# Preformed Line Products Co: Form 10-Q for the period ended Jun 30, 2025

- Company: [Preformed Line Products Co](/companies/plpc.md) (CIK 80035)
- Form: 10-Q
- Filed: 2025-07-31
- Accepted by EDGAR: Jul 31, 2025, 13:36 ET
- Period: 2025-06-30
- Accession: 0000080035-25-000013
- Inline XBRL: yes
- Main document: https://www.sec.gov/Archives/edgar/data/80035/000008003525000013/plpc-20250630.htm
- All documents and exhibits: https://www.sec.gov/Archives/edgar/data/80035/000008003525000013/

## Figures reported in this filing

Standardized XBRL line items for the period ended 2025-06-30.

| Line item | Period | Value | XBRL concept |
| --- | --- | ---: | --- |
| Revenue | 3 months, 2025-04-01 to 2025-06-30 | $169.6m | us-gaap:RevenueFromContractWithCustomerExcludingAssessedTax |
| Revenue | 6 months, 2025-01-01 to 2025-06-30 | $318.1m | us-gaap:RevenueFromContractWithCustomerExcludingAssessedTax |
| Cost of revenue | 3 months, 2025-04-01 to 2025-06-30 | $114.2m | us-gaap:CostOfGoodsAndServicesSold |
| Cost of revenue | 6 months, 2025-01-01 to 2025-06-30 | $214.1m | us-gaap:CostOfGoodsAndServicesSold |
| Gross profit | 3 months, 2025-04-01 to 2025-06-30 | $55.4m | us-gaap:GrossProfit |
| Gross profit | 6 months, 2025-01-01 to 2025-06-30 | $104.1m | us-gaap:GrossProfit |
| Operating income | 3 months, 2025-04-01 to 2025-06-30 | $17.1m | us-gaap:OperatingIncomeLoss |
| Operating income | 6 months, 2025-01-01 to 2025-06-30 | $30.3m | us-gaap:OperatingIncomeLoss |
| Interest expense | 3 months, 2025-04-01 to 2025-06-30 | $318.0k | us-gaap:InterestExpenseNonoperating |
| Interest expense | 6 months, 2025-01-01 to 2025-06-30 | $694.0k | us-gaap:InterestExpenseNonoperating |
| Income tax | 3 months, 2025-04-01 to 2025-06-30 | $4.6m | us-gaap:IncomeTaxExpenseBenefit |
| Income tax | 6 months, 2025-01-01 to 2025-06-30 | $6.7m | us-gaap:IncomeTaxExpenseBenefit |
| Net income | 3 months, 2025-04-01 to 2025-06-30 | $12.7m | us-gaap:NetIncomeLoss |
| Net income | 6 months, 2025-01-01 to 2025-06-30 | $24.2m | us-gaap:NetIncomeLoss |
| Diluted EPS | 3 months, 2025-04-01 to 2025-06-30 | $2.56 | us-gaap:EarningsPerShareDiluted |
| Diluted EPS | 6 months, 2025-01-01 to 2025-06-30 | $4.89 | us-gaap:EarningsPerShareDiluted |
| Basic EPS | 3 months, 2025-04-01 to 2025-06-30 | $2.58 | us-gaap:EarningsPerShareBasic |
| Basic EPS | 6 months, 2025-01-01 to 2025-06-30 | $4.91 | us-gaap:EarningsPerShareBasic |
| Diluted shares (weighted) | 3 months, 2025-04-01 to 2025-06-30 | 4,955,000 shares | us-gaap:WeightedAverageNumberOfDilutedSharesOutstanding |
| Diluted shares (weighted) | 6 months, 2025-01-01 to 2025-06-30 | 4,955,000 shares | us-gaap:WeightedAverageNumberOfDilutedSharesOutstanding |
| Operating cash flow | 6 months, 2025-01-01 to 2025-06-30 | $32.6m | us-gaap:NetCashProvidedByUsedInOperatingActivities |
| Capital expenditure | 6 months, 2025-01-01 to 2025-06-30 | $19.4m | us-gaap:PaymentsToAcquirePropertyPlantAndEquipment |
| Dividends paid | 6 months, 2025-01-01 to 2025-06-30 | $2.2m | us-gaap:PaymentsOfDividendsCommonStock |
| Share repurchases | 6 months, 2025-01-01 to 2025-06-30 | $131.0k | us-gaap:PaymentsForRepurchaseOfCommonStock |
| Current assets | at 2025-06-30 | $353.2m | us-gaap:AssetsCurrent |
| Total assets | at 2025-06-30 | $631.5m | us-gaap:Assets |
| Current liabilities | at 2025-06-30 | $114.8m | us-gaap:LiabilitiesCurrent |
| Long-term debt | at 2025-06-30 | $27.9m | us-gaap:LongTermDebtNoncurrent |
| Current portion of debt | at 2025-06-30 | $3.9m | us-gaap:LongTermDebtCurrent |
| Shareholders' equity | at 2025-06-30 | $460.7m | us-gaap:StockholdersEquity |

## Management's discussion and analysis

As filed, 38,014 characters.

This Management’s Discussion and Analysis of Financial Condition and Results of Operations (MD&A) is intended to help the readers of our financial statements better understand our results of operations, financial condition and present business environment. The MD&A is provided as a supplement to, and should be read in conjunction with, our unaudited consolidated financial statements and related notes included elsewhere in this report.

OVERVIEW

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.

We report our segments in four geographic regions: PLP-USA (including corporate), The Americas (includes operations in North and South America, excluding PLP-USA), EMEA (Europe, Middle East & Africa) and Asia-Pacific, in accordance with accounting standards codified in Financial Accounting Standards Board (FASB) Accounting Standards Codification (ASC) 280, “Segment Reporting”. Each segment distributes a full range of our primary products. Our PLP-USA segment is comprised of our U.S. operations manufacturing our traditional products primarily supporting our domestic energy, telecommunications, solar framing products and inspection services. Our other three segments, The Americas, EMEA and Asia-Pacific, support our energy, telecommunications, data communication, solar and other products in each respective geographical region.

The segment managers responsible for each region report directly to the Company’s Executive Chairman, who is the chief operating decision maker, and are accountable for the financial results and performance of their entire segment for which they are responsible. The business components within each segment are managed to maximize the results of the entire operating segment and the Company rather than the results of any individual business component of the segment.

We evaluate segment performance and allocate resources based on several factors primarily based on gross sales and income before income taxes.

PREFACE

The following discussion describes our results of operations for the three and six months ended June 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.

Net sales of $169.6 million increased $30.9 million for the three months ended June 30, 2025 year-over-year and net sales of $318.1 million increased $38.5 million for the six months ended June 30, 2025 year-over-year, mainly due to an increase in energy and communication sales for the quarter. While our significant domestic manufacturing footprint provides a competitive advantage in the current high tariff environment, raw materials imports, particularly steel and aluminum, continue to be most impacted. While we continue to manage trade matters proactively, further tariff increases may give rise to inflationary pressures, which may require further price adjustments to maintain profit margin, and any price increases may have a negative effect on demand.

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 six months ended June 30, 2025 had an unfavorable impact on net sales of $0.5 million and $4.9 million, respectively. The fluctuations on foreign currencies had a de minimis impact on net income for the three-month period ended June 30, 2025 and an unfavorable impact on net income of $0.3 million, for the six-month period ended June 30, 2025. The fluctuations of foreign currencies during the three and six months ended June 30, 2024 had an unfavorable impact on net sales of $1.1 million and $0.3 million, respectively. The fluctuations on foreign currencies during the three and six months ended June 30, 2024 had a de minimis impact on net income. On a reportable segment basis, the impact of foreign currency translation on net sales and net income for the three and six months ended June 30, 2025, was as follows:

| (Thousands of dollars) | Foreign Currency Translation Impact Three Months Ended June 30, 2025 Net Sales | Net Income | Six Months Ended June 30, 2025 Net Sales | Net Income |
| --- | ---: | ---: | ---: | ---: |
| The Americas | $(2,065) | $(84) | $(5,270) | $(290) |
| EMEA | 1,521 | 51 | 1,081 | 81 |
| Asia-Pacific | 11 | 6 | (740) | (41) |
| Total | $(533) | $(27) | $(4,929) | $(250) |

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 June 30, 2025, our liquidity remains strong with our bank debt to equity percentage at 7.9%. We can borrow needed funds at a competitive interest rate under the Facility.

RESULTS OF OPERATIONS

The following table sets forth a summary of the Company’s Statements of Consolidated Income and the percentage of net sales for the three months ended June 30, 2025 and 2024. The Company’s past operating results are not necessarily indicative of future operating results.

| (Thousands of dollars) | Three Months Ended June 30, 2025 |  | 2024 |  | Change |
| --- | ---: | ---: | ---: | ---: | ---: |
| Net sales | $169,601 | 100.0% | $138,720 | 100.0% | $30,881 |
| Cost of products sold | 114,202 | 67.3 | 94,447 | 68.1 | 19,755 |
| **GROSS PROFIT** | 55,399 | 32.7 | 44,273 | 31.9 | 11,126 |
| Costs and expenses | 38,275 | 22.6 | 32,981 | 23.8 | 5,294 |
| **OPERATING INCOME** | 17,124 | 10.1 | 11,292 | 8.1 | 5,832 |
| Other income (expense), net | 182 | 0.1 | (131) | (0.1) | 313 |
| **INCOME BEFORE INCOME TAXES** | 17,306 | 10.2 | 11,161 | 8.0 | 6,145 |
| Income taxes | 4,606 | 2.7 | 1,794 | 1.3 | 2,812 |
| **NET INCOME** | 12,700 | 7.5 | 9,367 | 6.8 | 3,333 |
| Net loss (income) attributable to noncontrolling interests | 5 | 0.0 | (1) | 0.0 | 6 |
| **NET INCOME ATTRIBUTABLE TO PREFORMED LINE PRODUCTS COMPANY SHAREHOLDERS** | $12,705 | 7.5% | $9,366 | 6.8% | $3,339 |

*Net sales.* In 2025, net sales were $169.6 million, an increase of $30.9 million, or 22%, compared to 2024. Excluding the effect of currency translation, net sales increased 23% as summarized in the following table:

| (Thousands of dollars) Net sales | Three Months Ended June 30, 2025 | 2024 | Change | Change Due to Currency Translation | Change Excluding Currency Translation | % Change |
| --- | ---: | ---: | ---: | ---: | ---: | ---: |
| PLP-USA | $79,290 | $59,900 | $19,390 | $— | $19,390 | 32% |
| The Americas | 28,508 | 21,815 | 6,693 | (2,065) | 8,758 | 40% |
| EMEA | 31,910 | 32,039 | (129) | 1,521 | (1,650) | (5)% |
| Asia-Pacific | 29,893 | 24,966 | 4,927 | 11 | 4,916 | 20% |
| Consolidated | $169,601 | $138,720 | $30,881 | $(533) | $31,414 | 23% |

23

The increase in PLP-USA net sales of $19.4 million, or 32%, was primarily due to higher volumes in energy and communications sales. International net sales for the three months ended June 30, 2025 were unfavorably affected by $0.5 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 $28.5 million increased $8.8 million, or 40%, 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 $31.9 million decreased $1.7 million, or 5%, primarily due to lower volume in communications product sales, partially offset by an increase in special industry sales. Asia-Pacific net sales of $29.9 million increased $4.9 million, or 20%, primarily due to higher volumes in energy product sales.

*Gross profit.* Gross profit of $55.4 million for 2025 increased $11.1 million, or 25%, compared to 2024. Excluding the effect of currency translation, gross profit increased $11.3 million, or 26%, as summarized in the following table:

| (Thousands of dollars) Gross profit | Three Months Ended June 30, 2025 | 2024 | Change | Change Due to Currency Translation | Change Excluding Currency Translation | % Change |
| --- | ---: | ---: | ---: | ---: | ---: | ---: |
| PLP-USA | $28,062 | $20,743 | $7,319 | $— | $7,319 | 35% |
| The Americas | 8,424 | 6,712 | 1,712 | (614) | 2,326 | 35% |
| EMEA | 9,511 | 9,364 | 147 | 438 | (291) | (3)% |
| Asia-Pacific | 9,402 | 7,454 | 1,948 | (23) | 1,971 | 26% |
| Consolidated | $55,399 | $44,273 | $11,126 | $(199) | $11,325 | 26% |

PLP-USA gross profit of $28.1 million increased by $7.3 million, or 35%, compared to the same period in 2024, primarily due to higher sales volumes and favorable product mix, partially offset by higher tariff and manufacturing costs. International gross profit for the period ended June 30, 2025 was unfavorably impacted by $0.2 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 $2.3 million, or 35%, which was primarily the result of higher sales volumes. EMEA gross profit decreased $0.3 million, or 3%, primarily due to lower sales volumes. Asia-Pacific gross profit increased $2.0 million, or 26%, which was primarily driven by higher sales volumes.

*Costs and expenses.* Costs and expenses of $38.3 million for the three months ended June 30, 2025 increased $5.3 million, or 16%, when compared to 2024, which are similar results when the effect of currency translation and intercompany transactions is excluded, as summarized in the following table:

| (Thousands of dollars) Costs and expenses | Three Months Ended June 30, 2025 | 2024 | Change | Change Due to Currency Translation | Change Due to Intercompany Transactions | Change Excluding Currency and Intercompany Transactions | % Change |
| --- | ---: | ---: | ---: | ---: | ---: | ---: | ---: |
| PLP-USA | $17,413 | $16,939 | $474 | $— | $(1,756) | $2,230 | 13% |
| The Americas | 6,736 | 4,644 | 2,092 | (398) | 967 | 1,523 | 33% |
| EMEA | 7,950 | 5,388 | 2,562 | 353 | 428 | 1,781 | 33% |
| Asia-Pacific | 6,176 | 6,010 | 166 | 9 | 361 | (204) | (3)% |
| Consolidated | $38,275 | $32,981 | $5,294 | $(36) | $— | $5,330 | 16% |

Excluding intercompany transactions, PLP-USA costs and expenses increased $2.2 million, or 13% year-over-year, primarily due to higher selling costs and personnel costs. International costs and expenses for the three months ended June 30, 2025 were nominally 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 $6.7 million increased $1.5 million primarily due to an increase in selling, general, and administrative and the impact of foreign currency remeasurement. EMEA costs and expenses of $8.0 million increased by $1.8 million primarily due to a recovery of bad debt in the second quarter of 2024 that did not recur. Asia-Pacific costs and expenses of $6.2 million decreased $0.2 million primarily due to a reduction in selling costs.

*Other Income (Expense), net.* Other income, net of $0.2 million for the three months ended June 30, 2025 was favorable by $0.3 million when compared to Other expense, net for the three months ended June 30, 2024 of $0.1 million. The favorable movement was mainly due to lower interest expense from reduced debt balances.

*Income taxes.* Income taxes for the three months ended June 30, 2025 and 2024 were $4.6 million and $1.8 million based on pre-tax income of $17.3 million and $11.2 million, respectively. The tax rate for the three months ended June 30, 2025 and 2024 was 27% and 16%, respectively. The effective tax rate for the three months ended June 30, 2025 was higher than the effective tax rate for the same period in 2024 mainly due to the unfavorable impact from certain adjustments including nondeductible compensation and non-recurring rate benefits received in 2024 from amending prior year returns, partially offset by a favorable impact from the mix of earned income in certain foreign jurisdictions.

*Net income.* As a result of the preceding items, net income for the three months ended June 30, 2025 was $12.7 million, compared to $9.4 million for 2024. Excluding the effect of currency translation, net income increased $3.4 million as summarized in the following table. The increase in net income was due to increases in operating income described above as well as lower interest expense, partially offset by higher tax expense:

| (Thousands of dollars) Net income (loss) | Three Months Ended June 30, 2025 | 2024 | Change | Change Due to Currency Translation | Change Excluding Currency Translation | % Change |
| --- | ---: | ---: | ---: | ---: | ---: | ---: |
| PLP-USA | $7,745 | $3,345 | $4,400 | $— | $4,400 | 132% |
| The Americas | 1,302 | 1,796 | (494) | (84) | (410) | (23)% |
| EMEA | 1,367 | 2,975 | (1,608) | 51 | (1,659) | (56)% |
| Asia-Pacific | 2,291 | 1,250 | 1,041 | 6 | 1,035 | 83% |
| Consolidated | $12,705 | $9,366 | $3,339 | $(27) | $3,366 | 36% |

SIX MONTHS ENDED JUNE 30, 2025 COMPARED TO SIX MONTHS ENDED JUNE 30, 2024

The following table sets forth a summary of the Company’s Statements of Consolidated Income and the percentage of net sales for the six months ended June 30, 2025 and 2024. The Company’s past operating results are not necessarily indicative of future operating results.

| (Thousands of dollars) | Six Months Ended June 30, 2025 |  | 2024 |  | Change |
| --- | ---: | ---: | ---: | ---: | ---: |
| Net sales | $318,142 | 100.0% | $279,625 | 100.0% | $38,517 |
| Cost of products sold | 214,072 | 67.3 | 191,220 | 68.4 | 22,852 |
| **GROSS PROFIT** | 104,070 | 32.7 | 88,405 | 31.6 | 15,665 |
| Costs and expenses | 73,816 | 23.2 | 65,554 | 23.4 | 8,262 |
| **OPERATING INCOME** | 30,254 | 9.5 | 22,851 | 8.2 | 7,403 |
| Other income, net | 723 | 0.2 | 168 | 0.1 | 555 |
| **INCOME BEFORE INCOME TAXES** | 30,977 | 9.7 | 23,019 | 8.2 | 7,958 |
| Income taxes | 6,724 | 2.1 | 4,049 | 1.4 | 2,675 |
| **NET INCOME** | 24,253 | 7.6 | 18,970 | 6.8 | 5,283 |
| Net income attributable to noncontrolling interests | (31) | (0.0) | (8) | (0.0) | (23) |
| **NET INCOME ATTRIBUTABLE TO PREFORMED LINE PRODUCTS COMPANY SHAREHOLDERS** | $24,222 | 7.6% | $18,962 | 6.8% | $5,260 |

25

*Net sales*. In 2025, net sales were $318.1 million, an increase of $38.5 million, or 14%, compared to 2024. Excluding the effect of currency translation, net sales increased 16% as summarized in the following table:

| (Thousands of dollars) Net sales | Six Months Ended June 30, 2025 | 2024 | Change | Change Due to Currency Translation | Change Excluding Currency Translation | % Change |
| --- | ---: | ---: | ---: | ---: | ---: | ---: |
| PLP-USA | $153,296 | $130,637 | $22,659 | $— | $22,659 | 17% |
| The Americas | 50,787 | 40,173 | 10,614 | (5,270) | 15,884 | 40% |
| EMEA | 61,903 | 60,693 | 1,210 | 1,081 | 129 | —% |
| Asia-Pacific | 52,156 | 48,122 | 4,034 | (740) | 4,774 | 10% |
| Consolidated | $318,142 | $279,625 | $38,517 | $(4,929) | $43,446 | 16% |

The increase in PLP-USA net sales of $22.7 million, or 17%, was primarily due to higher volumes in energy and communications product sales. International net sales for the six months ended June 30, 2025 were unfavorably affected by $4.9 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 $50.8 million increased $15.9 million, or 40%, primarily due to an increase in energy product sales. EMEA net sales of $61.9 million increased $0.1 million, primarily due to higher volume in energy product sales. Asia-Pacific net sales of $52.2 million increased $4.8 million, or 10%, primarily due to volume increases in energy product and special industries sales.

*Gross profit.* Gross profit of $104.1 million for 2025 increased $15.7 million, or 18%, compared to 2024. Excluding the effect of currency translation, gross profit increased $17.2 million, or 19%, as summarized in the following table:

| (Thousands of dollars) Gross profit | Six Months Ended June 30, 2025 | 2024 | Change | Change Due to Currency Translation | Change Excluding Currency Translation | % Change |
| --- | ---: | ---: | ---: | ---: | ---: | ---: |
| PLP-USA | $54,900 | $45,439 | $9,461 | $— | $9,461 | 21% |
| The Americas | 15,511 | 11,678 | 3,833 | (1,640) | 5,473 | 47% |
| EMEA | 18,388 | 17,682 | 706 | 357 | 349 | 2% |
| Asia-Pacific | 15,271 | 13,606 | 1,665 | (231) | 1,896 | 14% |
| Consolidated | $104,070 | $88,405 | $15,665 | $(1,514) | $17,179 | 19% |

PLP-USA gross profit of $54.9 million increased by $9.5 million, or 21%, compared to the same period in 2024, primarily due to higher sales volumes and favorable product mix, partially offset by higher tariff and manufacturing costs. International gross profit for the period ended June 30, 2025 was unfavorably impacted by $1.5 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 $5.5 million, or 47%, which was primarily the result of higher sales volumes and favorable product mix. EMEA gross profit increased $0.3 million, or 2%, primarily due to favorable product mix. Asia-Pacific gross profit increased $1.9 million, or 14%, which was primarily driven by higher sales volume and favorable product mix.

*Costs and expenses.* Costs and expenses of $73.8 million for the six months ended June 30, 2025 increased $8.3 million, or 13%, when compared to 2024. Excluding the effect of currency translation and intercompany transactions, costs and expenses increased $9.2 million, or 14%, as summarized in the following table:

| (Thousands of dollars) Costs and expenses | Six Months Ended June 30, 2025 | 2024 | Change | Change Due to Currency Translation | Change Due to Intercompany Transactions | Change Excluding Currency and Intercompany Transactions | % Change |
| --- | ---: | ---: | ---: | ---: | ---: | ---: | ---: |
| PLP-USA | $34,567 | $35,102 | $(535) | $— | $(3,553) | $3,018 | 9% |
| The Americas | 12,224 | 9,364 | 2,860 | (1,016) | 1,921 | 1,955 | 21% |
| EMEA | 15,300 | 11,519 | 3,781 | 237 | 900 | 2,644 | 23% |
| Asia-Pacific | 11,725 | 9,569 | 2,156 | (121) | 732 | 1,545 | 16% |
| Consolidated | $73,816 | $65,554 | $8,262 | $(900) | $— | $9,162 | 14% |

PLP-USA costs and expenses of $34.6 million increased $3.0 million, or 9% year-over-year. PLP-USA’s increase was primarily attributable to higher selling costs and personnel costs. International costs and expenses for the six months ended June 30, 2025 were favorably impacted by $0.9 million 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 $12.2 million increased $2.0 million primarily due to an increase in personnel costs and the impact of foreign currency remeasurement. EMEA costs and expenses of $15.3 million increased by $2.6 million primarily due to higher personnel cost and a recovery of bad debt in the second quarter of 2024 that did not recur. Asia-Pacific costs and expenses of $11.7 million increased $1.5 million primarily due to a gain on the sale of capital assets in the first quarter of 2024 that did not recur.

*Other income, net.* Other income, net of $0.7 million for the six months ended June 30, 2025 was favorable by $0.5 million when compared to Other income, net for the six months ended June 30, 2024 of $0.2 million. The favorable movement was due to lower interest expense from reduced debt balances and a government incentive received in the first quarter of 2025 related to our facility in China, partially offset by lower interest income for the six months ended June 30, 2025.

*Income taxes.* Income taxes for the six months ended June 30, 2025 and 2024 were $6.7 million and $4.0 million based on pre-tax income of $31.0 million and $23.0 million, respectively. The tax rate for the six months ended June 30, 2025 and 2024 was 22% and 18%, respectively. The effective tax rate for the six months ended June 30, 2025 was higher than the effective tax rate for the same period in 2024 mainly due to the unfavorable impact from certain adjustments including nondeductible compensation and non-recurring rate benefits received in 2024 from amending prior year returns, partially offset by a favorable impact from the mix of earned income in certain foreign jurisdictions.

*Net income.* As a result of the preceding items, net income for the six months ended June 30, 2025 was $24.2 million, compared to $19.0 million for 2024. Excluding the effect of currency translation, net income increased $5.5 million as summarized in the following table. The increase in net income was due to increases in operating income described above, partially offset by lower interest income and higher tax expense:

| (Thousands of dollars) Net income (loss) | Six Months Ended June 30, 2025 | 2024 | Change | Change Due to Currency Translation | Change Excluding Currency Translation | % Change |
| --- | ---: | ---: | ---: | ---: | ---: | ---: |
| PLP-USA | $16,182 | $8,661 | $7,521 | $— | $7,521 | 87% |
| The Americas | 2,698 | 2,693 | 5 | (290) | 295 | 11% |
| EMEA | 2,555 | 4,555 | (2,000) | 81 | (2,081) | (46)% |
| Asia-Pacific | 2,787 | 3,053 | (266) | (41) | (225) | (7)% |
| Consolidated | $24,222 | $18,962 | $5,260 | $(250) | $5,510 | 29% |

27

APPLICATION OF CRITICAL ACCOUNTING POLICIES AND ESTIMATES

Our critical accounting policies are consistent with the information set forth in Item 7, Management’s Discussion and Analysis of Financial Condition and Results of Operations, included in our Form 10-K for the year ended December 31, 2024 filed on March 13, 2025 with the Securities and Exchange Commission and are, therefore, not presented herein.

WORKING CAPITAL, LIQUIDITY AND CAPITAL RESOURCES

#### Management Assessment of Liquidity

We measure liquidity on the basis of our ability to meet short-term and long-term operating needs, repay debt, fund additional investments, including acquisitions, and make dividend payments to shareholders. Significant factors affecting the management of liquidity are cash flows from operating activities, capital expenditures, cash dividends, business acquisitions and access to bank lines of credit.

Our investments include expenditures required for equipment and facilities as well as expenditures in support of our strategic initiatives. During the first six months of 2025, we used cash of $19.4 million for capital expenditures. We ended the first six months of 2025 with $66.9 million of cash, cash equivalents and restricted cash (collectively, “Cash”). Our Cash is held in various locations throughout the world. At June 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.

Total debt, including notes payable, at June 30, 2025 was $36.2 million. The Company maintained a credit facility (the "Facility") with a capacity of $90.0 million. On March 14, 2025, the Company amended the Facility to extend the maturity date from March 2, 2026 to June 30, 2028. In addition, the amendment increased the amount of unsecured borrowings that the Company is permitted to incur outside of the Facility from $40.0 million to $60.0 million and included PLP Spain as an additional borrower.

Subsequently, on July 30, 2025, the Company amended the Facility to reduce the borrowing capacity from $90.0 million to $60.0 million as well as increase the indebtedness limit secured by mortgages, security interests or other liens permitted from $35.0 million to $55.0 million. There were no other material changes to the Facility.

At June 30, 2025, our unused availability under the Facility was $79.6 million and our bank debt to equity percentage was 7.9%. The Facility contains, among other provisions, requirements for maintaining levels of net worth and profitability. At June 30, 2025, the Company was in compliance with these covenants.

Our Asia-Pacific segment had $0.1 million in restricted cash for the periods ended June 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.

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 June 30, 2025, $11.6 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.

Subsequently, 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 ($27.4 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 ($2.5 million) in 2027, PLN9.6 million ($2.6 million) in 2028 through 2034, and PLN18.8 million ($5.2 million) in 2035.

The loan will bear interest at the one month Warsaw Interbank Offered Rate ("WIBOR") plus 1.0% unless the Company does not meet the covenants as set forth in the Facility with PNC, at which point the WIBOR spread becomes 1.5%. The current manufacturing plant owned by PLP Poland, the plant under construction and all fixed assets within the plants are pledged as collateral against the loan. The loan also is guaranteed by the Company

We expect that our major source of funding for 2025 and beyond will be our operating cash flows, our existing Cash as well as our Facility agreement. Except for current earnings in certain jurisdictions, our operating income is deemed to be indefinitely reinvested in foreign jurisdictions. We currently do not intend nor foresee a need to repatriate these funds. We believe our future operating cash flows will be more than sufficient to cover debt repayments, other contractual obligations, capital expenditures and dividends for the next 12 months and thereafter for the foreseeable future. In addition, we believe our borrowing capacity provides substantial financial resources, if needed, to supplement funding of capital expenditures and/or acquisitions. We also believe that we can further expand our borrowing capacity, if necessary; however, we do not believe we would increase our debt to a level that would have a material adverse impact upon results of operations or financial condition.

#### Sources and Uses of Cash

Net cash provided by operating activities for the six months ended June 30, 2025 was $32.6 million compared to $34.0 million in the comparable prior year six-month period. The $1.4 million decrease was primarily a result of changes in operating assets and liabilities offset by an increase in net income.

Net cash used in investing activities for the six months ended June 30, 2025 was $22.2 million compared to $4.3 million in the comparable prior year six-month period. The $17.9 million change was primarily a result of the acquisition of JAP Telecom in May 2025 and an increase in capital expenditures, primarily related to the acquisition of new land and a building in Spain and the construction of a new manufacturing plant in Poland.

Net cash used in financing activities for the six months ended June 30, 2025 was $4.8 million compared to $33.5 million in the comparable prior year six-month period. The $28.7 million change was primarily the result of a reduction in net payments of long-term debt.

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 June 30, 2025, we had $1.8 million of current operating lease liabilities and $6.7 million of noncurrent operating lease liabilities. Total liabilities related to finance lease obligations were less than $0.7 million at June 30, 2025.

As of June 30, 2025, the Company had total outstanding guarantees of $14.6 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 June 30, 2025, the Company had total outstanding letters of credit of $2.9 million.

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 June 30, 2025, and December 31, 2024, $14.2 million and $8.8 million was outstanding, of which $6.3 million and $8.2 million were classified as current, respectively. These facilities support commitments made in the ordinary course of business.

FORWARD LOOKING STATEMENTS

Cautionary Statement for “Safe Harbor” Purposes Under The Private Securities Litigation Reform Act of 1995

This Form 10-Q and other documents we file with the SEC contain forward-looking statements regarding the Company’s and management’s beliefs and expectations. Any forward-looking statements are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. As a general matter, forward-looking statements are those focused upon future plans, objectives or performance (as opposed to historical items) and include statements of anticipated events or trends and expectations and beliefs relating to matters not historical in nature. Use of words such “anticipates,” “believes,” “may,” “should,” “will,” “would,” “could,” “plans,” “projects,” “expects,” “estimates,” “predicts,” “targets,” “forecasts,” “intends,” “contemplates,” and similar words may identify forward-looking statements. Such forward-looking statements are subject to uncertainties and factors relating to the Company’s operations and business environment, all of which are difficult to predict and many of which are beyond the Company’s control. Such uncertainties and factors could cause the Company’s actual results to differ materially from those matters expressed in or implied by such forward-looking statements.

The following factors, among others, could affect the Company’s future performance and cause the Company’s actual results to differ materially from those expressed or implied by forward-looking statements made in this report:

- The overall demand for cable anchoring and control hardware for electrical transmission and distribution lines on a worldwide basis, which has a slow growth rate in mature markets such as the United States (“U.S.”), Canada, Australia and Western Europe and may grow slowly or experience prolonged delay in developing regions despite expanding power needs;
- The potential impact of global economic conditions, including the impact of inflation, recently enacted 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 (including the ongoing 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);
- The ability of the Company’s customers to raise funds needed to build the infrastructure projects their customers require;
- Technological developments that affect longer-term trends for communication lines, such as wireless communication;
- The decreasing demand for product supporting copper-based infrastructure due to the introduction of products using new technologies or adoption of new industry standards;
- The Company’s success at continuing to develop proprietary technology and maintaining high quality products and customer service to meet or exceed new industry performance standards and individual customer expectations;
- The Company’s success in strengthening and retaining relationships with the Company’s customers, growing sales at targeted accounts and expanding geographically;
- The extent to which the Company is successful at expanding the Company’s product line or production facilities into new areas or implementing efficiency measures at existing facilities;
- The effects of fluctuation in currency exchange rates upon the Company’s foreign subsidiaries’ operations and reported results from international operations, together with non-currency risks of investing in and conducting significant operations in foreign countries, including those relating to political, social, economic, trade and regulatory factors;
- The Company’s ability to identify, complete, obtain funding for and integrate acquisitions for profitable growth;
- The potential impact of consolidation, deregulation and bankruptcy among the Company’s suppliers, competitors and customers and of any legal or regulatory claims;
- 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 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;
- Strikes, labor disruptions and other fluctuations in labor costs;
- Changes and uncertainty in significant government regulations and funding priorities, including those affecting environmental compliance or regulatory or third-party litigation matters;
- Security breaches or other disruptions to the Company’s information technology structure;
- The telecommunication market’s continued deployment of Fiber-to-the-Premises;
- The impact of any failure to timely implement and maintain adequate financial, information technology and management processes and controls and procedures; and
- Those factors described under the heading “Risk Factors” in Item 1A of Part I of the Company’s Annual Report on Form 10-K for the year ended December 31, 2024 which was filed on March 13, 2025.

## Market risk

As filed, 894 characters.

The Company operates manufacturing facilities and offices around the world and uses fixed and floating rate debt to finance the Company’s global operations. As a result, 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. The Company believes that the political and economic risks related to the Company’s international operations are mitigated due to the geographic diversity in which the Company’s international operations are located.

There have been no material changes in the Company’s disclosed exposure to market risk since December 31, 2024. See “Item 7A. Quantitative and Qualitative Disclosures About Market Risk” in the Company’s Annual Report on Form 10-K for the year ended December 31, 2024.

## Controls and procedures

As filed, 744 characters.

### Evaluation of Disclosure Controls and Procedures

The Company’s Principal Executive Officer and Principal Accounting Officer have concluded that the Company’s disclosure controls and procedures, as defined in Rule 13a-15(e) or Rule 15d-15(e) of the Securities Exchange Act of 1934, as amended, were effective as of June 30, 2025.

### Changes in Internal Control over Financial Reporting

There were no changes in the Company’s internal control over financial reporting as defined in Rule 13a-15(f) and 15d-15(f) of the Securities and Exchange Act of 1934, as amended, during the six-month period ended June 30, 2025 that materially affected or are reasonably likely to materially affect the Company’s internal control over financial reporting.

## Risk factors

As filed, 495 characters.

There were 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 filed with the SEC on March 13, 2025. In addition, the escalating tariffs between the U.S. and other countries could potentially exacerbate other risks discussed, any of which could have a material adverse effect on the Company. The situation continues to change, and additional impacts may arise that the Company is not aware of currently.

Filed Jul 31, 2025.
Source: SEC EDGAR, the filing index for accession 0000080035-25-000013. Last ingested by Listed: Nov 6, 2026, 07:10 ET. No prices; not investment advice.