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.