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 | |
SOURCE Preformed Line Products Company
