Earnings Recap — Q2 FY2026
CY Q3 2026 · Reported August 5, 2026 · Beat 3 of last 6 quarters
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VPG's record sensor orders and elevated backlog underscore sustained demand for precision resistors in semiconductor equipment, data centers, and fiber optics, all critical to AI infrastructure. The company's ability to secure a humanoid robotics vendor nomination signals early monetization of physical AI, a nascent but potentially significant demand driver for precision sensing components.
Q2 revenue was $83.9M, flat sequentially and up 12% YoY, with Sensors up 26% YoY. Orders of $95.5M drove a book-to-bill of 1.14, with Sensors at 1.44. The company received a vendor nomination from its first humanoid robotics customer and expects production ramp in H2. FX was a $0.9M sequential and $3.3M YoY headwind to operating profit. Adjusted EPS was $0.04, missing consensus of $0.19.
Management expects fiscal 2026 organic growth to exceed the 8% to 10% annual growth target outlined in its 3-year plan. Q3 revenue guidance of $84-89M assumes constant FX and excludes tariff refunds. The company expects to ship delayed KELK orders by year-end, with larger output in Q4. Cost savings remain on track at ~$6M for 2026, with price increases expected to contribute in H2. Humanoid robotics ramp is expected to begin in H2 2026, with capacity to support thousands of bots per week.
“Orders were $95.5 million, driven by sustained strength in our Sensors segment and continued demand from AI-related markets.”
on Order momentum
“During the quarter, we received an official vendor nomination letter from our initial humanoid robotics customer. This is an important milestone that positions us to support their expected production ramp beginning in the second half of 2026.”
on Humanoid robotics milestone
“We expect fiscal 2026 organic growth to exceed the 8% to 10% annual growth target outlined in our 3-year plan.”
on Growth outlook
Just curious if you could expand a little bit on that humanoid pipeline, how many engagements you currently have and where that is compared to maybe where you were at the end of 2025?
Ziv detailed the humanoid pipeline: first customer has received vendor nomination with ramp from tens to hundreds/thousands of bots per week by year-end; second customer is reevaluating designs but offered new quoting opportunities; third and fourth customers are receiving prototypes; and a heat map of ~150 potential humanoid suppliers has been identified.
Just to work through a little bit of math. I know there are a couple of items impacting the quarter. But if you strip out the FX, I think it works out, EBITDA would have been like $8.8 million roughly. And then you have to make some assumptions but if you also factor in the ERP delay of like $3 million, that could have got you to like $10-ish million of EBITDA and you expect those orders to be filled by the end of this year. Is that math right?
Ziv confirmed the math, noting FX impact of $900K, unusual product mix of ~$800K, and the $3M KELK delay at a contribution margin, bringing adjusted EBITDA to close to $9M.
Can you talk a little bit about your ability to raise prices considering having higher input costs, both on the material and labor side?
Ziv explained that price increases have been implemented in selective product lines, with benefits expected in H2, initially in the hundreds of thousands of dollars. He noted that price increases only apply to new orders, not existing backlog, limiting near-term impact.