Vishay Precision Group, Inc.

Previous wording

Net revenues for the fiscal quarter ended July 4, 2026 were $83.9 million versus $75.2 million for the comparable prior year period. Net loss attributable to VPG stockholders for the fiscal quarter ended July 4, 2026 was $1.7 million, or $0.13 per diluted share, compared to net earnings of $0.3 million or $0.02 per diluted share, for the comparable prior year period.

Current wording

Net revenues for the fiscal quarter ended October 3, 2026 were $85.1 million versus $79.7 million for the comparable prior year period. Net earnings attributable to VPG stockholders for the fiscal quarter ended October 3, 2026 was $0.6 million, or $0.04 per diluted share, compared to net earnings of $7.9 million or $0.59 per diluted share, for the comparable prior year period.

Previous wording

Net revenues for the six fiscal months ended July 4, 2026 were $168.3 million versus $146.9 million for the comparable prior year period. Net loss attributable to VPG stockholders for the six fiscal months ended July 4, 2026 was $2.0 million, or $0.15 per diluted share, compared to a net loss of $0.7 million or $0.05 per diluted share, for the comparable prior year period.

Current wording

Net revenues for the nine fiscal months ended October 3, 2026 were $253.4 million versus $226.6 million for the comparable prior year period. Net loss attributable to VPG stockholders for the nine fiscal months ended October 3, 2026 was $1.5 million, or $0.11 per diluted share, compared to net earnings of $7.2 million or $0.54 per diluted share, for the comparable prior year period.

Previous wording

The results of operations for the fiscal quarters ended July 4, 2026 and June 28, 2025 include items affecting comparability as listed in the reconciliations below. The reconciliations below include certain financial measures which are not recognized in accordance with U.S. generally accepted accounting principles ("GAAP"), including adjusted gross profits, adjusted gross profit margin, adjusted operating income, adjusted operating margin, adjusted net earnings, adjusted net earnings per diluted share, EBITDA, and adjusted EBITDA. These non-GAAP measures should not be viewed as an alternative to GAAP measures of performance. Non-GAAP measures such as adjusted gross profits, adjusted gross profit margin, adjusted operating income, adjusted operating margin, adjusted net earnings, adjusted net earnings per diluted share, EBITDA, and adjusted EBITDA do not have uniform definitions. These measures, as calculated by VPG, may not be comparable to similarly titled measures used by other companies. 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.

Current wording

The results of operations for the fiscal quarters ended October 3, 2026 and September 27, 2025 include items affecting comparability as listed in the reconciliations below. The reconciliations below include certain financial measures which are not recognized in accordance with U.S. generally accepted accounting principles ("GAAP"), including adjusted net revenues, adjusted gross profits, adjusted gross profit margin, adjusted operating income, adjusted operating margin, adjusted net earnings, adjusted net earnings per diluted share, EBITDA, and adjusted EBITDA. These non-GAAP measures should not be viewed as an alternative to GAAP measures of performance. Non-GAAP measures such as adjusted gross profits, adjusted gross profit margin, adjusted operating income, adjusted operating margin, adjusted net earnings, adjusted net earnings per diluted share, EBITDA, and adjusted EBITDA do not have uniform definitions. These measures, as calculated by VPG, may not be comparable to similarly titled measures used by other companies. 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.

Previous wording

(b) Share-based compensation cost excluded for Non-GAAP results, effective beginning 2026, with prior period comparability.

Current wording

(c) Share-based compensation cost excluded for non-GAAP results, beginning in fiscal 2026, with prior period comparability

Previous wording

The quarter-to-quarter trends in these financial metrics can also be an important indicator of the likely direction of our business. The following tables show net revenues, gross profit margin, end-of-period backlog, book-to-bill ratio, and inventory turnover for our business as a whole and by segment during the five quarters beginning with the second quarter of 2025 through the second quarter of 2026.

Current wording

The quarter-to-quarter trends in these financial metrics can also be an important indicator of the likely direction of our business. The following tables show net revenues, gross profit margin, end-of-period backlog, book-to-bill ratio, and inventory turnover for our business as a whole and by segment during the five quarters beginning with the third quarter of 2025 through the third quarter of 2026.

Previous wording

Net revenues for the second fiscal quarter of 2026 decreased 0.5% from the first fiscal quarter of 2026 primarily due to decreases in the Measurement Systems reporting segments, which were partially offset by increases in revenues in the Sensors and Weighing Solutions reporting segments. Net revenues for the second fiscal quarter of 2026 increased 11.7% from the second fiscal quarter of 2025 due to increases in all reporting segments. Main increase driven by our precision resistors serving AI-related semiconductor, aerospace and defense applications.

Current wording

Net revenues for the third fiscal quarter of 2026 increased 1.4% from the second fiscal quarter of 2026 and increased 6.7% from the third fiscal quarter of 2025 primarily due to increases in the Sensors and Measurement Systems reporting segments, that were driven by our precision resistors serving AI-related semiconductor, aerospace and defense applications, which were partially offset by decreases in revenues in the Weighing Solutions reporting segment.

Previous wording

Net revenues in the Sensors reporting segment increased 0.3% compared to $33.3 million in the first fiscal quarter of 2026 and increased 25.8% from $26.6 million in the second fiscal quarter of 2025. Sequentially, the increase in revenue primarily reflected higher sales of precision resistors in the Test & Measurement and AMS markets, which was mostly offset by lower sales of strain gages in the Test and Measurement market. The year-over-year increase in revenue was primarily attributable to higher sales of precision resistors in the Test and Measurement and AMS and higher sales of strain gage sensors in the AMS and Other markets.

Current wording

Net revenues in the Sensors reporting segment increased 14.8% compared to $33.4 million in the second fiscal quarter of 2026 and increased 21.3% from $31.6 million in the third fiscal quarter of 2025. Sequentially, the increase in revenue primarily reflected higher sales of precision resistors and strain gages in the Test and Measurement market. The year-over-year increase in revenue was primarily attributable to higher sales of precision resistors in the Test and Measurement market and higher sales of strain gage sensors in the AMS and General Industrial markets.

Previous wording

Net revenues in the Measurement Systems reporting segment decreased 3.1% from the first fiscal quarter of 2026 and increased 5.2% from the second fiscal quarter of 2025. Sequentially, the decrease in revenue was primarily due to lower sales in the AMS and Transportation markets which were partially offset by higher sales in the Steel market. The year-over-year increase was primarily attributable to higher revenue in the AMS and Steel markets, which offset lower sales in the Transportation market.

Current wording

Net revenues in the Measurement Systems reporting segment increased 9.7% from the second fiscal quarter of 2026 and increased 7.6% from the third fiscal quarter of 2025. Sequentially, the increase in revenue was primarily due to higher sales in the Steel market. The year-over-year increase in revenue was primarily attributable to higher sales in the AMS market.

Previous wording

Overall gross profit margin in the second fiscal quarter of 2026 decreased 0.4% as compared to the first fiscal quarter of 2026 mainly related to unfavorable foreign currency exchange rates in the Sensors reporting segment which mostly offset by increase in Weighing Solution segment. Gross profit margin in the second fiscal quarter of 2026 decreased 2.1% from the second fiscal quarter of 2025 across all three reporting segments, primarily due to unfavorable foreign currency exchange rate and manufacturing overhead, unfavorable product mix which offset higher volume

Current wording

Overall gross profit margin in the third fiscal quarter of 2026 decreased 0.1% from the third fiscal quarter of 2025 primarily due to lower sales volume in the Weighing Solutions segment, unfavorable foreign currency exchange rates and higher manufacturing overhead across the reporting segments, which partially offset higher sales volume in the Sensors and Measurement Systems segments.

Previous wording

For the fiscal quarter ended July 4, 2026, the effect of foreign currency exchange rates increased net revenues by $0.4 million, and increased costs of products sold and selling, general, and administrative expenses by $3.7 million, when compared to the comparable prior year period.

Current wording

For the fiscal quarter ended October 3, 2026, the effect of foreign currency exchange rates decreased net revenues by $1.0 million, and increased costs of products sold and selling, general, and administrative expenses by $2.4 million, when compared to the comparable prior year period.

Previous wording

For the six fiscal months ended July 4, 2026, the effect of foreign currency exchange rates increased net revenues by $2.8 million, and increased costs of products sold and selling, general, and administrative expenses by $7.5 million, when compared to the comparable prior year period.

Current wording

For the nine fiscal months ended October 3, 2026, the effect of foreign currency exchange rates increased net revenues by $1.8 million, and increased costs of products sold and selling, general, and administrative expenses by $9.8 million, when compared to the comparable prior year period.

Previous wording

During the fiscal quarter ended July 4, 2026 net revenues increased by 11.7% as compared to the comparable prior year period, mainly due to higher volume on the Sensors segment and higher sales in the Test & Measurement and AMS markets. Net revenues for the six fiscal months ended July 4, 2026 increased by 14.6%, as compared to the comparable prior year periods. The year-over-year increase in revenues was driven mainly due to higher volume on the Sensors segment and higher sales in the Test & Measurement and Other markets.

Current wording

Net revenues for the nine fiscal months ended October 3, 2026 increased by 11.8%, as compared to the comparable prior year periods. The year-over-year increase in revenues was driven mainly due to higher volume on the Sensors segment and higher sales in the Test and Measurement and Other markets.

Previous wording

The gross profit margin for the fiscal quarter ended July 4, 2026 decreased by 2.1% and for the six fiscal months ended July 4, 2026 decreased by 0.4% as compared to the comparable prior year periods. Although all three reporting segments reported higher revenues during the second fiscal quarter of 2026, gross profit margin declined primarily due to an unfavorable foreign currency exchange rates, unfavorable sales volume mix and higher material and personnel costs.

Current wording

The gross profit margin for the fiscal quarter ended October 3, 2026 decreased by 0.1% and for the nine fiscal months ended October 3, 2026 decreased by 0.3% as compared to the comparable prior year periods. The year-over-year decrease in gross profit margin was primarily due to unfavorable foreign currency exchange rates and higher other overhead manufacturing costs, which was partially offset by higher sales volume and production efficiencies and tariff refund impact.

Previous wording

The Sensors segment revenues of $66.7 million in the six fiscal months ended July 4, 2026, increased 24.5% from $53.6 million as compared to the comparable prior year periods. The year-over-year increase in revenues was primarily attributable to higher sales of precision resistors in the Test and Measurement and higher sales of strain gage sensors in the AMS and Other markets.

Current wording

The Sensors segment revenues of $105.1 million in the nine fiscal months ended October 3, 2026, increased 23.3% from $85.2 million as compared to the comparable prior year periods. The year-over-year increase in revenues was primarily attributable to higher sales volume of precision resistors in the Test and Measurement and Other markets and higher sales volume of strain gage sensors in the AMS market.

Previous wording

Gross profit margin for the Sensors segment was 31.5% for the second fiscal quarter of 2026, as compared to 32.0% in the second fiscal quarter of 2025. The year-over-year decrease in gross profit margin was primarily due to unfavorable foreign currency exchange rates, which offset higher volume.

Current wording

Gross profit margin for the Sensors segment was 32.4% for the third fiscal quarter of 2026, as compared to 33.6% in the third fiscal quarter of 2025. The year-over-year decrease in gross profit margin was primarily due to unfavorable foreign currency exchange rates and higher other overhead manufacturing costs, which were partially offset by higher sales volume.

Previous wording

Gross profit margin for the six fiscal months ended July 4, 2026 was 33.1%, as compared to 31.0% in the six fiscal months ended June 28, 2025. The year-over-year increase in gross profit margin was attributable to higher sales volume partially offset due to unfavorable foreign currency exchange rates and higher personnel cost.

Current wording

Gross profit margin for the nine fiscal months ended October 3, 2026 was 32.9%, as compared to 32.0% in the nine fiscal months ended September 27, 2025. The year-over-year increase in gross profit margin was attributable to higher sales volume, which were partially offset due to unfavorable foreign currency exchange rates and higher other overhead manufacturing costs.

Previous wording

Gross profit margin for the Weighing Solutions segment was 37.3% for the second fiscal quarter of 2026, which decreased compared to 39.6% in the second fiscal quarter of 2025. The year-over-year decrease in gross profit margin was primarily due to unfavorable product mix, which offset higher volume.

Current wording

Gross profit margin for the Weighing Solutions segment was 37.6% for the third fiscal quarter of 2026, which decreased compared to 40.3% in the third fiscal quarter of 2025. The year-over-year decrease in gross profit margin was primarily due to unfavorable product mix and reduction in inventory, which was partially offset by cost reduction and production efficiency.

Previous wording

Gross profit margin for the Measurement Systems segment was 52.5% for the second fiscal quarter of 2026 as compared to 54.6% in the second fiscal quarter of 2025. The year-over-year decrease in gross profit margin was primarily due to unfavorable product mix which offset higher volume.

Current wording

Gross profit margin for the Measurement Systems segment was 56.5% for the third fiscal quarter of 2026 as compared to 50.5% in the third fiscal quarter of 2025. The year-over-year increase in gross profit margin was primarily due to higher sales volume and favorable product mix.

Previous wording

Selling, general and administrative expenses for the fiscal quarter ended and six fiscal months ended July 4, 2026 increased $4.3 million and $9.6 million respectively, compared to the comparable prior year period. The increases were primarily attributable to foreign exchange impacts, higher bonus reserve reflecting improved operating performance, and investments in organizational infrastructure and strategic growth initiatives recently announced organizational changes and the establishment of the Chief Business and Product Officer and Chief Operating Officer functions.

Current wording

Selling, general and administrative expenses for the fiscal quarter ended and nine fiscal months ended October 3, 2026 increased by $3.9 million and $13.5 million respectively, compared to the comparable prior year period. The increases were primarily attributable to foreign exchange impacts, higher bonus reserve reflecting improved operating performance, and investments in organizational infrastructure and strategic growth initiatives recently announced organizational changes and the establishment of the Chief Business and Product Officer and Chief Operating Officer functions.

Previous wording

The Company recorded $0.8 million and $0.2 million of restructuring costs during the fiscal quarter ended July 4, 2026 and June 28, 2025, respectively, and $1.2 million and $0.6 million of restructuring costs during the six fiscal months ended July 4, 2026 and June 28, 2025, respectively. Restructuring costs were comprised primarily of employee termination costs, including severance and statutory retirement allowances, and were incurred in connection with various cost reduction programs, including the consolidation of certain manufacturing operations to improve operational efficiency and optimize the Company's manufacturing.

Current wording

The Company recorded $0.3 million and $0.2 million of restructuring costs during the fiscal quarter ended October 3, 2026 and September 27, 2025, respectively, and $1.5 million and $0.8 million of restructuring costs during the nine fiscal months ended October 3, 2026 and September 27, 2025, respectively. Restructuring costs were comprised primarily of employee termination costs, including severance and statutory retirement allowances, and were incurred in connection with various cost reduction programs, including the consolidation of certain manufacturing operations to improve operational efficiency and optimize the Company's manufacturing.

Previous wording

Foreign currency exchange gain or loss are due to volatility in the global currency markets. For the fiscal quarter ended July 4, 2026 the foreign currency exchange loss was largely due to the fluctuation of the Israeli Shekel against the U.S. dollar. For the six fiscal months ended July 4, 2026 the foreign currency exchange loss was largely due to the fluctuation of the Israeli Shekel against the U.S. dollar.

Current wording

Foreign currency exchange gain or loss are due to volatility in the global currency markets. For the fiscal quarter ended October 3, 2026 the foreign currency exchange income was largely due to the fluctuation of the Israeli Shekel against the U.S. dollar. For the nine fiscal months ended October 3, 2026 the foreign currency exchange loss was largely due to the fluctuation of the Israeli Shekel and the Euro against the U.S. dollar.

Previous wording

For the fiscal quarter ended July 4, 2026, the Company reported tax benefits, and its effective tax rate was 8% compared to the fiscal quarter ended June 28, 2025, where the Company reported tax expenses, and its effective tax rate was 66%.

Current wording

For the fiscal quarter ended October 3, 2026, the Company reported tax expenses, and its effective tax rate was 72.4% compared to the fiscal quarter ended September 27, 2025, where the Company reported tax expenses, and its effective tax rate was 19.8%.

Previous wording

The year-over-year change in the effective tax rate was primarily driven by the valuation allowance on certain deferred tax assets and the impact of foreign currency exchange rate fluctuations on the tax provisions of our non-U.S. entities.

Current wording

The year-over-year change in the effective tax rate was primarily driven by the changes in the geographic mix of earnings among our foreign subsidiaries, the valuation allowance on certain deferred tax assets and the impact of foreign currency exchange rate fluctuations on the tax provisions of our non-U.S. entities.

Previous wording

For the six months ended July 4, 2026, the Company reported tax benefits, and its effective tax rate of 1%, compared to the six months ended June 28, 2025, where the Company reported income taxes at an effective tax rate of (66)%.

Current wording

For the nine months ended October 3, 2026, the Company reported tax expenses, and its effective tax rate was 246.7%, compared to the nine months ended September 27, 2025, where the Company reported income taxes at an effective tax rate of 23.4%.

Previous wording

The change in effective tax rate in the six months ended July 4, 2026, compared to the corresponding period in the prior fiscal year is mainly due to fiscal year 2025 second quarter profits that increased the Company’s tax expenses, in addition to the effect of foreign currency exchange rates on tax provisions in our non-US entities, and the valuation allowance on part of our deferred tax assets.

Current wording

The change in effective tax rate in the nine months ended October 3, 2026, compared to the corresponding period in the prior fiscal year is mainly due to fiscal year 2026 third quarter profits that increased the Company’s tax expenses and the changes in the geographic mix of earnings among our foreign subsidiaries, in addition to the effect of foreign currency exchange rates on tax provisions in our non-US entities, and the valuation allowance on part of our deferred tax assets.

Previous wording

Our business has historically generated significant cash flow. For the six fiscal months ended July 4, 2026, cash provided by operating activities was $(0.3) million compared to $11.2 million in the comparable prior year period. Our net cash used in investing activities for the six fiscal months ended July 4, 2026 was higher compared to the prior year period mainly due to higher capital spending. Our net cash used in financing activities for the six fiscal months ended July 4, 2026 was significantly higher when compared with the prior year period, due to the partial repayment on the 2024 Revolving Facility.

Current wording

Our business has historically generated significant cash flow. For the nine fiscal months ended October 3, 2026, cash provided by operating activities was $10.7 million compared to $10.0 million in the comparable prior year period. Our net cash used in investing activities for the nine fiscal months ended October 3, 2026 was higher compared to the prior year period mainly due to higher capital spending.

Previous wording

Adjusted free cash flow generated during the six fiscal months ended July 4, 2026, was $(5.1) million. We refer to the amount of cash provided by operating activities ($(0.3) million) in excess of our capital expenditures ($5.0 million), net of proceeds from the sale of assets ($0.3 million) as “adjusted free cash flow.”

Current wording

(a) We refer to the amount of cash provided by operating activities in excess of our capital expenditures, net of proceeds from the sale of assets as “adjusted free cash flow".

Previous wording

Approximately 89% of our cash and cash equivalents balance at July 4, 2026 and 91% at December 31, 2025 were held by our non-U.S. subsidiaries.

Current wording

Approximately 91% of our cash and cash equivalents balance at October 3, 2026 and 91% at December 31, 2025 were held by our non-U.S. subsidiaries.

Previous wording

Our financial condition as of July 4, 2026 remains strong, with a current ratio (current assets to current liabilities) of 4.1 to 1.0, as compared to a current ratio of 4.5 to 1.0 at December 31, 2025.

Current wording

Our financial condition as of October 3, 2026 remains strong, with a current ratio (current assets to current liabilities) of 3.6 to 1.0, as compared to a current ratio of 4.5 to 1.0 at December 31, 2025.

Previous wording

Cash paid for property and equipment for the six fiscal months ended July 4, 2026 was $5.0 million compared to $2.8 million in the comparable prior year period. The increase reflects the Company’s continued investment in equipment as part of its strategic focus on expanding operational infrastructure. These investments are intended to enhance capacity and support the Company’s long-term revenue growth and business expansion plans.

Current wording

Cash paid for property and equipment for the nine fiscal months ended October 3, 2026 was $10.6 million compared to $5.0 million in the comparable prior year period, and primarily was due to investments in manufacturing equipment to support the increase in volume, automation initiatives and capacity expansion projects across the Company's operations. The increase in capital expenditures reflects the Company's continued focus on strategic growth initiatives. These investments are intended to support long-term revenue growth, improve operating leverage and enhance the Company's competitive position in its end markets.