Vishay Precision Group Lands Vendor Nomination From First Humanoid Robotics Customer, Sees Path to Thousands of Units Per Week by Year-End
Q2 2026 earnings call, August 5, 2026
Vishay Precision Group used its second-quarter call to confirm what has become the central thesis for the stock: humanoid robotics is transitioning from a research project to a commercial order book, and VPG says it has a formal vendor nomination letter in hand from its first humanoid customer to prove it. CEO Ziv Shoshani told analysts the customer has indicated a production ramp beginning in the second half of 2026, moving from "tens of bots per week up to hundreds and even thousands per week by the end of the year." The company says it has already hired and trained personnel, made capital investments, and ordered raw materials in anticipation.
Humanoid Pipeline Beyond Customer One Is More Mixed
The nomination letter is the new information, but Shoshani was careful to temper enthusiasm about the broader pipeline when pressed by Jaeson Schmidt of Lake Street. The second humanoid customer has paused to "reevaluate and refine its designs," though VPG has been invited to quote new applications within that redesign. Customers three and four remain at the prototype-supply stage. VPG says it has mapped roughly 150 potential humanoid suppliers on an internal "heat map," with varying degrees of engagement, from advanced conversations to first contact. Second-quarter humanoid bookings were just $500,000 and sales were $320,000, underscoring how early this remains in dollar terms even as the qualification milestone matters strategically. Capacity investment tied specifically to humanoid remains narrowly scoped to the first customer for now. As Shoshani put it, "at this point, the capacity is more designated to this initial customer who have provided us with an indication regarding their future volume for the second half of the year," with further investment contingent on additional orders materializing.
Core AI Infrastructure Demand Remains the Real Growth Engine
Away from the humanoid narrative, the more immediate growth driver continues to be AI-adjacent infrastructure spending across semiconductor equipment, data centers, and fiber optics. Sensors segment bookings hit an all-time quarterly record of $48.1 million, up 6% sequentially, producing a segment book-to-bill of 1.44 and a seventh straight quarter of consolidated book-to-bill at or above 1.0 (1.14 for the quarter). Management specifically cited strong orders for precision resistors sold into semiconductor OEM equipment and custom test systems, along with elevated bookings from long-haul fiber optics transmission equipment makers supporting data center build-outs. Aerospace and defense demand also remained a steady contributor. Sensors segment revenue grew 26% year-over-year to $33.4 million.
Margins Squeezed by FX, Mix and an ERP Misstep
The quarter's financial optics were messier than the order trends suggest. Revenue of $83.9 million was roughly flat sequentially, held back by an approximately $3 million shipment delay at the company's KELK unit tied to a botched ERP implementation that disrupted the supply chain. Management says the issue has been resolved and expects the delayed shipments to ship by year-end. Operating margin was negative 0.4% on a GAAP basis, or a positive 1.7% adjusted, with foreign exchange cutting adjusted operating profit by $900,000 sequentially and $3.3 million year-over-year. CFO Bill Clancy walked analyst Josh Nichols of B. Riley through a bridge showing that stripping out FX, an unusual product mix effect, and the KELK delay would have pushed adjusted EBITDA closer to $9 million against the reported $5.5 million. GAAP net loss was $1.7 million, or $0.13 per diluted share; adjusted EPS was $0.04.
Cost-Cutting Program on Track, Pricing Actions Limited by Backlog
VPG remains on pace for roughly $6 million in cost savings this year as part of a three-year, $20 million restructuring plan focused on manufacturing footprint optimization, automation, and procurement efficiencies. The company banked $1.6 million of savings through the first half. On pricing, Shoshani acknowledged input cost inflation on both labor and materials but said the benefit of recently implemented selective price increases will be constrained near-term because the backlog — which grew to $135.8 million, up $10 million to $11 million sequentially — is largely locked in at prior pricing. He estimated the third-quarter pricing benefit at "hundreds of thousands of dollars and maybe slightly higher," a modest offset given the scale of the backlog.
Weighing Solutions and Measurement Systems Show Divergent, Uneven Trends
The two smaller segments told a more cautious story. Weighing Solutions revenue was roughly flat at $30.3 million, with orders down 13% sequentially to a 0.94 book-to-bill after a strong first quarter; transportation demand weakened on higher oil prices while construction equipment showed resilience in the U.S. and Europe. Gross margin there improved 300 basis points to 37.3% on cost cuts and mix. Measurement Systems orders fell 22% sequentially to about $19 million, reflecting lumpy project timing in the DSI business and a soft global steel market outside the U.S. and India. Shoshani said he expects "an improved business environment in the second half" but cautioned it would not be dramatic "unless interest rates or inflation" move meaningfully lower to spur industrial capital spending.
Balance Sheet and Guidance
VPG ended the quarter with $75.7 million in cash after paying down $5 million of debt, leaving long-term debt at $15.6 million and a net cash position of $60 million. Adjusted free cash flow was negative $1.4 million, an improvement from negative $3.7 million in the first quarter. For the third quarter, management guided revenue to $84 million to $89 million, and reiterated that full-year organic growth should exceed the 8% to 10% target embedded in its three-year plan, supported by strong order trends and elevated backlog. The company also disclosed roughly $1.5 million in third-quarter tariff refunds to customers, which it characterized as profit-neutral.