Core Insights - Infrastructure spending, grid upgrades, and broadband expansion are driving a rally in industrial stocks, with Preformed Line Products (PLPC) emerging as a strong performer due to solid fundamentals and execution [3][4] - PLPC features strong margins, a low-debt capital structure, and significant momentum, making it a promising investment choice [3][7] Revenue Growth - PLPC experienced a revenue growth of 15.9% over the last twelve months (LTM) and an average growth of 4.8% over the past three years, indicating a robust growth trajectory [7] Profitability Metrics - The company has an operating cash flow margin of approximately 12.5% and an average operating margin of 10.3% over the last three years, showcasing its long-term profitability [7] Momentum and Market Position - PLPC is currently in the top 10 percentile of stocks regarding "trend strength," reflecting strong momentum in its stock performance [7] - Despite this momentum, PLPC stock is trading 12% lower than its 52-week high, suggesting potential for further upside [7] Performance Statistics - The average 12-month forward returns for stocks fitting a similar selection strategy are nearly 15%, with a win rate of about 60% for yielding positive returns [8] Historical Volatility - PLPC has faced significant losses in past market downturns, including a nearly 50% drop during the Dot-Com crash and around 56% during the Global Financial Crisis, indicating that strong fundamentals do not guarantee immunity against market volatility [9] Portfolio Performance - The Trefis High Quality (HQ) Portfolio, which includes PLPC, has a track record of outperforming benchmark indices like the S&P 500, S&P Mid-Cap, and Russell 2000, providing a more stable investment experience [10]

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q (Mark One) ☒ Quarterly report pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 For the fiscal quarter ended September 30, 2025 or ☐ Transition Report Pursuant to Section 13 or 15(d) of The Securities Exchange Act of 1934 for the Transition Period From ________To _______ Commission file number 0-31164 Preformed Line Products Company (Exact name of registrant as specified in its charter) | Ohio 34-0676895 | ...

Accessibility StatementSkip Navigation CLEVELAND, Oct. 29, 2025 /PRNewswire/ -- Preformed Line Products Company (NASDAQ: PLPC) today reported financial results for its third quarter of 2025. Q3 2025 highlights compared to same quarter last year: Net sales in the third quarter of 2025 were $178.1 million compared to $147.0 million in the third quarter of 2024, a 21% increase. PLP-USA continued its strong 2025 performance as both energy product and communications end-market sales contributed to the increase. ...

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Our most recent commentary on Preformed Line Products Company (NASDAQ: PLPC ) was in May of this year, when we reiterated our 'hold' rating for the telecommunications and underground network-related outfit. The principalIndividual investor with a keen interest in deriving income from investment setups. We do this by buying undervalued profitable stocks with strong balance sheets & minimal debt. Furthermore, when the opportunity arises, we like to write calls against our positions to bring in additional inco ...

Company Overview - Preformed Line Products Company (NASDAQ:PLPC) develops and supplies infrastructure hardware and systems for energy, telecommunications, and data networks, including fiber optic cables, connectors, insulators, protective closures, and motion control devices [2] - The company also provides drone inspection services, solar framing, and EV-related products, serving utilities, communication providers, contractors, and government agencies [2] Market Position - The stock is perceived as undervalued despite strong performance, trading at a discount compared to peers in the industrial sector [1] - The company is involved in the construction of data centers, which has led to multiple stocks in this sector trading at a discount [1] Investment Considerations - While PLPC shows potential as an investment, certain AI stocks are suggested to offer greater upside potential and carry less downside risk [3]

Core Insights - Preformed Line Products Company (PLPC) reported a strong second quarter for 2025, with significant revenue and earnings growth despite facing macroeconomic challenges and trade-related issues [14] Financial Performance - For the quarter ended June 30, 2025, PLPC achieved net sales of $169.6 million, a 22% increase from $138.7 million in the same quarter of 2024 [2] - Diluted earnings per share (EPS) rose 35% to $2.56 from $1.89 year-over-year, with net income increasing to $12.7 million from $9.4 million [2] - Gross profit increased by 25% year-over-year to $55.4 million, with gross margin expanding by 80 basis points to 32.7% [3] Operational Metrics - Pre-tax income for the quarter surged 55% year-over-year to $17.3 million, reflecting improved operational efficiency and pricing strategies [4] - Regionally, PLP-USA led growth with a 32% increase in sales, while the Americas and Asia-Pacific regions saw gains of 31% and 20%, respectively [4] Segment Performance - Energy products accounted for approximately 70% of total second-quarter sales, with energy revenues climbing 21% to $118.7 million [5] - Communications sales rose 40% to $13.6 million, driven by a 41% increase in PLP-USA, supported by fiber closure product demand and the JAP Telecom acquisition [5] Management Insights - Executive chairman Rob Ruhlman highlighted the company's momentum and broad-based strength in domestic and international markets, particularly in energy and communications [6] - Management acknowledged uncertainties due to newly enacted tariffs affecting international goods sourced by PLP-USA [6] Cost Management - Increased costs related to steel and aluminum were partially offset through cost controls and pricing actions [7] - Selling, general and administrative expenses rose to $31.8 million from $27.2 million a year earlier, but interest expenses declined by 44% to $318,000 [9] Strategic Developments - PLPC completed the acquisition of JAP Telecom to enhance its communications product portfolio [12] - The company secured a $27.4 million loan to finance a new manufacturing facility in Poland, aimed at supporting production capacity in the EMEA region [12] - Capital expenditure increased significantly due to the investment in the Poland facility, with free cash flow returning to normalized levels at $18.6 million [13]

[PART I – FINANCIAL INFORMATION](index=3&type=section&id=Part%20I%20%E2%80%93%20Financial%20Information) This section details the company's unaudited consolidated financial statements, management's discussion, market risk disclosures, and internal controls [ITEM 1. FINANCIAL STATEMENTS](index=3&type=section&id=Item%201.%20Financial%20Statements) This section presents the unaudited consolidated financial statements, including balance sheets, income statements, cash flows, and detailed notes [Consolidated Balance Sheets](index=3&type=section&id=Consolidated%20Balance%20Sheets) This section provides a snapshot of the company's financial position at specific dates, detailing assets, liabilities, and equity Consolidated Balance Sheets (Thousands of dollars) | Metric | June 30, 2025 (Thousands of dollars) | December 31, 2024 (Thousands of dollars) | | :-------------------------------- | :------------------------------------- | :--------------------------------------- | | Total Current Assets | 353,166 | 315,793 | | Total Assets | 631,461 | 573,877 | | Total Current Liabilities | 114,771 | 108,413 | | Total Shareholders' Equity | 460,776 | 422,324 | [Statements of Consolidated Income](index=5&type=section&id=Statements%20of%20Consolidated%20Income) This section details the company's financial performance over specific periods, including net sales, gross profit, operating income, and net income Statements of Consolidated Income (Thousands of dollars) | Metric | Three Months Ended June 30, 2025 (Thousands) | Three Months Ended June 30, 2024 (Thousands) | Six Months Ended June 30, 2025 (Thousands) | Six Months Ended June 30, 2024 (Thousands) | | :-------------------------------------------------- | :------------------------------------------- | :------------------------------------------- | :----------------------------------------- | :----------------------------------------- | | Net sales | 169,601 | 138,720 | 318,142 | 279,625 | | GROSS PROFIT | 55,399 | 44,273 | 104,070 | 88,405 | | OPERATING INCOME | 17,124 | 11,292 | 30,254 | 22,851 | | NET INCOME ATTRIBUTABLE TO PREFORMED LINE PRODUCTS COMPANY SHAREHOLDERS | 12,705 | 9,366 | 24,222 | 18,962 | | Diluted EPS | 2.56 | 1.89 | 4.89 | 3.83 | [Statements of Consolidated Comprehensive Income](index=6&type=section&id=Statements%20of%20Consolidated%20Comprehensive%20Income) This section presents the company's comprehensive income, including net income and other comprehensive income items like foreign currency translation adjustments Statements of Consolidated Comprehensive Income (Thousands of dollars) | Metric | Three Months Ended June 30, 2025 (Thousands of dollars) | Three Months Ended June 30, 2024 (Thousands of dollars) | Six Months Ended June 30, 2025 (Thousands of dollars) | Six Months Ended June 30, 2024 (Thousands of dollars) | | :---------------------------------------------------- | :------------------------------------------------------ | :------------------------------------------------------ | :----------------------------------------------------- | :----------------------------------------------------- | | Net income | 12,700 | 9,367 | 24,253 | 18,970 | | Foreign currency translation adjustment | 13,681 | (5,971) | 20,352 | (12,536) | | COMPREHENSIVE INCOME ATTRIBUTABLE TO PREFORMED LINE PRODUCTS COMPANY SHAREHOLDERS | 26,509 | 3,484 | 44,820 | 6,604 | [Statements of Consolidated Cash Flows](index=7&type=section&id=Statements%20of%20Consolidated%20Cash%20Flows) This section outlines the company's cash inflows and outflows from operating, investing, and financing activities over specific periods Statements of Consolidated Cash Flows (Thousands of dollars) | Metric | Six Months Ended June 30, 2025 (Thousands of dollars) | Six Months Ended June 30, 2024 (Thousands of dollars) | | :-------------------------------------------------- | :---------------------------------------------------- | :---------------------------------------------------- | | NET CASH PROVIDED BY OPERATING ACTIVITIES | 32,583 | 34,047 | | NET CASH USED IN INVESTING ACTIVITIES | (22,209) | (4,281) | | NET CASH USED IN FINANCING ACTIVITIES | (4,790) | (33,504) | | CASH, CASH EQUIVALENTS AND RESTRICTED CASH AT END OF PERIOD | 66,908 | 47,424 | [Statements of Consolidated Shareholders' Equity](index=8&type=section&id=Statements%20of%20Consolidated%20Shareholders'%20Equity) This section details changes in the company's shareholders' equity, including retained earnings and accumulated other comprehensive income Statements of Consolidated Shareholders' Equity (Thousands of dollars) | Metric | June 30, 2025 (Thousands) | December 31, 2024 (Thousands) | | :---------------------------------------------------- | :-------------------------- | :---------------------------- | | Total Preformed Line Products Company Equity | 460,736 | 422,315 | | Retained Earnings | 575,368 | 553,179 | | Accumulated Other Comprehensive Loss | (62,311) | (82,909) | [Notes to Consolidated Financial Statements](index=11&type=section&id=Notes%20to%20Consolidated%20Financial%20Statements) This section provides detailed explanations and disclosures supporting the consolidated financial statements, covering various accounting policies and financial items [NOTE 1 - SIGNIFICANT ACCOUNTING POLICIES](index=11&type=section&id=NOTE%201%20-%20SIGNIFICANT%20ACCOUNTING%20POLICIES) This note outlines the fundamental accounting principles and policies used in preparing the consolidated financial statements - Financial statements are prepared in accordance with U.S. GAAP for interim financial information[24](index=24&type=chunk) - Adopted ASU No. 2023-07 (Segment Reporting) effective March 31, 2025, with no material impact on consolidated financial statements other than updated segment disclosures[28](index=28&type=chunk) - Evaluating ASU No. 2023-09 (Income Tax Disclosures) and ASU No. 2024-03 (Expense Disaggregation Disclosures), expecting no material impact to consolidated financial statements[29](index=29&type=chunk)[30](index=30&type=chunk) - Assessing the impact of the One Big Beautiful Bill Act (OBBBA), enacted July 4, 2025, on consolidated financial statements[32](index=32&type=chunk) [NOTE 2 - REVENUE](index=12&type=section&id=NOTE%202%20-%20REVENUE) This note describes the company's revenue recognition policies and provides a breakdown of revenue by product type and credit loss allowances - Revenue is recognized when control of promised goods or services transfers to customers, primarily based on shipping terms[33](index=33&type=chunk) Consolidated Revenue by Product Type (Three Months Ended June 30, 2025) | Product Type | Consolidated | | :------------- | :----------- | | Energy | 70% | | Communications | 22% | | Special Industries | 8% | Allowance for Credit Losses (Six Months Ended June 30) | Metric | 2025 (Thousands of dollars) | 2024 (Thousands of dollars) | | :------------------------------------ | :-------------------------- | :-------------------------- | | Allowance for credit losses, beginning of period | 6,958 | 8,260 | | Additions (reductions) charged to costs and expenses | 296 | (1,409) | | Allowance for credit losses, end of period | 7,163 | 6,323 | [NOTE 3 - INVENTORIES, NET](index=13&type=section&id=NOTE%203%20-%20INVENTORIES,%20NET) This note details the composition of inventories, including raw materials, work-in-process, and finished products, along with LIFO cost and reserve information Inventories, Net (Thousands of dollars) | Component | June 30, 2025 | December 31, 2024 | | :------------------------------------------ | :------------ | :---------------- | | Raw materials | 86,143 | 75,138 | | Work-in-process | 16,911 | 12,225 | | Finished products | 52,956 | 52,792 | | Inventories, net of excess and obsolete inventory reserve | 156,010 | 140,155 | | Inventories at LIFO cost | 143,369 | 129,913 | - Net change in LIFO inventories resulted in an expense of **$1.9 million** for the three months ended June 30, 2025, and **$2.4 million** for the six months ended June 30, 2025, to Cost of products sold[36](index=36&type=chunk) - Reserves for slow moving and obsolete inventory were **$17.5 million** at June 30, 2025, and **$17.7 million** at December 31, 2024[36](index=36&type=chunk) [NOTE 4 - PROPERTY AND EQUIPMENT, NET](index=13&type=section&id=NOTE%204%20-%20PROPERTY%20AND%20EQUIPMENT,%20NET) This note provides a breakdown of the company's property, plant, and equipment, including land, buildings, machinery, and construction in progress Property, Plant and Equipment, Net (Thousands of dollars) | Component | June 30, 2025 | December 31, 2024 | | :-------------------------------- | :------------ | :---------------- | | Land and improvements | 27,141 | 20,204 | | Buildings and improvements | 130,899 | 125,076 | | Machinery, equipment and aircraft | 267,767 | 252,759 | | Construction in progress | 15,422 | 10,884 | | Property, plant and equipment, net | 211,923 | 195,086 | [NOTE 5 - CONTINGENT AND OTHER LIABILITIES](index=14&type=section&id=NOTE%205%20-%20CONTINGENT%20AND%20OTHER%20LIABILITIES) This note discusses potential liabilities, including legal proceedings and customer advanced payments, and the company's related financial positions - The Company is not a party to any pending legal proceedings that would have a material adverse effect on its financial condition, results of operations or cash flow[39](index=39&type=chunk) - Zero reserves for known global legal matters as of June 30, 2025, and December 31, 2024[39](index=39&type=chunk) - Advanced payments by customers for future projects were **$8.1 million** at June 30, 2025, up from **$6.7 million** at December 31, 2024[40](index=40&type=chunk) [NOTE 6 - PENSION PLANS](index=14&type=section&id=NOTE%206%20-%20PENSION%20PLANS) This note details the company's pension plan expenses and the ongoing termination of its U.S. Plan, including estimated charges Net Periodic Pension Expense (Thousands of dollars) | Metric | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :-------------------------- | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | Net periodic pension expense | 204 | 19 | 409 | 38 | - The Company is terminating its U.S. Plan, settling **$13.1 million** in lump-sum payments in July 2025[42](index=42&type=chunk) - Estimates a non-cash pre-tax charge of **$8.5 million to $9.5 million** in Q3 2025 associated with the U.S. Plan termination[42](index=42&type=chunk) [NOTE 7 - ACCUMULATED OTHER COMPREHENSIVE INCOME ("AOCI")](index=15&type=section&id=NOTE%207%20-%20ACCUMULATED%20OTHER%20COMPREHENSIVE%20INCOME%20(%22AOCI%22)) This note presents the balance and changes in accumulated other comprehensive income, primarily driven by foreign currency translation adjustments AOCI Balance and Changes (Thousands of dollars) | Metric | June 30, 2025 | December 31, 2024 | | :------------------------------------ | :------------ | :---------------- | | Balance at June 30 (Total AOCI) | (62,311) | (72,664) | | Foreign currency translation adjustment (Six Months Ended June 30, 2025) | 20,352 | (12,536) | [NOTE 8 - DEBT AND CREDIT ARRANGEMENTS](index=16&type=section&id=NOTE%208%20-%20DEBT%20AND%20CREDIT%20ARRANGEMENTS) This note outlines the company's debt structure, including amendments to its credit facility and new investment loans for manufacturing expansion - Credit facility with PNC Bank amended on March 14, 2025, extending maturity to June 30, 2028, and increasing unsecured borrowing limit to **$60.0 million**[46](index=46&type=chunk) - Subsequent event (July 30, 2025): Credit facility borrowing capacity reduced from **$90.0 million** to **$60.0 million**, and secured indebtedness limit increased from **$35.0 million** to **$55.0 million**[51](index=51&type=chunk) - PLP Poland entered into a non-revolving investment loan of up to **PLN100.3 million ($27.4 million)** to finance a new manufacturing plant, maturing January 31, 2035[52](index=52&type=chunk) - Bank debt to equity percentage was **7.9%** at June 30, 2025[47](index=47&type=chunk) [NOTE 9 - INCOME TAXES](index=16&type=section&id=NOTE%209%20-%20INCOME%20TAXES) This note provides details on the company's effective tax rates and the factors influencing changes in tax expense Effective Tax Rates | Period | 2025 | 2024 | | :-------------------------- | :--- | :--- | | Three Months Ended June 30, | 27% | 16% | | Six Months Ended June 30, | 22% | 18% | - Higher effective tax rates in 2025 due to unfavorable impact from nondeductible compensation and non-recurring rate benefits received in 2024, partially offset by a favorable mix of earned income in certain foreign jurisdictions[54](index=54&type=chunk) [NOTE 10 - COMPUTATION OF EARNINGS PER SHARE](index=17&type=section&id=NOTE%2010%20-%20COMPUTATION%20OF%20EARNINGS%20PER%20SHARE) This note presents the basic and diluted earnings per share calculations for various reporting periods Earnings Per Share (EPS) | Metric | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :------- | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | Basic EPS | $2.58 | $1.91 | $4.91 | $3.86 | | Diluted EPS | $2.56 | $1.89 | $4.89 | $3.83 | [NOTE 11 - GOODWILL AND OTHER INTANGIBLES](index=17&type=section&id=NOTE%2011%20-%20GOODWILL%20AND%20OTHER%20INTANGIBLES) This note details the company's goodwill by reporting unit and discusses changes and impairment assessments Goodwill by Reporting Unit (Thousands of dollars) | Segment | January 1, 2025 | June 30, 2025 | | :------------- | :-------------- | :------------ | | PLP-USA | 3,078 | 3,078 | | The Americas | 8,858 | 9,714 | | EMEA | 14,749 | 16,726 | | Asia-Pacific | — | — | | Total | 26,685 | 29,518 | - Goodwill increased to **$29,518k** at June 30, 2025, from **$26,685k** at December 31, 2024, primarily due to currency translation[57](index=57&type=chunk)[60](index=60&type=chunk) - No indicators of impairment were noted for goodwill for the period ending June 30, 2025[57](index=57&type=chunk) [NOTE 12 - FAIR VALUE OF FINANCIAL ASSETS AND LIABILITIES](index=19&type=section&id=NOTE%2012%20-%20FAIR%20VALUE%20OF%20FINANCIAL%20ASSETS%20AND%20LIABILITIES) This note discusses the fair value measurements of financial assets and liabilities, including the unfunded Supplemental Profit Sharing Plan and foreign currency contracts - The liability for the unfunded Supplemental Profit Sharing Plan was **$10.1 million** at June 30, 2025, up from **$9.0 million** at December 31, 2024[64](index=64&type=chunk) - The Company uses foreign currency forward contracts to reduce market risk from exchange rate movements, recognizing net gains of **$0.1 million** for the six months ended June 30, 2025[63](index=63&type=chunk) Fair Value vs. Carrying Value of Long-Term Debt (Thousands of dollars) | Metric | June 30, 2025 Fair Value | June 30, 2025 Carrying Value | December 31, 2024 Fair Value | December 31, 2024 Carrying Value | | :----------------------------------- | :----------------------- | :----------------------------- | :--------------------------- | :----------------------------- | | Long-term debt and related current maturities | 28,638 | 31,806 | 17,474 | 20,787 | [NOTE 13 - SEGMENT INFORMATION](index=21&type=section&id=NOTE%2013%20-%20SEGMENT%20INFORMATION) This note provides a breakdown of net sales and long-lived asset expenditures by the company's geographic operating segments Net Sales by Segment (Three Months Ended June 30, 2025, Thousands of dollars) | Segment | Net Sales | | :------------ | :-------- | | PLP-USA | 79,290 | | The Americas | 28,508 | | EMEA | 31,910 | | Asia-Pacific | 29,893 | | Total | 169,601 | Net Sales by Segment (Six Months Ended June 30, 2025, Thousands of dollars) | Segment | Net Sales | | :------------ | :-------- | | PLP-USA | 153,296 | | The Americas | 50,787 | | EMEA | 61,903 | | Asia-Pacific | 52,156 | | Total | 318,142 | Total Expenditure for Long-Lived Assets (Thousands of dollars) | Segment | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :------------ | :----------------------------- | :----------------------------- | | PLP-USA | 2,914 | 4,504 | | The Americas | 1,799 | 1,082 | | EMEA | 13,499 | 1,507 | | Asia-Pacific | 1,142 | 553 | | Total | 19,354 | 7,646 | [NOTE 14 - ACQUISITION OF BUSINESSES](index=24&type=section&id=NOTE%2014%20-%20ACQUISITION%20OF%20BUSINESSES) This note details the acquisition of JAP Telecom, a Brazilian connectivity solutions provider, and its contribution to sales - On May 1, 2025, the Company acquired JAP Telecom, a Brazilian connectivity solutions provider, for approximately **$5.3 million** (net of cash)[77](index=77&type=chunk) - The acquisition expands the Company's operational capabilities in South America and strengthens its position in the global communications market[77](index=77&type=chunk) - JAP Telecom contributed approximately **$1.0 million** in sales to The Americas segment from the acquisition date through June 30, 2025[79](index=79&type=chunk) [ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS](index=26&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) This section provides management's perspective on financial condition and results of operations, analyzing sales, profit, expenses, taxes, liquidity, and capital [OVERVIEW](index=26&type=section&id=OVERVIEW) This section provides an overview of the company's business, product portfolio, and segment reporting structure - Preformed Line Products Company is an international designer and manufacturer of products and systems for energy, telecommunication, cable operators, and data communication industries[81](index=81&type=chunk) - The company's product portfolio includes helical solutions, connectors, fiber optic and copper splice closures, solar hardware, electric vehicle charging station foundations, and aerial drone inspection services[81](index=81&type=chunk) - Segments are reported in four geographic regions: PLP-USA, The Americas, EMEA, and Asia-Pacific, with segment performance evaluated based on gross sales and income before income taxes[82](index=82&type=chunk)[84](index=84&type=chunk) [PREFACE](index=26&type=section&id=PREFACE) This section highlights key financial performance indicators, including net sales growth and the impact of foreign currency fluctuations, while emphasizing strong liquidity - Net sales increased by **$30.9 million (22%)** for the three months ended June 30, 2025, and **$38.5 million (14%)** for the six months ended June 30, 2025, year-over-year, mainly driven by energy and communication sales[86](index=86&type=chunk) - Foreign currency fluctuations had an unfavorable impact on net sales of **$0.5 million** for Q2 2025 and **$4.9 million** for H1 2025[87](index=87&type=chunk) - The company maintains strong liquidity with a bank debt to equity percentage of **7.9%** and focuses on assessing global market opportunities, manufacturing capacity, and cost containment[88](index=88&type=chunk) [RESULTS OF OPERATIONS (Three Months Ended June 30, 2025 Compared to Three Months Ended June 30, 2024)](index=27&type=section&id=RESULTS%20OF%20OPERATIONS%20(Three%20Months%20Ended%20June%2030,%202025%20Compared%20to%20Three%20Months%20Ended%20June%2030,%202024)) This section analyzes the company's financial performance for the three months ended June 30, 2025, compared to the prior year, focusing on key income statement components [Net sales](index=27&type=section&id=Net%20sales_Q2) This subsection details net sales performance by segment for the three months ended June 30, highlighting growth drivers and currency impacts Net Sales by Segment (Three Months Ended June 30) | Segment | 2025 ($k) | 2024 ($k) | Change ($k) | % Change | Change Excluding Currency Translation ($k) | % Change Excluding Currency Translation | | :------------ | :-------- | :-------- | :---------- | :------- | :---------------------------------------- | :-------------------------------------- | | PLP-USA | 79,290 | 59,900 | 19,390 | 32% | 19,390 | 32% | | The Americas | 28,508 | 21,815 | 6,693 | 31% | 8,758 | 40% | | EMEA | 31,910 | 32,039 | (129) | (0%) | (1,650) | (5%) | | Asia-Pacific | 29,893 | 24,966 | 4,927 | 20% | 4,916 | 20% | | Consolidated | 169,601 | 138,720 | 30,881 | 22% | 31,414 | 23% | - PLP-USA net sales increased **32%** primarily due to higher volumes in energy and communications sales[92](index=92&type=chunk) - The Americas net sales increased **40%** (excluding currency) due to higher volumes in energy product sales and the acquisition of JAP Telecom[92](index=92&type=chunk) [Gross profit](index=29&type=section&id=Gross%20profit_Q2) This subsection analyzes gross profit performance by segment for the three months ended June 30, attributing changes to sales volumes, product mix, and costs Gross Profit by Segment (Three Months Ended June 30) | Segment | 2025 ($k) | 2024 ($k) | Change ($k) | % Change | Change Excluding Currency Translation ($k) | % Change Excluding Currency Translation | | :------------ | :-------- | :-------- | :---------- | :------- | :---------------------------------------- | :-------------------------------------- | | PLP-USA | 28,062 | 20,743 | 7,319 | 35% | 7,319 | 35% | | The Americas | 8,424 | 6,712 | 1,712 | 25% | 2,326 | 35% | | EMEA | 9,511 | 9,364 | 147 | 2% | (291) | (3%) | | Asia-Pacific | 9,402 | 7,454 | 1,948 | 26% | 1,971 | 26% | | Consolidated | 55,399 | 44,273 | 11,126 | 25% | 11,325 | 26% | - PLP-USA gross profit increased **35%** due to higher sales volumes and favorable product mix, partially offset by higher tariff and manufacturing costs[93](index=93&type=chunk) [Costs and expenses](index=29&type=section&id=Costs%20and%20expenses_Q2) This subsection examines changes in operating costs and expenses by segment for the three months ended June 30, identifying key drivers such as personnel and selling costs Costs and Expenses by Segment (Three Months Ended June 30) | Segment | 2025 ($k) | 2024 ($k) | Change ($k) | % Change | Change Excluding Currency & Intercompany ($k) | % Change Excluding Currency & Intercompany | | :------------ | :-------- | :-------- | :---------- | :------- | :-------------------------------------------- | :----------------------------------------- | | PLP-USA | 17,413 | 16,939 | 474 | 3% | 2,230 | 13% | | The Americas | 6,736 | 4,644 | 2,092 | 45% | 1,523 | 33% | | EMEA | 7,950 | 5,388 | 2,562 | 48% | 1,781 | 33% | | Asia-Pacific | 6,176 | 6,010 | 166 | 3% | (204) | (3%) | | Consolidated | 38,275 | 32,981 | 5,294 | 16% | 5,330 | 16% | - PLP-USA costs and expenses increased **13%** (excluding intercompany) primarily due to higher selling and personnel costs[94](index=94&type=chunk) - EMEA costs and expenses increased **33%** (excluding currency and intercompany) primarily due to a recovery of bad debt in Q2 2024 that did not recur[94](index=94&type=chunk) [Other Income (Expense), net](index=29&type=section&id=Other%20Income%20(Expense),%20net_Q2) This subsection discusses the net change in other income and expense for the three months ended June 30, primarily driven by interest expense - Other income, net, was **$0.2 million** for Q2 2025, a favorable change of **$0.3 million** compared to an expense of **$0.1 million** in Q2 2024, mainly due to lower interest expense from reduced debt balances[95](index=95&type=chunk) [Income taxes](index=30&type=section&id=Income%20taxes_Q2) This subsection analyzes income tax expense and effective tax rates for the three months ended June 30, explaining the factors contributing to rate changes - Income tax expense for Q2 2025 was **$4.6 million (27% effective tax rate)** compared to **$1.8 million (16% effective tax rate)** in Q2 2024[96](index=96&type=chunk) - The higher effective tax rate in 2025 was mainly due to unfavorable adjustments including nondeductible compensation and non-recurring rate benefits in 2024, partially offset by a favorable mix of earned income in foreign jurisdictions[96](index=96&type=chunk) [Net income](index=30&type=section&id=Net%20income_Q2) This subsection presents net income by segment for the three months ended June 30, highlighting the drivers of consolidated net income changes Net Income by Segment (Three Months Ended June 30) | Segment | 2025 ($k) | 2024 ($k) | Change ($k) | % Change | Change Excluding Currency Translation ($k) | % Change Excluding Currency Translation | | :------------ | :-------- | :-------- | :---------- | :------- | :---------------------------------------- | :-------------------------------------- | | PLP-USA | 7,745 | 3,345 | 4,400 | 132% | 4,400 | 132% | | The Americas | 1,302 | 1,796 | (494) | (28%) | (410) | (23%) | | EMEA | 1,367 | 2,975 | (1,608) | (54%) | (1,659) | (56%) | | Asia-Pacific | 2,291 | 1,250 | 1,041 | 83% | 1,035 | 83% | | Consolidated | 12,705 | 9,366 | 3,339 | 36% | 3,366 | 36% | - Consolidated net income increased by **$3.3 million (36% excluding currency translation)** to **$12.7 million**, driven by higher operating income and lower interest expense, partially offset by higher tax expense[97](index=97&type=chunk) [RESULTS OF OPERATIONS (Six Months Ended June 30, 2025 Compared to Six Months Ended June 30, 2024)](index=30&type=section&id=RESULTS%20OF%20OPERATIONS%20(Six%20Months%20Ended%20June%2030,%202025%20Compared%20to%20Six%20Months%20Ended%20June%2030,%202024)) This section analyzes the company's financial performance for the six months ended June 30, 2025, compared to the prior year, focusing on key income statement components [Net sales](index=31&type=section&id=Net%20sales_H1) This subsection details net sales performance by segment for the six months ended June 30, highlighting growth drivers and currency impacts Net Sales by Segment (Six Months Ended June 30) | Segment | 2025 ($k) | 2024 ($k) | Change ($k) | % Change | Change Excluding Currency Translation ($k) | % Change Excluding Currency Translation | | :------------ | :-------- | :-------- | :---------- | :------- | :---------------------------------------- | :-------------------------------------- | | PLP-USA | 153,296 | 130,637 | 22,659 | 17% | 22,659 | 17% | | The Americas | 50,787 | 40,173 | 10,614 | 26% | 15,884 | 40% | | EMEA | 61,903 | 60,693 | 1,210 | 2% | 129 | 0% | | Asia-Pacific | 52,156 | 48,122 | 4,034 | 8% | 4,774 | 10% | | Consolidated | 318,142 | 279,625 | 38,517 | 14% | 43,446 | 16% | - PLP-USA net sales increased **17%** primarily due to higher volumes in energy and communications product sales[100](index=100&type=chunk) - The Americas net sales increased **40%** (excluding currency) primarily due to an increase in energy product sales[100](index=100&type=chunk) [Gross profit](index=31&type=section&id=Gross%20profit_H1) This subsection analyzes gross profit performance by segment for the six months ended June 30, attributing changes to sales volumes, product mix, and costs Gross Profit by Segment (Six Months Ended June 30) | Segment | 2025 ($k) | 2024 ($k) | Change ($k) | % Change | Change Excluding Currency Translation ($k) | % Change Excluding Currency Translation | | :------------ | :-------- | :-------- | :---------- | :------- | :---------------------------------------- | :-------------------------------------- | | PLP-USA | 54,900 | 45,439 | 9,461 | 21% | 9,461 | 21% | | The Americas | 15,511 | 11,678 | 3,833 | 33% | 5,473 | 47% | | EMEA | 18,388 | 17,682 | 706 | 4% | 349 | 2% | | Asia-Pacific | 15,271 | 13,606 | 1,665 | 12% | 1,896 | 14% | | Consolidated | 104,070 | 88,405 | 15,665 | 18% | 17,179 | 19% | - PLP-USA gross profit increased **21%** due to higher sales volumes and favorable product mix, partially offset by higher tariff and manufacturing costs[101](index=101&type=chunk) - The Americas gross profit increased **47%** (excluding currency) due to higher sales volumes and favorable product mix[101](index=101&type=chunk) [Costs and expenses](index=32&type=section&id=Costs%20and%20expenses_H1) This subsection examines changes in operating costs and expenses by segment for the six months ended June 30, identifying key drivers such as personnel costs and bad debt recovery Costs and Expenses by Segment (Six Months Ended June 30) | Segment | 2025 ($k) | 2024 ($k) | Change ($k) | % Change | Change Excluding Currency & Intercompany ($k) | % Change Excluding Currency & Intercompany | | :------------ | :-------- | :-------- | :---------- | :------- | :-------------------------------------------- | :----------------------------------------- | | PLP-USA | 34,567 | 35,102 | (535) | (2%) | 3,018 | 9% | | The Americas | 12,224 | 9,364 | 2,860 | 31% | 1,955 | 21% | | EMEA | 15,300 | 11,519 | 3,781 | 33% | 2,644 | 23% | | Asia-Pacific | 11,725 | 9,569 | 2,156 | 23% | 1,545 | 16% | | Consolidated | 73,816 | 65,554 | 8,262 | 13% | 9,162 | 14% | - PLP-USA costs and expenses increased **9%** (excluding intercompany) primarily due to higher selling and personnel costs[102](index=102&type=chunk) - EMEA costs and expenses increased **23%** (excluding currency and intercompany) due to higher personnel costs and the non-recurrence of a bad debt recovery in 2024[102](index=102&type=chunk) [Other income, net](index=32&type=section&id=Other%20income,%20net_H1) This subsection discusses the net change in other income for the six months ended June 30, primarily driven by lower interest expense and a government incentive - Other income, net, was **$0.7 million** for H1 2025, a favorable change of **$0.5 million** compared to **$0.2 million** in H1 2024, driven by lower interest expense and a government incentive in China, partially offset by lower interest income[103](index=103&type=chunk) [Income taxes](index=32&type=section&id=Income%20taxes_H1) This subsection analyzes income tax expense and effective tax rates for the six months ended June 30, explaining the factors contributing to rate changes - Income tax expense for H1 2025 was **$6.7 million (22% effective tax rate)** compared to **$4.0 million (18% effective tax rate)** in H1 2024[104](index=104&type=chunk) - The higher effective tax rate in 2025 was mainly due to unfavorable adjustments including nondeductible compensation and non-recurring rate benefits in 2024, partially offset by a favorable mix of earned income in foreign jurisdictions[104](index=104&type=chunk) [Net income](index=32&type=section&id=Net%20income_H1) This subsection presents net income by segment for the six months ended June 30, highlighting the drivers of consolidated net income changes Net Income by Segment (Six Months Ended June 30) | Segment | 2025 ($k) | 2024 ($k) | Change ($k) | % Change | Change Excluding Currency Translation ($k) | % Change Excluding Currency Translation | | :------------ | :-------- | :-------- | :---------- | :------- | :---------------------------------------- | :-------------------------------------- | | PLP-USA | 16,182 | 8,661 | 7,521 | 87% | 7,521 | 87% | | The Americas | 2,698 | 2,693 | 5 | 0% | 295 | 11% | | EMEA | 2,555 | 4,555 | (2,000) | (44%) | (2,081) | (46%) | | Asia-Pacific | 2,787 | 3,053 | (266) | (9%) | (225) | (7%) | | Consolidated | 24,222 | 18,962 | 5,260 | 28% | 5,510 | 29% | - Consolidated net income increased by **$5.3 million (29% excluding currency translation)** to **$24.2 million**, driven by higher operating income, partially offset by lower interest income and higher tax expense[105](index=105&type=chunk) [APPLICATION OF CRITICAL ACCOUNTING POLICIES AND ESTIMATES](index=33&type=section&id=APPLICATION%20OF%20CRITICAL%20ACCOUNTING%20POLICIES%20AND%20ESTIMATES) This section confirms that critical accounting policies remain consistent with the prior annual report and are not reiterated in this interim report - Critical accounting policies are consistent with those set forth in the Company's Form 10-K for the year ended December 31, 2024, and are not presented in this interim report[106](index=106&type=chunk) [WORKING CAPITAL, LIQUIDITY AND CAPITAL RESOURCES](index=33&type=section&id=WORKING%20CAPITAL,%20LIQUIDITY%20AND%20CAPITAL%20RESOURCES) This section assesses the company's working capital, liquidity position, and capital resources, including cash, debt, and credit facility details [Management Assessment of Liquidity](index=33&type=section&id=Management%20Assessment%20of%20Liquidity) This subsection provides management's evaluation of the company's liquidity, including cash balances, total debt, and available credit facility capacity - Cash, cash equivalents and restricted cash totaled **$66.9 million** at June 30, 2025[108](index=108&type=chunk) - Total debt, including notes payable, was **$36.2 million** at June 30, 2025[109](index=109&type=chunk) - The credit facility with PNC Bank had a capacity of **$90.0 million** at June 30, 2025, with **$79.6 million** unused availability, and a bank debt to equity percentage of **7.9%**[109](index=109&type=chunk)[111](index=111&type=chunk) - Subsequent to June 30, 2025, the credit facility's borrowing capacity was reduced to **$60.0 million**, and the secured indebtedness limit increased to **$55.0 million**[110](index=110&type=chunk) - PLP Poland secured a new non-revolving investment loan of up to **$27.4 million** for a new manufacturing plant[114](index=114&type=chunk) [Sources and Uses of Cash](index=34&type=section&id=Sources%20and%20Uses%20of%20Cash) This subsection summarizes the company's cash flow activities from operations, investing, and financing for the six months ended June 30 Net Cash Flow Activities (Six Months Ended June 30, Thousands of dollars) | Activity | 2025 | 2024 | | :-------------------------------- | :----- | :----- | | Net cash provided by operating activities | 32,600 | 34,000 | | Net cash used in investing activities | (22,200) | (4,300) | | Net cash used in financing activities | (4,800) | (33,500) | - The **$17.9 million** increase in cash used in investing activities was primarily due to the acquisition of JAP Telecom and increased capital expenditures for new land/building in Spain and a manufacturing plant in Poland[117](index=117&type=chunk) - The **$28.7 million** decrease in cash used in financing activities was primarily a result of a reduction in net payments of long-term debt[118](index=118&type=chunk) - Total outstanding guarantees were **$14.6 million** and total outstanding letters of credit were **$2.9 million** at June 30, 2025[120](index=120&type=chunk) [FORWARD LOOKING STATEMENTS](index=34&type=section&id=FORWARD%20LOOKING%20STATEMENTS) This section cautions that forward-looking statements are subject to uncertainties and risks, including global economic conditions, tariffs, and technological changes - Forward-looking statements are subject to uncertainties and factors that could cause actual results to differ materially, including global economic conditions, tariffs, and geopolitical conflicts[122](index=122&type=chunk)[123](index=123&type=chunk) - Key factors include demand for cable anchoring and control hardware, impact of inflation and rising interest rates, customer funding ability, technological developments (e.g., wireless communication), and decreasing demand for copper-based infrastructure[123](index=123&type=chunk) - Other risks include the ability to develop proprietary technology, strengthen customer relationships, expand product lines, currency exchange rate fluctuations, and integrate acquisitions[128](index=128&type=chunk) [ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK](index=35&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) This section confirms no material changes in market risk exposure since December 31, 2024, acknowledging risks from non-U.S. activities, interest rates, and currency fluctuations - No material changes in the Company's disclosed exposure to market risk since December 31, 2024[125](index=125&type=chunk) - The Company is subject to business risks inherent in non-U.S. activities, including political and economic uncertainty, import and export limitations, and market risk related to changes in interest rates and foreign currency exchange rates[124](index=124&type=chunk) [ITEM 4. CONTROLS AND PROCEDURES](index=35&type=section&id=Item%204.%20Controls%20and%20Procedures) This section confirms the effectiveness of disclosure controls and procedures and reports no material changes in internal control over financial reporting [Evaluation of Disclosure Controls and Procedures](index=35&type=section&id=Evaluation%20of%20Disclosure%20Controls%20and%20Procedures) This section confirms the effectiveness of the company's disclosure controls and procedures as evaluated by management - The Company's Principal Executive Officer and Principal Accounting Officer concluded that disclosure controls and procedures were effective as of June 30, 2025[126](index=126&type=chunk) [Changes in Internal Control over Financial Reporting](index=35&type=section&id=Changes%20in%20Internal%20Control%20over%20Financial%20Reporting) This section reports that no material changes occurred in the company's internal control over financial reporting during the period - No material changes in the Company's internal control over financial reporting occurred during the six-month period ended June 30, 2025[127](index=127&type=chunk) [PART II – OTHER INFORMATION](index=36&type=section&id=Part%20II%20%E2%80%93%20Other%20Information) This section provides additional information not covered in the financial statements, including legal proceedings, risk factors, equity sales, and exhibits [ITEM 1. LEGAL PROCEEDINGS](index=36&type=section&id=Item%201.%20Legal%20Proceedings) This section refers to Note 5 of the Notes to the Consolidated Financial Statements for information regarding the company's current legal proceedings - Information regarding the Company's current legal proceedings is presented in Note 5 of the Notes to the Consolidated Financial Statements[129](index=129&type=chunk) [ITEM 1A. RISK FACTORS](index=36&type=section&id=Item%201A.%20Risk%20Factors) This section confirms no material changes to previously disclosed risk factors but notes potential exacerbation from escalating tariffs - No material changes from the risk factors previously disclosed in the Company's Annual Report on Form 10-K for the year ended December 31, 2024[130](index=130&type=chunk) - Escalating tariffs between the U.S. and other countries could potentially exacerbate other risks[130](index=130&type=chunk) [ITEM 2. UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS](index=36&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) This section details the common share repurchase plan, including authorization for additional repurchases and shares bought back - On November 1, 2023, the Board authorized a plan to repurchase up to an additional **212,952** common shares, resulting in a total of **250,000** shares available for repurchase[131](index=131&type=chunk) Common Share Repurchases (Three Months Ended June 30, 2025) | Period | Total Number of Shares Purchased | Average Price Paid per Share ($) | Maximum Number of Shares that may yet be Purchased | | :----- | :------------------------------- | :------------------------------- | :------------------------------------------------- | | April | — | — | 171,915 | | May | 14,473 | 137.11 | 157,442 | | June | 2,555 | 143.27 | 154,887 | | Total | 17,028 | | | [ITEM 3. DEFAULTS UPON SENIOR SECURITIES](index=36&type=section&id=Item%203.%20Defaults%20Upon%20Senior%20Securities) This section states that there were no defaults upon senior securities during the reporting period - No defaults upon senior securities[133](index=133&type=chunk) [ITEM 4. MINE SAFETY DISCLOSURES](index=36&type=section&id=Item%204.%20Mine%20Safety%20Disclosures) This section indicates that there are no mine safety disclosures to report - No mine safety disclosures[134](index=134&type=chunk) [ITEM 5. OTHER INFORMATION](index=36&type=section&id=Item%205.%20Other%20Information) This section reports a subsequent event where the company amended its credit facility, reducing borrowing capacity and increasing secured indebtedness limits - On July 30, 2025, the Company amended its credit facility, reducing borrowing capacity from **$90.0 million** to **$60.0 million**[135](index=135&type=chunk) - The amendment also increased the indebtedness limit secured by mortgages, security interests or other liens from **$35.0 million** to **$55.0 million**[135](index=135&type=chunk) [ITEM 6. EXHIBITS](index=37&type=section&id=Item%206.%20Exhibits) This section lists all exhibits filed with the Form 10-Q, including credit facility amendments, loan agreements, and required certifications - Exhibits include Joinder and Amendment No. 9 to the Credit Facility and Fifteenth Amended and Restated Line of Credit Note, both dated July 30, 2025[136](index=136&type=chunk) - Also includes the Investment Loan Agreement for PLP Poland (Belos) S.A. dated July 16, 2025[136](index=136&type=chunk) - Certifications of the Principal Executive Officer and Principal Accounting Officer pursuant to Sections 302 and 906 of the Sarbanes-Oxley Act of 2002 are filed/furnished[136](index=136&type=chunk) [SIGNATURES](index=38&type=section&id=SIGNATURES) This section contains the required signatures of the Principal Executive Officer and Chief Financial Officer, certifying the Form 10-Q's accuracy - The report was signed by Robert G. Ruhlman, Executive Chairman (principal executive officer), and Andrew S. Klaus, Chief Financial Officer (principal financial and accounting officer), on July 31, 2025[140](index=140&type=chunk)

[Q2 2025 Financial Highlights](index=1&type=section&id=Q2%202025%20Financial%20Highlights) Preformed Line Products reported strong Q2 2025 results, with net sales up 22% to $169.6 million and net income rising 35% to $12.7 million Q2 2025 vs Q2 2024 Performance | Metric | Q2 2025 | Q2 2024 | Change | | :--- | :--- | :--- | :--- | | Net Sales | $169.6M | $138.7M | +22% | | Gross Profit Margin | 32.7% | 31.9% | +80 bps | | Net Income | $12.7M | $9.4M | +35% | | Diluted EPS | $2.56 | $1.89 | +35% | - Sales growth was driven by strong performance in the PLP-USA segment across both energy and communications end markets, supplemented by higher international energy product sales and incremental revenue from the recent acquisition of JAP Telecom[2](index=2&type=chunk) - Profitability increased due to higher sales volume and lower interest expense, which more than offset higher period expenses and the impact of recently enacted tariffs on goods sourced internationally[3](index=3&type=chunk) - Foreign currency translation had a negative impact, reducing net sales by **$0.5 million** for the quarter[2](index=2&type=chunk) [Year-to-Date (YTD) 2025 Financial Highlights](index=1&type=section&id=Year-to-Date%202025%20Financial%20Highlights) Year-to-date 2025 net sales grew 14% to $318.1 million, with net income increasing 27% to $24.2 million YTD 2025 vs YTD 2024 Performance (Six Months Ended June 30) | Metric | YTD 2025 | YTD 2024 | Change | | :--- | :--- | :--- | :--- | | Net Sales | $318.1M | $279.6M | +14% | | Net Income | $24.2M | $19.0M | +27% | | Diluted EPS | $4.89 | $3.83 | +28% | - All segments contributed to the year-over-year sales increase, driven by higher volumes in both energy and communication markets[4](index=4&type=chunk) - Foreign currency translation rates negatively impacted net sales by **$4.9 million** for the six-month period[4](index=4&type=chunk) [Management Commentary](index=1&type=section&id=Management%20Commentary) Management reported strong global sales growth in energy and communications, actively mitigating tariff impacts through pricing and cost containment - Management is pleased with strong, global sales growth benefiting both USA and international operations in energy and communications[6](index=6&type=chunk) - The company acknowledges uncertainty caused by recently enacted tariffs but believes its strong commitment to USA manufacturing provides a competitive advantage[6](index=6&type=chunk) - Strategies to manage tariff impacts include targeted selling price increases, cost containment, and supply chain management[6](index=6&type=chunk) - The acquisition of JAP Telecom is expected to make positive contributions to the company's communications product portfolio[6](index=6&type=chunk) [Consolidated Financial Statements](index=3&type=section&id=Consolidated%20Financial%20Statements) Consolidated financial statements show total assets increased to $631.5 million and net income significantly rose for Q2 and YTD 2025 [Consolidated Balance Sheet](index=3&type=section&id=Consolidated%20Balance%20Sheet) As of June 30, 2025, total assets increased to $631.5 million and total shareholders' equity grew to $460.8 million Key Balance Sheet Items (in thousands) | Account | June 30, 2025 | Dec 31, 2024 | | :--- | :--- | :--- | | Total Current Assets | $353,166 | $315,793 | | Total Assets | $631,461 | $573,877 | | Total Current Liabilities | $114,771 | $108,413 | | Total Shareholders' Equity | $460,776 | $422,324 | [Statements of Consolidated Income](index=4&type=section&id=Statements%20of%20Consolidated%20Income) The income statement shows significant year-over-year profitability increases for Q2 and YTD 2025, with net income reaching $12.7 million and $24.3 million respectively Q2 Income Statement Highlights (in thousands) | Account | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | | :--- | :--- | :--- | | Net Sales | $169,601 | $138,720 | | Gross Profit | $55,399 | $44,273 | | Operating Income | $17,124 | $11,292 | | Net Income | $12,700 | $9,367 | YTD Income Statement Highlights (in thousands) | Account | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :--- | :--- | :--- | | Net Sales | $318,142 | $279,625 | | Gross Profit | $104,070 | $88,405 | | Operating Income | $30,254 | $22,851 | | Net Income | $24,253 | $18,970 | [Forward-Looking Statements and Company Information](index=2&type=section&id=Forward-Looking%20Statements%20and%20Company%20Information) This section outlines risks and uncertainties affecting future results, including economic conditions and tariffs, and describes PLP as a global provider of engineered solutions - The company identifies numerous risk factors that could cause actual results to differ from forward-looking statements, including inflation, rising interest rates, tariffs, labor disruptions, and military conflict[8](index=8&type=chunk) - PLP positions itself as a global corporation that protects critical connections by creating stronger and more reliable networks for energy and communications providers, with a presence in **20 countries**[9](index=9&type=chunk)

Core Insights - Preformed Line Products Company reported a strong financial performance in Q2 2025, with net sales increasing by 22% year-over-year to $169.6 million, driven by growth in both energy and communications markets [1][9] - The company experienced a net income of $12.7 million for Q2 2025, representing a 35% increase compared to $9.4 million in Q2 2024, with diluted earnings per share rising to $2.56 [2][9] - For the first half of 2025, net sales reached $318.1 million, a 14% increase from $279.6 million in the same period of 2024, with all segments contributing to the growth [3][4] Financial Performance - Q2 2025 net sales were $169.6 million, up from $138.7 million in Q2 2024, marking a 22% increase [1] - Gross profit margin improved to 32.7% in Q2 2025, an increase of 80 basis points from the previous year [2][9] - Year-to-date net income for the first half of 2025 was $24.2 million, or $4.89 per diluted share, compared to $19.0 million, or $3.83 per diluted share, for the same period in 2024 [4] Market Dynamics - The sales growth was supported by strong performance in the USA energy and communications sectors, as well as contributions from international operations and the acquisition of JAP Telecom [5] - Foreign currency translation negatively impacted net sales by $0.5 million in Q2 2025 and $4.9 million for the first six months of 2025 [1][3] Operational Insights - The company is actively managing the impact of tariffs on international goods, which has created uncertainty in customer demand [5] - PLP's commitment to USA manufacturing is seen as a competitive advantage in the current high-tariff environment, although it may lead to increased costs for key commodities [5]