Vishay Precision Group's Q1 2025 Results: A Deep Dive
Vishay Precision Group Reports Fiscal Q1 2025 Results
Vishay Precision Group, Inc. (NYSE: VPG), a prominent player in precision measurement and sensing technologies, recently revealed key results for its fiscal Q1 2025, which concluded on March 29, 2025.
Highlights of the Fiscal Quarter
In comparison to the same period last year, the company reported the following financial outcomes:
- Total revenues reached $71.7 million, reflecting a decrease of 11.2% from the previous year.
- The gross profit margin was recorded at 37.7%, a drop from 43.4% year-on-year.
- Adjusted gross profit margin measured at 38.3%, down from 43.4%.
- Operating margin reflected a slight loss of (0.1%), compared to a healthy 8.6% in the same quarter last year.
- Adjusted operating margin remained at 1.1%, down from 10.0%.
- The diluted net loss per share stood at $(0.07), compared to earnings of $0.44 in Q1 2024.
- Adjusted earnings per share improved slightly to $0.04 from $0.42.
- EBITDA was reported at $3.3 million, yielding an EBITDA margin of 4.6%.
- Adjusted EBITDA reached $5.1 million with an adjusted margin of 7.2%.
- Cash generated from operating activities totaled $5.3 million, leading to an adjusted free cash flow of $3.7 million.
CEO Commentary on Performance
Ziv Shoshani, CEO of VPG, stated, "Even with the ongoing formidable business challenges, we have successfully achieved our second consecutive quarter with a book-to-bill ratio above 1.00. Total orders increased to $74.4 million, a sequential growth of 2.7%. Our primary segments for sensors and measurement systems continue to show strong demand, further supporting our strategic initiatives in response to evolving global economic conditions. We remain vigilant with our business development efforts, particularly with promising humanoid robot opportunities."
On the topic of financial trends, Mr. Shoshani noted that the company has preserved consistent adjusted gross margin and EBITDA even amid reduced revenues. He expressed confidence in VPG's financial resilience, bolstered by a robust balance sheet.
Financial Snapshot Overview
The net loss of the first quarter 2025 was attributed to VPG's shareholders at $0.9 million, equating to a loss of $0.07 per diluted share, a stark contrast to net earnings of $5.9 million, or $0.44 per share in the prior year.
Adjusted net earnings for Q1 2025 were reported at $0.5 million or $0.04 per adjusted diluted share, in contrast to $5.7 million, or $0.42 per adjusted diluted share in Q1 2024.
Segment Insights
Sensors Segment Performance
The sensors segment generated revenues of $27.1 million, reflecting an 8.0% decline from $29.4 million in Q1 2024. Notably, there was a sequential increase of 5.1% compared to $25.8 million in the previous quarter. This decline was primarily due to diminished sales in precision resistors within various markets but was offset by increased demand for strain gauges.
The gross profit margin in this segment was recorded at 30.1%, down from 36.5% year-over-year, and slightly better than the 32.0% margin from the last quarter. When adjusted for $0.2 million in startup costs related to manufacturing consolidations, the adjusted margin increased to 30.8%.
Weighing Solutions Segment Overview
The Weighing Solutions segment reported revenues of $26.4 million, which also marked an 8.3% decline from Q1 2024's $28.8 million but a sequential rise of 2.7% from $25.7 million. The decline was attributed mainly to reduced sales across transportation and industrial markets; however, growth in these markets mitigated losses from others.
The gross profit margin here was noted at 36.8%, down from 39.1% previously and increasing from 34.1% sequentially.
Measurement Systems Performance
Lastly, the Measurement Systems segment faced a significant year-over-year revenue decline of 19.0%, posting $18.2 million in Q1 2025 compared to $22.5 million last year. This segment’s gross profit margin was at 50.3%, showing a decline from 58.1% reported in Q1 2024.
What to Expect Moving Forward
Looking ahead, VPG anticipates net revenues in the range of $70 million to $76 million for the second fiscal quarter of 2025, factoring in constant foreign exchange rates from Q1 2025, emphasizing the company’s adaptive strategies to incoming market conditions.
Conclusion
Vishay Precision Group remains firm in its commitment to explore advancements in the precision measurement sector. The company’s financial results reflect resilience and strategic foresight amidst volatile economic conditions.
Frequently Asked Questions
1. What were the total revenues for Vishay Precision Group in Q1 2025?
Total revenues for Q1 2025 were $71.7 million.
2. How did the net earnings compare to the previous fiscal year?
Net earnings fell to a loss of $0.9 million in Q1 2025 compared to earnings of $5.9 million in Q1 2024.
3. What is the adjusted EBITDA for the quarter?
Adjusted EBITDA for Q1 2025 was $5.1 million.
4. Who is the CEO of Vishay Precision Group?
The CEO of Vishay Precision Group is Ziv Shoshani.
5. What is the expected revenue range for Q2 2025?
VPG expects revenues to be between $70 million to $76 million for Q2 2025.
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