Vishay Precision Group (NYSE: VPG) reported fourth‑quarter 2025 revenue of $80.6 million, a 1.1% sequential increase and 10.9% higher than the $73.5 million earned in Q4 2024. The company posted a GAAP net loss of $1.9 million, or a diluted loss of $0.14 per share, compared with a net profit of $0.8 million ($0.06 diluted) in the same quarter last year. Adjusted diluted earnings per share were $0.07, down from $0.03 in Q4 2024, and well below the consensus estimate of $0.21.
The revenue growth was driven by strong demand in the Sensors and Measurement Systems segments, offset by a decline in the Weighing Solutions line. Gross profit margin contracted to 36.8% from 38.2% in Q4 2024, largely due to an unfavorable product mix and inventory reductions that increased the cost of goods sold. The company’s operating income fell to $1.2 million from $1.5 million, reflecting the margin squeeze and higher operating expenses associated with its “Physical AI” and humanoid robotics initiatives.
The earnings miss stems from a combination of a GAAP net loss and a sharp drop in adjusted EPS. The loss was driven by higher raw‑material costs, a shift toward lower‑margin product mix, and one‑time restructuring charges. Adjusted EPS fell to $0.07 from $0.03, missing analysts’ expectation by $0.14 (66.7%). The company’s guidance for Q1 2026 projects net revenue of $74 million to $80 million, below the analyst estimate of $78.61 million and a modest increase over the prior year’s full‑year revenue of $307.2 million.
Management emphasized continued cost discipline, announcing a planned $6 million in cost reductions for 2026 and a target of $45 million in new business‑development bookings, a 20% increase over 2025. CEO Ziv Shoshani said, “In the fourth quarter we achieved continued improvement in sales and orders,” and highlighted the strategic importance of “Physical AI” and humanoid robotics. The company also completed the acquisition of Nokra Optische Prueftechnik and Automation GmbH in September 2024, expanding its precision‑measurement capabilities.
Investors reacted negatively to the earnings miss and cautious guidance. Pre‑market trading saw a drop of 14.14% as analysts noted the significant EPS shortfall and margin compression, while the company’s full‑year revenue guidance remained flat at $307.2 million, indicating a near‑flat growth outlook amid ongoing cost‑optimization initiatives.
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