Slides
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November 4, 2025 3Q25 Earnings Call
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PERFORMANCE THROUGH PRECISION From time to time, information provided by us, including, but not limited to, statements in this presentation, or other statements made by or on our behalf, may contain or constitute "forward-looking" information within the meaning of the Private Securities Litigation Reform Act of 1995. Such statements involve a number of risks, uncertainties, and contingencies, many of which are beyond our control, which may cause actual results, performance, or achievements to differ materially from those anticipated. Such statements are based on current expectations only, and are subject to certain risks, uncertainties, and assumptions. Should one or more of these risks or uncertainties materialize, or should underlying assumptions prove incorrect, actual results may vary materially from those anticipated, expected, estimated, or projected. Among the factors that could cause actual results to materially differ include: general business and economic conditions; significant developments from the recent and potential changes in tariffs and trade regulation; impact of inflation; potential issues respecting the United States federal government debt ceiling; global labor and supply chain challenges; difficulties or delays in identifying, negotiating and completing acquisitions and integrating acquired companies; the inability to realize anticipated synergies and expansion possibilities; difficulties in new product development; changes in competition and technology in the markets that we serve and the mix of our products required to address these changes; changes in foreign currency exchange rates; political, economic, and health (including pandemics) instabilities; instability or disruption caused by military hostilities in the regions or countries in which we operate (including Israel); difficulties in implementing our cost reduction strategies, such as underutilization of production facilities, labor unrest or legal challenges to our lay-off or termination plans, operation of redundant facilities due to difficulties in transferring production to achieve efficiencies; compliance issues under applicable laws, such as export control laws, including the outcome of our voluntary self-disclosure of export control non-compliance; our ability to execute our corporate strategy and business continuity, operational and budget plans; and other factors affecting our operations, markets, products, services, and prices that are set forth in our Annual Report on Form 10-K for the fiscal year ended December 31, 2024. We caution you not to place undue reliance on forward-looking statements, which speak only as of the date of this report or as of the dates otherwise indicated in such forward-looking statements. We undertake no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events, or otherwise. Non-GAAP Measures This presentation includes discussion of adjusted free cash flow, adjusted gross profit and adjusted operating income and their corresponding margins, as well as adjusted net earnings, EBITDA, adjusted EBITDA, and adjusted net diluted earnings per share. These are financial measures that were not prepared in accordance with generally accepted accounting principles in the United States (non-GAAP measures). 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. The adjustments to the applicable GAAP measures relate to occurrences or events that are outside of our core operations, and management believes that the use of these non-GAAP measures provides a consistent basis to evaluate our operating profitability and performance trends across comparable periods. These reconciling items are indicated on the accompanying reconciliation schedules and are more fully described in VPG’s financial statements presented in our Annual Report on Form 10-K and its Quarterly Reports on Forms 10-Q. 2 SAFE HARBOR STATEMENT
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PERFORMANCE THROUGH PRECISION 3 FISCAL THIRD QUARTER 2025 HIGHLIGHTS Financial • 3Q25 revenue of $79.7 million increased 6.1% sequentially. • Orders of $79.7 million were approximately even with 2Q25 reflecting a mixed, but stable economic environment. • Book-to-bill of 1.00 was the fourth consecutive quarter of BTB’s of 1.00 or more. Sensors and Measurement Systems segments achieved book-to-bill ratios of 1.07 and 1.04, respectively. • Weighing Solutions segment achieved a record gross margin. • 3Q25 adjusted net earnings per diluted share of $0.26 grew from $0.17 in 2Q25. • We generated solid cash flow. Adjusted EBITDA of $9.2 million or 11.5% of revenue. $75.7 $72.7 $71.7 $75.2 $79.7 3Q24 4Q24 1Q25 2Q25 3Q25 VPG Consolidated Revenue $68.6 $72.4 $74.4 $79.9 $79.7 3Q24 4Q24 1Q25 2Q25 3Q25 VPG Consolidated Bookings Book-to-Bill 0.91 1.00 1.04 1.06 1.00 Amounts in $ millions Amounts in $ millions
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PERFORMANCE THROUGH PRECISION SENSORS – SALES & BOOKINGS $25.2 $25.8 $27.1 $26.6 $31.6 3Q24 4Q24 1Q25 2Q25 3Q25 Sensors Segment Revenue $25.1 $26.9 $28.7 $29.8 $33.8 3Q24 4Q24 1Q25 2Q25 3Q25 Sensors Segment Bookings Book-to-Bill 0.90 0.89 1.04 1.12 1.07 Highlights: • Sensors 3Q25 sales grew 19.1% sequentially, primarily reflecting higher sales of precision resistors in the Test & Measurement and AMS markets and higher sales of strain gages in the General Industrial market. • Sequentially, orders grew 13.5% to the highest quarterly level in 3 years. The bookings growth was driven by higher demand for precision resistors in semiconductor test applications and project timing for defense systems. • Sensors’ book-to-bill was 1.07. • Received $1.8 million from July through October 2025 for follow-on orders related to two ongoing Humanoid robot applications. Amounts in $ millions Amounts in $ millions 4
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PERFORMANCE THROUGH PRECISION WEIGHING SOLUTIONS – SALES & BOOKINGS $25.2 $25.7 $26.4 $29.4 $27.5 3Q24 4Q24 1Q25 2Q25 3Q25 Weighing Solutions Segment Revenue $25.2 $28.9 $26.2 $27.2 $24.5 3Q24 4Q24 1Q25 2Q25 3Q25 Weighing Solutions Segment Bookings Book-to-Bill 1.00 1.12 0.99 0.92 0.89 Highlights: • 3Q25 revenues declined 6.4% sequentially but grew 9.4% from the prior year. • The sequential decline was primarily due to lower sales in the Transportation market and in Other Markets to OEM manufacturers of construction and precision agriculture equipment. • Orders decreased 9.7% sequentially and resulted in a book-to-bill of 0.89. Bookings were lower in Transportation and precision ag. • Gross margin of 40.3% reached another record despite sequentially lower revenues, reflecting the benefit of long-term cost reduction and operational efficiency programs. Amounts in $ millions Amounts in $ millions 5
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PERFORMANCE THROUGH PRECISION MEASUREMENT SYSTEMS – SALES & BOOKINGS $22.4 $21.2 $18.2 $19.2 $20.6 3Q24 4Q24 1Q25 2Q25 3Q25 Measurement Systems Segment Revenue $18.2 $16.6 $19.5 $23.0 $21.4 3Q24 4Q24 1Q25 2Q25 3Q25 Measurement Systems Segment Bookings Book-to-Bill 0.82 0.78 1.07 1.20 1.04 Highlights: • 3Q25 revenues grew 7.3% sequentially but were 8.0% lower from the prior year. • The sequentially higher revenue was primarily due to higher sales in the Steel Market, which offset lower sales to the AMS market. • Book-to-bill was 1.04 as orders of $21.4 million declined 6.9% sequentially. Bookings reflected softness in DTS orders due to pushouts of defense and avionics projects. • We announced in September a beta test of our new UHTC ceramics test tool with Stoney Brook University in NY, which is the second university to test this new system. Amounts in $ millions Amounts in $ millions 6
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PERFORMANCE THROUGH PRECISION Business Development • Orders for business development initiatives year-to-date were approximately $26 million, which is on track for FY25 goal. Cost Controls and Operational Excellence • Completed sale of building for $10.8 million as part of continued manufacturing consolidations and relocations • Targeted annual fixed cost reductions of $5 million on track. M&A • Continue to look for attractive, high-quality businesses to add to VPG platform. 2025 PRIORITIES - UPDATE 7 To enable accelerated growth through streamlining cross-divisional processes, VPG added two new C-Suite positions: • Chief Business and Product Officer, responsible for sales, marketing, product strategy, and business development. • Chief Operating Officer, responsible for overseeing and integrating the company’s operations, including quality management and supply chain optimization across all manufacturing sites.
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PERFORMANCE THROUGH PRECISION FINANCIALS – GROSS MARGIN Revenue 3Q25 2Q25 Comments Gross Profit Margin by Segment: Sensors – Adjusted: Weighing Solutions – Adjusted: Measurement Systems: $79.7 Revenue in $ millions 33.7% 40.3% 51.1% Gross Profit Margin Consolidated: 40.3% Adjusted Gross Profit Margin Consolidated: 40.5% Primarily due to volume and tariff-related net price adjustments, partially offset by decrease in inventories, unfavorable foreign exchange rates Reflects tariff-related net price adjustments, and cost reductions, partially offset by lower volume. Primarily reflects unfavorable product mix.. 8 $75.2 32.2% 40.2% 54.6% 40.7% 41.0% Consolidated adjusted gross margin impacted by unfavorable F/X and unfavorable product mix.
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PERFORMANCE THROUGH PRECISION FINANCIALS – INCOME STATEMENT Revenue 2Q25Amounts in $ millions, expect margin and per share data Gross Profit Margin: Adjusted Gross Profit Margin : Selling, General, and Admin. Expenses: Operating Income*: Operating Margin: Adj. Operating Income: Adj. Operating Margin: Net Earnings**: Net Earnings per diluted share**: Adjusted Net Earnings**: Adjusted Net Earnings per diluted share**: * 3Q25 reported operating income includes $5.5 million gain from sale of building.. Operational Tax Rate: 3Q25 $79.7 40.3% 40.5% $27.3 $10.2 12.7% $5.0 6.2% $7.8 $0.58 $3.5 $0.26 26% ** Attributable to VPG shareholders. 9 $75.2 40.7% 41.0% $27.7 $2.7 3.6% $3.6 4.8% $0.3 $0.02 $2.3 $0.17 31%
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PERFORMANCE THROUGH PRECISION FINANCIALS – CASH FLOW / BALANCE SHEET 3Q25 2Q25Amounts in $ millions, expect margin and per share data EBITDA: $14.2 Adjusted EBITDA: $9.2 Cash From Operations: ($1.3) Adj. Free Cash Flow*: $7.4 Total Assets: $462.3 Total Long-term Debt: $20.6 Total Liabilities: * Free cash flow defined as cash from operating activities less capital expenditures plus proceeds from the sales of assets. Purchased Capital Expenditures $2.2 $86.3Cash and Cash Equivalents $124.6 In 3Q25, VPG completed the sale of a building, as part of ongoing cost reduction and efficiency initiatives. The net proceeds of $10.8 million was used to pay down our outstanding bank revolver balance, which is expected to save approximately $660 thousand in annual interest expense. 10 $5.2 $7.9 $6.0 $4.7 $1.3 $90.4 $465.6 $31.5 $90.4 $134.3
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PERFORMANCE THROUGH PRECISION 11 Q&A 11
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PERFORMANCE THROUGH PRECISION 12 Appendix 12
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PERFORMANCE THROUGH PRECISION Consolidated Revenue by Market THIRD QUARTER 2025 MARKET TRENDS $14.4 $11.8 $5.7 $9.1 $14.7 $7.3 $16.8 $14.8 $8.9 $4.3 $9.5 $15.5 $7.3 $14.9 $13.2 $9.5 $5.3 $8.2 $15.4 $5.4 $14.7 0.0 2.0 4.0 6.0 8.0 10.0 12.0 14.0 16.0 18.0 Other Markets Steel General Industrial Industrial Weighing Transportation Avionic, Military & Space Test & Measurement 1Q25 2Q25 3Q25 Amounts in $ millions 13
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PERFORMANCE THROUGH PRECISION 14 Reconciliation of Adjusted Gross Profit, Operating Income, Net Earnings and Diluted Earnings Per Share - Quarter 14
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PERFORMANCE THROUGH PRECISION 15 Non-GAAP Reconciliation – EBITDA and Adjusted EBITDA - QTR 15
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PERFORMANCE THROUGH PRECISION 16 Reconciliation of Adjusted Gross Profit by Segment 16
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PERFORMANCE THROUGH PRECISION • Climate Risk Assessment • Greenhouse Gas Goals/Target Setting Projects Underway: VPG Sustainability Key Past Milestones: • Updated ESG Website with 2024 Data • Published Corporate Social Responsibility, Customer Safety and Health and Product Use and End of Life Policies • Published energy management and water use reduction targets • Launched initial Sustainability Report 19