Preformed Line Products(PLPC) - 2025 Q2 - Quarterly Results

Q2 2025 Financial Highlights 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] - 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] - Foreign currency translation had a negative impact, reducing net sales by $0.5 million for the quarter[2] Year-to-Date (YTD) 2025 Financial Highlights 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] - Foreign currency translation rates negatively impacted net sales by $4.9 million for the six-month period[4] Management Commentary 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] - The company acknowledges uncertainty caused by recently enacted tariffs but believes its strong commitment to USA manufacturing provides a competitive advantage[6] - Strategies to manage tariff impacts include targeted selling price increases, cost containment, and supply chain management[6] - The acquisition of JAP Telecom is expected to make positive contributions to the company's communications product portfolio[6] Consolidated Financial Statements Consolidated financial statements show total assets increased to $631.5 million and net income significantly rose for Q2 and YTD 2025 Consolidated Balance Sheet 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 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 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] - 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]