First Fiscal Quarter Highlights (comparisons are to the comparable period a year ago):
- Net revenues of
$84.4 million increased 17.6% - Gross profit margin was 39.0% as compared to 37.7%
- Adjusted gross profit margin* was 39.0% as compared to 38.4%
- Operating margin was 0.4% as compared to (0.1)%
- Adjusted operating margin* was 1.9%, as compared to 1.9%
- Diluted net loss per share of
$0.02 compared to a diluted net loss per share of$0.07 - Adjusted diluted net earnings per share* of
$ 0.07 compared to$ 0.07 . - Adjusted EBITDA* was
$5.9 million with an adjusted EBITDA margin* of 7.0%
First Fiscal Quarter Financial Trends:
The Company's first fiscal quarter 2026 net loss attributable to VPG stockholders was
The first fiscal quarter 2026 adjusted net earnings* were
Segment Performance:
The Sensors segment bookings in the first fiscal quarter of 2026 grew 29.0% sequentially, resulting in a book-to-bill of 1.36.
The Sensors segment revenues of $33.3 million in the first fiscal quarter of 2026 increased 23.1% from $27.1 million in the first fiscal quarter of 2025. Sequentially, revenue increased 9.6% compared to
Adjusted gross profit margin* for the Sensors segment was 34.8% for the first fiscal quarter of 2026, which increased from 30.8% in the first fiscal quarter of 2025 and increased from 28.5% in the fourth fiscal quarter of 2025. The year-over-year and sequential increases in gross profit margin were primarily due to higher volume, favorable product mix, higher manufacturing efficiencies, partially offset by unfavorable foreign currency exchange rates and higher personnel costs.
First-quarter 2026 bookings for the Weighing Solutions segment grew 16.8% sequentially, contributing to a book-to-bill of 1.09.
The Weighing Solutions segment revenues of
Gross profit margin for the Weighing Solutions segment was 34.2% for the first fiscal quarter of 2026, which decreased from adjusted gross margin of 37.8% in the first fiscal quarter of 2025 and increased from 33.0% in the fourth fiscal quarter of 2025. The year-over-year decrease in gross profit margin was primarily due to unfavorable product mix, higher manufacturing and fixed costs, partially offset by higher volume and favorable foreign currency exchange rates. The sequential increase in gross profit margin primarily reflected higher volume and favorable foreign currency exchange rates.
The Measurement Systems segment bookings in the first fiscal quarter of 2026 grew 32.3% sequentially, resulting in a book-to-bill of 1.15.
The Measurement Systems segment revenues of
Gross profit margin for the Measurement Systems segment was 52.6% for the first fiscal quarter of 2026, which increased from 50.3% in the first fiscal quarter of 2025 and decreased from 52.8% in the fourth fiscal quarter of 2025. This compares with adjusted gross margin* of 50.3% in the first quarter of fiscal 2025, which reflected acquisition purchase accounting adjustments of $0.1 million. The year-over-year increase in gross profit margin was primarily due to higher volume and favorable product mix. The sequential decline in gross margin was primarily due to lower volume and wage increases, partially offset by favorable product mix.
Near-Term Outlook
“For the second fiscal quarter of 2026 at constant first fiscal quarter 2026 foreign currency exchange rates, we expect net revenues to be in the range of $85 million to $90 million,” said
*Use of Non-GAAP Financial Information:
Beginning in fiscal 2026, the Company revised its definition of certain non-GAAP financial measures to exclude share-based compensation expense in addition to the other items described below. This change is being made in light of the Company’s evolving compensation structure following recent organizational changes, including the hiring of senior executives and the expansion of equity-based incentive programs to attract and retain key talent.
Management believes that excluding share-based compensation expense in certain non-GAAP financial measures provides investors with additional insight into the Company’s core operating performance and enhanced understanding of business trends across reporting periods, including those in comparison to its main peer companies.
Share-based compensation expense will continue to be reflected in the Company's GAAP financial results and will be set forth in a specific line item in the reconciliation table between GAAP and non-GAAP measures. Prior-period non-GAAP financial measures have been recast to conform to the current presentation.
The Company defines “adjusted gross profit margin” as gross profit margin before start-up costs and acquisition purchase accounting adjustments and share-based compensation expense. “Adjusted operating margin” is defined as operating margin before start-up costs, acquisition purchase accounting adjustments, restructuring costs, severance costs, share-based compensation expense and gain on sale of asset held for sale. “Adjusted net earnings” and “adjusted diluted net earnings per share” are defined as net earnings attributable to VPG stockholders before start-up costs, acquisition purchase accounting adjustments, restructuring costs and severance costs, share-based compensation expense, foreign currency exchange gains and losses, associated tax effects, and gain on sale of asset held for sale. We define “Adjusted EBITDA” as earnings before interest, taxes, depreciation, and amortization, start-up costs, acquisition purchase accounting adjustments, restructuring costs and severance costs, foreign currency exchange gains and losses, share-based compensation expense and gain on sale of asset held for sale.
“Adjusted free cash flow” for the first fiscal quarter of 2026 is defined as the amount of cash generated from operating activities (
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. These reconciling items are indicated on the accompanying reconciliation schedules and are more fully described in VPG’s consolidated financial statements presented in our Annual Report on Form 10-K and Quarterly Reports on Forms 10-Q.
Conference Call and Webcast:
A conference call will be held on Tuesday, May 12, 2026 at
About VPG:
Forward-Looking Statements:
From time to time, information provided by us, including, but not limited to, statements in this press release, 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
Contact:
781-222-3516
info@vpgsensors.com
Consolidated Condensed Statements of Operations (Unaudited - In thousands, except per share amounts) | ||||||||
| Fiscal Quarter Ended | ||||||||
| Net revenues | $ | 84,353 | $ | 71,741 | ||||
| Costs of products sold | 51,479 | 44,696 | ||||||
| Gross profit | 32,874 | 27,045 | ||||||
| Selling, general and administrative expenses | 32,085 | 26,710 | ||||||
| Restructuring costs | 449 | 395 | ||||||
| Operating income (loss) | 340 | (60 | ) | |||||
| Other expense: | ||||||||
| Interest expense | (329 | ) | (550 | ) | ||||
| Other | (169 | ) | (677 | ) | ||||
| Other expense | (498 | ) | (1,227 | ) | ||||
| Loss before taxes | (158 | ) | (1,287 | ) | ||||
| Income tax expense (benefit) | 129 | (332 | ) | |||||
| Net loss | (287 | ) | (955 | ) | ||||
| Less: net earnings (loss) attributable to noncontrolling interests | 32 | (13 | ) | |||||
| Net loss attributable to VPG stockholders | $ | (319 | ) | $ | (942 | ) | ||
| Basic loss per share attributable to VPG stockholders | $ | (0.02 | ) | $ | (0.07 | ) | ||
| Diluted loss per share attributable to VPG stockholders | $ | (0.02 | ) | $ | (0.07 | ) | ||
| Weighted average shares outstanding - basic | 13,297 | 13,257 | ||||||
| Weighted average shares outstanding - diluted | 13,297 | 13,257 | ||||||
Consolidated Condensed Balance Sheets (In thousands) | ||||||||
| (Unaudited) | ||||||||
| Assets | ||||||||
| Current assets: | ||||||||
| Cash and cash equivalents | $ | 82,486 | $ | 87,366 | ||||
| Accounts receivable, net | 61,415 | 56,348 | ||||||
| Inventories: | ||||||||
| Raw materials | 32,124 | 32,760 | ||||||
| Work in process | 28,355 | 25,794 | ||||||
| Finished goods | 22,408 | 24,269 | ||||||
| Inventories, net | 82,887 | 82,823 | ||||||
| Prepaid expenses and other current assets | 19,306 | 20,425 | ||||||
| Total current assets | 246,094 | 246,962 | ||||||
| Property and equipment: | ||||||||
| Land | 2,364 | 2,382 | ||||||
| Buildings and improvements | 79,267 | 78,737 | ||||||
| Machinery and equipment | 139,543 | 137,230 | ||||||
| Software | 12,082 | 11,692 | ||||||
| Construction in progress | 3,268 | 4,162 | ||||||
| Accumulated depreciation | (160,843 | ) | (158,123 | ) | ||||
| Property and equipment, net | 75,681 | 76,080 | ||||||
| 47,237 | 47,367 | |||||||
| Intangible assets, net | 37,186 | 38,227 | ||||||
| Operating lease right-of-use assets | 22,653 | 22,892 | ||||||
| Other assets | 24,989 | 24,361 | ||||||
| Total assets | 453,840 | $ | 455,889 | |||||
Consolidated Condensed Balance Sheets (In thousands) | ||||||||
| (Unaudited) | ||||||||
| Liabilities and equity | ||||||||
| Current liabilities: | ||||||||
| Trade accounts payable | $ | 11,712 | $ | 10,530 | ||||
| Payroll and related expenses | 18,900 | 19,569 | ||||||
| Other accrued expenses and other current liabilities | 19,959 | 20,833 | ||||||
| Current portion of operating lease liabilities | 4,439 | 4,347 | ||||||
| Total current liabilities | 55,010 | 55,279 | ||||||
| Long-term debt | 20,612 | 20,583 | ||||||
| Deferred income taxes | 4,267 | 3,834 | ||||||
| Operating lease liabilities | 19,336 | 19,547 | ||||||
| Other liabilities | 13,914 | 14,200 | ||||||
| Accrued pension and other postretirement costs | 6,224 | 6,219 | ||||||
| Total liabilities | 119,363 | 119,662 | ||||||
| Equity: | ||||||||
| Common stock, par value | 1,342 | 1,340 | ||||||
| Class B convertible common stock, par value | 103 | 103 | ||||||
| (25,335 | ) | (25,335 | ) | |||||
| Capital in excess of par value | 204,829 | 204,360 | ||||||
| Retained earnings | 196,951 | 197,270 | ||||||
| Accumulated other comprehensive loss | (43,173 | ) | (41,367 | ) | ||||
| 334,717 | 336,371 | |||||||
| Noncontrolling interests | (240 | ) | (144 | ) | ||||
| Total equity | 334,477 | 336,227 | ||||||
| Total liabilities and equity | $ | 453,840 | $ | 455,889 | ||||
Consolidated Condensed Statements of Cash Flows (Unaudited - In thousands) | ||||||||
| Three Fiscal Months Ended | ||||||||
| Operating activities | ||||||||
| Net loss | $ | (287 | ) | $ | (955 | ) | ||
| Adjustments to reconcile net earnings to net cash provided by operating activities: | ||||||||
| Depreciation and amortization | 4,210 | 4,035 | ||||||
| Share-based compensation expense | 837 | 545 | ||||||
| Inventory write-offs for obsolescence | 606 | 800 | ||||||
| Deferred income tax expense | (487 | ) | (489 | ) | ||||
| Foreign currency impacts and other items | (73 | ) | 478 | |||||
| Net changes in operating assets and liabilities: | ||||||||
| Accounts receivable | (5,508 | ) | 1,823 | |||||
| Inventories | (1,061 | ) | 227 | |||||
| Prepaid expenses and other current assets | 958 | (848 | ) | |||||
| Trade accounts payable | 1,333 | 253 | ||||||
| Other current liabilities | (599 | ) | 292 | |||||
| Other non current assets and liabilities, net | (463 | ) | (841 | ) | ||||
| Accrued pension and other postretirement costs, net | (62 | ) | (71 | ) | ||||
| Net cash (used in) provided by operating activities | (596 | ) | 5,249 | |||||
| Investing activities | ||||||||
| Capital expenditures | (3,060 | ) | (1,507 | ) | ||||
| Net cash used in investing activities | (3,060 | ) | (1,507 | ) | ||||
| Financing activities | ||||||||
| (Distributions) Contributions from noncontrolling interests | (127 | ) | 147 | |||||
| Payments of employee taxes on certain share-based arrangements | (375 | ) | (256 | ) | ||||
| Net cash used in financing activities | (502 | ) | (109 | ) | ||||
| Effect of exchange rate changes on cash and cash equivalents | (722 | ) | 987 | |||||
| (Decrease) Increase in cash and cash equivalents | (4,880 | ) | 4,620 | |||||
| Cash and cash equivalents at beginning of period | 87,366 | 79,272 | ||||||
| Cash and cash equivalents at end of period | $ | 82,486 | $ | 83,892 | ||||
| Supplemental disclosure of investing transactions: | ||||||||
| Capital expenditures accrued but not yet paid | 796 | $ | 454 | |||||
Reconciliation of Consolidated Adjusted Gross Profit, Operating Income, Net Earnings Attributable to VPG Stockholders and Diluted Earnings Per Share (Unaudited - In thousands) | ||||||||||||||||||||||||||||||||
| Gross Profit | Operating Income | Net Earnings (loss) Attributable to VPG Stockholders | Diluted Earnings (loss) Per share | |||||||||||||||||||||||||||||
| Three months ended | ||||||||||||||||||||||||||||||||
| As reported - GAAP | $ | 32,874 | $ | 27,045 | $ | 340 | $ | (60 | ) | $ | (319 | ) | $ | (942 | ) | $ | (0.02 | ) | $ | (0.07 | ) | |||||||||||
| As reported - GAAP Margins | 39.0 | % | 37.7 | % | 0.4 | % | (0.1 | )% | — | — | — | $ | — | |||||||||||||||||||
| Start-up costs | — | 463 | — | 463 | — | 463 | — | $ | 0.04 | |||||||||||||||||||||||
| Restructuring costs (a) | — | — | 449 | 395 | 449 | 395 | 0.03 | $ | 0.03 | |||||||||||||||||||||||
| Share-based compensation cost (b) | — | 9 | 837 | 545 | 837 | 545 | 0.06 | $ | 0.04 | |||||||||||||||||||||||
| Foreign currency exchange gain (c) | — | — | — | — | 243 | 972 | 0.02 | $ | 0.07 | |||||||||||||||||||||||
| Less: Tax effect of reconciling items and discrete tax items | — | — | — | — | 303 | 534 | 0.02 | $ | 0.04 | |||||||||||||||||||||||
| As Adjusted - Non GAAP | $ | 32,874 | $ | 27,517 | $ | 1,626 | $ | 1,343 | $ | 907 | $ | 899 | $ | 0.07 | $ | 0.07 | ||||||||||||||||
| As Adjusted - Non GAAP Margins | 39.0 | % | 38.4 | % | 1.9 | % | 1.9 | % | ||||||||||||||||||||||||
(a) Restructuring cost in 2026
(b) Share-based compensation cost excluded for Non-GAAP results, effective beginning 2026, with prior period comparability
(c) Impact of foreign currency exchange rates on assets and liabilities
Reconciliation of Adjusted Gross Profit by segment (Unaudited - In thousands) | ||||||||||||
| Fiscal Quarter Ended | ||||||||||||
| Sensors | ||||||||||||
| Net revenues | 33,314 | 27,056 | 30,402 | |||||||||
| As reported - GAAP | 11,588 | 8,146 | 8,665 | |||||||||
| As reported - GAAP Margins | 34.8 | % | 30.1 | % | 28.5 | % | ||||||
| Start-up costs | — | 187 | — | |||||||||
| As Adjusted - Non GAAP | 11,588 | 8,333 | 8,665 | |||||||||
| As Adjusted - Non GAAP Margins | 34.8 | % | 30.8 | % | 28.5 | % | ||||||
| Weighing Solutions | ||||||||||||
| Net revenues | 30,236 | 26,438 | 27,739 | |||||||||
| As reported - GAAP | 10,340 | 9,717 | 9,156 | |||||||||
| As reported - GAAP Margins | 34.2 | % | 36.8 | % | 33.0 | % | ||||||
| Start-up costs | — | 276 | — | |||||||||
| As Adjusted - Non GAAP | 10,340 | 9,993 | 9,156 | |||||||||
| As Adjusted - Non GAAP Margins | 34.2 | % | 37.8 | % | 33.0 | % | ||||||
| Measurement Systems | ||||||||||||
| Net revenues | 20,803 | 18,246 | 22,431 | |||||||||
| As reported - GAAP | 10,946 | 9,182 | 11,844 | |||||||||
| As reported - GAAP Margins | 52.6 | % | 50.3 | % | 52.8 | % | ||||||
| Acquisition purchase accounting adjustments | — | — | 110 | |||||||||
| As Adjusted - Non GAAP | 10,946 | 9,182 | 11,954 | |||||||||
| As Adjusted - Non GAAP Margins | 52.6 | % | 50.3 | % | 53.3 | % | ||||||
Reconciliation of Adjusted EBITDA (Unaudited - In thousands) | ||||||||||||
| Fiscal Quarter Ended | ||||||||||||
| Net loss attributable to VPG stockholders | $ | (319 | ) | $ | (942 | ) | $ | (1,871 | ) | |||
| Interest Expense | 329 | 550 | 412 | |||||||||
| Income tax expense (benefit) | 129 | (332 | ) | 1,235 | ||||||||
| Depreciation | 3,223 | 3,056 | 3,060 | |||||||||
| Amortization | 987 | 979 | 983 | |||||||||
| Restructuring costs (a) | 449 | 395 | 697 | |||||||||
| Acquisition purchase accounting adjustments | — | — | 110 | |||||||||
| Share-based compensation cost (b) | 837 | 545 | 244 | |||||||||
| Foreign currency exchange gain (c) | 243 | 972 | 1,378 | |||||||||
| ADJUSTED EBITDA | $ | 5,878 | $ | 5,686 | $ | 6,248 | ||||||
| ADJUSTED EBITDA MARGIN | 7.0 | % | 7.9 | % | 7.8 | % | ||||||
(a) Restructuring cost in 2026
(b) Share-based compensation cost excluded for Non-GAAP results, effective beginning 2026, with prior period comparability
(c) Impact of foreign currency exchange rates on assets and liabilities
