Vishay Precision Group, Inc.

everyone and welcome to the BPG second quarter 2025 earnings call. My name is Ezra and I will be your coordinator today. If you would like to ask a question please press star followed by one on your telephone keypad. If you change your mind please press star followed by two. We will take questions at the end of the presentation. I will now hand you over to our host Steve Cantor, Senior Director of Investor Relations to begin. Please go ahead.

Thank you Ezra and good morning everyone. Welcome to BPG's 2025 second quarter earnings call. Our Q2 press release and slides have been posted on our website at bpgcensors.com. An audio recording of today's call will be available on the internet for a limited time and also can be accessed on our website. Today's remarks are governed by the safe provisions of the 1995 Private Securities Livigation Reform Act. Our actual results may vary from forward-looking statements. For discussion of the risks associated with BPG's operations we encourage you to refer to our SEC filings especially the form 10k for the year ended December 31, 2024 and our other recent SEC filings. On the call today are Zeve Shoshani CEO and President and Bill Clancy CFO. And now I'll turn the call to Zeve for some prepared remarks. Please refer to slide three of the quarterly presentation.

Thank you Steve. I will begin with some commentary on our results and trends for the second quarter. Bill will then provide financial details about the quarter and our outlook for the third quarter of 2025. Moving to slide three. Beginning with revenue, second quarter revenue of $75.2 million grew .8% from the first quarter. We are pleased to report continued positive booking trends across several key markets, reflecting a moderately improved business environment. Our consolidated orders grew .5% sequentially, making the third consecutive quarter of sequential growth. This resulted in a consolidated book to bill of 1.06, with measurement systems and sensor segments reporting a book to bill of 1.2 and 1.12 respectively. Adjusted gross margin improved to 41.0%, driven by sequentially stronger performance across all three business segments. I want to highlight the Wayne Solutions segment in particular, which delivered a record quarterly adjusted gross margin. We continue to advance our business development and cost optimization initiatives. Our operation execution translated into a solid cash generation with $6.0 million in cash from operation and $4.7 million in adjusted free cash flow. Before reviewing our sales and orders performance by division segments, I want to comment on the impact of tariffs on our second quarter results. Tariff changes impacted our gross margin negatively by approximately 500,000 due to the timing of our offsetting price increases. We expect this gap to narrow in the third quarter as our price adjustments become effective. While tariff policies continue to change and are difficult to predict, we are confident in our ability to respond, given our manufacturing footprint, the geographical distribution, and our sales and our deep customer relationships. Moving to slide four. Beginning with our sensor segment, second quarter revenue decreased .8% sequentially, reflecting mixed trends across its market. As higher sales of strangled products were offset by lower sales for precision resistors. Sensors booking rose .7% sequentially, reaching the highest level in six quarters and resulting in a book to bill of 1.12. The bookings growth was driven by higher orders in the test and measurement for precision resistors and higher demand for strangled sensors in AMS and industrial weighing, which was partially offset by lower orders for the test and measurement. For precision resistors, we recorded a $1.5 million of order for fiber optics data center application, and we expect an additional order in Q3. Regarding humanoid robots, from April 2025 through July, we received approximately $1.5 million in follow on orders from our initial humanoid customer. The humanoid robot market is still in its infancy, and the initial real world employment of this robot is expected now in 2026. As the technology and use case continues to develop, we are optimistic about the long term potential for this market. And we focus on high precision, high performance segments of this rapidly evolving market. Moving to slide five, turning to our weighing solution segment. Second quarter sales increased .3% from the first quarter. The increase was driven primarily by higher sales in the transportation and industrial weighing markets, and in our other markets for medical and precision agriculture applications. Weighing solution orders grew .6% sequentially to 27.2 million, resulting in a book to bill of .92. Higher orders for precision agriculture and medical applications and in industrial weighing offset lower orders in the transportation and general industry. Moving to slide six, turning to our measurement system segment. Revenue in the second quarter of 19.2 million increased .1% sequentially. The increase reflected higher sales of DTS data acquisition modules in the AMS market, which offset lower sales to the transportation and field markets. Second quarter measurement systems orders of 23.0 million increased .1% sequentially and resulted in a book to bill of 1.2. Bookings reflected higher demand primarily in the AMS and steel markets. In the current quarter, we expect to complete the beta installation at the University of Alabama of our new UHTC system. This system is designed to perform band testing on non-conductive materials such as ceramics, which are used in critical high-performance applications, such as for hypersonic missiles in aerospace as well as in avionics, energy and industrial applications. We believe our differentiated solution can increase test throughput by 10 folds while testing materials at ultra-high temperature of around 2000 degrees C that is required for these advanced applications. We are now in discussion with the second university regarding beta testing for this system. Moving to slide seven, I would like to provide a brief update on our three top strategic priorities for 2025. First, we are encouraged by our business development initiatives, which generated orders of approximately 17 million to the first half of this year. This puts on track to achieve our goal for 2025 of securing 30 million of orders for either new customers or new applications with existing customers. What is significant is not only the magnitude of these orders but the breadth which runs across our businesses. To support these initiatives, we are continuing to improve our sales processes and systems as well as our use of digital marketing channels. Second, we continue to reduce costs and increase operational efficiencies through product relocation and efficiency improvements. The measure we have taken to the first half of 2025 put us on course to reduce fixed costs by about five million for the full 2025 compared to prior year excluding inflation. These measures entail mainly the consolidated of production and shared services to lower cost countries. Third, we continue to pursue high quality acquisitions to build scale and expand our cash flow. We remain disciplined and patient in our search for the right opportunity. In summary, we are pleased with the positive order trends which have continued for the third consecutive quarter and our ongoing progress with our growth and cost initiatives. Global economic activity has remained stable in 2025 and improved modestly in several areas. Despite the ongoing macro uncertainties due to tariffs, trade policies, and geopolitical tensions, I will now turn it over to Bill Clancy. Bill?