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 ...

Preformed Line Products Company (NASDAQ:PLPC) is one of the stocks on Jim Cramer’s radar. A caller mentioned that the stock appears undervalued despite strong performance and asked why it trades at a discount compared to peers in the industrial sector. In response, Cramer commented: “Oh, now, you know what, that’s still one more of multiple stocks that are involved in the construction of the data center, and those, because there’s so many of them, they’re starting to trade at a discount. Don’t freak out, ...

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]

UNITED STATES 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 June 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 SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 (Exact name of registrant as specified in its charter) | Ohio 34-0676895 | | | ...

[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]

Core Insights - PLP has commenced construction of a new multi-purpose facility in Wieprz, Poland, set to replace operations in Bielsko-Biała and enhance manufacturing capabilities by integrating modern engineering, operations, and sales support spaces, with completion expected in 2026 [1][2] - The new facility in Poland will serve as a key European hub for PLP's core product lines and services, reflecting the company's commitment to long-term growth in the European market [4] - PLP is also expanding its operations in Southern Europe by relocating to a larger facility in Seville, Spain, driven by rising demand and the need to scale production [2][3] Poland Facility Highlights - The new facility in Wieprz will feature a 30% increase in production space and a 50% increase in warehouse space, along with a world-class research and testing laboratory [7] - Modern offices and enhanced employee amenities will be part of the new work environment [7] Spain Facility Highlights - The Seville facility will see a 250% increase in operational space and a 240% increase in office capacity, allowing for team growth and collaboration [8] - Expanded manufacturing lines will support a broader product portfolio, and improved workspaces will enhance employee amenities [8] Strategic Vision - These investments are aligned with PLP's broader strategic vision to respond to the accelerating pace of global infrastructure projects, including grid modernization, renewable energy, and high-speed broadband [4]

Group 1 - The article discusses Preformed Line Products Company (NASDAQ: PLPC) and reiterates a 'Hold' rating due to sluggish end-market conditions, setbacks related to Bead stimulus funding, rising interest rates, and concerning technical indicators [1] - The company operates in the telecommunications and underground network-related sectors, which are currently facing challenges that may impact performance [1] Group 2 - The investment strategy mentioned involves buying undervalued profitable stocks with strong balance sheets and minimal debt, and potentially writing calls against positions for additional income [1] - Risk management is emphasized through position sizing and the use of trailing stop losses over time [1]

Core Insights - Preformed Line Products Company (PLPC) reported a solid financial performance in Q1 2025, with net sales increasing by 5% year-over-year to $148.5 million and net income rising by 20% to $11.5 million [2][11] Earnings & Sales Performance - Net sales for Q1 2025 were $148.5 million, up from $140.9 million in the same quarter last year, reflecting a 5% increase [2] - Net income reached $11.5 million, or $2.33 per diluted share, compared to $9.6 million, or $1.94 per share, a year earlier, marking a 20% increase [2] Gross Profit and Margins - Gross profit increased to $48.7 million from $44.1 million, with gross margin expanding by 150 basis points to 32.8% [3] - The margin improvement was attributed to a favorable product mix and better leverage on fixed costs, with sales increasing by 9% year-over-year when excluding the negative impact of foreign currency translation [3] Key Business Metrics - Pre-tax income was $13.7 million, a 15% increase from $11.9 million in the prior-year quarter, with pre-tax margin improving by 80 basis points to 9.2% [4] - Sales growth was observed in both the USA (5% increase) and the broader Americas region (39% increase) [4] Segment Performance - The communications business saw a 15% revenue increase due to higher fiber closure product sales [5] - The energy segment's sales rose by 4%, driven by strength in transmission line products, while the special industries segment experienced a 10% decline, primarily due to weakness in the EMEA region [5] Management Commentary - Executive Chairman Rob Ruhlman highlighted a strong start to 2025, with the USA communications business and international operations being key contributors to growth [6] Cost and Tariff Considerations - Ruhlman expressed caution regarding potential impacts of newly enacted tariffs on customer demand, noting that PLPC's domestic manufacturing presence helps manage the high-tariff environment [7] - The company anticipates cost increases related to steel and aluminum inputs and is implementing pricing adjustments and cost-containment strategies [7] Cash Flow and Capital Expenditures - Cash flow from operations was $5.7 million, with a decline in free cash flow year-over-year due to a $7.1 million increase in capital expenditures, including land and building purchases in Spain [9] - Despite this, PLPC reported a trailing 12-month free cash flow conversion rate of 118% and maintained strong liquidity with $54.8 million in cash and cash equivalents [9] Debt and Financing - The company increased its long-term debt to fund the acquisition of land and a building in Spain, supporting international operational expansion [10] - Additional borrowings included a $12.1 million aircraft loan and $15.3 million in overseas financing, with no significant debt maturities in the near term [11]

Group 1 - Preformed Line Products Company (PLPC) experienced a recovery in fortunes during the fourth quarter of 2024, ending a significant decline that lasted for four consecutive quarters [1] - The positive trend continued into the first quarter of 2025, indicating a sustained rebound for the company [1]