What Vishay Precision Group, Inc. told the SEC could break it.

Although most materials in VPG's products are available from multiple sources, certain materials are available only from a relatively limited number of suppliers, and the most highly specialized materials for its sensors are sourced from a single vendor; it mitigates this with safety-stock inventory of critical materials, but loss of that sole vendor or a supply interruption could disrupt sensor manufacturing.

“Some of the most highly specialized materials for our sensors are sourced from a single vendor. We maintain a safety stock inventory of certain critical materials at our facilities.”

VPG's products use metallic foil alloys, aluminum, stainless steel, tool steel, plastics and (for some products) gold, and certain metals trade on active markets subject to significant price volatility; it estimates a 10% increase/decrease in commodity-priced raw-material costs would change net earnings by ~$1.1 million, and in periods of declining prices it may have to record losses on adverse purchase commitments.

“We estimate that a 10% increase or decrease in the costs of raw materials subject to commodity price risk would decrease or increase our net earnings by $1.1 million and $1.0 million for the years ended December 31, 2025 and December 31, 2024, respectively”

VPG has principal manufacturing facilities and operations in Israel (plus the U.S., Canada, India, Germany, Japan, Sweden, UK, China, Taiwan and France), with ~84% of employees outside the U.S. and 31% of cash held in Israel; its Israel operations are directly exposed to Middle East political, economic and military instability, which could disrupt its ability to manufacture and ship, concentrating geopolitical risk.

“We have principal manufacturing facilities and operations located in Israel. Accordingly, our business is directly influenced by the political,”

With manufacturing operations in India, China, Japan, Europe, Canada, Israel and the U.S., VPG is exposed to tariffs and trade restrictions — new tariffs announced beginning Q2 2025 on U.S. imports, plus reciprocal tariffs and retaliatory measures by other countries — that could raise costs on its products, customers and suppliers and impair its access to raw materials, materially harming revenues and results.

“Beginning in the second quarter of 2025, new tariffs were announced on imports into the U.S. In response several countries have imposed reciprocal tariffs on import from the U.S. and other retaliatory measures.”