VPG announced the appointment of Yair Alcobi as Chief Business and Product Officer and the promotion of Rafi Ouzan to Chief Operating Officer, and it released its Q3 2025 earnings on the same day. The new roles are designed to accelerate growth in high‑growth markets such as humanoid robotics and advanced materials testing while streamlining cross‑divisional operations.
The company reported an adjusted diluted earnings per share of $0.26, beating the consensus estimate of $0.21 by 23.8 percent. The earnings beat was driven by disciplined cost management, a favorable product mix that favored higher‑margin Sensors revenue, and a one‑time gain of $5.5 million from the sale of a building that helped offset operating expenses.
Total revenue reached $79.7 million, up 3.4 percent from the $77.03 million consensus estimate and 5.3 percent year‑over‑year. The increase was largely powered by a 12.1 percent rise in Sensors segment revenue, driven by higher sales of precision resistors and strain gauges, while the Measurement Systems segment declined 8.0 percent year‑over‑year. The overall growth reflects a shift toward the company’s high‑margin, high‑growth product lines.
Operating margin expanded to 12.7 percent from 5.1 percent in the same quarter a year earlier, and gross margin held steady at 40.3 percent. The margin improvement resulted from a stronger product mix, effective cost controls, and the one‑time building sale that reduced operating expenses without impacting recurring revenue.
VPG has already realized $4 million of its targeted $5 million fixed‑cost savings for 2025, and management expects to meet the full target by year‑end. For Q4 2025, the company guided revenue between $75 million and $81 million, a range that aligns with analyst expectations and signals confidence in maintaining current performance levels.
CEO Ziv Shoshani said, “We achieved a solid quarter for VPG, as third‑quarter sales grew 6.1 percent sequentially and were up 5.3 percent from the prior year. We have put in place operational and product development capabilities to address faster growing markets. The change to our senior management organization will enable us to accelerate growth by streamlining business cross‑divisional processes in a more efficient way.” He added that the company remains encouraged by its business development initiatives, including opportunities in humanoid robotics.
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