Precision measurement and sensing technologies provider Vishay Precision (NYSE:VPG) reported Q4 CY2025 results beating Wall Street’s revenue expectations, with sales up 10.9% year on year to $80.57 million. On the other hand, next quarter’s revenue guidance of $77 million was less impressive, coming in 1.1% below analysts’ estimates. Its non-GAAP profit of $0.07 per share was 66.1% below analysts’ consensus estimates.
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Vishay Precision (VPG) Q4 CY2025 Highlights:
- Revenue: $80.57 million vs analyst estimates of $78.07 million (10.9% year-on-year growth, 3.2% beat)
- Adjusted EPS: $0.07 vs analyst expectations of $0.21 (66.1% miss)
- Adjusted EBITDA: $6.00 million vs analyst estimates of $7.85 million (7.5% margin, 23.6% miss)
- Revenue Guidance for Q1 CY2026 is $77 million at the midpoint, below analyst estimates of $77.83 million
- Operating Margin: 1.3%, in line with the same quarter last year
- Free Cash Flow Margin: 1.7%, down from 6.3% in the same quarter last year
- Market Capitalization: $711.6 million
Ziv Shoshani, Chief Executive Officer of VPG, commented, "In the fourth quarter we achieved continued improvement in sales and orders. Sales grew 1.1% sequentially and were 10.9% higher than the fourth quarter a year ago. Orders of $81.3 million grew sequentially as we achieved a positive book-to-bill ratio of 1.01, our fifth consecutive quarter of book-to-bill of 1.00 or better. Our Sensors segment, which achieved the highest levels of bookings since 2022, recorded a book-to-bill of 1.15. We are ramping up production of Sensors products and expect to realize higher sales beginning in the second quarter.
Company Overview
Emerging from Vishay Intertechnology in 2010, Vishay Precision (NYSE:VPG) operates as a global provider of precision measurement and sensing technologies.
Revenue Growth
Reviewing a company’s long-term sales performance reveals insights into its quality. Any business can put up a good quarter or two, but the best consistently grow over the long haul. Unfortunately, Vishay Precision’s 2.6% annualized revenue growth over the last five years was sluggish. This was below our standards and is a poor baseline for our analysis.
We at StockStory place the most emphasis on long-term growth, but within industrials, a half-decade historical view may miss cycles, industry trends, or a company capitalizing on catalysts such as a new contract win or a successful product line. Vishay Precision’s performance shows it grew in the past but relinquished its gains over the last two years, as its revenue fell by 7% annually. 
This quarter, Vishay Precision reported year-on-year revenue growth of 10.9%, and its $80.57 million of revenue exceeded Wall Street’s estimates by 3.2%. Company management is currently guiding for a 7.3% year-on-year increase in sales next quarter.
Looking further ahead, sell-side analysts expect revenue to grow 4.2% over the next 12 months. While this projection implies its newer products and services will fuel better top-line performance, it is still below average for the sector.
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Operating Margin
Operating margin is one of the best measures of profitability because it tells us how much money a company takes home after procuring and manufacturing its products, marketing and selling those products, and most importantly, keeping them relevant through research and development.
Vishay Precision has done a decent job managing its cost base over the last five years. The company has produced an average operating margin of 9.1%, higher than the broader industrials sector.
Looking at the trend in its profitability, Vishay Precision’s operating margin decreased by 7.2 percentage points over the last five years. This raises questions about the company’s expense base because its revenue growth should have given it leverage on its fixed costs, resulting in better economies of scale and profitability.
This quarter, Vishay Precision generated an operating margin profit margin of 1.3%, in line with the same quarter last year. This indicates the company’s cost structure has recently been stable.
Earnings Per Share
We track the long-term change in earnings per share (EPS) for the same reason as long-term revenue growth. Compared to revenue, however, EPS highlights whether a company’s growth is profitable.
Sadly for Vishay Precision, its EPS declined by 16.2% annually over the last five years while its revenue grew by 2.6%. This tells us the company became less profitable on a per-share basis as it expanded due to non-fundamental factors such as interest expenses and taxes.
Diving into the nuances of Vishay Precision’s earnings can give us a better understanding of its performance. As we mentioned earlier, Vishay Precision’s operating margin was flat this quarter but declined by 7.2 percentage points over the last five years. This was the most relevant factor (aside from the revenue impact) behind its lower earnings; interest expenses and taxes can also affect EPS but don’t tell us as much about a company’s fundamentals.
Like with revenue, we analyze EPS over a shorter period to see if we are missing a change in the business.
For Vishay Precision, its two-year annual EPS declines of 50.2% show it’s continued to underperform. These results were bad no matter how you slice the data.
In Q4, Vishay Precision reported adjusted EPS of $0.07, up from $0.03 in the same quarter last year. Despite growing year on year, this print missed analysts’ estimates. Over the next 12 months, Wall Street expects Vishay Precision’s full-year EPS of $0.54 to grow 96.3%.
Key Takeaways from Vishay Precision’s Q4 Results
We enjoyed seeing Vishay Precision beat analysts’ revenue expectations this quarter. On the other hand, its EBITDA missed and its EPS fell short of Wall Street’s estimates. Overall, this quarter could have been better. The stock traded down 5.2% to $50.84 immediately after reporting.
Vishay Precision’s latest earnings report disappointed. One quarter doesn’t define a company’s quality, so let’s explore whether the stock is a buy at the current price. What happened in the latest quarter matters, but not as much as longer-term business quality and valuation, when deciding whether to invest in this stock. We cover that in our actionable full research report which you can read here (it’s free).
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