StockNews.AI
PLPC
StockNews.AI
110 days

PREFORMED LINE PRODUCTS ANNOUNCES FIRST QUARTER 2025 FINANCIAL RESULTS

1. PLPC reported 5% net sales growth in Q1 2025. 2. Gross margin increased by 150 basis points year-over-year. 3. Net income rose by 20% compared to the same quarter last year. 4. Tariffs pose a cautious outlook on future customer demand. 5. Focus remains on cost containment and high-quality service.

Earnings
+0.16%Current Return
VS
+1.49%S&P 500
$137.1405/01 04:26 PM EDTEvent Start
$137.3605/02 10:58 PM EDTLatest Updated
14m saved
Insight
Article

FAQ

Why Bullish?

PLPC's healthy growth metrics signal positive market performance; historical response to earnings drives prices up.

How important is it?

Continuous sales growth and improved profit margins affirm investor confidence, with tariffs as a key risk factor.

Why Short Term?

Immediate financial performance and upcoming tariffs effects will influence near-term market reactions.

Related Companies

STETESSSWK
, /PRNewswire/ -- Preformed Line Products Company (NASDAQ: PLPC) today reported financial results for its first quarter of 2025. Q1 2025 Highlights compared to Q1 2024: Net sales growth of 5% Gross margin increase of 150 bps Net income and fully diluted EPS increase of 20% Net sales in the first quarter of 2025 were $148.5 million compared to $140.9 million in the first quarter of 2024, a 5% increase. PLP-USA as well as the international segments recorded sales growth compared to the first quarter of 2024 with the USA business benefiting from increased communication sales and the rest of the world experiencing growth in energy sales. Foreign currency translation had a negative impact of $4.4 million for the first quarter of 2025 net sales. Net income for the quarter ended March 31, 2025, was $11.5 million, or $2.33 per diluted share, compared to $9.6 million, or $1.94 per diluted share, for the comparable period in 2024. The first quarter of 2025 net income was impacted by an increase in gross profit from higher sales levels, partially offset by higher personnel-related period expenses. Gross profit as a percentage of net sales was 32.8% for the first quarter of 2025, an increase of 150 basis points versus the same quarter in 2024. Rob Ruhlman, Executive Chairman, said, "After a strong finish in 2024, we are off to a solid start for 2025. I am especially pleased with the sales growth in the USA communications business as well as growth in most of the international operations. While we remain optimistic about continued growth in our primary end markets, we are cautious about the impact on customer demand caused by the newly enacted tariffs. Our strong commitment to USA manufacturing will provide a competitive advantage in the current high-tariff environment, but we will incur certain cost increases related to key commodity inputs necessary for our USA production process, primarily steel and aluminum raw materials and component parts. We are actively working to mitigate the impact of cost increases caused by tariffs and other global commodity cost increases by implementing targeted selling price increases and continued focus on cost containment strategies.  Our current focus is unchanged: provide our customers with the high-quality products and timely 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, political instability, exchange rates, natural disasters and health epidemics, the strength of demand and availability of funding for the Company's products 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, 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 2024 Annual Report on Form 10-K filed with the SEC on March 13, 2025 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 CONSOLIDATED BALANCE SHEETS March 31, 2025 December 31, 2024 (Thousands of dollars, except share and per share data) (Unaudited) ASSETS Cash, cash equivalents and restricted cash $                         54,835 $                         57,244 Accounts receivable, net 118,504 111,402 Inventories, net 135,098 129,913 Prepaid expenses 12,261 11,720 Other current assets 6,024 5,514 TOTAL CURRENT ASSETS 326,722 315,793 Property, plant and equipment, net 203,083 195,086 Goodwill 27,746 26,685 Other intangible assets, net 9,736 9,656 Deferred income taxes 6,284 6,546 Other assets 18,880 20,111 TOTAL ASSETS $                       592,451 $                       573,877 LIABILITIES AND SHAREHOLDERS' EQUITY Trade accounts payable $                         45,252 $                         41,951 Notes payable to banks 5,845 7,782 Current portion of long-term debt 3,378 2,430 Accrued compensation and other benefits 20,788 25,904 Accrued expenses and other liabilities 30,654 30,346 TOTAL CURRENT LIABILITIES 105,917 108,413 Long-term debt, less current portion 25,682 18,357 Other noncurrent liabilities and deferred income taxes 25,031 24,783 SHAREHOLDERS' EQUITY Common shares – $2 par value per share, 15,000,000 shares authorized, 4,940,131 and 4,913,621 issued and outstanding, at March 31, 2025 and December 31, 2024 13,820 13,752 Common shares issued to rabbi trust, 223,034 and 222,887 shares at March 31, 2025 and December 31, 2024, respectively (9,594) (9,575) Deferred compensation liability 9,594 9,575 Paid-in capital 62,205 65,093 Retained earnings 563,678 553,179 Treasury shares, at cost, 1,969,354 and 1,961,772 shares at March 31, 2025 and December 31, 2024, respectively (127,812) (126,800) Accumulated other comprehensive loss (76,115) (82,909) TOTAL PREFORMED LINE PRODUCTS COMPANY SHAREHOLDERS' EQUITY 435,776 422,315 Noncontrolling interest 45 9 TOTAL SHAREHOLDERS' EQUITY 435,821 422,324 TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY $                       592,451 $                       573,877 PREFORMED LINE PRODUCTS COMPANY STATEMENTS OF CONSOLIDATED INCOME Three Months Ended March 31, 2025 2024 (Thousands, except per share data) (Unaudited) Net sales $                         148,541 $                         140,904 Cost of products sold 99,870 96,773 GROSS PROFIT 48,671 44,131 Costs and expenses Selling 12,181 11,900 General and administrative 17,626 16,608 Research and engineering 5,479 5,431 Other operating expense (income), net 255 (1,367) 35,541 32,572 OPERATING INCOME 13,130 11,559 Other income (expense) Interest income 510 972 Interest expense (376) (708) Other income, net 407 35 541 299 INCOME BEFORE INCOME TAXES 13,671 11,858 Income tax expense 2,118 2,255 NET INCOME $                           11,553 $                              9,603 Net loss (income) attributable to noncontrolling interests (36) (7) NET INCOME ATTRIBUTABLE TO PREFORMED LINE PRODUCTS COMPANY SHAREHOLDERS $                           11,517 $                              9,596 AVERAGE NUMBER OF SHARES OF COMMON STOCK OUTSTANDING: Basic 4,928 4,915 Diluted 4,950 4,944 EARNINGS PER SHARE OF COMMON STOCK ATTRIBUTABLE TO PREFORMED LINE PRODUCTS COMPANY SHAREHOLDERS: Basic $                                2.34 $                                1.95 Diluted $                                2.33 $                                1.94 Cash dividends declared per share $                                0.20 $                                0.20 SOURCE Preformed Line Products Company WANT YOUR COMPANY'S NEWS FEATURED ON PRNEWSWIRE.COM? 440k+ Newsrooms & Influencers 9k+ Digital Media Outlets 270k+ Journalists Opted In

Related News