Vishay Precision Group (VPG) shares are having a big day Wednesday after the company reported first-quarter results that beat expectations and issued guidance that came in above what analysts were looking for.
The adjusted earnings per share came in at $0.07, beating the $0.04 consensus estimate. Revenue rose 17.6% year over year to $84.35 million, also topping the $77.08 million consensus. The growth was broad-based across the company's business segments.
One standout metric: the book-to-bill ratio hit 1.21, and total orders exceeded $100 million for the first time since 2022. That's a sign that demand is picking up in a meaningful way.
Adjusted gross margin improved to 39.0% from 38.4% a year ago, helped by higher volumes, better product mix, and operational efficiencies. Operating margin turned slightly positive at 0.4%, compared with -0.1% a year earlier, while adjusted operating margin held steady at 1.9%. Adjusted EBITDA was $5.9 million, representing a 7.0% margin. The company ended the quarter with $82.5 million in cash and $62 million in net cash, keeping the balance sheet solid.
Segment Performance
The sensors segment was the star, with revenue up 23% year over year and bookings rising 29% sequentially to $45.2 million — the highest in 15 quarters. Demand was driven by AI infrastructure, semiconductor equipment, and defense applications, including early traction in humanoid robotics. Weighing solutions revenue grew 14% year over year, and measurement systems revenue also increased 14%, supported by aerospace, defense, and industrial demand.
Outlook
For the second quarter, management guided revenue of $85 million to $90 million, well above the $79.17 million consensus. The company also unveiled a new three-year operating framework targeting 8% to 10% annual organic revenue growth, along with meaningful margin expansion. Under the long-term plan, gross margins are expected to reach about 46.5%, operating margins of 14.5% to 15.5%, and EBITDA margins in the 18.5% to 20.5% range. Management also plans more than $20 million in cost savings over the next three years through manufacturing optimization, automation, and better procurement. They anticipate roughly 50% EBITDA conversion on incremental revenue under the new framework.
VPG shares were up 17.83% at $100.83 at the time of publication Wednesday, hitting a new 52-week high.
