonal impacts in European operations. Guidance excludes third-quarter tariff refunds to customers, which management said have no impact on profits. Cash generated from operating activities was $0.3 million, capital expenditures were $(2.0) million, and proceeds from the sale of assets were $0.3 million; the filing does not state an adjusted free cash flow total.
Management, verbatim
We delivered another quarter of strong order momentum, with bookings of $95.5 million and a book-to-bill ratio of 1.14, driven by record quarterly orders for our precision resistors serving AI-related semiconductor, data center, aerospace and defense applications. During the quarter, we received a vendor nomination letter from our initial humanoid robotics customer, positioning us to support their planned production ramp of next-generation humanoid robots in the second half of 2026. Supported by continuing strong demand trends in our key growth markets including expected humanoid bookings and a growing backlog, we believe we are positioned to deliver organic annual revenue growth in fiscal 2026 above the 8% to 10% range previously outlined in our three-year model.
Ziv Shoshani, Chief Executive Officer of VPG
Our second-quarter profits were impacted by unfavorable foreign exchange movements, which reduced profits by $3.3 million compared with the prior-year period, and by $0.9 million sequentially. Our financial results were also affected by the delayed shipments and unfavorable product mix. We continued our strategic investments to support our growth initiatives while maintaining a disciplined focus on operational execution. We remain on track to deliver approximately $6 million of cost savings in 2026 as part of three-year goal of achieving $20 million in cost reductions.
Ziv Shoshani, Chief Executive Officer of VPG
For the third fiscal quarter of 2026 at constant second fiscal quarter 2026 foreign currency exchange rates, despite seasonal impacts in our European operations, we expect net revenues to be in the range of $84 million to $89 million. Our guidance excludes third-quarter tariff refunds to customers which have no impact on profits.
Ziv Shoshani, Chief Executive Officer of VPG
Not in the filing
stated, not guessed- Prior-quarter consolidated revenue, gross margin, operating margin, net income or loss, diluted EPS, adjusted EPS and adjusted EBITDA comparisons.
- GAAP gross profit dollars and GAAP operating income or loss dollars.
- Prior-year comparison for adjusted EBITDA and adjusted EBITDA margin.
- Dollar amount of adjusted free cash flow.
- Cash balance, debt balance and other balance-sheet figures.
- Share repurchases, dividends and other capital-return activity.
- Guidance for gross margin, operating expenses and tax rate.
- Previous-release outlook needed to compare actual results with prior guidance.
AlphAI analysis generated from the company’s SEC earnings filing (Form 8-K Item 2.02, or Form 6-K for a foreign private issuer). Every figure was cross-checked against the filing text; consensus estimates, price targets and share-price reactions are not shown because they are not in the filing. AI-generated research, not investment advice.