PREFORMED LINE PRODUCTS ANNOUNCES FIRST QUARTER 2026 FINANCIAL RESULTS

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.

                                                                                                                                        
        
          PREFORMED LINE PRODUCTS COMPANY (PLPC)

                                                                                                                                              
        
          CONSOLIDATED BALANCE SHEET




                                                                                                                                                                                                       March 31, 2026 December 31, 2025



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



 
          ASSETS



 Cash, cash equivalents and restricted cash                                                                                                                                                                  $69,452            $83,389



 Accounts receivable, net                                                                                                                                                                                    130,840            113,175



 Inventories, net                                                                                                                                                                                            151,810            148,730



 Prepaid expenses                                                                                                                                                                                             12,998             12,961



 Other current assets                                                                                                                                                                                          6,287              5,206



 
          TOTAL CURRENT ASSETS                                                                                                                                                                             371,387            363,461



 Property, plant and equipment, net                                                                                                                                                                          225,279            222,781



 Goodwill                                                                                                                                                                                                     30,351             30,684



 Other intangible assets, net                                                                                                                                                                                  9,837             10,140



 Deferred income taxes                                                                                                                                                                                         6,794              7,481



 Other assets                                                                                                                                                                                                 18,181             19,074



 
          TOTAL ASSETS                                                                                                                                                                                    $661,829           $653,621



 
          LIABILITIES AND SHAREHOLDERS' EQUITY



 Trade accounts payable                                                                                                                                                                                      $56,766            $49,520



 Notes payable to banks                                                                                                                                                                                        1,318              1,213



 Current portion of long-term debt                                                                                                                                                                             5,891              5,392



 Accrued compensation and other benefits                                                                                                                                                                      24,084             29,207



 Accrued expenses and other liabilities                                                                                                                                                                       35,532             29,378



 
          TOTAL CURRENT LIABILITIES                                                                                                                                                                        123,591            114,710



 Long-term debt, less current portion                                                                                                                                                                         34,737             32,860



 Other noncurrent liabilities and deferred income taxes                                                                                                                                                       29,919             30,500



 
          SHAREHOLDERS' EQUITY



 Common shares $2 par value per share, 15,000,000 shares authorized, 4,888,012 and 4,907,787 issued and outstanding, at March 31, 2026 and December 31, 2025                                                  13,890             13,860



 Common shares issued to rabbi trust, 222,506 and 222,506 shares at March 31, 2026 and December 31, 2025, respectively                                                                                       (9,586)           (9,586)



 Deferred compensation liability                                                                                                                                                                               9,586              9,586



 Paid-in capital                                                                                                                                                                                              66,047             67,217



 Retained earnings                                                                                                                                                                                           593,869            584,360



 Treasury shares, at cost, 2,056,379 and 2,021,940 shares at March 31, 2026 and December 31, 2025, respectively                                                                                            (145,492)         (136,554)



 Accumulated other comprehensive loss                                                                                                                                                                       (54,790)          (53,365)



 
          TOTAL PLPC SHAREHOLDERS' EQUITY                                                                                                                                                                  473,524            475,518



 Noncontrolling interest                                                                                                                                                                                          58                 33



 
          TOTAL SHAREHOLDERS' EQUITY                                                                                                                                                                       473,582            475,551



 
          TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY                                                                                                                                                      $661,829           $653,621

                                                                         
          
  PREFORMED LINE PRODUCTS COMPANY

                                                                        
          
  STATEMENTS OF CONSOLIDATED INCOME




                                                                                                                                    Three Months Ended March 31,


                                                                                                                               2026                   2025



 
            (Thousands, except per share data)                                                                       (Unaudited)



 Net sales                                                                                                                $176,278               $148,541



 Cost of products sold                                                                                                     121,058                 99,870



 
            GROSS PROFIT                                                                                                  55,220                 48,671



 Costs and expenses



 Selling                                                                                                                    13,769                 12,181



 General and administrative                                                                                                 21,053                 17,626



 Research and engineering                                                                                                    6,736                  5,479



 Other operating (income) expense, net                                                                                        (54)                   255


                                                                                                                             41,504                 35,541



 
            OPERATING INCOME                                                                                              13,716                 13,130



 Other income (expense)



 Interest income                                                                                                               777                    510



 Interest expense                                                                                                            (232)                 (376)



 Other income, net                                                                                                              69                    407


                                                                                                                                614                    541



 
            INCOME BEFORE INCOME TAXES                                                                                    14,330                 13,671



 Income tax expense                                                                                                          3,781                  2,118



 
            NET INCOME                                                                                                   $10,549                $11,553



 Net loss (income) attributable to noncontrolling interests                                                                   (25)                  (36)



 
            NET INCOME ATTRIBUTABLE TO PLPC SHAREHOLDERS                                                                 $10,524                $11,517



 
            AVERAGE NUMBER OF SHARES OF COMMON STOCK OUTSTANDING:



 Basic                                                                                                                       4,906                  4,928



 Diluted                                                                                                                     4,927                  4,950



 
            EARNINGS PER SHARE OF COMMON STOCK ATTRIBUTABLE TO PLPC SHAREHOLDERS:



 Basic                                                                                                                       $2.15                  $2.34



 Diluted                                                                                                                     $2.14                  $2.33





 Cash dividends declared per share                                                                                           $0.21                  $0.20

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SOURCE Preformed Line Products Company