PREFORMED LINE PRODUCTS CO

Previous wording

Preformed Line Products Company (the “Company”, “PLPC”, “we”, “us”, or “our”) was incorporated in Ohio in 1947. We are an international designer and manufacturer of products and systems employed in the construction and maintenance of overhead and underground networks for the energy, telecommunication, cable operators, information (data communication), and other similar industries. Our primary products support, protect, connect, terminate, and secure cables and wires. We provide helical solutions, connectors, fiber optic and copper splice closures, solar hardware mounting applications, and electric vehicle charging station foundations. We also provide aerial drone inspection services for utility assets including transmission and distribution power lines, substations, and generation facilities. We are respected around the world for quality, dependability and market-leading customer service. Our goal is to continue to achieve profitable growth as a leader in the research, innovation, development, manufacture, and marketing of technically advanced products and services related to energy, communications and cable systems and to take advantage of this leadership position to sell additional quality products in familiar markets. We have sales and manufacturing operations in 20 different countries.

Current wording

Preformed Line Products Company (the “Company”, “PLPC”, “we”, “us”, or “our”) was incorporated in Ohio in 1947. We are an international designer and manufacturer of products and systems employed in the construction and maintenance of overhead and underground networks for the energy, telecommunication, cable operators, information (data communication), and other similar industries. Our primary products support, protect, connect, terminate, and secure cables and wires. We provide helical solutions, string hardware, connectors, insulators, fiber optic and copper splice closures, solar hardware mounting applications, and electric vehicle charging station foundations. We also provide aerial drone inspection services for utility assets including transmission and distribution power lines, substations, and generation facilities. We are respected around the world for quality, dependability and market-leading customer service. Our goal is to continue to achieve profitable growth as a leader in the research, innovation, development, manufacture, and marketing of technically advanced products and services related to energy, communications and cable systems and to take advantage of this leadership position to sell additional quality products in familiar markets. We have sales and manufacturing operations in 20 different countries.

Previous wording

The following discussion describes our results of operations for the three and nine months ended September 30, 2025 and 2024. Our consolidated financial statements are prepared in conformity with United States ("U.S.") generally accepted accounting principles ("GAAP"). Our discussions of the financial results include non-GAAP measures (e.g., foreign currency impact) to provide additional information concerning our financial results and provide information that we believe is useful to the readers of our financial statements in the assessment of our performance and operating trends.

Current wording

The following discussion describes our results of operations for the three months ended March 31, 2026 and 2025. Our consolidated financial statements are prepared in conformity with United States ("U.S.") generally accepted accounting principles ("GAAP"). Our discussions of the financial results include non-GAAP measures (e.g., foreign currency impact) to provide additional information concerning our financial results and provide information that we believe is useful to the readers of our financial statements in the assessment of our performance and operating trends.

Previous wording

Our financial statements are subject to fluctuations in the exchange rates of foreign currencies in relation to the U.S. dollar. The fluctuations of foreign currencies during the three and nine months ended September 30, 2025 had a favorable impact on net sales of $1.9 million and an unfavorable impact of $3.0 million, respectively. The fluctuations on foreign currencies had a favorable impact of $0.3 million on net income for the three months ended September 30, 2025 and a de minimis impact on net income for the nine months ended September 30, 2025. The fluctuations of foreign currencies during the three and nine months ended September 30, 2024 had an unfavorable impact on net sales of $0.8 million and $1.1 million, respectively. The fluctuations on foreign currencies during the three and nine months ended September 30, 2024 had an unfavorable impact on net income of $0.1 million and $0.2 million, respectively. On a reportable segment basis, the impact of foreign currency translation on net sales and net income for the three and nine months ended September 30, 2025, was as follows:

Current wording

Our financial statements are subject to fluctuations in the exchange rates of foreign currencies in relation to the U.S. dollar. The fluctuations of foreign currencies during the three months ended March 31, 2026 and March 31, 2025 had a favorable impact on net sales of $7.2 million andunfavorable impact of $4.4 million, respectively. The effect of currency translation had a favorable impact of$0.1 million and an unfavorable impact of$0.2 millionon net income during the three months ended March 31, 2026 and 2025, respectively. On a reportable segment basis, the impact of foreign currency translation on net sales and net income for the three months ended March 31, 2026, was as follows:

Previous wording

While uncertainty remains in the global economy due to tariffs and trade matters, we believe our business portfolio, including our significant U.S. manufacturing footprint, as well as our financial position, are sound and strategically well-positioned. We remain focused on assessing our global market opportunities and overall manufacturing capacity in conjunction with the requirements of local manufacturing in the markets that we serve. As necessary, we will modify redundant processes and further utilize our global manufacturing network to manage costs, including tariff-related impacts, increase sales volume and deliver value to our customers. Period cost containment continues to be a priority for the Company in 2025, and we continue to monitor and control discretionary spending where necessary. We have continued to invest in the business to expand into new markets for the Company, evaluate strategic mergers and acquisitions, improve efficiency, develop new products and increase our capacity. As of September 30, 2025, our liquidity remains strong with our bank debt to equity percentage at 8.3%. We can borrow needed funds at a competitive interest rate under the Facility.

Current wording

While uncertainty remains in the global economy due to trade matters and geopolitical instability, we believe our business portfolio, including our significant U.S. manufacturing footprint, as well as our financial position, are sound and strategically well-positioned. We remain focused on assessing our global market opportunities and overall manufacturing capacity in conjunction with the requirements of local manufacturing in the markets that we serve. As necessary, we will modify redundant processes and further utilize our global manufacturing network to manage costs, including tariff impacts, increase sales volume and deliver value to our customers. We closely monitor developments in trade policy and geo-political instability and actively evaluate strategies to mitigate the impact of tariffs or supply chain constraints, including sourcing alternatives, where needed. We have continued to invest in the business to expand into new markets for the Company, evaluate strategic mergers and acquisitions, improve efficiency, develop new products and increase our capacity. As of March 31, 2026, our liquidity remains strong with our bank debt to equity percentage at 8.9%. We can borrow needed funds at a competitive interest rate under the Facility.

Previous wording

Net sales. In 2025, net sales were $178.1 million, an increase of $31.1 million, or 21%, compared to 2024. Excluding the effect of currency translation, net sales increased 20% as summarized in the following table:

Current wording

Net sales. In 2026, net sales were $176.3 million, an increase of $27.7 million, or 19%, compared to 2025. Excluding the effect of currency translation, net sales increased 14% as summarized in the following table:

Previous wording

The increase in PLP-USA net sales of $15.3 million, or 23%, was primarily due to higher volumes in energy and communications sales. International net sales for the three months ended September 30, 2025 were favorably affected by $1.9 million when local currencies were converted to U.S. dollars. The following discussion of changes in net sales excludes the effect of currency translation. The Americas net sales of $29.3 million increased $9.3 million, or 47%, primarily due to higher volumes in energy product sales and an increase in communications sales due to the acquisition of JAP Telecom in May 2025. EMEA net sales of $38.1 million increased $3.1 million, or 9%, primarily due to higher volumes in energy product sales and special industry sales. Asia-Pacific net sales of $29.9 million increased $1.5 million, or 5%, primarily due to higher volumes in special industry sales.

Current wording

The increase in PLP-USA net sales of $19.3 million, or 26%, was primarily due to higher volumes in energy and communications sales. International net sales for the three months ended March 31, 2026 were favorably affected by $7.2 million when local currencies were converted to U.S. dollars. The following discussion of changes in net sales excludes the effect of currency translation. The Americas net sales of $25.1 million increased $0.5 million, or 2%, primarily due to higher volumes in communications sales due to the acquisition of JAP Telecom in May 2025. EMEA net sales of $33.3 million increased $0.1 million primarily due to higher volumes in special industry sales. Asia-Pacific net sales of $24.6 million increased $0.6 million, or 3%, primarily due to higher volumes in energy product sales and communications sales.

Previous wording

Gross profit. Gross profit of $52.8 million for 2025 increased $7.1 million, or 15%, compared to 2024. Excluding the effect of currency translation, gross profit increased $6.5 million, or 14%, as summarized in the following table:

Current wording

Gross profit. Gross profit of $55.2 million for 2026 increased $6.5 million, or 14%, compared to 2025. Excluding the effect of currency translation, gross profit increased $4.6 million, or 9%, as summarized in the following table:

Previous wording

PLP-USA gross profit of $23.7 million increased by $2.3 million, or 11%, compared to the same period in 2024, primarily due to higher sales volumes, partially offset by higher tariff and manufacturing costs, including LIFO valuation costs. International gross profit for the period ended September 30, 2025 was favorably impacted by $0.6 million when local currencies were translated to U.S. dollars. The following discussion of gross profit changes excludes the effects of currency translation. The Americas gross profit increased $2.2 million, or 33%, which was primarily the result of higher sales volumes. EMEA gross profit increased $2.5 million, or 26%, primarily due to higher sales volumes and favorable product mix. Asia-Pacific gross profit decreased $0.5 million, or 6%, which was primarily driven by higher inventory adjustments.

Current wording

PLP-USA gross profit of $32.5 million increased by $5.7 million, or 21%, compared to the same period in 2025, primarily due to higher sales volumes and the benefit of price increases enacted in 2025, partially offset by higher tariff and manufacturing costs. International gross profit for the period ended March 31, 2026 was favorably impacted by $2.0 million when local currencies were translated to U.S. dollars. The following discussion of gross profit changes excludes the effects of currency translation. The Americas gross profit decreased $0.9 million, or 13%, which was primarily the result of unfavorable product mix. EMEA gross profit decreased $0.7 million, or 7%, primarily due to unfavorable product mix and increased manufacturing costs. Asia-Pacific gross profit increased $0.5 million, or 8%, which was primarily driven by higher sales volumes.

Previous wording

Costs and expenses. Costs and expenses of $39.7 million for the three months ended September 30, 2025 increased $4.3 million, or 12%, when compared to 2024. Excluding the effect of currency translation and intercompany transactions, costs and expenses increased $3.9 million, or 11%, as summarized in the following table:

Current wording

Costs and expenses. Costs and expenses of $41.5 million for the three months ended March 31, 2026 increased $6.0 million, or 17%, when compared to 2025. Excluding the effect of currency translation and intercompany transactions, costs and expenses increased $4.4 million, or 12%, as summarized in the following table:

Previous wording

Excluding intercompany transactions, PLP-USA costs and expenses increased $2.5 million, or 15% year-over-year, primarily due to higher selling costs and personnel costs. International costs and expenses for the three months ended September 30, 2025 were unfavorably impacted when local currencies were translated to U.S. dollars and unfavorably impacted by intercompany transactions with PLP-USA. The following discussion of costs and expenses excludes the effect of currency translation and intercompany transactions. The Americas costs and expenses of $7.5 million increased $1.1 million primarily due to an increase in selling, general, and administrative costs. EMEA costs and expenses of $8.3 million increased by $0.1 million primarily due to an increase in personnel costs. Asia-Pacific costs and expenses of $7.7 million increased $0.1 million primarily due to an increase in personnel costs and engineering costs.

Current wording

Excluding intercompany transactions, PLP-USA costs and expenses increased $3.0 million, or 18% year-over-year, primarily due to increased selling and personnel costs supporting strategic market growth initiatives in core product offerings in both energy and communications. International costs and expenses for the three months ended March 31, 2026 were unfavorably impacted when local currencies were translated to U.S. dollars and favorably impacted by intercompany transactions with PLP-USA. The following discussion of costs and expenses excludes the effect of currency translation and intercompany transactions. The Americas costs and expenses of $5.9 million increased $1.0 million primarily due to increases in personnel and administrative costs. EMEA costs and expenses of $7.9 million increased by $0.3 million primarily due to increases in selling, administrative and engineering costs. Asia-Pacific costs and expenses of $5.8 million increased $0.1 million primarily due to an increase in personnel costs.

Previous wording

Other Expense, net. Other expense, net of $10.8 million for the three months ended September 30, 2025 was unfavorable by $10.8 million when compared to the nominal Other income, net for the three months ended September 30, 2024. The unfavorable movement was mainly due to an $11.7 million pension termination charge recorded, partially offset by government incentives received in 2025 related to our facility in China.

Current wording

Other Income, net. Other income, net of $0.6 million for the three months ended March 31, 2026 was favorable by $0.1 million when compared to $0.5 million of Other income, net for the three months ended March 31, 2025. The favorable movement was mainly due to an increase in interest income.

Previous wording

Income taxes. Income taxes for the three months ended September 30, 2025 and 2024 were $(0.3) million and $2.7 million based on pre-tax income of $2.4 million and $10.4 million, respectively. The tax rate for the three months ended September 30, 2025 and 2024 was (11)% and 26%, respectively. The lower effective tax rates for the three months ended September 30, 2025 compared to the three months ended September 30, 2024 was due the decrease in income before income taxes attributable to the pension termination charges recorded in the third quarter of 2025 and a discrete tax benefit recorded related to the release of amounts in OCI attributed to the pension termination.

Current wording

Income taxes. Income taxes for the three months ended March 31, 2026 and 2025 were $3.8 million and $2.1 million based on pre-tax income of $14.3 million and $13.7 million, respectively. The tax rate for the three months ended March 31, 2026 and 2025 was 26% and 16%, respectively. The higher effective tax rates for the three months ended March 31, 2026 compared to the three months ended March 31, 2025 was primarily due to a valuation allowance of approximately $1.3 million recorded on deferred tax assets related to the Company's French subsidiary.

Previous wording

Net income. As a result of the preceding items, net income for the three months ended September 30, 2025 was $2.6 million, compared to $7.7 million for 2024. Excluding the effect of currency translation, net income decreased $5.3 million as summarized in the following table. The decrease in net income was due to the pension termination charge recorded in the third quarter of 2025, offset by increases in operating income described above:

Current wording

Net income. As a result of the preceding items, net income for the three months ended March 31, 2026 was $10.5 million, compared to $11.6 million for 2025. Excluding the effect of currency translation, net income decreased $1.1 million as summarized in the following table. The decrease in net income was due to the increase in income taxes as described above:

Previous wording

Our investments include expenditures required for equipment and facilities as well as expenditures in support of our strategic initiatives. During the first nine months of 2025, we used cash of $30.0 million for capital expenditures, mainly related to new facilities in the EMEA region. We ended the first nine months of 2025 with $72.9 million of cash, cash equivalents and restricted cash (collectively, “Cash”). Our Cash is held in various locations throughout the world. At September 30, 2025, the majority of our Cash was held outside the U.S. We expect most accumulated non-U.S. Cash balances will remain outside of the U.S. and that we will meet U.S. liquidity needs through future operating cash flows, use of U.S. Cash balances, external borrowings, or some combination of these sources. We complete comprehensive reviews of our significant customers and their creditworthiness by analyzing financial statements for customers where we have identified a measure of increased risk. We closely monitor payments and developments which may signal possible customer credit issues. We currently have not identified any potential material impact on our liquidity from customer credit issues.

Current wording

Our investments include expenditures required for equipment and facilities as well as expenditures in support of our strategic initiatives. During the first three months of 2026, we used cash of $10.0 million for capital expenditures, mainly related to new facilities in the EMEA region. We ended the first three months of 2026 with $69.5 million of cash, cash equivalents and restricted cash (collectively, “Cash”). Our Cash is held in various locations throughout the world. At March 31, 2026, the majority of our Cash was held outside the U.S. We expect most accumulated non-U.S. Cash balances will remain outside of the U.S. and that we will meet U.S. liquidity needs through future operating cash flows, use of U.S. Cash balances, external borrowings, or some combination of these sources. We complete comprehensive reviews of our significant customers and their creditworthiness by analyzing financial statements for customers where we have identified a measure of increased risk. We closely monitor payments and developments which may signal possible customer credit issues. We currently have not identified any potential material impact on our liquidity from customer credit issues.

Previous wording

At September 30, 2025, our unused availability under the Facility was $52.1 million and our bank debt to equity percentage was 8.3%. The Facility contains, among other provisions, requirements for maintaining levels of net worth and profitability. At September 30, 2025, the Company was in compliance with these covenants.

Current wording

Total debt, including notes payable, at March 31, 2026 was $41.9 million. The Company maintained a credit facility (the "Facility") with PNC Bank, National Association ("PNC") with a capacity of $60.0 million and a maturity date of June 30, 2028. The interest rate is defined as the Secured Overnight Financing Rate (“SOFR”) plus 1.225% unless the Company’s funded debt to Earnings before Interest, Taxes and Depreciation ratio exceeds 3.00 to 1, at which point the SOFR spread becomes 1.600%. At March 31, 2026, the Company had utilized $7.1 million with $52.9 million available on the Facility. There were no long-term outstanding letters of credit on the Facility as of March 31, 2026. Our bank debt to equity percentage was 8.9%. The Facility contains, among other provisions, requirements for maintaining levels of net worth and profitability. At March 31, 2026, the Company was in compliance with these covenants.

Previous wording

On January 19, 2021, the Company received funding for a term loan from PNC Equipment Finance, LLC in the principal amount of $20.5 million for the full amount of the purchase price for a new corporate aircraft. As of September 30, 2025, $11.1 million was outstanding on this debt facility, of which $2.1 million was classified as current. The aircraft has been pledged as collateral against the loan.

Current wording

On January 19, 2021, the Company received funding for a term loan from PNC Equipment Finance, LLC in the principal amount of $20.5 million for the full amount of the purchase price for a new corporate aircraft. As of March 31, 2026, $10.1 million was outstanding on this debt facility, of which $2.1 million was classified as current. The aircraft has been pledged as collateral against the loan.

Previous wording

The Company has borrowing facilities at certain of its foreign subsidiaries, which consist of overdraft lines, working capital credit lines, and facilities for the issuance of letters of credit and short-term borrowing needs. At September 30, 2025, and December 31, 2024, $19.9 million and $8.8 million was outstanding, of which $5.5 million and $8.2 million were classified as current, respectively. These facilities support commitments made in the ordinary course of business.

Current wording

The Company has other borrowing facilities at certain of its foreign subsidiaries, which consist of overdraft lines, working capital credit lines, and facilities for the issuance of letters of credit and short-term borrowing needs. At March 31, 2026 and December 31, 2025, $24.8 million and $20.9 million were outstanding, of which $5.2 million and $4.6 million were classified as current, respectively. Of the $24.8 million outstanding at March 31, 2026, $16.5 million is attributable to the Poland subsidiary and $7.5 million is attributable to the Spain subsidiary. These facilities support commitments made in the ordinary course of business.

Previous wording

On July 16, 2025, PLP Poland (Belos) S.A. ("PLP Poland"), a subsidiary of the Company, entered into a non-revolving investment loan with Bank Polska Kasa Opieki Spolka Akcynja ("Bank Pekao S.A") to finance the construction of a new manufacturing plant for an amount up to PLN100.3 million ($27.6 million). The maturity date of the loan is January 31, 2035 and is payable in annual installments in the amounts of PLN5.3 million ($1.5 million) in 2026, PLN9.0 million ($2.6 million) in 2027, PLN9.6 million ($2.6 million) in 2028 through 2034, and PLN18.8 million ($5.3 million) in 2035.

Current wording

On July 16, 2025, PLP Poland (Belos) S.A. ("PLP Poland"), a subsidiary of the Company, entered into a non-revolving investment loan with Bank Polska Kasa Opieki Spółka Akcyjna ("Bank Pekao S.A") to finance the construction of a new manufacturing plant for an amount up to PLN100.3 million ($26.9 million). The maturity date of the loan is January 31, 2035 and is payable in annual installments in the amounts of PLN5.3 million ($1.4 million) in 2026, PLN9.0 million ($2.4 million) in 2027, PLN9.6 million ($2.6 million) in 2028 through 2034, and PLN18.8 million ($4.9 million) in 2035.

Previous wording

Our Asia-Pacific segment had $0.1 million in restricted cash for the periods ended September 30, 2025 and December 31, 2024, respectively. The restricted cash was used to secure bank guarantees and is included in Cash, cash equivalents and restricted cash on the Consolidated Balance Sheets.

Current wording

The Company's Asia-Pacific segment had $0.3 million and $0.1 million in restricted cash used to secure bank guarantees at March 31, 2026 and December 31, 2025, respectively. The restricted cash is shown on the Company’s Consolidated Balance Sheets in Cash, cash equivalents and restricted cash.

Previous wording

Net cash provided by operating activities for the nine months ended September 30, 2025 was $51.5 million compared to $43.4 million in the comparable prior year nine-month period. The $8.1 million increase was primarily a result of the net favorable movement in non-cash items of $22.9 million, including the pension termination, offset by changes in operating assets and liabilities.

Current wording

Net cash provided by operating activities for the three months ended March 31, 2026 was $6.0 million compared to $5.7 million in the comparable prior year three-month period. The $0.3 million increase was primarily a result of the net favorable movement in non-cash items including shared based compensation and depreciation and amortization, offset by changes in operating assets and liabilities.

Previous wording

Net cash used in financing activities for the nine months ended September 30, 2025 was $7.3 million compared to $40.8 million in the comparable prior year nine-month period. The $33.5 million change was primarily the result of a reduction in net payments of long-term debt.

Current wording

Net cash used in investing activities for the three months ended March 31, 2026 was $9.9 million compared to $9.7 million in the comparable prior year three-month period. The $0.2 million change was primarily a result of a reduction in proceeds from the sale of investments year over year.

Previous wording

We have commitments under operating leases primarily for office and manufacturing space, transportation equipment, office and computer equipment and finance leases primarily for equipment. At September 30, 2025, we had $1.8 million of current operating lease liabilities and $6.2 million of noncurrent operating lease liabilities. Total liabilities related to finance lease obligations were approximately $0.7 million at September 30, 2025.

Current wording

We have commitments under operating leases primarily for office and manufacturing space, transportation equipment, office and computer equipment and finance leases primarily for equipment. At March 31, 2026, we had $1.5 million of current operating lease liabilities and $5.5 million of noncurrent operating lease liabilities. Total liabilities related to finance lease obligations were approximately $0.6 million at March 31, 2026.

Previous wording

As of September 30, 2025, the Company had total outstanding guarantees of $14.7 million. Additionally, certain domestic and foreign customers require the Company to issue letters of credit or performance bonds as a condition of placing an order. As of September 30, 2025, the Company had total outstanding letters of credit of $3.5 million.

Current wording

As of March 31, 2026, the Company had total outstanding guarantees of $13.7 million. Additionally, certain domestic and foreign customers require the Company to issue letters of credit or performance bonds as a condition of placing an order. As of March 31, 2026, the Company had total outstanding letters of credit of $3.7 million.

Previous wording

•The potential impact of global economic conditions, including the impact of inflation, recently enacted or future tariffs and related economic uncertainty, and rising interest rates, on the Company’s ongoing profitability and future growth opportunities in the Company’s core markets in the U.S. and other foreign countries, which may experience continued or further instability due to political and economic conditions, social unrest, acts of war, military conflict (such as the Russian-Ukrainian, Israeli-Palestinian and Iranian conflicts), international hostilities or the perception that hostilities may be imminent, terrorism, changes in diplomatic and trade relationships and public health concerns (including viral outbreaks such as COVID-19);

Current wording

•The impact of global economic conditions, including the impact of inflation, previously enacted or future tariffs and related economic uncertainty (including the outcome of legal challenges and refunds), and rising interest rates, on the Company’s ongoing profitability and future growth opportunities in the Company’s core markets in the U.S. and other foreign countries, which may experience continued or further instability due to political and economic conditions, social unrest, acts of war, military conflict (such as the Russian-Ukrainian, Israeli-Palestinian and Iranian conflicts), international hostilities or the perception that hostilities may be imminent, terrorism, changes in diplomatic and trade relationships and public health concerns (including viral outbreaks such as COVID-19);

Previous wording

•The cost, availability and quality of raw materials required for the manufacture of products and any tariffs that may be associated with the purchase of these products or components of these products. The Company’s supply chain could face disruptions and constraints from such tariffs, inflationary pressures and ongoing wars and military conflicts, which could have a material, adverse effect on the ability to secure raw materials and supplies;

Current wording

•The cost, availability and quality of raw materials required for the manufacture of products and any tariffs that have been, and in the future may be, associated with the purchase of these products or components of these products. The Company’s supply chain has faced and could continue to face disruptions and constraints from such tariffs, inflationary pressures and ongoing wars and military conflicts, which could have a material, adverse effect on the ability to secure raw materials and supplies and customer demand;

Previous wording

•Changes and uncertainty in significant government regulations and funding priorities, including those affecting environmental compliance or regulatory or third-party litigation matters;

Current wording

•Changes and uncertainty in significant government regulations and funding priorities, including those affecting environmental compliance or other regulatory matters, or third-party litigation matters;