PREFORMED LINE PRODUCTS ANNOUNCES THIRD QUARTER 2026 FINANCIAL RESULTS

Earnings growth extended beyond the prior-year pension charge, with quarterly diluted EPS up 70% on that adjusted comparison.

Rhea-AI Summary

Preformed Line Products (PLPC) reported third-quarter 2026 net sales of $209.5 million, up 18% from the same quarter in 2025. Gross margin rose 370 basis points to 33.4%. Diluted earnings per share increased to $3.56 from $0.53; growth was 70% after excluding the prior-year pension termination charge.

Nine-month sales increased 21% to $598.5 million, with all segments growing and PLP-USA sales rising 28%. Nine-month diluted earnings reached $10.18, versus $5.42 a year earlier. Operating cash flow reached $68.1 million through September, up 32%, while quarterly operating cash flow increased 95%. Quarter-end cash, cash equivalents and restricted cash totaled $99.269 million, with $53.9 million of available credit. Higher volumes and pricing supported earnings, while personnel, selling and freight costs, tariffs and a higher nine-month effective tax rate weighed on results.

18 points · 0 major

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0 major · 11 points

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Positive

• Moderate pointThird-quarter net sales increased 18% to $209.5 million from $178.1 million a year earlier.
• Moderate pointThird-quarter gross margin rose 370 basis points to 33.4% year over year.
• Moderate pointThird-quarter diluted EPS reached $3.56 versus $0.53; growth excluding the prior-year pension charge was 70%.
• Moderate pointThird-quarter operating income increased to $24.897 million from $13.132 million a year earlier.
• Moderate pointOperating cash flow increased 95% for the quarter and 32% to $68.1 million for nine months.

13 minor points

• Minor pointNine-month sales increased 21% to $598.5 million, with year-over-year growth across all segments.
• Minor pointNine-month diluted EPS reached $10.18 versus $5.42; growth excluding the prior-year pension charge was 46%.
• Minor pointNine-month operating income increased to $66.515 million from $43.386 million a year earlier.
• Minor pointCash, cash equivalents and restricted cash rose to $99.269 million from $83.389 million at year-end 2025.
• Minor pointAvailable credit totaled $53.9 million at quarter-end.
• Minor pointPLP-USA nine-month net sales grew 28%; quarterly sales exceeded $100 million for the second consecutive quarter.
• Minor pointAmericas quarterly sales grew 7% in constant currency, benefiting from the May 2026 Delta Star acquisition and communications volumes.
• Minor pointAsia-Pacific quarterly sales grew 17% in constant currency, driven by higher energy sales volumes.
• Minor pointCurrency translation added $3.1 million to quarterly sales and $16.2 million to nine-month sales.
• Minor pointCurrency translation benefited net income by $0.4 million quarterly and $1.0 million over nine months.
• Minor pointQuarterly dividends declared increased to $0.21 per share from $0.20 a year earlier.
• Minor pointOther operating expense fell to $233,000 quarterly and $1.217 million over nine months, versus $1.134 million and $2.212 million.
• Minor pointInterest income rose to $1.061 million quarterly and $2.472 million over nine months, versus $683,000 and $1.577 million.

Negative

• Minor pointTariffs continued to weigh on net income in the quarter and nine-month period.
• Minor pointSelling expense increased to $15.014 million quarterly and $44.171 million over nine months, versus $13.252 million and $38.525 million.
• Minor pointGeneral and administrative expense rose to $22.522 million quarterly and $65.104 million over nine months, versus $19.149 million and $55.440 million.
• Minor pointResearch and engineering expense rose to $7.336 million quarterly and $21.227 million over nine months, versus $6.182 million and $17.356 million.
• Minor pointHigher freight costs partially offset quarterly and nine-month earnings growth.

6 minor points

• Minor pointThe nine-month effective tax rate increased, partially offsetting earnings growth.
• Minor pointLong-term debt excluding current maturities rose to $47.423 million from $32.860 million at year-end 2025.
• Minor pointCurrent long-term debt maturities rose to $6.136 million from $5.392 million at year-end 2025.
• Minor pointNotes payable to banks increased to $2.390 million from $1.213 million at year-end 2025.
• Minor pointInterest expense rose to $728,000 quarterly and $1.199 million over nine months, versus $312,000 and $1.006 million.
• Minor pointOther nonoperating income fell to $326,000 quarterly and $544,000 over nine months, versus $510,000 and $1.033 million.

News Explained

PLPC reported third-quarter results; common shares issued and outstanding were 4,880,691 at September 30, 2026, versus 4,907,787 at December 31, 2025; for someone holding the same number of shares, that lower count means a larger fraction of shares outstanding, all else equal.

Key Figures

Quarterly net sales: $209.5 million; +18% Gross profit margin: 33.4%; +370 basis points Diluted EPS: $3.56 per share +4 more

Quarterly net sales

$209.5 million; +18%

Q3 2026 vs. Q3 2025

Gross profit margin

33.4%; +370 basis points

Q3 2026 vs. Q3 2025

Diluted EPS

$3.56 per share

Q3 2026

Adjusted diluted EPS growth

+70%

Q3 2026 vs. Q3 2025, adjusted for the prior-year pension plan termination charges

Net income

$18.0 million

Quarter ended September 30, 2026

Operating cash flow

$68.1 million

First nine months of 2026

Nine-month net sales

$598.5 million; +21%

First nine months of 2026 vs. first nine months of 2025

Previous Earnings Reports

2 past events · Latest: Jul 29

Same Type 2 events

1. Jul 29

   Q2 earnings results

   24h Move

   +30.0%

   Reported record quarterly sales, expanded margins, and record diluted EPS before the current quarter.

2. Oct 29

   Q3 earnings results

   24h Move

   -6.7%

   Q3 results included a pension charge underlying the current adjusted EPS comparison.

24h Move is the share-price change in the day after each event; other market factors may also have contributed.

Key Terms

diluted eps, constant-currency basis, foreign currency translation, non-gaap financial measures, +1 more

5 terms

diluted eps financial

"Quarterly diluted EPS of $3.56 per share"

Diluted earnings per share (EPS) shows how much profit a company makes for each share of stock, assuming all possible shares from stock options or convertible securities are used. It provides a more conservative estimate than basic EPS, accounting for potential share increases that could dilute ownership. Investors use diluted EPS to get a clearer picture of a company's true profitability on a per-share basis.

constant-currency basis financial

"The Americas net sales grew 7% on a constant-currency basis"

A constant-currency basis is a way of reporting financial results that removes the effect of changes in exchange rates by converting past and current foreign-currency figures using the same exchange rates. It lets readers compare sales, revenue growth, or other metrics as if currency values had not moved, revealing underlying business performance much like comparing prices after fixing the same exchange rate on a price tag. Investors use it to separate operational changes from swings in currency values.

foreign currency translation financial

"Foreign currency translation increased third quarter 2026 net sales"

Foreign currency translation is the process of converting financial statements prepared in one currency into another currency so they can be combined or compared. Investors care because exchange rate swings can change reported revenue, profit and asset values even when a company’s underlying business hasn’t changed — like converting vacation spending back to your home money and seeing the total rise or fall depending on the day’s exchange rate.

non-gaap financial measures financial

"This earnings release includes certain non-GAAP financial measures."

Non-GAAP financial measures are numbers companies use to show their financial performance that exclude certain expenses or income. They help investors see how the company might perform without one-time costs or other unusual items, giving a different perspective from official reports. However, since they can be adjusted, they don’t always tell the full story and should be looked at alongside standard financial figures.

gaap financial

"calculated in accordance with generally accepted accounting principles (GAAP)"

GAAP, or Generally Accepted Accounting Principles, are a set of standardized rules and guidelines that companies follow when preparing their financial statements. They ensure consistency, transparency, and comparability across different companies, making it easier for investors to understand and compare financial information accurately. This helps investors make informed decisions based on trustworthy and uniform financial reports.

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CLEVELAND, Oct. 28, 2026 /PRNewswire/ -- Preformed Line Products Company (NASDAQ: PLPC) today reported financial results for its third-quarter of 2026.

Q3 2026 highlights:

• Quarterly net sales of $209.5 million, an increase of 18% from Q3 2025.
• Quarterly gross profit margin of 33.4%, up 370 basis points from Q3 2025.
• Quarterly diluted EPS of $3.56 per share, up $3.03 from Q3 2025.  EPS was up 70% from Q3 2025 when adjusted for the charges related to the U.S. Pension Plan termination that occurred in Q3 2025. 
• Quarterly Cash Flow from Operations up 95% from Q3 2025 and 32% for the nine-month period ended September 30, 2026.

Net sales in the third quarter of 2026 were $209.5 million compared to $178.1 million in the third quarter of 2025, an 18% increase. PLP-USA continued its strong 2026 performance driven primarily by sales growth in the transmission and distribution markets. Among the international segments, The Americas net sales grew 7% on a constant-currency basis, benefiting from the May 2026 acquisition of Delta Star Conetores Electricos Ltda ("Delta Star") and higher communications volumes. Asia-Pacific net sales grew 17% on a constant-currency basis, driven by higher volumes in energy sales.  Foreign currency translation increased third quarter 2026 net sales by $3.1 million.

Net income for the quarter ended September 30, 2026, was $18.0 million, or $3.56 per diluted share, compared to $2.6 million, or $0.53 per diluted share, for the comparable period in 2025. When removing the charges associated with the US Pension Plan termination which occurred in Q3 2025, diluted EPS increased 70%. The increase in net income was primarily driven by higher sales volumes, favorable product mix, fixed cost leverage and the benefit of price increases enacted in 2025 and early 2026. This increase was partially offset by increases in selling and freight costs and investments in personnel supporting strategic market growth in our core product offerings.  Tariff headwinds also continued to impact net income. Foreign currency translation had a favorable impact of $0.4 million on the third-quarter of 2026 net income. 

Net sales increased 21% to $598.5 million for the first nine months of 2026 compared to $496.2 million for the first nine months of 2025. All segments realized a year-over-year increase in net sales due to higher volumes of energy and communications sales, driven most significantly by PLP-USA with 28% net sales growth. Foreign currency translation rates increased net sales by $16.2 million for the nine months ended September 30, 2026.

Net income for the nine months ended September 30, 2026, was $50.1 million, or $10.18 per diluted share, compared to $26.8 million, or $5.42 per diluted share, for the comparable period in 2025. Adjusted for the U.S. Pension Plan Termination charges, diluted EPS was up $3.20 or 46%. The increase in net income was due to higher sales volumes and the benefit of price increases enacted in 2025 and early 2026, partially offset by higher personnel, selling and freight costs, tariff expenses and a higher effective tax rate for the nine-month period. Foreign currency translation had a favorable impact of $1.0 million on net income for the nine-month period ended September 30, 2026.

"This was another exceptional quarter, with sales and net income nearing the records set just last quarter," said Rob Ruhlman, Executive Chairman. "We grew net sales 18% to $209.5 million with gross margins improving 370 basis points year over year to 33.4%, showing resilience in a challenging operating environment. Our steadfast commitment to domestic manufacturing continues to provide a strategic advantage, with PLP-USA delivering over $100 million of net sales for the second straight quarter. That performance is a direct result of the robust demand we see in domestic energy markets and the strategic investments we have made in people, manufacturing, and engineering capabilities. In early October, we welcomed U.S. Senator Bernie Moreno to our PLP Peninsula, Ohio operations to see our commitment to U.S. manufacturing firsthand." 

"Our sustained growth is also generating strong cash flow. We produced $68.1 million in operating cash flow through the first nine months of the year and ended the quarter with $99.3 million in cash and $53.9 million of available credit. That financial strength allows us to do three things at once: invest in our people and facilities, pursue targeted acquisitions, and continue returning capital to shareholders."

"While we continue to enjoy a record year so far, the operating environment remains challenging. Tariffs continue to present headwinds, and the geopolitical landscape is constantly changing. But the investments we have made in domestic U.S. manufacturing, our diversified global footprint across 20 countries, and the breadth of our product portfolio give me confidence that we are well-positioned to navigate these pressures and sustain the momentum we have built."

"Finally, I was delighted to bring our Senior Leadership Team (and our families!) to New York in September to ring the closing bell at the Nasdaq to celebrate our 25th anniversary of being listed. This opportunity recognized both our great past and our bright future and I share this recognition with each of our over 4,000 PLP brothers and sisters around the globe. Our focus is unchanged: provide our customers with the high-quality products and superior customer service they have come to expect from PLP."

A presentation on third-quarter results will also be available on PLP's website at www.plp.com/investor-relations.

FORWARD-LOOKING STATEMENTS

This news release contains "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934 regarding the Company, including those statements regarding the Company's and management's beliefs and expectations concerning the Company's future performance or anticipated financial results, among others. Except for historical information, the matters discussed in this release are forward-looking statements that involve risks and uncertainties which may cause results to differ materially from those set forth in those statements. Among other things, factors that could cause actual results to differ materially from those expressed in such forward-looking statements include the uncertainty in global business conditions and the economy due to factors such as inflation, rising interest rates, tariffs, labor disruptions, military conflict, international hostilities, political instability, exchange rates, natural disasters and health epidemics, the strength of demand and availability of funding for the Company's products (including in light of price increases) and the mix of products sold, the relative degree of competitive and customer price pressure on the Company's products, the cost, availability and quality of raw materials required for the manufacture of products and customer demand, opportunities for business growth through acquisitions and the ability to successfully integrate any acquired businesses, changes in regulations and tax rates, security breaches, litigation and claims and the Company's ability to continue to develop proprietary technology and maintain high-quality products and customer service to meet or exceed new industry performance standards and individual customer expectations, and other factors described under the headings "Forward-Looking Statements" and "Risk Factors" in the Company's 2025 Annual Report on Form 10-K filed with the SEC on March 5, 2026 and subsequent filings with the SEC. The Annual Report on Form 10-K and the Company's other filings with the SEC can be found on the SEC's website at http://www.sec.gov. The Company assumes no obligation to update or supplement forward-looking statements that become untrue because of subsequent events.

ABOUT PLP

PLP protects the world's most critical connections by creating stronger and more reliable networks. The company's precision-engineered solutions are trusted by energy and communications providers worldwide to perform better and last longer. With locations in 20 countries, PLP works as a united global corporation, delivering high-quality products and unparalleled service to customers around the world.

PREFORMED LINE PRODUCTS COMPANY (PLPC) CONSOLIDATED BALANCE SHEET
	September 30, 2026		December 31, 2025
(Thousands of dollars, except share and per share data)	(Unaudited)
ASSETS
Cash, cash equivalents and restricted cash	$                99,269		$                83,389
Accounts receivable, net	136,764		113,175
Inventories, net	161,194		148,730
Prepaid expenses	15,683		12,961
Other current assets	8,907		5,206
TOTAL CURRENT ASSETS	421,817		363,461
Property, plant and equipment, net	247,502		222,781
Goodwill	36,142		30,684
Other intangible assets, net	9,007		10,140
Deferred income taxes	7,909		7,481
Other assets	19,925		19,074
TOTAL ASSETS	$               742,302		$               653,621
LIABILITIES AND SHAREHOLDERS' EQUITY
Trade accounts payable	$                60,935		$                49,520
Notes payable to banks	2,390		1,213
Current portion of long-term debt	6,136		5,392
Accrued compensation and other benefits	36,829		29,207
Accrued expenses and other liabilities	41,584		29,378
TOTAL CURRENT LIABILITIES	147,874		114,710
Long-term debt, less current portion	47,423		32,860
Other noncurrent liabilities and deferred income taxes	34,367		30,500
SHAREHOLDERS' EQUITY
Common shares $2 par value per share, 15,000,000 shares authorized, 4,880,691 and 4,907,787 issued and outstanding, at September 30, 2026 and December 31, 2025	13,895		13,860
Common shares issued to rabbi trust, 222,506 and 222,506 shares at September 30, 2026 and December 31, 2025, respectively	(9,586)		(9,586)
Deferred compensation liability	9,586		9,586
Paid-in capital	71,226		67,217
Retained earnings	631,311		584,360
Treasury shares, at cost, 2,066,300 and 2,021,940 shares at September 30, 2026 and December 31, 2025, respectively	(149,150)		(136,554)
Accumulated other comprehensive loss	(54,682)		(53,365)
TOTAL PLPC SHAREHOLDERS' EQUITY	512,600		475,518
Noncontrolling interest	38		33
TOTAL SHAREHOLDERS' EQUITY	512,638		475,551
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY	$               742,302		$               653,621

 

PREFORMED LINE PRODUCTS COMPANY STATEMENTS OF CONSOLIDATED INCOME
	Three Months Ended September 30,				Nine Months Ended September 30,
	2026		2025		2026		2025
(Thousands, except per share data)	(Unaudited)				(Unaudited)
Net sales	$           209,501		$           178,087		$           598,460		$           496,229
Cost of products sold	139,499		125,238		400,226		339,310
GROSS PROFIT	70,002		52,849		198,234		156,919
Costs and expenses
Selling	15,014		13,252		44,171		38,525
General and administrative	22,522		19,149		65,104		55,440
Research and engineering	7,336		6,182		21,227		17,356
Other operating expense, net	233		1,134		1,217		2,212
	45,105		39,717		131,719		113,533
OPERATING INCOME	24,897		13,132		66,515		43,386
Other income (expense)
Interest income	1,061		683		2,472		1,577
Interest expense	(728)		(312)		(1,199)		(1,006)
Pension termination expense	—		(11,657)		—		(11,657)
Other income, net	326		510		544		1,033
	659		(10,776)		1,817		(10,053)
INCOME BEFORE INCOME TAXES	25,556		2,356		68,332		33,333
Income tax expense (benefit)	7,540		(263)		18,259		6,461
NET INCOME	$            18,016		$              2,619		$            50,073		$            26,872
Net loss (income) attributable to noncontrolling interests	20		7		(5)		(24)
NET INCOME ATTRIBUTABLE TO PLPC SHAREHOLDERS	$            18,036		$              2,626		$            50,068		$            26,848
AVERAGE NUMBER OF SHARES OF COMMON STOCK OUTSTANDING:
Basic	5,032		4,915		4,891		4,925
Diluted	5,072		4,941		4,917		4,951
EARNINGS PER SHARE OF COMMON STOCK ATTRIBUTABLE TO PLPC SHAREHOLDERS:
Basic	$               3.58		$               0.53		$              10.24		$               5.45
Diluted	$               3.56		$               0.53		$              10.18		$               5.42
Cash dividends declared per share	$               0.21		$               0.20		$               0.63		$               0.60

NON-GAAP FINANCIAL INFORMATION

This earnings release includes certain non-GAAP financial measures. These financial measures include adjusted earnings and adjusted earnings per basic and diluted share, each of which differs from the most directly comparable measure calculated in accordance with generally accepted accounting principles (GAAP). A reconciliation of each of these financial measures to the most directly comparable GAAP measure is included in this earnings release. Management believes that these financial measures are useful to investors because they provide additional meaningful financial information that should be considered when assessing our business performance and trends, and they allow investors to more easily compare the Company's financial performance period to period.

The Company's adjusted net income and adjusted earnings per diluted share for the year ended September 30, 2025, was calculated as follows:

	Three Months Ended September 30, 2025			Nine Months Ended September 30, 2025
(Thousands, except per share data)
NET INCOME ATTRIBUTABLE TO PLPC SHAREHOLDERS	$                   2,626			$                 26,848
Add back:
Pension termination expense, after tax	7,721			7,721
ADJUSTED NET INCOME ATTRIBUTABLE TO PLPC SHAREHOLDERS	$                 10,347			$                 34,569
AVERAGE NUMBER OF SHARES OF COMMON STOCK OUTSTANDING:
Basic	4,915			4,925
Diluted	4,941			4,951
ADJUSTED EARNINGS PER SHARE OF COMMON STOCK ATTRIBUTABLE TO PLPC SHAREHOLDERS:
Basic	$                    2.11			$                    7.02
Diluted	$                    2.09			$                    6.98

	Three Months Ended September 30, 2025			Nine Months Ended September 30, 2025
ADJUSTED DILUTED EARNINGS PER SHARE OF COMMON STOCK ATTRIBUTABLE TO PLPC SHAREHOLDERS:
NET INCOME PER SHARE ATTRIBUTABLE TO PLPC SHAREHOLDERS	$                    0.53			$                    5.42
Add back:
Per share impact of pension termination expense, after tax	1.56			1.56
ADJUSTED DILUTED EARNINGS PER SHARE OF COMMON STOCK ATTRIBUTABLE TO PLPC SHAREHOLDERS	$                    2.09			$                    6.98

 

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SOURCE Preformed Line Products Company

FAQ

AI-generated questions and answers. How Rhea-AI works. Not financial advice.

What were Preformed Line Products' third-quarter 2026 sales and earnings per share?

Preformed Line Products reported $209.5 million in sales and $3.56 in diluted earnings per share for the quarter ended September 30, 2026. Sales increased 18% from $178.1 million, while diluted earnings per share increased from $0.53 a year earlier.

How much operating cash flow did PLPC generate in the first nine months of 2026?

PLPC generated $68.1 million in operating cash flow through the first nine months of 2026, up 32% from the comparable 2025 period. Third-quarter operating cash flow increased 95% year over year.

How did PLPC's pension termination charge affect the 2025 earnings comparison?

The third-quarter 2025 pension termination charge reduced diluted earnings by $1.56 per share after tax. Excluding that charge, adjusted diluted earnings were $2.09 for the third quarter and $6.98 for the first nine months of 2025. The after-tax charge totaled $7.721 million.