PREFORMED LINE PRODUCTS CO (PLPC)
SIC breadcrumb: Construction > SIC Major Group 16 > SIC 1623 Water, Sewer, Pipeline, Comm & Power Line Construction
SEC company page: https://www.sec.gov/edgar/browse/?CIK=80035. Latest filing source: 0000080035-26-000007.
Selected Fundamentals
| Metric | Value | Unit | FY | Filed |
|---|---|---|---|---|
| Revenue | 669,338,000 | USD | 2025 | 2026-03-05 |
| Net income | 35,283,000 | USD | 2025 | 2026-03-05 |
| Assets | 653,621,000 | USD | 2025 | 2026-03-05 |
Financials
Annual standardized facts from SEC companyfacts as of latest extracted filing date 2026-03-05. Source: https://data.sec.gov/api/xbrl/companyfacts/CIK0000080035.json. Derived margins, ratios, and free cash flow are computed from the extracted annual SEC facts.
| Metric | 2016 | 2017 | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|---|---|---|---|---|---|
| Revenue | 336,634,000 | 378,212,000 | 420,878,000 | 444,861,000 | 466,449,000 | 517,417,000 | 637,021,000 | 669,679,000 | 593,714,000 | 669,338,000 |
| Net income | 15,255,000 | 12,654,000 | 26,581,000 | 23,303,000 | 29,803,000 | 35,729,000 | 54,395,000 | 63,332,000 | 37,094,000 | 35,283,000 |
| Operating income | 21,479,000 | 26,108,000 | 32,934,000 | 32,627,000 | 40,207,000 | 47,549,000 | 69,361,000 | 84,154,000 | 50,757,000 | 55,135,000 |
| Gross profit | 109,414,000 | 118,628,000 | 132,231,000 | 140,595,000 | 154,013,000 | 166,242,000 | 215,180,000 | 234,848,000 | 189,811,000 | 208,539,000 |
| Diluted EPS | 2.95 | 2.47 | 5.21 | 4.58 | 5.98 | 7.19 | 10.88 | 12.68 | 7.50 | 7.14 |
| Operating cash flow | 25,974,000 | 33,830,000 | 22,976,000 | 27,217,000 | 41,642,000 | 33,598,000 | 26,153,000 | 107,642,000 | 67,480,000 | 73,467,000 |
| Capital expenditures | 24,725,000 | 11,233,000 | 9,528,000 | 29,467,000 | 24,569,000 | 18,384,000 | 40,598,000 | 35,332,000 | 14,651,000 | 40,132,000 |
| Dividends paid | 4,170,000 | 4,099,000 | 4,088,000 | 4,230,000 | 4,184,000 | 4,128,000 | 4,099,000 | 4,106,000 | 4,076,000 | 4,118,000 |
| Share buybacks | 3,108,000 | 2,000 | 191,000 | 2,800,000 | 5,836,000 | 177,000 | 158,000 | 728,000 | 226,000 | 1,049,000 |
| Assets | 340,937,000 | 359,785,000 | 358,797,000 | 433,571,000 | 461,087,000 | 489,018,000 | 568,479,000 | 603,151,000 | 573,877,000 | 653,621,000 |
| Stockholders' equity | 223,543,000 | 238,537,000 | 249,370,000 | 268,535,000 | 292,078,000 | 316,117,000 | 358,637,000 | 416,164,000 | 422,315,000 | 475,518,000 |
| Free cash flow | 1,249,000 | 22,597,000 | 13,448,000 | -2,250,000 | 17,073,000 | 15,214,000 | -14,445,000 | 72,310,000 | 52,829,000 | 33,335,000 |
Ratios
| Metric | 2016 | 2017 | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|---|---|---|---|---|---|
| Net margin | 4.53% | 3.35% | 6.32% | 5.24% | 6.39% | 6.91% | 8.54% | 9.46% | 6.25% | 5.27% |
| Operating margin | 6.38% | 6.90% | 7.83% | 7.33% | 8.62% | 9.19% | 10.89% | 12.57% | 8.55% | 8.24% |
| Return on equity | 6.82% | 5.30% | 10.66% | 8.68% | 10.20% | 11.30% | 15.17% | 15.22% | 8.78% | 7.42% |
| Return on assets | 4.47% | 3.52% | 7.41% | 5.37% | 6.46% | 7.31% | 9.57% | 10.50% | 6.46% | 5.40% |
| Current ratio | 3.41 | 3.30 | 3.08 | 2.86 | 2.47 | 2.58 | 2.85 | 2.92 | 2.91 | 3.17 |
Financial Charts
Quarterly
Quarterly standardized facts from SEC companyfacts as of latest extracted filing date 2026-04-30. Source: https://data.sec.gov/api/xbrl/companyfacts/CIK0000080035.json.
| Quarter | End Date | Revenue | Net Income | Diluted EPS | Method |
|---|---|---|---|---|---|
| 2022-Q2 | 2022-06-30 | 2.77 | reported discrete quarter | ||
| 2022-Q3 | 2022-09-30 | 2.36 | reported discrete quarter | ||
| 2023-Q1 | 2023-03-31 | 4.28 | reported discrete quarter | ||
| 2023-Q2 | 2023-06-30 | 181,813,000 | 20,472,000 | 4.08 | reported discrete quarter |
| 2023-Q3 | 2023-09-30 | 160,438,000 | 15,130,000 | 3.03 | reported discrete quarter |
| 2023-Q4 | 2023-12-31 | 145,603,000 | 6,332,000 | derived Q4 = FY annual - nine-month YTD | |
| 2024-Q1 | 2024-03-31 | 140,904,000 | 9,596,000 | 1.94 | reported discrete quarter |
| 2024-Q2 | 2024-06-30 | 138,720,000 | 9,366,000 | 1.89 | reported discrete quarter |
| 2024-Q3 | 2024-09-30 | 146,973,000 | 7,680,000 | 1.54 | reported discrete quarter |
| 2024-Q4 | 2024-12-31 | 167,117,000 | 10,452,000 | derived Q4 = FY annual - nine-month YTD | |
| 2025-Q1 | 2025-03-31 | 148,541,000 | 11,517,000 | 2.33 | reported discrete quarter |
| 2025-Q2 | 2025-06-30 | 169,601,000 | 12,705,000 | 2.56 | reported discrete quarter |
| 2025-Q3 | 2025-09-30 | 178,087,000 | 2,626,000 | 0.53 | reported discrete quarter |
| 2025-Q4 | 2025-12-31 | 173,109,000 | 8,435,000 | derived Q4 = FY annual - nine-month YTD | |
| 2026-Q1 | 2026-03-31 | 176,278,000 | 10,524,000 | 2.14 | reported discrete quarter |
Quarterly Charts
Macro Cross-References
- CPIAUCSL - Consumer Price Index for All Urban Consumers: All Items in U.S. City Average
- UNRATE - Unemployment Rate
- FEDFUNDS - Federal Funds Effective Rate
- CES0500000003 - Average Hourly Earnings of All Employees, Total Private
- DFEDTARU - Federal Funds Target Range - Upper Limit
- DFEDTARL - Federal Funds Target Range - Lower Limit
- DGS3MO - Market Yield on U.S. Treasury Securities at 3-Month Constant Maturity
- DGS2 - Market Yield on U.S. Treasury Securities at 2-Year Constant Maturity
- DGS10 - Market Yield on U.S. Treasury Securities at 10-Year Constant Maturity
- DGS30 - Market Yield on U.S. Treasury Securities at 30-Year Constant Maturity
- T10Y2Y - 10-Year Treasury Constant Maturity Minus 2-Year Treasury Constant Maturity
- CPILFESL - Consumer Price Index for All Urban Consumers: All Items Less Food and Energy
- CPIUFDSL - Consumer Price Index for All Urban Consumers: Food
- CPIENGSL - Consumer Price Index for All Urban Consumers: Energy
- CUSR0000SAH1 - Consumer Price Index for All Urban Consumers: Shelter
- PCEPI - Personal Consumption Expenditures: Chain-type Price Index
- PCEPILFE - Personal Consumption Expenditures Excluding Food and Energy: Chain-type Price Index
- PPIACO - Producer Price Index by Commodity: All Commodities
- T10YIE - 10-Year Breakeven Inflation Rate
- U6RATE - Total Unemployed, Plus All Marginally Attached Workers Plus Total Employed Part Time for Economic Reasons
- PAYEMS - All Employees, Total Nonfarm
- CIVPART - Labor Force Participation Rate
- EMRATIO - Employment-Population Ratio
- UNEMPLOY - Unemployed
- CE16OV - Employment Level
- ICSA - Initial Claims
- JTSJOL - Job Openings: Total Nonfarm
- JTSQUR - Quits: Total Nonfarm
- GDPC1 - Real Gross Domestic Product
- A191RL1Q225SBEA - Real Gross Domestic Product: Percent Change from Preceding Period
- INDPRO - Industrial Production: Total Index
- TCU - Capacity Utilization: Total Index
- HOUST - New Privately-Owned Housing Units Started: Total Units
- PERMIT - New Privately-Owned Housing Units Authorized in Permit-Issuing Places: Total Units
- RSAFS - Advance Retail Sales: Retail Trade
- PCE - Personal Consumption Expenditures
- DSPIC96 - Real Disposable Personal Income
- PSAVERT - Personal Saving Rate
- M2SL - M2
- BOPGSTB - U.S. International Trade in Goods and Services: Balance
- MSPUS - Median Sales Price of Houses Sold for the United States
- HSN1F - New One Family Houses Sold: United States
- RHORUSQ156N - Homeownership Rate in the United States
- TTLCONS - Total Construction Spending: Total Construction in the United States
- RRVRUSQ156N - Rental Vacancy Rate in the United States
- TOTALSL - Total Consumer Credit Owned and Securitized
- REVOLSL - Revolving Consumer Credit Owned and Securitized
- DRCCLACBS - Delinquency Rate on Credit Card Loans, All Commercial Banks
- GDP - Gross Domestic Product
- GPDI - Gross Private Domestic Investment
- GCE - Government Consumption Expenditures and Gross Investment
- PCEC - Personal Consumption Expenditures
- NETEXP - Net Exports of Goods and Services
- GFDEBTN - Federal Debt: Total Public Debt
- GFDEGDQ188S - Federal Debt: Total Public Debt as Percent of Gross Domestic Product
- FYFSD - Federal Surplus or Deficit
- FGRECPT - Federal Government Current Receipts
- FGEXPND - Federal Government: Current Expenditures
- MANEMP - All Employees, Manufacturing
- USCONS - All Employees, Construction
- USTRADE - All Employees, Retail Trade
- USFIRE - All Employees, Financial Activities
- USGOVT - All Employees, Government
- AWHAETP - Average Weekly Hours of All Employees, Total Private
- DGORDER - Manufacturers' New Orders: Durable Goods
- NEWORDER - Manufacturers' New Orders: Nondefense Capital Goods Excluding Aircraft
- BUSINV - Total Business Inventories
- EXPGS - Exports of Goods and Services
- IMPGS - Imports of Goods and Services
- IR - Import Price Index (End Use): All Commodities
- PPIFIS - Producer Price Index by Commodity: Final Demand
Latest quarter (10-Q)
Latest 10-Q source: 0000080035-26-000017.
ITEM 2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS
This Management’s Discussion and Analysis of Financial Condition and Results of Operations (MD&A) is intended to help the readers of our financial statements better understand our results of operations, financial condition and present business environment. The MD&A is provided as a supplement to, and should be read in conjunction with, our unaudited consolidated financial statements and related notes included elsewhere in this report.
OVERVIEW
Preformed Line Products Company (the “Company”, “PLPC”, “we”, “us”, or “our”) was incorporated in Ohio in 1947. We are an international designer and manufacturer of products and systems employed in the construction and maintenance of overhead and underground networks for the energy, telecommunication, cable operators, information (data communication), and other similar industries. Our primary products support, protect, connect, terminate, and secure cables and wires. We provide helical solutions, string hardware, connectors, insulators, fiber optic and copper splice closures, solar hardware mounting applications, and electric vehicle charging station foundations. We also provide aerial drone inspection services for utility assets including transmission and distribution power lines, substations, and generation facilities. We are respected around the world for quality, dependability and market-leading customer service. Our goal is to continue to achieve profitable growth as a leader in the research, innovation, development, manufacture, and marketing of technically advanced products and services related to energy, communications and cable systems and to take advantage of this leadership position to sell additional quality products in familiar markets. We have sales and manufacturing operations in 20 different countries.
We report our segments in four geographic regions: PLP-USA (including corporate), The Americas (includes operations in North and South America, excluding PLP-USA), EMEA (Europe, Middle East & Africa) and Asia-Pacific, in accordance with accounting standards codified in Financial Accounting Standards Board (FASB) Accounting Standards Codification (ASC) 280, “Segment Reporting”. Each segment distributes a full range of our primary products. Our PLP-USA segment is comprised of our U.S. operations manufacturing our traditional products primarily supporting our domestic energy, telecommunications, solar framing products and inspection services. Our other three segments, The Americas, EMEA and Asia-Pacific, support our energy, telecommunications, data communication, solar and other products in each respective geographical region.
The segment managers responsible for each region report directly to the Company’s Executive Chairman, who is the chief operating decision maker, and are accountable for the financial results and performance of their entire segment for which they are responsible. The business components within each segment are managed to maximize the results of the entire operating segment and the Company rather than the results of any individual business component of the segment.
We evaluate segment performance and allocate resources based on several factors primarily based on gross sales and income before income taxes.
PREFACE
The following discussion describes our results of operations for the three months ended March 31, 2026 and 2025. Our consolidated financial statements are prepared in conformity with United States ("U.S.") generally accepted accounting principles ("GAAP"). Our discussions of the financial results include non-GAAP measures (e.g., foreign currency impact) to provide additional information concerning our financial results and provide information that we believe is useful to the readers of our financial statements in the assessment of our performance and operating trends.
Net sales of $176.3 million increased $27.7 million for the three months ended March 31, 2026 year-over-year, mainly due to an increase in energy and communication sales, led by PLP-USA. Tariffs and geopolitical developments continue to present headwinds related to raw material imports and commodity prices, impacting essential inputs like steel, aluminum and plastic resins. While we continue to manage trade matters and commodity prices proactively, further tariff increases or geopolitical events may give rise to inflationary pressures, which may require further price adjustments to maintain profit margin, and any price increases may have a negative effect on demand. Please see Note 5 of the Notes to the Consolidated Financial Statements for further considerations on tariffs and potential refunds as a result of the February 2026 Supreme Court ruling.
Our financial statements are subject to fluctuations in the exchange rates of foreign currencies in relation to the U.S. dollar. The fluctuations of foreign currencies during the three months ended March 31, 2026 and March 31, 2025 had a favorable impact on net sales of $7.2 million and unfavorable impact of $4.4 million, respectively. The effect of currency translation had a favorable impact of $0.1 million and an unfavorable impact of $0.2 million on net income during the three months ended March 31, 2026 and 2025, respectively. On a reportable segment basis, the impact of foreign currency translation on net sales and net income for the three months ended March 31, 2026, was as follows:
19
Foreign Currency Translation Impact
Net Sales
Net Income
(Thousands of dollars)
2026
2025
2026
2025
The Americas
$
2,262
$
(3,204)
$
86
$
(206)
EMEA
3,184
(440)
(7)
30
Asia-Pacific
1,750
(751)
53
(47)
Total
$
7,196
$
(4,395)
$
132
$
(223)
While uncertainty remains in the global economy due to trade matters and geopolitical instability, we believe our business portfolio, including our significant U.S. manufacturing footprint, as well as our financial position, are sound and strategically well-positioned. We remain focused on assessing our global market opportunities and overall manufacturing capacity in conjunction with the requirements of local manufacturing in the markets that we serve. As necessary, we will modify redundant processes and further utilize our global manufacturing network to manage costs, including tariff impacts, increase sales volume and deliver value to our customers. We closely monitor developments in trade policy and geo-political instability and actively evaluate strategies to mitigate the impact of tariffs or supply chain constraints, including sourcing alternatives, where needed. We have continued to invest in the business to expand into new markets for the Company, evaluate strategic mergers and acquisitions, improve efficiency, develop new products and increase our capacity. As of March 31, 2026, our liquidity remains strong with our bank debt to equity percentage at 8.9%. We can borrow needed funds at a competitive interest rate under the Facility.
RESULTS OF OPERATIONS
The following table sets forth a summary of the Company’s Statements of Consolidated Income and the percentage of net sales for the three months ended March 31, 2026 and 2025. The Company’s past operating results are not necessarily indicative of future operating results.
Three Months Ended March 31,
(Thousands of dollars)
2026
2025
Change
Net sales
$
176,278
100.0
%
$
148,541
100.0
%
$
27,737
Cost of products sold
121,058
68.7
99,870
67.2
21,188
GROSS PROFIT
55,220
31.3
48,671
32.8
6,549
Costs and expenses
41,504
23.5
35,541
23.9
5,963
OPERATING INCOME
13,716
7.8
13,130
8.8
586
Other income, net
614
0.3
541
0.4
73
INCOME BEFORE INCOME TAXES
14,330
8.1
13,671
9.2
659
Income tax expense
3,781
2.1
2,118
1.4
1,663
NET INCOME
10,549
6.0
11,553
7.8
(1,004)
Net income attributable to noncontrolling interests
(25)
0.0
(36)
0.0
11
NET INCOME ATTRIBUTABLE TO PREFORMED LINE PRODUCTS COMPANY SHAREHOLDERS
$
10,524
6.0
%
$
11,517
7.8
%
$
(993)
Net sales. In 2026, net sales were $176.3 million, an increase of $27.7 million, or 19%, compared to 2025. Excluding the effect of currency translation, net sales increased 14% as summarized in the following table:
Three Months Ended March 31,
(Thousands of dollars)
2026
2025
Change
Change
Due to
Currency
Translation
Change
Excluding
Currency
Translation
%
Change
Net sales
PLP-USA
$
93,313
$
74,006
$
19,307
$
—
$
19,307
26
%
The Americas
25,062
22,279
2,783
2,262
521
2
%
EMEA
33,290
29,993
3,297
3,184
113
—
%
Asia-Pacific
24,613
22,263
2,350
1,750
600
3
%
Consolidated
$
176,278
$
148,541
$
27,737
$
7,196
$
20,541
14
%
20
The increase in PLP-USA net sales of $19.3 million, or 26%, was primarily due to higher volumes in energy and communications sales. International net sales for the three months ended March 31, 2026 were favorably affected by $7.2 million when local currencies were converted to U.S. dollars. The following discussion of changes in net sales excludes the effect of currency translation. The Americas net sales of $25.1 million increased $0.5 million, or 2%, primarily due to higher volumes in communications sales due to the acquisition of JAP Telecom in May 2025. EMEA net sales of $33.3 million increased $0.1 million primarily due to higher volumes in special industry sales. Asia-Pacific net sales of $24.6 million increased $0.6 million, or 3%, primarily due to higher volumes in energy product sales and communications sales.
Gross profit. Gross profit of $55.2 million for 2026 increased $6.5 million, or 14%, compared to 2025. Excluding the effect of currency translation, gross profit increased $4.6 million, or 9%, as summarized in the following table:
Three Months Ended March 31,
(Thousands of dollars)
2026
2025
Change
Change
Due to
Currency
Translation
Change
Excluding
Currency
Translation
%
Change
Gross profit
PLP-USA
$
32,531
$
26,838
$
5,693
$
—
$
5,693
21
%
The Americas
6,821
7,087
(266)
654
(920)
(13)
%
EMEA
9,115
8,877
238
894
(656)
(7)
%
Asia-Pacific
6,753
5,869
884
421
463
8
%
Consolidated
$
55,220
$
48,671
$
6,549
$
1,969
$
4,580
9
%
PLP-USA gross profit of $32.5 million increased by $5.7 million, or 21%, compared to the same period in 2025, primarily due to higher sales volumes and the benefit of price increases enacted in 2025, partially offset by higher tariff and manufacturing costs. International gross profit for the period ended March 31, 2026 was favorably impacted by $2.0 million when local currencies were translated to U.S. dollars. The following discussion of gross profit changes excludes the effects of currency translation. The Americas gross profit decreased $0.9 million, or 13%, which was primarily the result of unfavorable product mix. EMEA gross profit decreased $0.7 million, or 7%, primarily due to unfavorable product mix and increased manufacturing costs. Asia-Pacific gross profit increased $0.5 million, or 8%, which was primarily driven by higher sales volumes.
Costs and expenses. Costs and expenses of $41.5 million for the three months ended March 31, 2026 increased $6.0 million, or 17%, when compared to 2025. Excluding the effect of currency translation and intercompany transactions, costs and expenses increased $4.4 million, or 12%, as summarized in the following table:
Three Months Ended March 31,
(Thousands of dollars)
2026
2025
Change
Change
Due to
Currency
Translation
Change Due to Intercompany Transactions
Change Excluding
Currency
and Intercompany Transactions
%
Change
Costs and expenses
PLP-USA
$
21,895
$
17,154
$
4,741
$
—
$
1,697
$
3,044
18
%
The Americas
5,902
5,488
414
524
(1,065)
955
17
%
EMEA
7,874
[Excerpt truncated for page length; source filing is linked above.]
Latest 10-K MD&A
Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations
This Management’s Discussion and Analysis of Financial Condition and Results of Operations (MD&A) is intended to help the readers of our financial statements better understand our results of operations, financial condition and present business environment. The MD&A is provided as a supplement to, and should be read in conjunction with, our audited consolidated financial statements and related notes included elsewhere in this report.
OVERVIEW
Preformed Line Products Company (the “Company”, “PLPC”, “we”, “us”, or “our”) was incorporated in Ohio in 1947. We are an international designer and manufacturer of products and systems employed in the construction and maintenance of overhead and underground networks for the energy, telecommunication, cable operators, information (data communication), and other similar industries. Our primary products support, protect, connect, terminate, and secure cables and wires. We provide helical solutions, string hardware, connectors, insulators, fiber optic and copper splice closures, solar hardware mounting applications, and electric vehicle charging station foundations. We also provide aerial drone inspection services for utility assets including transmission and distribution power lines, substations, and generation facilities. We are respected around the world for quality, dependability and market-leading customer service. Our goal is to continue to achieve profitable growth as a leader in the research, innovation, development, manufacture, and marketing of technically advanced products and services related to energy, communications and cable systems and to take advantage of this leadership position to sell additional quality products in familiar markets. We have sales and manufacturing operations in 20 different countries.
We report our segments in four geographic regions: PLP-USA (including corporate), The Americas (includes operations in North and South America, excluding PLP-USA), EMEA (Europe, Middle East & Africa) and Asia-Pacific, in accordance with accounting standards codified in Financial Accounting Standards Board (FASB) Accounting Standards Codification (ASC) 280, “Segment Reporting”. Each segment distributes a full range of our primary products. Our PLP-USA segment is comprised of our U.S. operations manufacturing our traditional products primarily supporting our domestic energy, telecommunications, solar framing products and inspection services. Our other three segments, The Americas, EMEA and Asia-Pacific, support our energy, telecommunications, data communication, solar and other products in each respective geographical region.
The segment managers responsible for each region report directly to the Company’s Executive Chairman, who is the chief operating decision maker, and are accountable for the financial results and performance of their entire segment for which they are responsible. The business components within each segment are managed to maximize the results of the entire operating segment and the Company rather than the results of any individual business component of the segment.
We evaluate segment performance and allocate resources based on several factors primarily based on gross sales and income before income taxes.
MARKET OVERVIEW
Our business continues to be concentrated in the energy and communications markets. We sit at the intersection of various economic and social megatrends impacting our markets, both domestically and internationally. The digitalization and electrification megatrends, which are increasing the need for power generation, have highlighted the need for bolstering grid reliability, strengthening grid resilience, and upgrading aging infrastructure. The continuing need for high-speed and efficient communication systems has led to further investment in network build-outs. Our focused portfolio is well-positioned to respond to these trends and priorities. While our markets remain robust, increasing commodity prices, inflation, tariffs, rising interest rates, transportation costs, and foreign currency fluctuations have led to a challenging operating environment. Although some of these pressures have shown periods of moderation, they may continue to provide inherent uncertainty going forward.
We believe that our leadership position in the domestic energy and communications markets and the ability to deliver reliable products quickly will position us for continued growth as transmission grids, distribution lines, and substation projects, as well as communication networks, are enhanced, upgraded and extended.
Our international business is also mainly concentrated in the energy and communications markets. Historically, our international sales were primarily related to the medium voltage distribution segment of the energy market but have grown through acquisition and new product development to include a significant contribution from the transmission, substation and telecommunications markets.
We believe that we are well positioned to supply the needs of the world’s diverse energy and communication markets as a result of our focused portfolio and strategic operational footprint, including expansion from recent acquisitions, investment in new manufacturing facilities and product designs and technologies.
20
PREFACE
The following discussion describes our results of operations for the years ended December 31, 2025 and 2024. For additional discussion of our results of operations for the year ended December 31, 2023, see our Annual Report on Form 10-K for the year ended December 31, 2023, filed with the SEC on March 8, 2024. Our consolidated financial statements are prepared in conformity with U.S. generally accepted accounting principles ("GAAP"). Our discussions of the financial results include non-GAAP measures (e.g., foreign currency impact) to provide additional information concerning our financial results and provide information that we believe is useful to the readers of our financial statements in the assessment of our performance and operating trends.
Net sales of $669.3 million for the year ended December 31, 2025 increased $75.6 million year-over-year, mainly due to an increase in energy and communication sales for the year. The 2025 sales amount is among the highest annual sales amount in the Company's history, falling just behind the sales recorded in the year-ended December 31, 2023 of $669.7 million. Additionally, the Company's backlog increased approximately 22% to $232.8 million, further showing the strength of our core markets. As of December 31, 2025, our liquidity remains strong with our bank debt to equity percentage at 8.3%. We can borrow needed funds at a competitive interest rate under our credit facility. Our strong liquidity also allowed us to increase our quarterly dividend by 5% to $0.21 per share in the fourth quarter of 2025, the first such increase since the Company's shares began trading on NASDAQ stock exchange in 2001.
Notwithstanding the Company's positive momentum and strong core markets, the high tariff environment, especially on raw material imports, particularly steel and aluminum, continue to be impactful. In 2025, the Company incurred tariff costs of approximately of $15.1 million. Additionally, PLP-USA's LIFO inventory valuation costs have accelerated due to tariffs, resulting in pre-tax charges of $9.0 million for the year ended December 31, 2025. While we remain steadfast in our commitment to U.S. manufacturing, we continue to manage trade matters proactively. Further tariff increases may give rise to inflationary pressures, which may require further price adjustments to maintain profit margin, and any price increases may have a negative effect on demand. The tariffs outlook remains uncertain, particularly following the February 2026 U.S. Supreme Court ruling that set aside unlawfully imposed tariffs, and the Company is unable to predict the upcoming effects of tariffs that remain in effect (including on steel and aluminum) or may be newly enacted, as well as any refunds that may be available.
While uncertainty remains in the global economy due to tariffs and trade matters, we believe our business portfolio, including our significant U.S. manufacturing footprint, as well as our financial position, are sound and strategically well-positioned. We remain focused on assessing our global market opportunities and overall manufacturing capacity in conjunction with the requirements of local manufacturing in the markets that we serve. As necessary, we will modify redundant processes and further utilize our global manufacturing network to manage costs, including tariff-related impacts, increase sales volume and deliver value to our customers. We closely monitor developments in trade policy and actively evaluate strategies to mitigate the impact of tariffs, including sourcing alternatives and optimizing our supply chain. We have continued to invest in the business to expand into new markets for the Company, evaluate strategic mergers and acquisitions, improve efficiency, develop new products and increase our capacity.
Our financial statements are subject to fluctuations in the exchange rates of foreign currencies in relation to the U.S. dollar. The fluctuations of foreign currencies during the years ended December 31, 2025 and December 31, 2024 had a favorable impact on net sales of $1.4 million and an unfavorable impact of $4.2 million, respectively. The effect of currency translation had a favorable impact on net income in the year ended December 31, 2025 of $0.1 million and an unfavorable impact of $0.7 million in the year ended December 31, 2024. On a reportable segment basis, the impact of foreign currency translation on net sales and net income for the years ended December 31, 2025 and 2024, respectively, was as follows:
Foreign Currency Translation Impact
Net Sales
Net Income
(Thousands of dollars)
2025
2024
2025
2024
The Americas
$
(3,489)
$
(5,005)
$
(225)
$
(803)
EMEA
5,655
1,738
123
128
Asia-Pacific
(760)
(903)
154
(52)
Total
$
1,406
$
(4,170)
$
52
$
(727)
The following table sets forth a summary of the Company’s Statements of Consolidated Income and the percentage of net sales for the years ended December 31, 2025 and 2024. The Company’s past operating results are not necessarily indicative of future operating results.
21
Year Ended December 31,
(Thousands of dollars)
2025
2024
Change
Net sales
$
669,338
100.0
%
$
593,714
100.0
%
$
75,624
Cost of products sold
460,799
68.8
403,903
68.0
56,896
GROSS PROFIT
208,539
31.2
189,811
32.0
18,728
Costs and expenses
153,404
22.9
139,054
23.4
14,350
OPERATING INCOME
55,135
8.2
50,757
8.5
4,378
Other (expense) income, net
(9,515)
(1.4)
13
0.0
(9,528)
INCOME BEFORE INCOME TAXES
45,620
6.8
50,770
8.6
(5,150)
Income tax expense
10,313
1.5
13,659
2.3
(3,346)
NET INCOME
35,307
5.3
37,111
6.3
(1,804)
Net income attributable to noncontrolling interests
(24)
(0.0)
(17)
(0.0)
(7)
NET INCOME ATTRIBUTABLE TO PREFORMED LINE PRODUCTS COMPANY SHAREHOLDERS
$
35,283
5.3
%
$
37,094
6.2
%
$
(1,811)
2025 RESULTS OF OPERATIONS COMPARED TO 2024
Net sales. In 2025, net sales were $669.3 million, an increase of $75.6 million, or 13%, compared to 2024. Excluding the effect of currency translation, net sales increased 13% as summarized in the following table:
Year Ended December 31,
(Thousands of dollars)
2025
2024
Change
Change
Due to
Currency
Translation
Change
Excluding
Currency
Translation
%
Change
Net sales
PLP-USA
$
312,619
$
266,704
$
45,915
$
—
$
45,915
17
%
The Americas
108,767
90,280
18,487
(3,489)
21,976
24
EMEA
133,123
128,241
4,882
5,655
(773)
(1)
Asia-Pacific
114,829
108,489
6,340
(760)
7,100
7
Consolidated
$
669,338
$
593,714
$
75,624
$
1,406
$
74,218
13
%
The increase in PLP-USA net sales of $45.9 million, or 17%, was primarily due to higher volumes in communications and energy product sales. International net sales for the year ended December 31, 2025 were favorably affected by $1.4 million when local currencies were converted to U.S. dollars. The following discussion of changes in net sales excludes the effect of currency translation. The Americas net sales of $108.8 million increased $22.0 million, or 24%, primarily due to an increase in energy product sales and an increase in communications sales due to the acquisition of JAP Telecom in May 2025. EMEA net sales of $133.1 million decreased $0.8 million, or 1%, primarily due to lower volume in communications sales, partially offset by increased volumes in energy product sales. Asia-Pacific net sales of $114.8 million increased $7.1 million, or 7%, primarily due to volume increases in energy product sales and special industry sales.
Gross Profit. Gross profit of $208.5 million for 2025 increased $18.7 million, or 10%, compared to 2024. Excluding the effect of currency translation, gross profit increased $18.6 million, or 10%, as summarized in the following table:
22
Year Ended December 31,
(Thousands of dollars)
2025
2024
Change
Change
Due to
Currency
Translation
Change
Excluding
Currency
Translation
%
Change
Gross profit
PLP-USA
$
105,857
$
92,969
$
12,888
$
—
$
12,888
14
%
The Americas
31,737
28,608
3,129
(1,158)
4,287
15
EMEA
39,267
36,796
2,471
1,545
926
3
Asia-Pacific
31,678
31,438
240
(217)
457
1
Consolidated
$
208,539
$
189,811
$
18,728
$
170
$
18,558
10
%
PLP-USA gross profit of $105.9 million increased by $12.9 million, or 14%, compared to the same period in 2024, primarily due to higher sales volumes and favorable product mix benefited by price increases enacted in 2025, partially offset by higher tariff and manufacturing costs, including LIFO valuation costs. International gross profit for the period ended December 31, 2025 was favorably impacted by $0.2 million when local currencies were translated to U.S. dollars. The following discussion of gross profit changes excludes the effects of currency translation. The Americas gross profit increased $4.3 million, or 15%, which was primarily the result of higher sales volumes, offset by unfavorable product mix. EMEA gross profit increased $0.9 million, or 3%, due to favorable product mix. Asia-Pacific gross profit increased $0.5 million, or 1%, which was primarily driven by higher sales volume, partially offset by higher inventory reserves.
Costs and expenses. Costs and expenses of $153.4 million for the year ended December 31, 2025 increased $14.4 million, or 10%, when compared to 2024. Excluding the effect of currency translation, costs and expenses increased $13.8 million, or 10%, as summarized in the following table:
Year Ended December 31,
(Thousands of dollars)
2025
2024
Change
Change
Due to
Currency
Translation
Change Due to Intercompany Transactions
Change Excluding
Currency
and Intercompany Transactions
%
Change
Costs and expenses
PLP-USA
$
69,922
$
72,593
$
(2,671)
$
—
$
(8,876)
$
6,205
9
%
The Americas
25,566
18,655
6,911
(623)
3,494
4,040
22
EMEA
32,000
26,090
5,910
1,275
1,865
2,770
11
Asia-Pacific
25,916
21,716
4,200
(76)
3,517
759
3
Consolidated
$
153,404
$
139,054
$
14,350
$
576
$
—
$
13,774
10
%
PLP-USA costs and expenses of $69.9 million increased $6.2 million, or 9% year-over-year. PLP-USA’s increase was primarily attributable to personnel costs supporting strategic market growth in core product offerings in both energy and communications, primarily for sales, sales support and engineering resources, as well as higher selling and professional service costs. International costs and expenses for the year ended December 31, 2025 had a unfavorable impact by $0.6 million when local currencies were translated to U.S. dollars and was unfavorably impacted by intercompany transactions with PLP-USA. The following discussion of costs and expenses excludes the effect of currency translation and intercompany transactions. The Americas costs and expenses of $25.6 million increased $4.0 million primarily due to the acquisition of JAP Telecom in May 2025, an increase in personnel costs and the impact of foreign currency remeasurement. EMEA costs and expenses of $32.0 million increased by $2.8 million primarily due to higher personnel and facility costs and a recovery of bad debt in the second quarter of 2024 that did not recur. Asia-Pacific costs and expenses of $25.9 million increased $0.8 million primarily due to a gain on the sale of capital assets in the first quarter of 2024 that did not recur, offset by a recovery of bad debt.
Other (expense) income, net. Other expense, net as of the year ended December 31, 2025 was unfavorable by $9.5 million when compared to the nominal Other income, net for the year ended December 31, 2024. The unfavorable movement was mainly due to the $11.7 million U.S. Plan termination charge recorded in the third quarter of 2025, partially offset by government incentives received in 2025 related to our facility in China.
Income taxes. Income taxes for the years ended December 31, 2025 and 2024 were $10.3 million and $13.7 million based on pre-tax income of $45.6 million and $50.8 million, respectively. The effective tax rate for the years ended December 31, 2025 and 2024 was 22.6% and 26.9%, respectively. The decrease in the effective tax rate from 2024 to 2025 was primarily due to the impact of
23
the U.S. Plan termination and a reduction in the unfavorable impact from the mix of income earned in jurisdictions with a higher tax rate than the U.S. This was partially offset by an unfavorable impact from the decrease in certain tax credits. The following items had the most significant impact on the difference between our statutory U.S. federal income tax rate of 21.0%:
2025
1.A $1.7 million, or 3.8%, net increase resulting from non-deductible officers' compensation
2.A $1.6 million, or 3.5%, net increase resulting from an increase in withholding taxes and from earnings in jurisdictions with higher tax rates than the U.S. federal statutory rate where such earnings are permanently reinvested.
3.A $1.4 million, or 3.1%, net decrease resulting from the U.S. pension plan termination charge.
4.A $1.2 million, or 2.6%, net decrease resulting from excess tax benefits from executive compensation in the form of restricted stock units (or "RSUs").
5.A $0.7 million, or 1.5%, net decrease resulting from the generation of foreign tax credits.
2024
1.A $2.0 million, or 4.0%, net increase resulting from non-deductible officers' compensation.
2.A $1.6 million, or 3.2%, net increase resulting from earnings in jurisdictions with higher tax rates than the U.S. federal statutory rate where such earnings are permanently reinvested.
3.A $1.6 million, or 3.2%, net decrease resulting from generation of foreign tax credits.
4.A $1.2 million, or 2.4%, net decrease resulting from excess tax benefits from RSUs.
5.A $1.2 million, or 2.3%, net increase resulting from the inclusion of Global Intangible Low-Taxed Income.
Net income. As a result of the preceding items, net income for the year ended December 31, 2025 was $35.3 million, compared to $37.1 million for 2024. Excluding the effect of currency translation, net income decreased $1.9 million as summarized in the following table and was primarily due to the U.S. Plan termination charged recorded in 2025.
Year Ended December 31,
(Thousands of dollars)
2025
2024
Change
Change
Due to
Currency
Translation
Change
Excluding
Currency
Translation
%
Change
Net income (loss)
PLP-USA
$
19,512
$
13,940
$
5,572
$
—
$
5,572
40
%
The Americas
5,395
8,951
(3,556)
(225)
(3,331)
(37)
EMEA
5,342
7,762
(2,420)
123
(2,543)
(33)
Asia-Pacific
5,034
6,441
(1,407)
154
(1,561)
(24)
Consolidated
$
35,283
$
37,094
$
(1,811)
$
52
$
(1,863)
(5)
%
WORKING CAPITAL, LIQUIDITY AND CAPITAL RESOURCES
Management Assessment of Liquidity
We measure liquidity on the basis of our ability to meet short-term and long-term operating needs, fund additional investments, including acquisitions, and make dividend payments to shareholders. Significant factors affecting the management of liquidity are cash flows from operating activities, capital expenditures, cash dividends, business acquisitions and access to bank lines of credit.
Our investments include expenditures required for equipment and facilities as well as expenditures in support of our strategic initiatives. In 2025, we used cash of $40.1 million for capital expenditures, of which $24.8 million relates to the construction of the new Poland facility and purchase of the new Spain facility. At December 31, 2025, we had $83.4 million of cash, cash equivalents and restricted cash (collectively “Cash”). Our Cash is held in various locations throughout the world. At December 31, 2025, the majority of our cash is held outside the U.S.
We expect the majority of accumulated non-U.S. cash balances will remain outside of the U.S. and that we will meet U.S. liquidity needs through future cash flows, use of U.S. cash balances, external borrowings, or some combination of these sources.
24
We complete comprehensive reviews of our significant customers and their creditworthiness by analyzing financial statements for customers where we have identified a measure of increased risk. We closely monitor payments and developments that may signal possible customer credit issues. We currently have not identified any potential material impact on our liquidity from customer credit issues.
Total debt, including notes payable, at December 31, 2025 was $39.5 million. At December 31, 2025, our unused availability under our credit facility (the "Facility") was $52.0 million and our bank debt to equity percentage was 8.3%. The Facility contains, among other provisions, requirements for maintaining levels of net worth and profitability. At December 31, 2025, the Company was in compliance with these covenants.
Our Asia-Pacific segment had $0.1 million in restricted cash for the years ended December 31, 2025 and 2024. The restricted cash was used to secure bank debt and is included in Cash, cash equivalents and restricted cash on the balance sheet.
On January 19, 2021, the Company received funding for a term loan from PNC Equipment Finance, LLC in the principal amount of $20.5 million for the full amount of the purchase price for a new corporate aircraft. At December 31, 2025, the outstanding balance on the term loan was $10.6 million, of which $2.1 million was classified as current. See Note 7 in the Notes to Consolidated Financial Statements for more information.
On July 16, 2025, PLP Poland, a subsidiary of the Company, entered into a non-revolving investment loan with Bank Pekao S.A to finance the construction of a new manufacturing plant for an amount up to PLN100.3 million ($27.9 million). The maturity date of the loan is January 31, 2035 and is payable in annual installments in the amounts of PLN5.3 million ($1.5 million) in 2026, PLN9.0 million ($2.5 million) in 2027, PLN9.6 million ($2.7 million) in 2028 through 2034, and PLN18.8 million ($5.0 million) in 2035. As of December 31, 2025, the outstanding balance on the investment loan was $12.6 million, of which $1.9 million is classified as current. See Note 7 in the Notes to Consolidated Financial Statements for more information.
We expect that our major source of funding for 2026 and beyond will be our operating cash flows, our existing cash and cash equivalents as well as our Facility agreement. The Facility agreement has an expiration date of June 30, 2028. Except for current earnings in certain jurisdictions, our operating income is deemed to be indefinitely reinvested in foreign jurisdictions. We currently do not intend nor foresee a need to repatriate these funds. We believe our future operating cash flows will be more than sufficient to cover debt repayments, other contractual obligations, capital expenditures and dividends for the next 12 months and thereafter for the foreseeable future. In addition, we believe our borrowing capacity provides substantial financial resources, if needed, to supplement funding of capital expenditures and/or acquisitions. We also believe that we can further expand our borrowing capacity, if necessary; however, we do not believe we would increase our debt to a level that would have a material adverse impact upon results of operations or financial condition.
Sources and Uses of Cash
Net Cash provided by operating activities for the years ended December 31, 2025 and 2024 was $73.5 million and $67.5 million, respectively. The $6.0 million increase was primarily a result of the net favorable movement in non-cash items of $13.8 million, including the U.S. pension plan termination, offset by changes in operating assets and liabilities.
Net Cash used in investing activities for the years ended December 31, 2025 and 2024 was $43.4 million and $12.4 million, respectively. The $31.0 million change was primarily a result of the acquisition of JAP Telecom in May of 2025 and an increase in capital expenditures, primarily related to the acquisition of new land and a building in Spain and the construction of a new manufacturing plant in Poland.
Net Cash used in financing activities for the years ended December 31, 2025 and 2024 was $9.2 million and $47.8 million, respectively. The $38.6 million change was primarily the result of a reduction in net payments of long-term debt.
We have commitments under operating leases primarily for office and manufacturing space, transportation equipment, office and computer equipment and capital leases, primarily for equipment. See Note 8 in the Notes to Consolidated Financial Statements for more information.
As of December 31, 2025, the Company had total outstanding guarantees of $14.1 million. Additionally, certain domestic and foreign customers require the Company to issue letters of credit or performance bonds as a condition of placing an order. As of December 31, 2025, the Company had total outstanding letters of credit of $3.1 million.
The Company has other borrowing facilities at certain of its foreign subsidiaries, which consist of overdraft lines, working capital credit lines, and facilities for the issuance of letters of credit and short-term borrowing needs. At December 31, 2025, and December 31, 2024, $20.9 million and $8.8 million were outstanding, of which $4.6 million and $8.2 million were classified as current, respectively. These facilities support commitments made in the ordinary course of business.
25
CRITICAL ACCOUNTING POLICIES AND ESTIMATES
Our discussion and analysis of our financial condition and results of operations are based upon the consolidated financial statements, which have been prepared in accordance with GAAP. The preparation of these consolidated financial statements requires us to make estimates and judgments that affect the reported amount of assets and liabilities, revenues and expenses and related disclosure of contingent assets and liabilities at the date of the consolidated financial statements. Actual results may differ from these estimates under different assumptions or conditions.
Critical accounting policies are defined as those that are reflective of significant judgment and uncertainties, and potentially may result in materially different outcomes under different assumptions and conditions.
Revenue Recognition
Net sales include products and shipping and handling charges, net of estimates for product returns. Revenue is measured as the amount of consideration the Company expects to receive in exchange for transferring products. All revenue is recognized when the Company satisfies the performance obligations under the contract and control of the product is transferred to the customer, primarily based on shipping terms. Revenue for shipping and handling charges are recognized at the time the products are shipped to, delivered to or picked up by the customer. The Company estimates product returns based on historical return rates.
Allowance for Credit Losses
We maintain an allowance for credit losses for estimated losses resulting from the inability of our customers to make required payments. We record estimated allowances for uncollectible accounts receivable based upon the number of days the accounts are past due, the current business environment, and specific information such as bankruptcy or liquidity issues of customers. If the financial condition of our customers were to deteriorate, resulting in an impairment of their ability to make payments, additional allowances may be required.
Excess and Obsolescence Reserves
We provide excess and obsolescence reserves to state inventories at the lower of cost or estimated net realizable value. We identify inventory items that have had no usage or are in excess of the usages over the historical 12 to 24 months. A management team with representatives from marketing, manufacturing, engineering and finance reviews these inventory items, determines the disposition of the inventory and assesses the net realizable value based on their knowledge of the product and market conditions. These conditions include, among other things, future demand for product, product utility, unique customer order patterns or unique raw material purchase patterns, changes in customer and quality issues. If the impact of market conditions deteriorates from those projected by management, additional inventory reserves may be necessary.
Impairment of Long-Lived Assets
We record impairment losses on long-lived assets used in operations when events and circumstances indicate that the assets are impaired and the undiscounted cash flows estimated to be generated by those assets are less than the carrying value of those items. Our cash flows are based on historical results adjusted to reflect the best estimate of future market and operating conditions. The net carrying value of assets not recoverable is then reduced to fair value. The estimates of fair value represent the best estimate based on industry trends and reference to market rates and transactions.
Goodwill
Goodwill is reviewed for impairment annually on October 1 or more frequently when changes in circumstances indicate the carrying amount may be impaired. We may use both quantitative and qualitative approaches when testing goodwill for impairment. For selected reporting units where the qualitative approach is utilized, a qualitative evaluation of events and circumstances impacting the reporting unit is performed to determine if it is more likely than not that the fair value of the reporting unit exceeds its carrying amount. If that determination is made, no further evaluation is necessary. Otherwise, the Company performs a quantitative impairment test on the reporting unit.
For the quantitative approach, the Company uses a combination of the income approach, which uses a discounted cash flow methodology, and the market approach, which uses comparable market multiples, in computing fair value by reporting unit. The Company then compares the fair value of the reporting unit with its carrying value to assess if goodwill has been impaired. The fair value estimates are subjective and sensitive to significant assumptions, such as revenue growth rates, operating margins, the weighted-average cost of capital, and estimated market multiples, of which are affected by expectations of future market or economic conditions. The Company believes that the methodologies, significant assumptions, and weightings used are reasonable and result in appropriate fair values of the reporting units.
26
Impairment assessments inherently involve management judgments regarding a number of assumptions. Due to the multiple variables inherent in arriving at the estimates of the reporting unit's fair value, differences in assumptions could have an effect on the estimated fair value of a reporting unit and could result in goodwill impairment charges in a future period.
Deferred Tax Assets
Deferred taxes are recognized at currently enacted tax rates for temporary differences between the financial reporting and income tax basis of assets and liabilities and operating loss and tax credit carryforwards. We establish a valuation allowance to record our deferred tax assets at an amount that is more-likely-than-not to be realized. In the event we were to determine that we would be able to realize our deferred tax assets in the future in excess of their recorded amount, an adjustment to the valuation allowance would increase income in the period such determination was made. Likewise, should we determine that we would not be able to realize all or part of our net deferred tax assets in the future, an adjustment to the valuation allowance would be charged to expense in the period such determination was made.
Pension Obligations
For the remaining international pension plans, we record obligations and expenses related to a pension benefit plan based on actuarial valuations, which include key assumptions on discount rates, expected returns on plan assets and compensation increases. These actuarial assumptions are reviewed annually and modified as appropriate. The effect of modifications is generally recorded or amortized over future periods. We believe the assumptions used in recording obligations under the plans are reasonable based on prior experience, market conditions and the advice of plan actuaries. However, an increase in the discount rate would decrease the plan obligations and the net periodic benefit cost, while a decrease in the discount rate would increase the plan obligations and the net periodic benefit cost. In addition, an increase in the expected long-term return on plan assets would decrease the net periodic pension cost, while a decrease in expected long-term return on plan assets would increase the net periodic pension cost.