Vishay Precision Group (NYSE VPG) is moving to tighten its belt as it enters 2026, announcing a suite of cost-reduction measures and a shift in product strategy following a year of muted top-line growth.
The Chesterbrook, Pennsylvania-based company reported fourth-quarter revenue of $80.6 million—a 10.9% increase over the previous year—but full-year sales remained nearly stagnant at $307.2 million.
Despite the quarterly revenue lift, VPG’s bottom line faced headwinds from what management described as "unfavorable product-mix effects" and a $1 million hit from strategic inventory reductions.
Adjusted diluted earnings per share for the quarter stood at $0.07, while adjusted EBITDA reached $6 million.
For the full year, the company saw its adjusted operating margin compress to 3.7%, down from 6.0% in 2024.
"2025 was a year of foundational change for VPG," said CEO Ziv Shoshani.
"While we achieved our fifth consecutive quarter of a positive book-to-bill ratio, we are now focused on intensifying our operational efficiency through a $6 million cost-reduction program."
The company’s 2026 roadmap, dubbed its "Growth Initiatives," aims for 20% growth in bookings, particularly for its Sensors segment, which has seen increased interest from the humanoid robotics and semiconductor testing sectors.
However, VPG issued cautious guidance for the first quarter of 2026, projecting revenue between $74 million and $80 million, reflecting ongoing foreign-exchange volatility and the "reset" nature of the upcoming fiscal year.