Vishay Precision Group, Inc. (VPG): Business Model Canvas [Dec-2025 Updated]

You're trying to map out a business that thrives on being indispensable, the kind of company whose components are specified years before a product ships. That's Vishay Precision Group, Inc. (VPG): they sell ultra-high precision measurement, built on their unique foil technology, serving everyone from defense contractors to emerging humanoid robot developers. To be fair, their Q3 2025 results show this strategy works, with Sensors hitting $31.6 million and the whole operation backed by $65.8 million in net cash. This Business Model Canvas distills how they manage their key activities and lock in those deep, long-term customer relationships-dive in to see the full structure.

Vishay Precision Group, Inc. (VPG) - Canvas Business Model: Key Partnerships

You're looking at the structure of how Vishay Precision Group, Inc. builds value through its external relationships as of late 2025. This is where the rubber meets the road for their specialized measurement and sensing technologies.

Strategic alliances with humanoid robot developers

Vishay Precision Group, Inc. is actively engaging with developers in the emerging humanoid robotics space, securing initial revenue from these nascent relationships. The focus here is on integrating high-precision sensing into next-generation platforms.

• Year-to-date orders related to the humanoid project totaled $3.6 million.
• From July to October 2025, $1.8 million in orders were received from two developers.
• This included $600,000 in October prototype orders for the second customer.

Key OEM manufacturers for design-in solutions

Design-in wins with Original Equipment Manufacturers (OEMs) are critical, though some areas showed near-term softness. The OEM business generally encompasses precision agriculture and construction sectors, which experienced a slowdown.

• The Weighing Solutions segment saw order softness from transportation, construction, and precision agricultural equipment markets, with its book-to-bill ratio at 0.89.
• The Sensors segment, however, showed strength, with revenue up 19.1% sequentially, driven by higher sales for test and measurement and general industrial markets.

Defense and aerospace prime contractors (AMS market)

The Avionics, Military & Space (AMS) market is a core area where Vishay Precision Group, Inc. components provide stability for critical systems, from aircraft to satellites. Delays in government projects did impact one segment, showing the dependency on timely contract execution.

• The Avionics, Military & Space market represented 16% of Vishay Precision Group, Inc.'s total consolidated revenue of $307 million in Fiscal Year 2024.
• Measurement Systems bookings decreased 6.9% sequentially due to delays related to defense and space government projects.
• Management noted that the effect of a US government shutdown would be at least in the hundreds of thousands of dollars on the DPS product line within the Measurement Systems division.

Vishay Precision Group, Inc. enables business partners to produce products and systems that make the world safer, smarter, and more productive.

Specialized distributors for global market reach

Global reach relies on established distribution networks that handle the logistics and sales of specialized electronic components. Major distributors carry Vishay components, supporting the supply chain for high-reliability applications.

The table below summarizes the financial context around key operational areas as of the third quarter of Fiscal Year 2025.

Technology partners for advanced ceramics testing

While specific public data on advanced ceramics testing partners isn't detailed, the company's strength in high-precision sensor & components that measure stress, strain, & electrical current, along with specialized measurement systems for materials development, implies deep technical collaboration within high-reliability sectors like defense and avionics.

• The Sensors segment achieved its highest bookings level in twelve quarters, with a book-to-bill of 1.07.
• The company focuses on deep tech expertise and deep engineering expertise to customize solutions.

Finance: draft 13-week cash view by Friday.

Vishay Precision Group, Inc. (VPG) - Canvas Business Model: Key Activities

You're looking at the core actions Vishay Precision Group, Inc. (VPG) takes to deliver its value proposition, grounded in the latest numbers from their fiscal 2025 third quarter ending September 27, 2025.

Manufacturing of proprietary foil resistors and strain gages

The manufacturing backbone is clearly visible in the Sensors segment performance. This segment, which houses the production of precision resistors and strain gages, is a key driver of recent top-line improvement. Net revenues for the Sensors segment in the third fiscal quarter of 2025 hit $31.6 million. That's a solid jump, representing a 19.1% sequential increase and a 12.1% year-over-year growth. This growth was mainly fueled by increased sales of precision resistors in the Test and Measurement and AMS markets, along with higher strain gage sales in the General Industrial market. The segment's gross profit margin for the quarter was 33.6%. The book-to-bill ratio for Sensors was strong at 1.07, signaling that demand outpaced current shipments. It's definitely the growth engine right now.

Here's a quick look at how the segments stacked up in Q3 2025 revenue:

Research and development (R&D) for new sensor applications

While specific R&D spending figures for 2025 aren't explicitly broken out in the latest release, the focus on new applications is clear. Historically, rising expenses in areas like R&D have been noted as contributing to margin pressure over the past five years. However, the activity shows up in new product adoption. For instance, the company secured an order from Stoney Brook University for the beta of their new UHTC system (Ultra-High Temperature Ceramic system). This specialized system is designed for testing nonconductive materials used in demanding fields like hypersonic missiles and avionics. Also, management continues to highlight progress in emerging areas like humanoid robotics.

Execution of operational efficiency and cost reduction programs

Vishay Precision Group, Inc. is actively working to improve profitability through efficiency. Management expects to realize a minimum of $5 million in additional annualized cost reductions by the end of 2025, building on the $5 million in net savings achieved through cost initiatives in 2024. A tangible execution of this was the sale of a building in July 2025, which brought in $10.8 million in proceeds and supported an $11 million debt paydown. These efforts are translating to better margins:

• Consolidated Gross Profit Margin (Adjusted): Increased to 40.5% in Q3 2025 from 40.0% in Q3 2024.
• Consolidated Operating Margin (Adjusted): Improved to 6.2% in Q3 2025 from 5.2% in Q3 2024.

Operational efficiency is definitely helping the bottom line.

Strategic mergers and acquisitions (M&A) as a growth lever

M&A remains a stated key complement to the organic growth strategy, supported by a strong balance sheet. The company is looking to pursue larger businesses with established brands and clear growth potential. The most recent quantified acquisition mentioned was Nokra in September 2024. Management confirmed they continue to look for attractive M&A opportunities throughout 2025.

Business development to secure new orders (e.g., $26 million YTD Q3 2025)

Securing new business is a critical activity, and the numbers show progress here. Through the first 9 months of 2025, Vishay Precision Group, Inc. generated approximately $26 million in business development orders. This activity puts them on track to achieve their stated goal of $30 million for the full year 2025. Overall order flow was stable in Q3 2025, with total bookings at $79.7 million, matching the second quarter. This resulted in a consolidated book-to-bill ratio of 1.00, marking the fourth consecutive quarter at or above this level. Specifically, the company noted approximately $3.6 million in year-to-date orders related to humanoid projects.

Here are the segment book-to-bill ratios for Q3 2025:

• Sensors segment: 1.07
• Measurement Systems segment: 1.04
• Weighing Solutions segment: 0.89

Finance: review the Q4 2025 pipeline against the $30 million business development goal by next Tuesday.

Vishay Precision Group, Inc. (VPG) - Canvas Business Model: Key Resources

You're looking at the core assets Vishay Precision Group, Inc. (VPG) relies on to deliver its precision measurement and sensing solutions. These aren't just line items on a balance sheet; they are the proprietary knowledge and physical assets that create their market advantage.

Proprietary foil resistor and strain gage technology

Vishay Precision Group, Inc. (VPG) is a market leader in Foil Technology Products, built upon innovations in precision foil resistors and foil strain gages. These technologies form the bedrock of the Company's Force Sensors Products and its Weighing and Control Systems. The Bulk Metal® Foil (BMF) technology, invented by Dr. Felix Zandman in 1962, continues to outperform other resistor technologies for applications demanding precision, stability, and reliability.

The technology portfolio includes:

• Foil resistors, which are the most precise and stable type available.
• Foil strain gages, resistive sensors attached to an object's surface to determine strain.
• MRF-Series modules using foil resistor technology for reliable strain gage sensor results.

Specialized global manufacturing and production facilities

Vishay Precision Group, Inc. (VPG) supports its product lines with specialized facilities and rigorous quality systems. The manufacturing and testing infrastructure maintains qualifications to a wide range of specifications vital for key end markets.

Quality management systems across VPG facilities are certified to multiple standards:

• ISO 9001 International Standard
• AS 9100 Aerospace Standard
• IATF 16949 Automotive Quality Management Standard
• ISO/IEC 17025 International Standard
• MIL-STD-790 Established Reliability and High Reliability Qualified Products List

Strong net cash position of $65.8 million (end of Q3 2025)

The balance sheet strength provides operational flexibility and supports the growth strategy. Here's a look at the key financial figures from the end of the third fiscal quarter of 2025.

Here's the quick math: The net cash position of $65.8 million is derived from the $86.3 million cash balance less the $20.5 million in long-term debt. That's a solid foundation, so.

Highly specialized engineering and technical talent

Vishay Precision Group, Inc. (VPG) relies on its engineering and technical teams to maintain and advance its proprietary measurement solutions. This talent pool is integral to supporting customers in niche, industrial applications and developing new technology road maps. For instance, the company is actively supporting its two current humanoid developer customers, having received $1.8 million in orders from July to October 2025 related to these projects.

Intellectual property portfolio protecting precision measurement solutions

The success of Vishay Precision Group, Inc. (VPG) is highly dependent on maintaining its intellectual property rights. The company actively seeks to protect its technology by filing patent applications for technology considered important to the business development. While the company holds numerous United States and foreign patents covering certain products and manufacturing processes, it also relies on trade secrets and unpatented know-how to maintain its competitive edge. One example of protected methodology is a patent granted on April 24, 2012, covering a methodology for selecting and properly placing foil strain gages on a transducer.

Vishay Precision Group, Inc. (VPG) - Canvas Business Model: Value Propositions

You're looking at how Vishay Precision Group, Inc. (VPG) delivers unique value to its customers by leveraging deep engineering expertise across its segments. The core value rests on providing measurement and sensing solutions where accuracy, stability, and reliability are non-negotiable.

The financial performance in the third fiscal quarter of 2025 underscores the market's reliance on these specialized offerings, with net revenues reaching $79.7 million, a 5.3% increase compared to the prior year period. The company maintained a solid book-to-bill ratio of 1.00 in Q3 2025, marking the fourth consecutive quarter at or above 1.00, which signals sustained demand for their value proposition.

Here's a quick look at the segment revenue performance supporting these value drivers in Q3 2025:

The company's strong balance sheet, with a net cash position of $66 million as of Q3 2025, helps ensure they can continue delivering on these complex, long-term value promises.

Ultra-high precision and stability in measurement solutions

Vishay Precision Group, Inc. (VPG) provides components where drift and error are unacceptable. The value here is in the inherent stability of the core technology, resistive foil.

• VPG Foil Resistors products are marketed as the most precise and stable resistors available.
• Alpha Electronics components are recognized worldwide for their accuracy and reliability in metrology applications.
• These components are specified for use in high-precision areas like medical testing equipment and precision measuring instruments.

Custom-designed-in components for critical OEM applications

You aren't just buying a part; you're getting an engineered solution tailored to your system's unique constraints. This deep engineering partnership is a key value driver, especially in the Sensors segment, which saw revenue of $31.6 million in Q3 2025.

VPG Foil Resistors engineers work directly with clients to define specifications for custom resistor assemblies, considering factors such as:

• Resistance value and tolerance.
• Temperature coefficient and power rating.
• Specific environmental factors of the intended system.

These custom solutions are critical for OEM applications spanning several demanding sectors, including:

• Aerospace and defense systems.
• Medical devices and equipment.
• Automotive electronics.

High-performance sensors for extreme environments (e.g., space)

The ability to maintain performance under harsh physical or thermal stress is a distinct value proposition, particularly evident in the Measurement Systems segment, which includes DTS products engineered for extreme test environments.

Specific examples of this capability include:

• DTS rugged data acquisition systems used in automotive safety testing worldwide.
• KELK high-accuracy sensors designed to withstand the most demanding, harsh conditions of steel rolling mills.
• VPG Foil Resistors offering Space Qualified Resistors.

Integrated weighing and force measurement systems

The Weighing Solutions segment delivered $27.5 million in revenue in Q3 2025, showing year-over-year growth of 9.4%, which points to strong demand for integrated systems. This value is built on combining world-class brands like Tedea-Huntleigh, Sensortronics, Revere, and Celtron under VPG Force Sensors.

A notable technological value-add is the vLite technology, which enables the creation of best-in-class load cells that are:

Enabling technology for emerging markets like humanoid robotics

Vishay Precision Group, Inc. (VPG) is actively positioning its precision sensing technology to support next-generation platforms. The CEO specifically mentioned encouragement from business development initiatives in this area.

The company's sensors and force measurement expertise are seen as enabling technology for:

• Humanoid robots.
• Increasing the efficiency of new generations of products, such as electric bikes, through force sensors.

Finance: review Q3 2025 segment margins against the 6.2% Q3 2025 adjusted operating margin target by next Tuesday.

Vishay Precision Group, Inc. (VPG) - Canvas Business Model: Customer Relationships

You're looking at how Vishay Precision Group, Inc. (VPG) structures its interactions with customers as of late 2025. It's clear they are leaning heavily on high-touch, technical relationships, especially as they push into new, high-value areas.

Executive-level oversight via new Chief Business and Product Officer

The relationship structure got a direct executive focus in November 2025 with the appointment of Yair Alcobi as Chief Business and Product Officer. This role is designed to accelerate growth by directly overseeing sales, marketing, product strategy, and business development, ensuring customer-facing strategy is tightly integrated with product roadmaps. This move suggests a commitment to streamlining cross-divisional processes to better serve customer needs.

Dedicated business development for new applications

Vishay Precision Group, Inc. is actively generating new business through focused development efforts. Through the first nine months of fiscal 2025, the company generated approximately $26 million in business development orders. This performance puts Vishay Precision Group, Inc. on track to achieve its stated goal of $30 million in business development orders for the full year 2025. This number quantifies the success of dedicated outreach into new market spaces.

Deep, long-term technical engagement (design-in model)

The design-in model is evidenced by success in emerging, technically demanding sectors. For instance, in the humanoid robot opportunities, Vishay Precision Group, Inc. secured an additional order exceeding $1 million from an initial customer, plus an initial prototype order from a second potential customer. The company estimates the value per robot at $500 to $1,200, with tens of sensors required per unit, showing deep integration into the customer's final product architecture. This long-term engagement is also visible in the Sensors segment, which posted Q3 2025 revenue of $31.6 million, up 12.1% year-over-year, driven by strong demand from semiconductor equipment makers.

Technical support and application engineering services

The investment in customer-facing functions is substantial, supporting the complex nature of their offerings. Selling, general and administrative expenses for the third quarter of 2025 were $27.2 million, representing 34.2% of that quarter's revenues. This overhead supports the necessary application engineering and technical support required for high-precision systems, which is critical for maintaining customer satisfaction and securing repeat business in markets like Test and Measurement.

Direct sales force for complex, high-value systems

The structure relies on a direct sales approach for complex systems, which is reflected in the segment performance. The Measurement Systems segment, which deals with high-value systems, reported Q3 2025 revenue of $20.6 million. While this segment saw an 8.0% year-over-year revenue decrease, the need for a direct, technically proficient sales force remains to navigate the specific requirements of markets like Steel and Avionics, Military and Space ("AMS").

Here's a quick look at the key financial and operational metrics relevant to customer-facing activities in fiscal 2025:

The relationship strategy is clearly focused on deep technical partnership, evidenced by the following:

• The new Chief Business and Product Officer role centralizes oversight for sales and business development, effective November 2025.
• The Sensors segment, which relies on precision resistors and strain gages, showed sequential revenue growth of 19.1% from Q2 2025 to Q3 2025.
• The company is actively pursuing new applications, targeting humanoid robotics with orders already exceeding $1 million.
• The direct sales effort supports complex systems, with the Measurement Systems segment generating $20.6 million in Q3 2025 revenue.

Finance: draft 13-week cash view by Friday.

Vishay Precision Group, Inc. (VPG) - Canvas Business Model: Channels

You're looking at how Vishay Precision Group, Inc. (VPG) gets its high-precision measurement and sensing technologies into the hands of its customers as of late 2025. The channel strategy is clearly segmented, mirroring the company's operational structure, which is smart for managing diverse, technical product lines. The total net revenues for the third fiscal quarter of 2025 hit $79.7 million, showing the scale these channels must manage.

The channel approach is dual-pronged, relying heavily on direct technical engagement for complex sales and leveraging a broader network for standard offerings. The company explicitly uses its sales teams as direct channels, often deploying Field Application Engineers (FAEs) to interface directly with customers. These FAEs are critical for initial design specifications, prototype development, and handling the pricing and delivery of the more non-standard or custom products across the portfolio.

For customers who prefer off-the-shelf solutions, Vishay Precision Group, Inc. relies on its global network of specialized technical distributors and representatives. This is particularly true for products like the standard catalog load cell items, where the distributor network provides the necessary reach and transactional efficiency. This structure helps manage the complexity inherent in selling high-precision gear; you need deep technical knowledge for the custom jobs and broad availability for the standard ones. Honestly, it's a classic approach for specialized industrial tech.

The channel execution is intrinsically tied to the three distinct reporting segments, which is where the revenue actually lands. The performance across these segments dictates the focus and resource allocation for the sales channels in any given quarter. Here's the quick math on the Q3 2025 revenue breakdown:

The Sensors segment was the clear revenue driver in Q3 2025, bringing in $31.6 million, up 12.1% year-over-year, largely due to higher sales of precision resistors and strain gages. This suggests the direct sales channel, likely supported by FAEs targeting Test and Measurement and AMS markets, is highly effective for these high-growth components. The Weighing Solutions segment followed with $27.5 million in revenue, showing a 9.4% increase year-over-year, primarily from the Transportation market.

Direct engagement with defense and government contractors is a crucial, though perhaps less visible, channel component, especially for the Measurement Systems segment, which serves markets like avionics, military, and space. While the Measurement Systems segment revenue was $20.6 million in Q3 2025, down 8.0% year-over-year, the book-to-bill ratio remained strong at 1.04, suggesting future revenue visibility from these high-value, long-cycle customers. The company also noted softness in Dynamic Test Systems (DTS) orders due to pushouts of defense and avionics projects, which directly impacts this specific channel.

To support all these interactions, Vishay Precision Group, Inc. maintains its digital presence through company-owned websites and technical application portals. These platforms serve as essential self-service and lead-generation tools. You can see their contact information listed, including the general inquiry email info@vpgsensors.com and the main phone number +1-484-3215300, which funnel inquiries to the appropriate segment or channel partner. These digital assets help qualify leads before the FAEs or distributors get involved, which is defintely a key efficiency play.

The channel strategy, therefore, looks like this:

• Direct Sales (FAEs): Focus on custom, high-specification sales, driving Sensors and specialized Measuring Systems revenue.
• Distributors/Reps: Handle standard catalog items, providing broad market coverage for Weighing Solutions and some Sensors.
• Defense/Govt Engagement: Highly specialized direct sales targeting long-cycle, high-reliability projects within Measurement Systems.
• Digital Channels: Support lead qualification and provide technical documentation for all segments.

Finance: draft Q4 2025 channel effectiveness review by next Tuesday.

Vishay Precision Group, Inc. (VPG) - Canvas Business Model: Customer Segments

You're looking at the customer base for Vishay Precision Group, Inc. (VPG) as of the third quarter of fiscal 2025. The total net revenues for that quarter were $79.7 million.

The Sensors segment, which serves Test and Measurement and AMS contractors, showed significant growth. Third quarter revenue for this segment was $31.6 million, a year-over-year increase of 12.1% from $28.2 million in the third quarter of 2024. This growth was driven by higher sales of precision resistors in Test and Measurement and AMS markets, and strain gages in the General Industrial market.

The Measurement Systems segment revenue for the third quarter of 2025 was $20.6 million. This represented an 8.0% year-over-year decrease from $22.4 million in the third quarter of 2024, primarily due to decreased revenue in the AMS market.

The Weighing Solutions segment revenue in the third quarter of 2025 reached $27.5 million, a 9.4% increase compared to $25.2 million in the third quarter of 2024. This segment's customer base includes Industrial OEMs in transportation and precision agriculture.

Here is a breakdown of the Q3 2025 segment revenue figures:

The focus on advanced technology customers is clear through specific order intake. Vishay Precision Group, Inc. (VPG) reported $1.8 million in humanoid robotics orders from July through October 2025. This brought the year-to-date total for humanoid-related orders to approximately $3.6 million.

The company's overall business development pipeline is also quantified:

• Annual business development order goal for 2025: $30 million.
• Orders generated through the first nine months of 2025: $26 million.

For the broader Industrial OEM and general industrial markets, specific impacts are noted:

• Weighing Solutions sequential revenue decrease was due to lower sales in the Transportation market and in Other Markets for OEM manufacturers of construction and precision agriculture equipment.
• Measurement Systems sequential revenue increase was due to higher sales in the Steel Market.

For Test and Measurement equipment manufacturers, the Sensors segment saw sequential revenue growth of 19.1%, reflecting higher sales of precision resistors in the Test and Measurement market.

Vishay Precision Group, Inc. (VPG) - Canvas Business Model: Cost Structure

The cost structure for Vishay Precision Group, Inc. (VPG) is heavily influenced by the specialized nature of its precision manufacturing and ongoing investment in operational efficiency.

High cost of goods sold (COGS) due to precision manufacturing is inherent to producing high-accuracy measurement and sensing technologies. While the direct COGS figure isn't explicitly provided, the resulting gross profit margin for the third fiscal quarter of 2025 was reported at 40.3%, with an adjusted gross profit margin of 40.5%. This reflects the cost intensity of maintaining the required precision and quality across its product lines, such as foil resistors and strain gages.

Selling, General, and Administrative (SG&A) expenses were a notable component of the cost base. For the third quarter of fiscal 2025, SG&A expenses totaled $27.2 million, which represented 34.2% of revenues for that period. This figure was a sequential decrease from $27.7 million, or 36.9% of revenues, in the second quarter of 2025.

Capital expenditures are directed toward maintaining and upgrading the manufacturing base. The forecast for the full fiscal year of 2025 is $10 million for capital expenditures. For the third quarter of 2025 specifically, CapEx was $2.2 million. Historically, Vishay Precision Group, Inc. invested $53 million in manufacturing upgrades between 2021 and 2023 to enhance operational efficiency.

The company actively manages costs through targeted programs. Vishay Precision Group, Inc. achieved $5 million in net savings through manufacturing efficiencies in 2024 and expected to realize a minimum of $5 million in additional annual cost reductions for 2025. These efforts are part of a broader strategy to improve margins through automation and relocation of production to lower-cost centers.

Research and Development (R&D) investment supports the introduction of innovative products and the automation of manufacturing processes. While specific 2025 R&D expense is not immediately available, historical figures show the expense charged to R&D aggregated $12.1 million for the year ended December 31, 2019. R&D is key to leveraging foil technology in new applications and improving productivity.

Here's a quick look at some of the key cost-related financial metrics:

The company's cost management involves several structural elements:

• Shifting manufacturing emphasis to advanced automation.
• Relocating production to regions with lower labor costs.
• Achieving production cost savings through transfers to countries like India, China, and Israel.
• Implementing efficiency programs to reduce operational costs.

Finance: draft 13-week cash view by Friday.

Vishay Precision Group, Inc. (VPG) - Canvas Business Model: Revenue Streams

You're looking at the hard numbers that drive Vishay Precision Group, Inc.'s top line as of late 2025. Honestly, the revenue picture is clearly segmented, with one area showing significant momentum.

The core revenue generation for Vishay Precision Group, Inc. (VPG) is broken down across its three main operating segments, based on the third fiscal quarter of 2025 results. Total net revenues for that quarter hit $79.7 million.

Here's how the segment performance stacked up for Q3 2025:

The Sensors segment is clearly the growth engine right now. That 19.1% sequential revenue increase was directly tied to specific product lines that leverage VPG's core technology.

The revenue drivers within the Sensors segment include:

• Sales of high-margin proprietary precision resistors.
• Higher sales of strain gages.
• Sales activity in the Test and Measurement and AMS markets.

The proprietary nature of the Bulk Metal® foil technology is key here, as these precision foil resistors and strain gages are recognized as global market leading products based on that invention.

Beyond the established segments, Vishay Precision Group, Inc. is actively pursuing new revenue streams, though their current financial impact is minor compared to the core business. The CEO noted encouragement regarding business development initiatives. Specifically, management is positioning for growth in emerging areas:

• Early orders from humanoid robotics customers have been secured, marking initial stages.
• Management set a target of about $30 million in new orders for fiscal year 2025, with over 50% already booked as of the second quarter.

For context on the trailing twelve months (TTM) as of late 2025, the total revenue was reported around C$0.42 Billion.