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Preformed Line Products Co

PREFORMED LINE PRODUCTS ANNOUNCES FOURTH QUARTER AND FULL YEAR 2025 FINANCIAL RESULTS

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.

PREFORMED LINE PRODUCTS COMPANY (PLPC)

CONSOLIDATED BALANCE SHEET



December 31, 2025


December 31, 2024

(Thousands of dollars, except share and per share data)

(Unaudited)



ASSETS




Cash, cash equivalents and restricted cash

$                         83,389


$                         57,244

Accounts receivable, net

113,175


111,402

Inventories, net

148,730


129,913

Prepaid expenses

12,961


11,720

Other current assets

5,206


5,514

TOTAL CURRENT ASSETS

363,461


315,793

Property, plant and equipment, net

222,781


195,086

Goodwill

30,684


26,685

Other intangible assets, net

10,140


9,656

Deferred income taxes

7,481


6,546

Other assets

19,074


20,111

TOTAL ASSETS

$                       653,621


$                       573,877

LIABILITIES AND SHAREHOLDERS' EQUITY




Trade accounts payable

$                         49,520


$                         41,951

Notes payable to banks

1,213


7,782

Current portion of long-term debt

5,392


2,430

Accrued compensation and other benefits

29,207


25,904

Accrued expenses and other liabilities

29,378


30,346

TOTAL CURRENT LIABILITIES

114,710


108,413

Long-term debt, less current portion

32,860


18,357

Other noncurrent liabilities and deferred income taxes

30,500


24,783

SHAREHOLDERS' EQUITY




Common shares $2 par value per share, 15,000,000 shares authorized, 4,907,787
and 4,913,621 issued and outstanding, at December 31, 2025 and December 31,
2024

13,860


13,752

Common shares issued to rabbi trust, 222,506 and 222,887 shares at December 31,
2025 and December 31, 2024, respectively

(9,586)


(9,575)

Deferred compensation liability

9,586


9,575

Paid-in capital

67,217


65,093

Retained earnings

584,360


553,179

Treasury shares, at cost, 2,021,940 and 1,961,772 shares at December 31, 2025 and     
December 31, 2024, respectively

(136,554)


(126,800)

Accumulated other comprehensive loss

(53,365)


(82,909)

TOTAL PLPC SHAREHOLDERS' EQUITY

475,518


422,315

Noncontrolling interest

33


9

TOTAL SHAREHOLDERS' EQUITY

475,551


422,324

TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY

$                       653,621


$                       573,877

 

PREFORMED LINE PRODUCTS COMPANY

STATEMENTS OF CONSOLIDATED INCOME



Three Months Ended December 31,


Twelve Months Ended December 31,


2025


2024


2025


2024

(Thousands, except per share data)

(Unaudited)




(Unaudited)



Net sales

$                 173,109


$                 167,117


$                 669,338


$                 593,714

Cost of products sold

121,489


111,488


460,799


403,903

GROSS PROFIT

51,620


55,629


208,539


189,811

Costs and expenses








Selling

13,486


12,576


52,011


48,722

General and administrative

19,736


19,205


75,176


67,477

Research and engineering

6,331


5,589


23,687


21,923

Other operating expense, net

318


746


2,530


932


39,871


38,116


153,404


139,054

OPERATING INCOME

11,749


17,513


55,135


50,757

Other income (expense)








Interest income

740


717


2,317


2,573

Interest expense

(297)


(381)


(1,303)


(2,221)

Pension termination expense

—


—


(11,657)


—

Other income (expense), net

95


(528)


1,128


(339)


538


(192)


(9,515)


13

INCOME BEFORE INCOME TAXES

12,287


17,321


45,620


50,770

Income tax expense

3,852


6,876


10,313


13,659

NET INCOME

$                     8,435


$                   10,445


$                   35,307


$                   37,111

Net loss (income) attributable to noncontrolling
interests

—


7


(24)


(17)

NET INCOME ATTRIBUTABLE TO PLPC
SHAREHOLDERS

$                     8,435


$                   10,452


$                   35,283


$                   37,094

AVERAGE NUMBER OF SHARES OF COMMON     
STOCK OUTSTANDING:








Basic

4,899


4,897


4,918


4,908

Diluted

4,913


4,917


4,942


4,947

EARNINGS PER SHARE OF COMMON STOCK
ATTRIBUTABLE TO PLPC SHAREHOLDERS:








Basic

$                       1.72


$                       2.14


$                       7.17


$                       7.56

Diluted

$                       1.72


$                       2.13


$                       7.14


$                       7.50









Cash dividends declared per share

$                       0.21


$                       0.20


$                       0.81


$                       0.80

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:

Year Ended
December 31, 2025

(Thousands, except per share data)


(Unaudited)

NET INCOME ATTRIBUTABLE TO PLPC SHAREHOLDERS


$                         35,283

Add back:



Pension termination expense, after tax


7,721

ADJUSTED NET INCOME ATTRIBUTABLE TO PLPC SHAREHOLDERS


$                         43,004

AVERAGE NUMBER OF SHARES OF COMMON STOCK OUTSTANDING:



Basic


4,918

Diluted


4,942

ADJUSTED EARNINGS PER SHARE OF COMMON STOCK ATTRIBUTABLE TO PLPC SHAREHOLDERS:     



Basic


$                             8.74

Diluted


$                             8.70









Year Ended
December 31, 2025



(Unaudited)

ADJUSTED DILUTED EARNINGS PER SHARE OF COMMON STOCK ATTRIBUTABLE TO PLPC SHAREHOLDERS:      



NET INCOME PER SHARE ATTRIBUTABLE TO PLPC SHAREHOLDERS


$                             7.14

Add back:



Per share impact of pension termination expense, after tax


1.56

ADJUSTED DILUTED EARNINGS PER SHARE OF COMMON STOCK ATTRIBUTABLE TO PLPC
SHAREHOLDERS


$                             8.70

 

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SOURCE Preformed Line Products Company