PREFORMED LINE PRODUCTS ANNOUNCES FIRST QUARTER 2025 FINANCIAL RESULTS
Preformed Line Products (NASDAQ: PLPC) reported strong Q1 2025 financial results with notable growth across key metrics. Net sales increased 5% to $148.5 million compared to $140.9 million in Q1 2024, driven by growth in both USA communications business and international energy sales. The company achieved a net income of $11.5 million, or $2.33 per diluted share, up 20% from $9.6 million ($1.94 per share) in Q1 2024.
Gross margin improved by 150 basis points to 32.8%. However, foreign currency translation negatively impacted net sales by $4.4 million. While optimistic about growth prospects, management expressed caution regarding newly enacted tariffs affecting commodity costs, particularly steel and aluminum raw materials. The company plans to address these challenges through targeted price increases and cost containment strategies.
Preformed Line Products (NASDAQ: PLPC) ha riportato solidi risultati finanziari nel primo trimestre 2025, con una crescita significativa in metriche chiave. Le vendite nette sono aumentate del 5%, raggiungendo 148,5 milioni di dollari rispetto ai 140,9 milioni del primo trimestre 2024, grazie alla crescita sia del business delle comunicazioni negli USA che delle vendite internazionali nel settore energetico. L'azienda ha registrato un utile netto di 11,5 milioni di dollari, pari a 2,33 dollari per azione diluita, in aumento del 20% rispetto ai 9,6 milioni (1,94 dollari per azione) del primo trimestre 2024.
Il margine lordo è migliorato di 150 punti base, raggiungendo il 32,8%. Tuttavia, la traduzione delle valute estere ha avuto un impatto negativo sulle vendite nette per 4,4 milioni di dollari. Pur mostrando ottimismo sulle prospettive di crescita, la direzione ha espresso cautela riguardo ai nuovi dazi introdotti che influenzano i costi delle materie prime, in particolare acciaio e alluminio. L'azienda intende affrontare queste sfide attraverso aumenti di prezzo mirati e strategie di contenimento dei costi.
Preformed Line Products (NASDAQ: PLPC) reportó sólidos resultados financieros en el primer trimestre de 2025, con un crecimiento notable en métricas clave. Las ventas netas aumentaron un 5%, alcanzando 148,5 millones de dólares en comparación con los 140,9 millones del primer trimestre de 2024, impulsadas por el crecimiento tanto en el negocio de comunicaciones en EE. UU. como en las ventas internacionales de energía. La compañía logró un ingreso neto de 11,5 millones de dólares, o 2,33 dólares por acción diluida, un aumento del 20% respecto a los 9,6 millones (1,94 dólares por acción) del primer trimestre de 2024.
El margen bruto mejoró 150 puntos básicos, alcanzando el 32,8%. Sin embargo, la traducción de moneda extranjera impactó negativamente las ventas netas en 4,4 millones de dólares. Aunque optimista sobre las perspectivas de crecimiento, la gerencia expresó precaución respecto a los aranceles recientemente implementados que afectan los costos de las materias primas, especialmente el acero y el aluminio. La compañía planea abordar estos desafíos mediante aumentos de precios específicos y estrategias de contención de costos.
Preformed Line Products (NASDAQ: PLPC)는 2025년 1분기에 주요 지표 전반에서 눈에 띄는 성장과 함께 견고한 재무 실적을 보고했습니다. 순매출은 2024년 1분기 1억 4,090만 달러에서 5% 증가한 1억 4,850만 달러를 기록했으며, 이는 미국 통신 사업과 국제 에너지 판매 모두의 성장에 힘입은 결과입니다. 회사는 순이익 1,150만 달러, 희석 주당 2.33달러를 달성했으며, 이는 2024년 1분기의 960만 달러(주당 1.94달러) 대비 20% 증가한 수치입니다.
총이익률은 150 베이시스 포인트 상승하여 32.8%를 기록했습니다. 다만, 외환 환산이 순매출에 440만 달러의 부정적 영향을 미쳤습니다. 경영진은 성장 전망에 대해 낙관적이지만, 특히 철강 및 알루미늄 원자재 비용에 영향을 미치는 새로 도입된 관세에 대해 신중한 입장을 보였습니다. 회사는 목표 가격 인상과 비용 절감 전략을 통해 이러한 도전에 대응할 계획입니다.
Preformed Line Products (NASDAQ: PLPC) a publié de solides résultats financiers pour le premier trimestre 2025, avec une croissance notable sur des indicateurs clés. Le chiffre d'affaires net a augmenté de 5 % pour atteindre 148,5 millions de dollars contre 140,9 millions au premier trimestre 2024, porté par la croissance tant du secteur des communications aux États-Unis que des ventes internationales dans l'énergie. La société a réalisé un bénéfice net de 11,5 millions de dollars, soit 2,33 dollars par action diluée, en hausse de 20 % par rapport à 9,6 millions (1,94 dollar par action) au premier trimestre 2024.
La marge brute s'est améliorée de 150 points de base pour atteindre 32,8 %. Cependant, la traduction des devises étrangères a eu un impact négatif de 4,4 millions de dollars sur le chiffre d'affaires net. Bien que la direction soit optimiste quant aux perspectives de croissance, elle a exprimé sa prudence face aux nouveaux tarifs récemment instaurés qui affectent les coûts des matières premières, notamment l'acier et l'aluminium. La société prévoit de relever ces défis par des augmentations de prix ciblées et des stratégies de maîtrise des coûts.
Preformed Line Products (NASDAQ: PLPC) meldete starke Finanzergebnisse für das erste Quartal 2025 mit bemerkenswertem Wachstum in wichtigen Kennzahlen. Der Nettoumsatz stieg um 5 % auf 148,5 Millionen US-Dollar im Vergleich zu 140,9 Millionen US-Dollar im ersten Quartal 2024, angetrieben durch Wachstum sowohl im US-Kommunikationsgeschäft als auch im internationalen Energiesektor. Das Unternehmen erzielte einen Nettoertrag von 11,5 Millionen US-Dollar bzw. 2,33 US-Dollar je verwässerter Aktie, was einem Anstieg von 20 % gegenüber 9,6 Millionen US-Dollar (1,94 US-Dollar je Aktie) im ersten Quartal 2024 entspricht.
Die Bruttomarge verbesserte sich um 150 Basispunkte auf 32,8 %. Allerdings wirkte sich die Fremdwährungsumrechnung negativ auf den Nettoumsatz in Höhe von 4,4 Millionen US-Dollar aus. Obwohl das Management optimistisch hinsichtlich der Wachstumsaussichten ist, zeigte es sich vorsichtig gegenüber neu eingeführten Zöllen, die die Rohstoffkosten, insbesondere für Stahl und Aluminium, beeinflussen. Das Unternehmen plant, diese Herausforderungen durch gezielte Preiserhöhungen und Kostenkontrollstrategien zu bewältigen.
- Net sales increased 5% to $148.5 million in Q1 2025
- Net income grew 20% to $11.5 million ($2.33 per diluted share)
- Gross margin improved by 150 basis points to 32.8%
- Strong growth in USA communications business and international energy sales
- Strong USA manufacturing presence provides competitive advantage in high-tariff environment
- Negative foreign currency translation impact of $4.4 million on net sales
- Expected cost increases due to newly enacted tariffs on steel and aluminum raw materials
- Higher personnel-related period expenses impacting net income
Insights
PLPC delivered strong Q1 with 5% revenue growth and 20% profit increase despite currency headwinds, showing impressive margin expansion.
PLPC's first quarter results demonstrate robust financial performance across key metrics. Net sales reached
The
The
Management's commentary strikes a balanced tone – optimistic about growth prospects in primary markets while acknowledging potential challenges from newly enacted tariffs. Their strategy to mitigate input cost pressures through targeted price increases and cost containment initiatives appears proactive but results remain to be seen. Their domestic manufacturing focus may provide some competitive insulation in the current trade environment, though they still face exposure to commodity price fluctuations for essential raw materials like steel and aluminum.
PLPC's domestic manufacturing provides advantage in high-tariff environment, but commodity cost increases remain a challenge requiring strategic response.
The Q1 results highlight a significant strategic advantage in PLPC's supply chain positioning. Their strong domestic manufacturing presence provides a buffer against some impacts of the newly enacted tariffs that management references. This localized production capability could become increasingly valuable as global trade tensions escalate, potentially allowing them to maintain more reliable supply chains than competitors with heavier reliance on imports.
However, management's explicit mention of expected cost increases for key commodity inputs reveals an important supply chain reality – even domestic manufacturers remain vulnerable to global commodity market dynamics. Steel and aluminum raw materials along with component parts are specifically identified as areas of concern. These materials are essential inputs for their USA production processes, creating unavoidable exposure despite their domestic manufacturing footprint.
Their two-pronged mitigation strategy combines targeted selling price increases with continued focus on cost containment. This balanced approach acknowledges both the revenue and expense levers available to them. The
What's particularly notable is management's commitment to maintaining product quality and service levels despite these cost pressures. This signals a strategic decision to protect brand value and customer relationships rather than compromising on output standards to offset input cost increases. Their ability to maintain this balance while implementing price increases will be crucial for preserving both market position and margins as commodity pressures persist through 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
Net income for the quarter ended March 31, 2025, was
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
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 – | 13,820 | 13,752 | |
Common shares issued to rabbi trust, 223,034 and 222,887 shares at March 31, 2025 | (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 | (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 | $ 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 | ||||
Basic | $ 2.34 | $ 1.95 | ||
Diluted | $ 2.33 | $ 1.94 | ||
Cash dividends declared per share | $ 0.20 | $ 0.20 | ||
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SOURCE Preformed Line Products Company
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