PLPC

Shares of Preformed Line Products Company PLPC have declined 4.6% since reporting results for the second quarter of 2026. This compares with the S&P 500 index’s 1.5% fall over the same time frame. Over the past month, the stock has lost 28% compared with the S&P 500’s 1.4% slip. Preformed Line Products delivered record second-quarter 2026 results, with net sales rising 25% to $212.7 million from $169.6 million in the prior-year quarter. Diluted earnings per share increased 75% to a record $4.49 from $2.56 a year ago. Net income attributable to PLPC shareholders rose to $21.5 million from $12.7 million, reflecting higher sales volumes, favorable product mix, fixed-cost leverage and the benefit of price increases implemented in 2025. Gross profit increased 32% to $73 million, while the gross margin expanded 160 basis points to 34.3%. Preformed Line Products Company price-consensus-eps-surprise-chart | Preformed Line Products Company Quote PLPC’s quarterly performance was supported by broad-based growth across its business segments. The company said that all segments increased sales compared with the second quarter of 2025, with PLP-USA leading results through strong demand in energy markets. USA sales reached a record $104.3 million, increasing 32% year over year and 12% sequentially from the first quarter of 2026. Energy sales were the largest contributor, reaching $148.9 million from $118.7 million in the year-ago quarter. The company attributed the strength primarily to continued growth in the transmission market. Communications sales also improved, reaching $48.9 million, supported by stronger demand for fiber closure products in PLP-USA and cabinet connectivity products in EMEA. Special industries sales increased to $14.9 million, with Asia-Pacific growth driven largely by solar-related projects. PLPC expanded profitability despite ongoing cost pressures. The gross margin improved for the fourth consecutive quarter to 34.3% from 32.7% in the second quarter of 2025 and 31.3% in the first quarter of 2026. Management attributed the improvement to pricing strategies, supply-chain discipline and fixed-cost leverage. Operating income increased to $27.9 million from $17.1 million in the prior-year quarter. However, the company noted that higher selling expenses and investments in personnel supporting strategic market growth, including sales, sales support and engineering resources, partially offset gains. Tariff-related pressures also continued to weigh on profitability. Executive chairman Rob Ruhlman said that the company’s record quarterly sales and earnings reflected strong demand across core energy and communications markets, and the resilience of PLPC’s global operations. He highlighted the company’s domestic manufacturing footprint as a strategic advantage, noting that PLP-USA delivered 32% sales growth during the quarter. Management also pointed to a strong balance sheet as a source of flexibility for future investments. As of June 30, 2026, PLPC held $76.2 million in cash and cash equivalents, generated $31.3 million in operating cash flow during the quarter, and maintained 89% availability under its global credit facility. The company reported a bank debt-to-equity ratio of 8.6%. The free cash flow improved significantly during the quarter to $18.3 million from $3.9 million in negative free cash flow in the first quarter of 2026. The company said that the improvement was driven by higher quarterly net income and changes in operating assets and liabilities. Free cash flow conversion was 85% in the quarter. PLPC did not provide specific financial guidance for the remainder of 2026. However, management indicated that it remains focused on navigating tariff and geopolitical uncertainty while continuing investments in people, facilities and growth opportunities. During the quarter, PLPC completed the acquisition of Delta Star Conetores Electricos Ltda., located in Salto, Brazil. The acquisition contributed $1.2 million to sales in the second quarter and expanded the company’s substation portfolio and operational capabilities in South America. Management said that Delta Star is expected to support growth in the U.S. substation business while strengthening PLPC’s regional presence. The company also highlighted ongoing capital investments, including facility expansion and modernization efforts. PLPC noted the purchase of a new facility in Canada and continued construction of its Poland facility as part of broader efforts to support growth. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Preformed Line Products Company (PLPC): Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

CLEVELAND, July 29, 2026 /PRNewswire/ -- Preformed Line Products Company (NASDAQ: PLPC) today reported record financial results for its second quarter of 2026. Q2 2026 highlights: Record quarterly net sales of $212.7 million, an increase of 25% from Q2 2025 and 21% from Q1 2026. Record quarterly USA sales, with growth of 32% from Q2 2025 and 12% from Q1 2026, driven by robust demand in energy markets, with communications markets also providing increases. Gross profit margin of 34.3%, up 160 basis points from Q2 2025 and 300 basis points from Q1 2026. Record quarterly diluted EPS of $4.49 per share, up 75% from Q2 2025 and more than doubling from Q1 2026. Net sales in the second quarter of 2026 were $212.7 million compared to $169.6 million in the second quarter of 2025, a 25% increase. PLP-USA continued its strong 2026 performance driven primarily by growth in energy sales. All International segments also contributed, with each segment increasing sales from Q2 2025. The Americas segment also benefited from the acquisition of Delta Star Conetores Electricos Ltda ("Delta Star") in May 2026. Foreign currency translation increased second-quarter 2026 net sales by $6.0 million. Net income for the quarter ended June 30, 2026, was $21.5 million, or $4.49 per diluted share, compared to $12.7 million, or $2.56 per diluted share, for the comparable period in 2025. The increase in net income was primarily driven by higher sales volumes, favorable product mix, fixed cost leverage and the benefit of price increases enacted in 2025. This increase was partially offset by increases in selling costs and investments in personnel supporting strategic market growth in our core product offerings, primarily for sales, sales support and engineering resources. Tariff headwinds also continued to impact net income. Foreign currency translation had a favorable impact of $0.5 million on the second quarter of 2026 net income. Net sales increased 22% to $389.0 million for the first six months of 2026 compared to $318.1 million for the first six months of 2025. All segments realized a year-over-year increase in net sales due to higher volumes of energy and communications sales, driven most significantly by PLP-USA with a 29% net sales growth. Foreign currency translation rates increased net sales by $13.2 million for the six months ended June 30, 2026. Net income for the six months ended June 30, 2026, was $32.0 million, or $6.62 per diluted share, compared to $24.2 million, or $4.89 per diluted share, for the comparable period in 2025. The increase in net income was due to higher sales volumes and the benefit of price increases enacted in 2025, partially offset by higher personnel and selling costs, tariff expenses and a higher effective tax rate for the six-month period. Foreign currency translation had a favorable impact of $0.7 million on six-month 2026 net income. "What a quarter! I am so proud of our global team's execution, which delivered record second-quarter and first-half results," said Rob Ruhlman, Executive Chairman. "Our quarterly net sales and EPS, the highest in the Company's history, reflect the strength of demand in our core energy and communications markets and the resilience of our global operations. Our steadfast commitment to domestic manufacturing continues to provide a strategic advantage, with PLP-USA delivering exceptional 32% sales growth in the quarter. Our international segments continued to provide strong contributions, with each segment providing sales increases. In a very challenging operating environment, I am most encouraged by our 300-basis-point improvement in gross profit margin in Q2 2026 compared to Q1 2026, reflecting the effectiveness of our pricing strategies, supply chain discipline, and ongoing investment in operational efficiency. Our balance sheet remains a source of strength, providing flexibility to pursue strategic growth opportunities while continuing to invest in our people and facilities. In the second quarter, we welcomed Delta Star, located in Salto, Brazil, to the PLP family. Delta Star provides significant operational support to accelerate growth in our U.S. substation business while also expanding our substation portfolio in the South American region." "While we celebrate a record second quarter, we remain vigilant in monitoring the evolving tariff and geopolitical landscape, and I believe our significant U.S. manufacturing footprint, diversified global operations, and financially sound position make us well-equipped to navigate these challenges and continue investing in our business. Our focus is unchanged: provide our customers with the high-quality products and superior customer service they have come to expect from PLP." A presentation on second-quarter results will also be available on PLP's website at www.plp.com/investor-relations. FORWARD-LOOKING STATEMENTS This news release contains "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934 regarding the Company, including those statements regarding the Company's and management's beliefs and expectations concerning the Company's future performance or anticipated financial results, among others. Except for historical information, the matters discussed in this release are forward-looking statements that involve risks and uncertainties which may cause results to differ materially from those set forth in those statements. Among other things, factors that could cause actual results to differ materially from those expressed in such forward-looking statements include the uncertainty in global business conditions and the economy due to factors such as inflation, rising interest rates, tariffs, labor disruptions, military conflict, international hostilities, political instability, exchange rates, natural disasters and health epidemics, the strength of demand and availability of funding for the Company's products (including in light of price increases) and the mix of products sold, the relative degree of competitive and customer price pressure on the Company's products, the cost, availability and quality of raw materials required for the manufacture of products and customer demand, opportunities for business growth through acquisitions and the ability to successfully integrate any acquired businesses, changes in regulations and tax rates, security breaches, litigation and claims and the Company's ability to continue to develop proprietary technology and maintain high-quality products and customer service to meet or exceed new industry performance standards and individual customer expectations, and other factors described under the headings "Forward-Looking Statements" and "Risk Factors" in the Company's 2025 Annual Report on Form 10-K filed with the SEC on March 5, 2026 and subsequent filings with the SEC. The Annual Report on Form 10-K and the Company's other filings with the SEC can be found on the SEC's website at http://www.sec.gov. The Company assumes no obligation to update or supplement forward-looking statements that become untrue because of subsequent events. ABOUT PLP PLP protects the world's most critical connections by creating stronger and more reliable networks. The company's precision-engineered solutions are trusted by energy and communications providers worldwide to perform better and last longer. With locations in 20 countries, PLP works as a united global corporation, delivering high-quality products and unparalleled service to customers around the world. View original content to download multimedia:https://www.prnewswire.com/news-releases/preformed-line-products-announces-record-second-quarter-2026-financial-results-302837970.html

Investors were disappointed with the weak earnings posted by Preformed Line Products Company (NASDAQ:PLPC ). While the headline numbers were soft, we believe that investors might be missing some encouraging factors. This technology could replace computers: discover the 20 stocks are working to make quantum computing a reality. Importantly, our data indicates that Preformed Line Products' profit was reduced by US$12m, due to unusual items, over the last year. While deductions due to unusual items are disappointing in the first instance, there is a silver lining. We looked at thousands of listed companies and found that unusual items are very often one-off in nature. And, after all, that's exactly what the accounting terminology implies. Assuming those unusual expenses don't come up again, we'd therefore expect Preformed Line Products to produce a higher profit next year, all else being equal. That might leave you wondering what analysts are forecasting in terms of future profitability. Luckily, you can click here to see an interactive graph depicting future profitability, based on their estimates. Because unusual items detracted from Preformed Line Products' earnings over the last year, you could argue that we can expect an improved result in the current quarter. Based on this observation, we consider it likely that Preformed Line Products' statutory profit actually understates its earnings potential! On the other hand, its EPS actually shrunk in the last twelve months. Of course, we've only just scratched the surface when it comes to analysing its earnings; one could also consider margins, forecast growth, and return on investment, among other factors. Keep in mind, when it comes to analysing a stock it's worth noting the risks involved. In terms of investment risks, we've identified 1 warning sign with Preformed Line Products, and understanding it should be part of your investment process. Today we've zoomed in on a single data point to better understand the nature of Preformed Line Products' profit. But there are plenty of other ways to inform your opinion of a company. Some people consider a high return on equity to be a good sign of a quality business. While it might take a little research on your behalf, you may find this free collection of companies boasting high return on equity, or this list of stocks with significant insider holdings to be useful. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com. This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

Shares of Preformed Line Products Company PLPC have declined 6.4% since reporting results for the first quarter of 2026, underperforming the S&P 500 index’s 1.9% return. However, over the past month, the stock has risen 14.3%, outperforming the broader market’s 10.5% advance, indicating a mixed near-term reaction despite stronger recent momentum. The company reported net sales of $176.3 million for the first quarter of 2026, marking a 19% increase from $148.5 million in the year-ago period. Net income, however, declined 9% to $10.5 million from $11.5 million in the prior-year quarter. Earnings per diluted share followed a similar trend, falling nearly 8% to $2.14 from $2.33 a year earlier. While revenue growth remained robust, profitability was pressured by higher expenses and tax-related impacts, offsetting gains from increased sales volume. Preformed Line Products Company price-consensus-eps-surprise-chart | Preformed Line Products Company Quote Preformed Line Productsdelivered broad-based growth across its segments, with all reporting year-over-year sales increases. The PLP-USA business stood out, with a 26% year-over-year rise in sales, driven by strong demand in energy and communications markets. According to the company, energy segment sales saw a 22% year-over-year increase, with PLP-USA energy market sales rising 41% due to transmission-related demand. Communications revenues also showed strength, supported by fiber closure product sales, while special industries remained relatively smaller but stable contributors. Gross profit increased to $55.2 million from $48.7 million a year earlier, though the gross margin declined to 31.3% from 32.8%. This reflects a 150-basis-point year-over-year contraction. Operating income improved modestly to $13.7 million from $13.1 million, indicating that higher sales volumes partially offset margin pressure. From a liquidity perspective, Preformed Line Productsmaintained a solid balance sheet. Cash and cash equivalents stood at $69.5 million as of March 31, 2026, compared with $83.4 million at the end of 2025, while total assets increased slightly to $661.8 million. The company highlights strong liquidity, including 88% availability under its global credit facility and manageable debt maturities. The free cash flow was negative $3.9 million in the quarter against positive figures in the prior periods due to working capital changes. However, trailing 12-month free cash flow conversion remained healthy at 83%, indicating longer-term cash generation strength. Management emphasized resilience in a challenging macroeconomic environment, highlighting strong sales growth, led by U.S. manufacturing operations. Executive chairman Rob Ruhlman noted that Preformed Line Productssuccessfully met rising demand, particularly in energy and communications markets. At the same time, management acknowledged ongoing pressures from tariffs, commodity price volatility and higher manufacturing costs. Despite these headwinds, the company improved its gross margin sequentially from the fourth quarter of 2025, attributing the improvement to supply-chain optimization, pricing actions and efficiency initiatives. Leadership also pointed to a strong balance sheet and liquidity position, enabling continued investment in facility modernization, innovation and potential acquisitions while maintaining shareholder returns. Several factors shaped the quarter’s results. Revenue growth benefited from favorable foreign currency translation, which contributed $7.2 million to net sales. Strong demand across core markets, particularly in the United States, also played a significant role. However, profitability was impacted by rising personnel expenses tied to strategic hiring in sales, engineering and support functions, as well as a $1.3-million tax charge related to the company’s French subsidiary. Tariff-related costs and commodity price volatility continued to weigh on margins, as noted in the press release and presentation. The decline in net income and EPS despite higher revenue underscores the impacts of these cost pressures and one-time items, even as operational performance remained solid. No significant acquisitions, divestitures or restructuring activities were reported during the quarter. However, management reiterated its intention to pursue acquisitions, supported by its strong balance sheet and liquidity position, suggesting inorganic growth opportunities ahead. Preformed Line Products expressed confidence in its ability to navigate ongoing tariff and geopolitical uncertainties, supported by operational flexibility and a focus on efficiency and innovation. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Preformed Line Products Company (PLPC): Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

CLEVELAND, April 29, 2026 /PRNewswire/ -- Preformed Line Products Company (NASDAQ: PLPC) today reported financial results for its first quarter of 2026. Q1 2026 highlights: Quarterly net sales of $176.3 million, an increase of 19% from Q1 2025. USA sales growth of 26% from Q1 2025, driven by robust demand in energy and communications markets. Gross profit margin of 31.3%, up 150 basis points from Q4 2025. Diluted EPS of $2.14 per share, up 24% from Q4 2025. Net sales in the first quarter of 2026 were $176.3 million compared to $148.5 million in the first quarter of 2025, a 19% increase. All segments recorded sales growth compared to the first quarter of 2025, with the PLP-USA business growing by 26%, primarily due to higher demand for energy and communications products. Foreign currency translation had a favorable impact of $7.2 million on the first quarter of 2026 net sales. Net income for the quarter ended March 31, 2026, was $10.5 million, or $2.14 per diluted share, compared to $11.5 million, or $2.33 per diluted share, for the comparable period in 2025. While gross profit was up approximately $6.5 million from Q1 2025, period expenses were impacted by increased personnel costs supporting strategic market growth in core product offerings in both energy and communications, primarily for sales, sales support and engineering resources. Net income for the first quarter of 2026 was affected by an income tax charge of $1.3 million related to PLP's French subsidiary. Foreign currency translation had a favorable impact of $0.1 million on the first quarter of 2026 net income. Compared against Q4 2025, which contained many of the same tariff headwinds that impacted Q1 2025, gross profit margins, net income, and diluted EPS all increased. "As we reflect on the first quarter of 2026, I am proud of the Company's continued resilience in a challenging and dynamic global environment," said Rob Ruhlman, Executive Chairman. "Our team achieved exceptional sales growth this quarter, propelled by outstanding results from our U.S. manufacturing operations and our ability to meet rising demand. We faced margin pressure from higher manufacturing and ongoing tariff-related costs, as well as volatility in commodity prices. However, our impressive 150 basis point increase in gross profit percentage from Q4 2025 shows that we are actively managing these challenges through supply chain optimization, pricing strategies, and investment in efficiency and innovation. Our healthy balance sheet and strong liquidity provide flexibility to pursue strategic acquisitions, while also investing in facility modernization and returning capital to our valued shareholders. While the ongoing tariff and geopolitical uncertainties present challenges, I believe our team is well prepared to adapt. Our focus is unchanged: provide our customers with the high-quality products and superior customer service they have come to expect from PLP." A presentation on first quarter results will also be available on PLP's website at www.plp.com/investor-relations. FORWARD-LOOKING STATEMENTS This news release contains "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934 regarding the Company, including those statements regarding the Company's and management's beliefs and expectations concerning the Company's future performance or anticipated financial results, among others. Except for historical information, the matters discussed in this release are forward-looking statements that involve risks and uncertainties which may cause results to differ materially from those set forth in those statements. Among other things, factors that could cause actual results to differ materially from those expressed in such forward-looking statements include the uncertainty in global business conditions and the economy due to factors such as inflation, rising interest rates, tariffs, labor disruptions, military conflict, international hostilities, political instability, exchange rates, natural disasters and health epidemics, the strength of demand and availability of funding for the Company's products (including in light of price increases) and the mix of products sold, the relative degree of competitive and customer price pressure on the Company's products, the cost, availability and quality of raw materials required for the manufacture of products and customer demand, opportunities for business growth through acquisitions and the ability to successfully integrate any acquired businesses, changes in regulations and tax rates, security breaches, litigation and claims and the Company's ability to continue to develop proprietary technology and maintain high-quality products and customer service to meet or exceed new industry performance standards and individual customer expectations, and other factors described under the headings "Forward-Looking Statements" and "Risk Factors" in the Company's 2025 Annual Report on Form 10-K filed with the SEC on March 5, 2026 and subsequent filings with the SEC. The Annual Report on Form 10-K and the Company's other filings with the SEC can be found on the SEC's website at http://www.sec.gov. The Company assumes no obligation to update or supplement forward-looking statements that become untrue because of subsequent events. ABOUT PLP PLP protects the world's most critical connections by creating stronger and more reliable networks. The company's precision-engineered solutions are trusted by energy and communications providers worldwide to perform better and last longer. With locations in 20 countries, PLP works as a united global corporation, delivering high-quality products and unparalleled service to customers around the world. View original content to download multimedia:https://www.prnewswire.com/news-releases/preformed-line-products-announces-first-quarter-2026-financial-results-302757896.html

Never miss an important update on your stock portfolio and cut through the noise. Over 7 million investors trust Simply Wall St to stay informed where it matters for FREE. Preformed Line Products (PLPC) shares are reacting to fresh earnings after the company reported fourth quarter and full year 2025 results, with higher sales but lower net income compared with the prior periods. See our latest analysis for Preformed Line Products. At a share price of $267.23, the stock has a 1-day share price return of 0.80% and a 7-day share price return of 4.55%, while the 1-year total shareholder return of 118.28% and 5-year total shareholder return of 271.33% reflect longer term momentum that recent results may now be testing. If earnings news has you thinking about other opportunities in power and grid infrastructure, it could be a good time to scan our 24 power grid technology and infrastructure stocks as potential ideas for further research. With revenue up but earnings softer and the share price near its analyst target, investors now have a key question: is Preformed Line Products still undervalued here, or is the market already pricing in future growth? On the numbers provided, Preformed Line Products is trading at a P/E of 37.1x, which screens as expensive relative to both peers and the wider US Electrical industry. The P/E multiple compares the current share price with earnings per share. A higher figure usually means investors are paying more today for each dollar of current earnings. For a company like PLPC, which serves utilities and communications customers with hardware and network equipment, a richer P/E can reflect market expectations that earnings will grow over time rather than stay flat. Here, the current 37.1x P/E is above the peer average of 33.9x and also above the US Electrical industry average of 32.7x, which represents a clear premium. It is also well above the estimated fair P/E of 23x that our models suggest the market could move toward if sentiment cools or earnings do not track current expectations. Explore the SWS fair ratio for Preformed Line Products Result: Price-to-Earnings of 37.1x (OVERVALUED) However, softer net income, a relatively rich P/E, and the share price sitting close to its US$275 target could limit upside if sentiment cools. Find out about the key risks to this Preformed Line Products narrative. Our DCF model presents a very different picture. On this view, PLPC at $267.23 is trading well above an estimated future cash flow value of $70.14 and appears overvalued on this basis. If earnings and cash flows do not match the market’s optimism, that gap could matter for long term holders. Look into how the SWS DCF model arrives at its fair value. Simply Wall St performs a discounted cash flow (DCF) on every stock in the world every day (check out Preformed Line Products for example). We show the entire calculation in full. You can track the result in your watchlist or portfolio and be alerted when this changes, or use our stock screener to discover 50 high quality undervalued stocks. If you save a screener we even alert you when new companies match - so you never miss a potential opportunity. Curious whether the cautious tone here matches your own view? Take a closer look at both sides of the story by checking the 1 key reward and 1 important warning sign and then decide where you stand. If this earnings update has you reassessing your watchlist, use the Simply Wall St Screener to quickly surface fresh ideas that fit your style and risk comfort. Target potential value opportunities by reviewing companies flagged in our 50 high quality undervalued stocks that could warrant closer attention. Prioritise resilience by scanning the 67 resilient stocks with low risk scores to see which businesses score well on stability and risk factors. Hunt for under-the-radar opportunities using the screener containing 23 high quality undiscovered gems that many investors may not be watching yet. This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Companies discussed in this article include PLPC. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email [email protected]

Shares of Preformed Line Products Company PLPC have gained 2.5% since reporting results for the fourth quarter of 2025. This compares with the S&P 500 index’s 1.1% decline over the same time frame. Over the past month, the stock has lost 2.4% compared with the S&P 500’s 0.6% fall. Preformed Line Products reported fourth-quarter 2025 net sales of $173.1 million, up 4% from $167.1 million in the year-ago quarter. Despite revenue growth, profitability weakened during the period. Net income declined roughly 19% to $8.4 million from $10.5 million in the fourth quarter of 2024. Diluted earnings per share (EPS) also fell to $1.72 from $2.13 in the prior-year period. For the year, the company posted net sales of $669.3 million, an increase of 13% from $593.7 million in 2024. However, full-year net income declined to $35.3 million from $37.1 million a year earlier, while diluted EPS decreased to $7.14 from $7.50. Adjusted results were stronger, with adjusted diluted EPS rising 16% year over year to $8.70 after excluding pension termination charges. Preformed Line Products Company price-consensus-eps-surprise-chart | Preformed Line Products Company Quote Demand across the company’s core markets remained solid in 2025. Backlog rose 22% year over year to $232.8 million, indicating continued order strength from energy and communications customers. Sales growth during the fourth quarter was driven by domestic and international operations. The company’s PLP-USA segment recorded strong demand in energy and communications end markets, while international growth was supported by higher sales in the Asia-Pacific region and incremental communications revenues from the acquisition of JAP Telecom. Foreign currency translation also added $4.4 million to fourth-quarter net sales. Segment data highlights broad-based growth across regions during 2025. PLP-USA revenues increased 17% year over year to $312.6 million, while the Americas segment posted 20% growth to $108.8 million. EMEA revenues rose 4% to $133.1 million and the Asia-Pacific increased 6% to $114.8 million. Energy remained the dominant end market, accounting for about 71% of the total sales in 2025, followed by communications at 22% and special industries at 7%. Although revenues increased, profitability declined due to several cost-related pressures. Tariffs on internationally sourced materials, particularly steel and aluminum, raised input costs and weighed on margins. These tariffs also triggered accelerated Last-In-First-Out (LIFO) inventory valuation costs, reducing profitability. As a result, gross profit in the fourth quarter fell 7% year over year to $51.6 million, and the gross margin declined to 29.8% from 33.3% in the prior-year quarter. For the year, the company incurred $15.1 million in tariff-related costs and $9 million in LIFO inventory valuation costs, which contributed to a decline in the gross margin to 31.2% from 32% in 2024. Higher selling prices and increased sales volumes partly offset these cost pressures. Executive chairman Rob Ruhlman highlighted the resilience of the company’s operations despite cost headwinds. Management noted that the increase in backlog and overall sales reflects strong demand in both energy and communications markets. However, the company continues to monitor commodity costs closely, particularly those related to tariffs on steel and aluminum. The company indicated that earlier price increases helped offset some cost pressures, and additional pricing adjustments may be considered if input costs remain elevated. Management also emphasized the importance of continued investment in product development, facility modernization and acquisitions to support long-term growth. Preformed Line Products maintained a solid liquidity position during 2025. Cash and cash equivalents increased to $83.4 million at year-end, up from $57.2 million in 2024. The operating cash flow for the year totaled $73.5 million, supporting investments in capital expenditure and strategic initiatives. The free cash flow declined from the previous year primarily due to higher capital spending, which reached $40.1 million in 2025. The company also raised its quarterly dividend 5% to 21 cents per share, reflecting confidence in its financial position and long-term outlook. In 2025, Preformed Line Products continued to invest in expanding its global manufacturing footprint. The company is constructing a manufacturing facility in Poland, expected to come online later in 2026, and has established a facility in Spain to support international growth. The acquisition of JAP Telecom contributed incremental communications market revenues in 2025 and supported the company’s expansion in fiber-related product offerings. Overall, while PLPC’s revenue growth and strong backlog point to steady demand across its infrastructure markets, margin pressures from tariffs and inventory valuation adjustments weighed on profitability in the latest quarter. Management’s ongoing investments in manufacturing capacity and strategic acquisitions underscore its focus on long-term growth despite near-term cost challenges. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Preformed Line Products Company (PLPC): Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

CLEVELAND, March 4, 2026 /PRNewswire/ -- Preformed Line Products Company (NASDAQ: PLPC) today reported financial results for its fourth quarter of 2025 and full year ended December 31, 2025. Q4/Full Year 2025 highlights: Quarterly net sales of $173.1 million, an increase of 4% from Q4 2024 Annual net sales growth of 13% from 2024, totaling $669.3 million Full year diluted EPS of $7.14; adjusted full year diluted EPS of $8.70, a 16% increase from 2024 Backlog increased 22% to $232.8 million, reflecting robust demand in core markets Quarterly dividend increased 5% to $0.21 per share Net sales in the fourth quarter of 2025 were $173.1 million compared to $167.1 million in the fourth quarter of 2024, a 4% increase. PLP-USA continued its strong 2025 performance with both energy and communications end-market sales contributing to the increase. The international segments were bolstered by sales increases in Asia-Pacific as well as incremental communications market sales from the recently acquired JAP Telecom. Foreign currency translation increased fourth quarter 2025 net sales by $4.4 million. Net income for the quarter ended December 31, 2025, was $8.4 million, or $1.72 per diluted share, compared to $10.5 million, or $2.13 per diluted share, for the comparable period in 2024. The fourth quarter of 2025 net income was impacted by the continuing tariffs affecting goods sourced internationally by PLP-USA and the tariff-related acceleration of Last-In-First-Out ("LIFO") inventory valuation costs. These costs were partially offset by margin contribution from higher sales levels and selling price increases, higher net interest income and a lower effective tax rate. Net sales increased 13% to $669.3 million for the full year 2025 compared to $593.7 million in 2024. All segments realized a year-over-year increase in net sales due to higher volumes of energy and communications end-market sales. Foreign currency translation rates increased net sales by $1.4 million for the year ended December 31, 2025. Net income for the year ended December 31, 2025, was $35.3 million, or $7.14 per diluted share, compared to $37.1 million, or $7.50 per diluted share, for the comparable period in 2024. Excluding the impact from the pension termination completed in the third quarter of 2025, adjusted net income for the twelve-month period ending December 31, 2025 was $43.0 million, or $8.70 per diluted share, a 16% increase. In addition to the pension termination charge, net income for the twelve-month period ending December 31, 2025 was impacted by the continuing tariffs and the tariff-related acceleration of LIFO inventory valuation costs, offset by margin contribution from higher sales, selling price increases, higher net interest income and a lower effective tax rate. "Our 2025 results reflect the strength of our core energy and communications markets and the resilience of our global operations," said Rob Ruhlman, Executive Chairman. "The significant increase in backlog and sales demonstrates robust demand. We have incurred cost increases on key commodity inputs necessary for our USA production process, primarily due to Section 232 steel and aluminum tariffs. Given the significance of these tariff headwinds on our business, I am pleased with our execution and fourth quarter results. While we have benefited from selling price increases enacted earlier this year, we continue to monitor whether further price adjustments are necessary. The increase in our quarterly dividend underscores our commitment to delivering value to shareholders. We expect that our strong cash generation will continue to allow us to invest in new product development, facility modernization, and strategic acquisitions to support long-term growth. I look forward to our new state-of-the-art Poland facility coming online later in 2026 and the contributions from our new facility in Spain. Our focus is unchanged: provide our customers with the high-quality products and superior customer service they have come to expect from PLP." A presentation on fourth quarter results will also be available on PLP's website at www.plp.com/investor-relations. FORWARD-LOOKING STATEMENTS This news release contains "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934 regarding the Company, including those statements regarding the Company's and management's beliefs and expectations concerning the Company's future performance or anticipated financial results, among others. Except for historical information, the matters discussed in this release are forward-looking statements that involve risks and uncertainties which may cause results to differ materially from those set forth in those statements. Among other things, factors that could cause actual results to differ materially from those expressed in such forward-looking statements include the uncertainty in global business conditions and the economy due to factors such as inflation, rising interest rates, tariffs, labor disruptions, military conflict, international hostilities, political instability, exchange rates, natural disasters and health epidemics, the strength of demand and availability of funding for the Company's products (including in light of price increases) and the mix of products sold, the relative degree of competitive and customer price pressure on the Company's products, the cost, availability and quality of raw materials required for the manufacture of products, opportunities for business growth through acquisitions and the ability to successfully integrate any acquired businesses, changes in regulations and tax rates, security breaches, litigation and claims and the Company's ability to continue to develop proprietary technology and maintain high-quality products and customer service to meet or exceed new industry performance standards and individual customer expectations, and other factors described under the headings "Forward-Looking Statements" and "Risk Factors" in the Company's 2024 Annual Report on Form 10-K filed with the SEC on March 13, 2025 and subsequent filings with the SEC. The Annual Report on Form 10-K and the Company's other filings with the SEC can be found on the SEC's website at http://www.sec.gov. The Company assumes no obligation to update or supplement forward-looking statements that become untrue because of subsequent events. ABOUT PLP PLP protects the world's most critical connections by creating stronger and more reliable networks. The company's precision-engineered solutions are trusted by energy and communications providers worldwide to perform better and last longer. With locations in 20 countries, PLP works as a united global corporation, delivering high-quality products and unparalleled service to customers around the world. NON-GAAP FINANCIAL INFORMATION This earnings release includes certain non-GAAP financial measures. These financial measures include adjusted earnings and adjusted earnings per basic and diluted share, each of which differs from the most directly comparable measure calculated in accordance with generally accepted accounting principles (GAAP). A reconciliation of each of these financial measures to the most directly comparable GAAP measure is included in this earnings release. Management believes that these financial measures are useful to investors because they provide additional meaningful financial information that should be considered when assessing our business performance and trends, and they allow investors to more easily compare the Company's financial performance period to period. The Company's adjusted net income and adjusted earnings per diluted share for the year ended December 31, 2025, was calculated as follows: View original content to download multimedia:https://www.prnewswire.com/news-releases/preformed-line-products-announces-fourth-quarter-and-full-year-2025-financial-results-302704428.html