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VPG *** 1 2Q26 Earnings Call August 5 , 2026 ***
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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; 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 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, laborunrest 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; significant developments from the recent and potential changes in tariffs and trade regulation; our ability to execute our new 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, 2025. 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 SECOND QUARTER 2026 HIGHLIGHTS • Revenue of $83.9 million was approximately flat and grew 12% from the prior year. 2Q26 revenue was impacted mainly by approx. $3 million of delayed shipments due to ERP implementation. • Bookings of $95.5 million, which reflected continuing strong orders in key markets, and backlog of $136 million positions VPG for growth in 2H26. Business development orders were $11.6 million, on target to meet $45 million goal for 2026. • Book-to-Bill of 1.14 marks the 7th consecutive quarter at 1.0 or greater, led by Sensors book-to-bill of 1.44. • 2Q26 operating results were impacted by $3.3 million year over year, and $900K sequentially, due to unfavorable exchange rates. • Paid down $5 million of debt which is expected to result in reduction of interest expense. $75.2 $79.7 $80.6 $84.4 $83.9 2Q25 3Q25 4Q25 1Q26 2Q26 VPG Consolidated Revenue $79.9 $79.7 $81.3 $102.1 $95.5 2Q25 3Q25 4Q25 1Q26 2Q26 VPG Consolidated Bookings Book-to-Bill 1.06 1.00 1.01 1.21 1.14 Amounts in $ millions Amounts in $ millions
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PERFORMANCE THROUGH PRECISION SENSORS – SALES & BOOKINGS 26.6 31.6 30.4 33.3 33.4 2Q25 3Q25 4Q25 1Q26 2Q26 Sensors Segment Revenue 29.8 33.8 35.1 45.2 48.1 2Q25 3Q25 4Q25 1Q26 2Q26 Sensors Segment Bookings Book-to-Bill 1.12 1.07 1.15 1.36 1.44 Highlights: • Sales were even with 1Q26 and grew 26% from the prior year, driven primarily by higher sales of precision resistors in the Test & Measurement and AMS. • Bookings of $48 million grew 6% sequentially and 62% year over year, for a book-to-bill of 1.44 - the highest ever for Sensors. Order strength driven by AI-related demand for precision resistors in semiconductor test and data center/fiber optics. • Continued momentum in Physical AI and humanoid robotics, as VPG received a vendor nomination letter from initial humanoid developer customer. • Booked approximately $500K of humanoid orders and shipped $320K in 2Q26. VPG is adding additional capacity to meet customer-forecasted production demand in 2H26. Amounts in $ millions Amounts in $ millions 4
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PERFORMANCE THROUGH PRECISION WEIGHING SOLUTIONS – SALES & BOOKINGS $29.4 $27.5 $27.7 $30.2 $30.3 2Q25 3Q25 4Q25 1Q26 2Q26 Weighing Solutions Segment Revenue $27.2 $24.5 $28.2 $32.9 $28.6 2Q25 3Q25 4Q25 1Q26 2Q26 Weighing Solutions Segment Bookings Book-to-Bill 0.92 0.89 1.02 1.09 0.94 Highlights: • 2Q26 revenues were flat sequentially and grew 3% from a year ago. Sequentially, higher sales in the Transportation and General Industrial markets and OEM construction offset lower revenue in Industrial Weighing and in our Other markets for precision ag and medical. • Bookings were down 13% sequentially from a strong 1Q26 to normalized levels. Lower orders in the Transportation, Industrial Weighing, and General Industrial markets offset higher orders in Other markets for consumer e-bike applications. Bookings grew 5% from a year ago. • Signs of strengthening demand for construction equipment applications in the US and Europe. • Gross margin of 37.3% improved 300 bps sequentially reflecting cost reductions and favorable mix. Amounts in $ millions Amounts in $ millions 5
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PERFORMANCE THROUGH PRECISION MEASUREMENT SYSTEMS – SALES & BOOKINGS $19.2 $20.6 $22.8 $20.8 $20.2 2Q25 3Q25 4Q25 1Q26 2Q26 Measurement Systems Segment Revenue $23.0 $21.4 $18.1 $23.9 $18.7 2Q25 3Q25 4Q25 1Q26 2Q26 Measurement Systems Segment Bookings Book-to-Bill 1.20 1.04 0.81 1.15 0.93 Highlights: • 2Q26 revenues declined 3% sequentially and grew 5% from the prior year. The sequential 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. • Q2 revenue was reduced by approximately $3 million related to the rollout of a new ERP system; the affected orders remain in backlog and shipments are expected to be completed by year-end. • Orders of $18.7 million declined 22% sequentially, primarily due to the timing of customer projects at DSI. • Demand related to Aerospace and defense test & evaluation continued to be solid. Amounts in $ millions Amounts in $ millions 6
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PERFORMANCE THROUGH PRECISION GROWTH STRATEGY UPDATE • FY26 revenue growth expected to be above long- term 8–10% organic growth target. • Strong order momentum across key growth markets: semiconductors, fiber optics, and aerospace & defense. • Humanoid robotics milestone achieved: Received a vendor nomination letter with initial customer, which is expected to ramp its production in 2H26. • Physical AI opportunity emerging: early technical discussions underway with several potential customers. Current Growth Engines Exposure to AI-related Markets Data Center Buildouts: High-speed Fiber optics demand Humanoid Robot Applications: Ramp of humanoids expected to begin in 2H26 Aerospace & Defense Demand: Increased spending across U.S. and European markets Semi Equipment Upswing: AI-related chips fueling equipment demand
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PERFORMANCE THROUGH PRECISION Scalable Manufacturing Proven ability to deliver precision sensing solutions at scale with world-class quality Strategic Co-Development Deep engagement with customer R&D teams to shape sensing architectures and requirements Rapid Innovation Fast engineering and customization cycles aligned with accelerated market development Trusted Partner Established track record supporting confidential and mission-critical programs Long-Term Stability Strong financial foundation and operational continuity for enduring customer partnerships Precision Leadership Industry-leading foil-based strain gage technology enabling highly accurate and reliable sensing VPG’S POINTS OF LEVERAGE IN HUMANOID ROBOTICS
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PERFORMANCE THROUGH PRECISION FINANCIALS – GROSS MARGIN Revenue 2Q26 1Q26 Comments Gross Profit Margin by Segment: Sensors: Weighing Solutions: Measurement Systems: $83.9 Revenue in $ millions 31.5% 37.3% 52.5% Gross Profit Margin Consolidated: 38.6% Primarily due to unfavorable foreign currency exchange rates and higher materials costs and wage increases. Reflects cost-reduction programs and favorable product mix. Manufacturing efficiencies offset lower volume and unfavorable product mix. 9 $84.4 34.8% 34.2% 52.6% 39.0%
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PERFORMANCE THROUGH PRECISION FINANCIALS – INCOME STATEMENT Revenue 1Q26Amounts in $ millions, expect margin and per share data Gross Profit Margin: Selling, General, and Admin. Expenses: Operating Income: Operating Margin: Adj. Operating Income: Adj. Operating Margin: Net Loss**: Net Loss per diluted share*: Adjusted Net Earnings*: Adjusted Net Earnings per diluted share*: Adj. Tax Rate: 2Q26 $83.9 38.6% $32.0 ($0.3) (0.4%) $1.4 1.7% $(1.7) $(0.13) $0.6 $0.04 44.3% * See reconciliation tables. ** Attributable to VPG shareholders. 10 $84.4 39.0% $32.1 $0.3 0.4% $1.6 1.9% $(0.3) $(0.02) $0.9 $0.07 31.5%
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PERFORMANCE THROUGH PRECISION FINANCIALS – CASH FLOW / BALANCE SHEET 2Q26Amounts in $ millions, expect margin and per share data Adjusted EBITDA: $5.5 Cash From Operations: $0.3 Adj. Free Cash Flow*: $(1.4) Total Assets: $451.3 Total Long-term Debt: $15.6 Total Liabilities: * Free cash flow defined as cash from operating activities less capital expenditures plus proceeds from the sales of assets. Purchased Capital Expenditures $2.0 $75.7Cash and Cash Equivalents $118.7 11 1Q26 $5.9 $(0.6) $(3.7) $453.8 $20.6 $3.0 $82.5 $119.4
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PERFORMANCE THROUGH PRECISION 12 Q&A 12
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PERFORMANCE THROUGH PRECISION 13 Appendix 13
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PERFORMANCE THROUGH PRECISION Reconciliation of Adjusted Gross Profit, Operating Income, Net Earnings and Diluted Earnings Per Share -Quarter
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PERFORMANCE THROUGH PRECISION Non-GAAP Reconciliation EBITDA and Adjusted EBITDA - QTR
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PERFORMANCE THROUGH PRECISION Reconciliation of Adjusted Gross Profit by Segment Fiscal quarter ended In $ thousands except margin data July 4, 2026 June 28, 2025 April 4, 2026 Sensors As reported - GAAP $ 10,523 $ 8,487 $ 11,588 As reported - GAAP Margins 31.5 % 32.0 % 34.8 % Start-up costs — 79 — As Adjusted - Non GAAP $ 10,523 $ 8,566 $ 11,588 As Adjusted - Non GAAP Margins 31.5 % 32.2 % 34.8 % Weighing Solutions As reported - GAAP $ 11,325 $ 11,646 $ 10,340 As reported - GAAP Margins 37.3 % 39.6 % 34.2 % Start-up costs — 178 — As Adjusted - Non GAAP $ 11,325 $ 11,825 $ 10,340 As Adjusted - Non GAAP Margins 37.3 % 40.2 % 34.2 % Measurement Systems As reported - GAAP $ 10,591 $ 10,461 $ 10,946 As reported - GAAP Margins 52.5 % 54.6 % 52.6 % Acquisition purchase accounting adjustments — — — As Adjusted - Non GAAP $ 10,591 $ 10,461 $ 10,946 As Adjusted - Non GAAP Margins 52.5 % 54.6 % 52.6 %
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PERFORMANCE THROUGH PRECISION Consolidated Revenue by Market* QUARTERLY MARKET TRENDS $16.1 $7.3 $6.5 $9.1 $14.7 $11.8 $14.7 $16.4 $7.3 $5.6 $9.3 $14.1 $13.8 $14.1 $17.8 $11.3 $6.4 $9.8 $14.8 $7.9 $16.4 $17.4 $10.4 $6.9 $9.4 $14.7 $10.1 $15.0 0.0 2.0 4.0 6.0 8.0 10.0 12.0 14.0 16.0 18.0 20.0 Test & Measurement Avionics, Military & Space General Industrial Industrial Weighing Transportation Steel Other Markets 3Q25 4Q25 1Q26 2Q26 Amounts in $ millions 14 * Amounts related to humanoid robot customers reclassified to General Industrial from Test & Measurement.
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PERFORMANCE THROUGH PRECISION • Climate Risk Assessment • Sustainability Report 2024-2025 Projects Underway: VPG Sustainability Key Past Milestones: • Greenhouse Gas Goals/Target Setting • 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 15