Vishay Precision Group, the precision-measurement manufacturer headquartered on Duportail Road in Chesterbrook along the Route 202 corridor, booked a record $95.5 million in orders last quarter as artificial intelligence and data-center customers drove demand to new highs. But a $3.3 million hit from unfavorable foreign-exchange swings turned what would have been a modest profit into a $1.7 million net loss.

The results, reported Aug. 5, cover VPG's fiscal second quarter ended July 4. Net revenue rose 11.7% year-over-year to $83.9 million, up from $75.2 million in the same period of 2025.

CEO Ziv Shoshani pointed to record quarterly orders for precision resistors serving AI-related semiconductor, data center, aerospace and defense applications. The book-to-bill ratio hit 1.14, marking the seventh consecutive quarter at or above 1.0, meaning VPG is taking in more work than it ships.

"I believe we would be able to support thousands of bots per week once we get the orders," Shoshani said during the Aug. 5 earnings call, referring to a humanoid-robotics customer whose identity VPG has not disclosed.

VPG received a formal vendor nomination letter from that customer during the quarter and expects to support a production ramp in the second half of 2026. The customer plans to scale from tens of robots per week to hundreds and eventually thousands by year-end, according to Yahoo Finance. VPG has already hired staff, invested in equipment and ordered raw materials. Humanoid-related bookings totaled about $500,000 in the quarter, with $320,000 in revenue. VPG is also providing prototypes to a third and fourth humanoid customer.

Currency headwinds erase profit

Despite the top-line growth, VPG swung from net income of $300,000 a year earlier to a net loss of $1.7 million, or 13 cents per diluted share. Foreign-exchange movements accounted for $3.3 million of the damage compared with the prior-year quarter, myChesco reported.

Gross margin narrowed to 38.6% from 40.7%, and operating margin fell to negative 0.4%. About $3 million in delayed shipments from VPG's steel-related KELK systems business, caused by problems during a new ERP system rollout, also weighed on results. Those orders remain in backlog and are expected to ship by year-end.

VPG's stock dropped roughly 27% on Aug. 5, closing near $77, as investors focused on the earnings miss.

Cost cuts and outlook

VPG, which has more than 2,000 employees worldwide including several hundred in the United States, said it remains on track to deliver approximately $6 million in cost savings this year as part of a three-year plan targeting $20 million in total reductions. The company achieved nearly $1 million in savings during the quarter.

For the fiscal third quarter, VPG guided revenue of $84 million to $89 million at constant exchange rates. Chief financial officer William Clancy described the full-year outlook as double-digit revenue growth, and Shoshani indicated organic growth could exceed the 8% to 10% range in VPG's three-year model.

VPG ended the quarter with $75.7 million in cash after paying down $5 million of debt, leaving a net cash position of $60 million.