Preformed Line Products Q3 profit rises to $18M
PLPC generated $68.1 million in operating cash flow over nine months and had $99.3 million in cash, cash equivalents and restricted cash on September 30, 2026.
Sentiment and the balance of points
Rhea-AI Sentiment reads the wording of the document, how positive or negative its language is on a 1 to 5 scale. The balance of points shown with the takes weighs what the document actually discloses, so the two can disagree, for example when a trial that missed its main goal is described in upbeat language.
Form Type
10-Q
Preformed Line Products Company (PLPC) reported third-quarter net sales of $209.5 million, up 18% year over year, and net income attributable to shareholders of $18.0 million, compared with $2.6 million. For the first nine months, sales were $598.5 million, up 21%, and shareholder net income was $50.1 million versus $26.8 million; PLPC said nine-month sales were the highest in its history. Energy sales, led by PLP-USA, were the main driver.
Nine-month operating cash flow was $68.1 million, and capital expenditures were $43.7 million, mainly for new facilities in EMEA and Canada. As of September 30, 2026, cash, cash equivalents and restricted cash totaled $99.3 million, while total debt, including notes payable, was $55.9 million. PLP Canada acquired a facility and related property for approximately $16.7 million on July 21, 2026; on July 28, it obtained a CAD15.0 million ($10.6 million) term loan to refinance part of the cash investment, maturing July 28, 2029.
PLPC reported tariff, commodity-price and freight-cost headwinds affecting inputs such as steel, aluminum and plastic resins. It said further tariff or geopolitical changes may add inflationary pressure and could lead to price adjustments that may affect demand.
2 points · 0 major0 major · 0 points
How this balance works
Rhea-AI gives every point it takes from this document a weight. Minor counts 1, Moderate 3 and Major 9, so one Major point outweighs several Minor ones. The bar adds up the weights on each side, and when neither side holds more than 65% of the total the balance reads Mixed.
It reads the document as published, with the same rules for every company, and it does not look at what the market expected or at how the stock traded, so a point can be objectively good on a day the stock falls.
Rhea-AI Sentiment measures something else, the tone of the wording.
Positive
- Moderate pointNine-month net sales reached $598.5 million, up from $496.2 million.
- Moderate pointNine-month shareholder net income rose to $50.1 million from $26.8 million.
Negative
- None.
Filing Explained
At September 30, PLPC had $53.9 million of unused borrowing capacity; reported common shares outstanding were lower than at year-end.
A Form 10-Q is an unaudited quarterly report. PLPC reports that, at
Common shares outstanding were 4,880,691 at
On that date comparison, the reported share-count base was lower; for a holder whose share count stayed the same, that means a larger fraction of the outstanding shares.
Key Figures
Third-quarter net sales: $209.5 million
Third-quarter net income attributable to shareholders: $18.0 million
Nine-month net sales: $598.5 million
+3 more
6 metrics
Third-quarter net sales
$209.5 million
Three months ended September 30, 2026; $178.1 million in 2025
Third-quarter net income attributable to shareholders
$18.0 million
Three months ended September 30, 2026; $2.6 million in 2025
Nine-month net sales
$598.5 million
Nine months ended September 30, 2026; $496.2 million in 2025
Nine-month net income attributable to shareholders
$50.1 million
Nine months ended September 30, 2026; $26.8 million in 2025
Net cash provided by operating activities
$68.1 million
Nine months ended September 30, 2026; $51.5 million in 2025
Total debt, including notes payable
$55.9 million
As of September 30, 2026
Key Terms
Last-In First-Out (LIFO), Secured Overnight Financing Rate, Canadian Overnight Repo Rate Average, negative covenant, +1 more
5 terms
Last-In First-Out (LIFO) financial
"using the Last-In First-Out (LIFO) method"
Secured Overnight Financing Rate financial
"interest rate is defined as the Secured Overnight Financing Rate (SOFR) plus 1.225%"
A secured overnight financing rate (SOFR) is a daily benchmark interest rate that reflects the cost of borrowing cash overnight using U.S. Treasury securities as collateral. Think of it as the market price to “rent” cash for a day with a very safe pledge, similar to paying a short-term rental fee for money backed by government bonds. Investors track SOFR because it underpins pricing for loans, bonds and derivatives, so movements change borrowing costs, interest income and the valuation of interest-rate–linked positions.
Canadian Overnight Repo Rate Average financial
"variable rate equal to the Canadian Overnight Repo Rate Average (CORRA) plus 1.25%"
negative covenant financial
"The Term Loan contains a negative covenant"
valuation allowance financial
"a valuation allowance recorded in Q1 2026 on deferred tax assets"
A valuation allowance is a reserve set aside to reduce the value of certain assets on a company's financial records when there is uncertainty about whether they will generate the expected benefits. It acts like a caution sign, indicating that some assets might not be fully recoverable or worth their recorded amount. This matters to investors because it provides a more realistic picture of a company's financial health and potential risks.
FAQ
AI-generated questions and answers. How Rhea-AI works. Not financial advice.
How much revenue did PLPC report in the third quarter of 2026?
PLPC reported $209.5 million in net sales for the three months ended September 30, 2026, compared with $178.1 million in the same 2025 period, an 18% increase.
What were PLPC's sales and shareholder earnings for the first nine months of 2026?
PLPC reported $598.5 million in net sales and $50.1 million in net income attributable to shareholders for the nine months ended September 30, 2026. The comparable 2025 figures were $496.2 million and $26.8 million.
How much did PLPC pay for Delta Star?
PLPC acquired all issued and outstanding shares of Delta Star on May 5, 2026, for approximately $11.1 million, net of cash received. From the acquisition date through September 30, 2026, Delta Star contributed approximately $3.8 million in sales to consolidated results.
What are the terms of PLP Canada's term loan?
The loan is CAD15.0 million ($10.6 million), bears interest at CORRA plus 1.25% per annum, and matures July 28, 2029. Annual principal installments of CAD0.8 million ($0.5 million) are due in 2027 and 2028, with CAD13.4 million ($9.6 million) due at maturity.
AI-generated analysis. How Rhea-AI works. Not financial advice.
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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-Q
(Mark One)
For the fiscal quarter ended September 30, 2026
or
for the Transition Period From ________To _______
Commission file number 0-31164
(Exact name of registrant as specified in its charter)
| (State or Other Jurisdiction of Incorporation or Organization) | (I.R.S. Employer Identification No.) | |||||||
| (Address of Principal Executive Office) | (Zip Code) | |||||||
( | ||
| (Registrant's telephone number, including area code) | ||
Securities registered pursuant to Section 12(b) of the Act:
| Title of each class | Trading Symbol(s) | Name of each exchange on which registered | ||||||
Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports) and (2) has been subject to such filing requirements for the past 90 days. Yes ☒ No ☐
Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes ☒ No ☐
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company or an emerging growth company. See definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.
| Large accelerated filer | ☐ | ☒ | |||||||||||||||
| Non-accelerated filer | ☐ | Smaller Reporting Company | |||||||||||||||
| Emerging Growth Company | |||||||||||||||||
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐ No ☒
The number of shares outstanding as of October 16, 2026: 4,880,691 .
Table of Contents
| Page | ||||||||||||||
Part I – Financial Information | ||||||||||||||
Item 1. | Financial Statements | 3 | ||||||||||||
Item 2. | Management’s Discussion and Analysis of Financial Condition and Results of Operations | 23 | ||||||||||||
Item 3. | Quantitative and Qualitative Disclosures About Market Risk | 32 | ||||||||||||
Item 4. | Controls and Procedures | 32 | ||||||||||||
Part II – Other Information | ||||||||||||||
Item 1. | Legal Proceedings | 33 | ||||||||||||
Item 1A. | Risk Factors | 33 | ||||||||||||
Item 2. | Unregistered Sales of Equity Securities and Use of Proceeds | 33 | ||||||||||||
Item 3. | Defaults Upon Senior Securities | 33 | ||||||||||||
Item 4. | Mine Safety Disclosures | 33 | ||||||||||||
Item 5. | Other Information | 33 | ||||||||||||
Item 6. | Exhibits | 34 | ||||||||||||
SIGNATURES | 35 | |||||||||||||
2
PART I – FINANCIAL INFORMATION
ITEM 1. FINANCIAL STATEMENTS
PREFORMED LINE PRODUCTS COMPANY
CONSOLIDATED BALANCE SHEETS
| September 30, 2026 | December 31, 2025 | ||||||||||
| (Thousands of dollars, except share and per share data) | (Unaudited) | ||||||||||
| ASSETS | |||||||||||
| Cash, cash equivalents and restricted cash | $ | $ | |||||||||
| Accounts receivable, net | |||||||||||
| Inventories, net | |||||||||||
| Prepaid expenses | |||||||||||
| Other current assets | |||||||||||
| TOTAL CURRENT ASSETS | |||||||||||
| Property, plant and equipment, net | |||||||||||
| Operating lease, right-of-use assets | |||||||||||
| Goodwill | |||||||||||
| Other intangible assets, net | |||||||||||
| Deferred income taxes | |||||||||||
| Other assets | |||||||||||
| TOTAL ASSETS | $ | $ | |||||||||
| LIABILITIES AND SHAREHOLDERS' EQUITY | |||||||||||
| Trade accounts payable | $ | $ | |||||||||
| Notes payable to banks | |||||||||||
| Operating lease liabilities, current | |||||||||||
| Current portion of long-term debt | |||||||||||
| Accrued compensation and other benefits | |||||||||||
| Accrued expenses and other liabilities | |||||||||||
| Dividends payable | |||||||||||
| Income taxes payable | |||||||||||
| TOTAL CURRENT LIABILITIES | |||||||||||
| Long-term debt, less current portion | |||||||||||
| Operating lease liabilities, noncurrent | |||||||||||
| Deferred income taxes | |||||||||||
| Other noncurrent liabilities | |||||||||||
| SHAREHOLDERS' EQUITY | |||||||||||
Common shares $ | |||||||||||
Common shares issued to rabbi trust, | ( | ( | |||||||||
| Deferred compensation liability | |||||||||||
| Paid-in capital | |||||||||||
| Retained earnings | |||||||||||
Treasury shares, at cost, | ( | ( | |||||||||
| Accumulated other comprehensive loss | ( | ( | |||||||||
| TOTAL PREFORMED LINE PRODUCTS COMPANY SHAREHOLDERS' EQUITY | |||||||||||
| Noncontrolling interest | |||||||||||
| TOTAL SHAREHOLDERS' EQUITY | |||||||||||
| TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY | $ | $ | |||||||||
See notes to consolidated financial statements (unaudited).
3
PREFORMED LINE PRODUCTS COMPANY
STATEMENTS OF CONSOLIDATED INCOME
(UNAUDITED)
| Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||
| 2026 | 2025 | 2026 | 2025 | ||||||||||||||||||||
| (Thousands, except per share data) | |||||||||||||||||||||||
| Net sales | $ | $ | $ | $ | |||||||||||||||||||
| Cost of products sold | |||||||||||||||||||||||
| GROSS PROFIT | |||||||||||||||||||||||
| Costs and expenses | |||||||||||||||||||||||
| Selling | |||||||||||||||||||||||
| General and administrative | |||||||||||||||||||||||
| Research and engineering | |||||||||||||||||||||||
| Other operating expense, net | |||||||||||||||||||||||
| OPERATING INCOME | |||||||||||||||||||||||
| Other income (expense) | |||||||||||||||||||||||
| Interest income | |||||||||||||||||||||||
| Interest expense | ( | ( | ( | ( | |||||||||||||||||||
| Pension termination expense | ( | ( | |||||||||||||||||||||
| Other income, net | |||||||||||||||||||||||
| ( | ( | ||||||||||||||||||||||
| INCOME BEFORE INCOME TAXES | |||||||||||||||||||||||
| Income tax expense (benefit) | ( | ||||||||||||||||||||||
| NET INCOME | $ | $ | $ | $ | |||||||||||||||||||
| Net expense (income) attributable to noncontrolling interests | ( | ( | |||||||||||||||||||||
| NET INCOME ATTRIBUTABLE TO PREFORMED LINE PRODUCTS COMPANY SHAREHOLDERS | $ | $ | $ | $ | |||||||||||||||||||
| AVERAGE NUMBER OF SHARES OF COMMON STOCK OUTSTANDING: | |||||||||||||||||||||||
| Basic | |||||||||||||||||||||||
| Diluted | |||||||||||||||||||||||
| EARNINGS PER SHARE OF COMMON STOCK ATTRIBUTABLE TO PREFORMED LINE PRODUCTS COMPANY SHAREHOLDERS: | |||||||||||||||||||||||
| Basic | $ | $ | $ | $ | |||||||||||||||||||
| Diluted | $ | $ | $ | $ | |||||||||||||||||||
See notes to consolidated financial statements (unaudited).
4
PREFORMED LINE PRODUCTS COMPANY
STATEMENTS OF CONSOLIDATED COMPREHENSIVE INCOME
(UNAUDITED)
| Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||
| 2026 | 2025 | 2026 | 2025 | ||||||||||||||||||||
| (Thousands of dollars) | |||||||||||||||||||||||
| Net income | $ | $ | $ | $ | |||||||||||||||||||
| Other comprehensive (loss) income, net of tax: | |||||||||||||||||||||||
| Foreign currency translation adjustment | ( | ( | |||||||||||||||||||||
| Pension adjustment, net of tax | |||||||||||||||||||||||
| Other comprehensive (loss) income, net of tax | ( | ( | |||||||||||||||||||||
| Comprehensive expense (income) attributable to noncontrolling interests | ( | ( | |||||||||||||||||||||
| COMPREHENSIVE INCOME ATTRIBUTABLE TO PREFORMED LINE PRODUCTS COMPANY SHAREHOLDERS | $ | $ | $ | $ | |||||||||||||||||||
See notes to consolidated financial statements (unaudited).
5
PREFORMED LINE PRODUCTS COMPANY
STATEMENTS OF CONSOLIDATED CASH FLOWS
(UNAUDITED)
| Nine Months Ended September 30, | |||||||||||
| 2026 | 2025 | ||||||||||
| (Thousands of dollars) | |||||||||||
| OPERATING ACTIVITIES | |||||||||||
| Net income | $ | $ | |||||||||
| Adjustments to reconcile net income to net cash provided by operations: | |||||||||||
| Depreciation and amortization | |||||||||||
| Deferred income taxes | ( | ||||||||||
| Share-based compensation expense | |||||||||||
| Pension termination expense | |||||||||||
| (Gain) loss on sale of property and equipment | ( | ||||||||||
| Other, net | |||||||||||
| Changes in operating assets and liabilities | |||||||||||
| Contributions to company pension plan | ( | ||||||||||
| Other, net | ( | ( | |||||||||
| NET CASH PROVIDED BY OPERATING ACTIVITIES | |||||||||||
| INVESTING ACTIVITIES | |||||||||||
| Capital expenditures | ( | ( | |||||||||
| Proceeds from the sale of property and equipment | |||||||||||
| Proceeds from sale of investments | |||||||||||
| Purchases of investments | ( | ||||||||||
| Acquisition of businesses, net of cash | ( | ( | |||||||||
| NET CASH USED IN INVESTING ACTIVITIES | ( | ( | |||||||||
| FINANCING ACTIVITIES | |||||||||||
| Proceeds (payments) of notes payable to banks | ( | ||||||||||
| Proceeds from long-term debt | |||||||||||
| Payments of long-term debt | ( | ( | |||||||||
| Dividends paid | ( | ( | |||||||||
| Proceeds from issuance of common shares | |||||||||||
| Stock incentive plan payments | ( | ( | |||||||||
| Purchase of common shares for treasury | ( | ( | |||||||||
| Purchase of common shares for treasury from related parties | ( | ( | |||||||||
| Other | ( | ||||||||||
| NET CASH USED IN FINANCING ACTIVITIES | ( | ( | |||||||||
| Effects of exchange rate changes on cash, cash equivalents and restricted cash | |||||||||||
| Net increase in cash, cash equivalents and restricted cash | |||||||||||
| Cash, cash equivalents and restricted cash at beginning of year | |||||||||||
| CASH, CASH EQUIVALENTS AND RESTRICTED CASH AT END OF PERIOD | $ | $ | |||||||||
See notes to consolidated financial statements (unaudited).
6
PREFORMED LINE PRODUCTS COMPANY
STATEMENTS OF CONSOLIDATED SHAREHOLDERS' EQUITY
| Accumulated Other Comprehensive Income (Loss) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| (In thousands, except share and per share data) | Common Shares | Common Shares Issued to Rabbi Trust | Deferred Compensation Liability | Paid in Capital | Retained Earnings | Treasury Shares | Cumulative Translation Adjustment | Unrecognized Pension Benefit Cost | Total Preformed Line Products Company Equity | Noncontrolling Interests | Total Equity | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Balance at December 31, 2025 | $ | $ | ( | $ | $ | $ | $ | ( | $ | ( | $ | $ | $ | $ | |||||||||||||||||||||||||||||||||||||||||||||||||||
| Net income | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Foreign currency translation adjustment | ( | ( | ( | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Total comprehensive income | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Purchase of | ( | ( | ( | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Stock incentive plan activity | ( | ( | ( | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Common shares issued to rabbi trust of | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Cash dividends declared – $ | ( | ( | ( | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Balance at March 31, 2026 | $ | $ | ( | $ | $ | $ | $ | ( | $ | ( | $ | $ | $ | $ | |||||||||||||||||||||||||||||||||||||||||||||||||||
| Net income | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Foreign currency translation adjustment | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Total comprehensive income | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Purchase of | ( | ( | ( | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Stock incentive plan activity | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Common shares issued to rabbi trust of | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Cash dividends declared – $ | ( | ( | ( | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Balance at June 30, 2026 | $ | $ | ( | $ | $ | $ | $ | ( | $ | ( | $ | $ | $ | $ | |||||||||||||||||||||||||||||||||||||||||||||||||||
| Net income | ( | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Foreign currency translation adjustment | ( | ( | ( | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Total comprehensive income | ( | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Purchase of | ( | ( | ( | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Stock incentive plan activity | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Common shares issued to rabbi trust of | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Cash dividends declared – $ | ( | ( | ( | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Balance at September 30, 2026 | $ | $ | ( | $ | $ | $ | $ | ( | $ | ( | $ | $ | $ | $ | |||||||||||||||||||||||||||||||||||||||||||||||||||
7
| Accumulated Other Comprehensive Income (Loss) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| (In thousands, except share and per share data) | Common Shares | Common Shares Issued to Rabbi Trust | Deferred Compensation Liability | Paid in Capital | Retained Earnings | Treasury Shares | Cumulative Translation Adjustment | Unrecognized Pension Benefit Cost | Total Preformed Line Products Company Equity | Noncontrolling Interests | Total Equity | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Balance at December 31, 2024 | $ | $ | ( | $ | $ | $ | $ | ( | $ | ( | $ | ( | $ | $ | $ | ||||||||||||||||||||||||||||||||||||||||||||||||||
| Net income | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Foreign currency translation adjustment | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Pension adjustment, net of tax | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Total comprehensive income | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Purchase of | ( | ( | ( | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Stock incentive plan activity | ( | ( | ( | ( | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Common shares distributed from rabbi trust of | ( | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Cash dividends declared – $ | ( | ( | ( | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Balance at March 31, 2025 | $ | $ | ( | $ | $ | $ | $ | ( | $ | ( | $ | ( | $ | $ | $ | ||||||||||||||||||||||||||||||||||||||||||||||||||
| Net income | ( | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Foreign currency translation adjustment | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Pension adjustment, net of tax | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Total comprehensive income | ( | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Purchase of | ( | ( | ( | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Stock incentive plan activity | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Common shares distributed from rabbi trust of | ( | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Cash dividends declared – $ | ( | ( | ( | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Balance at June 30, 2025 | $ | $ | ( | $ | $ | $ | $ | ( | $ | ( | $ | ( | $ | $ | $ | ||||||||||||||||||||||||||||||||||||||||||||||||||
| Net income | ( | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Foreign currency translation adjustment | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Pension adjustment, net of tax | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Total comprehensive income | ( | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Purchase of | ( | ( | ( | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Stock incentive plan activity | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Common shares distributed from rabbi trust of | ( | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Cash dividends declared – $ | ( | ( | ( | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Balance at September 30, 2025 | $ | $ | ( | $ | $ | $ | $ | ( | $ | ( | $ | $ | $ | $ | |||||||||||||||||||||||||||||||||||||||||||||||||||
See notes to consolidated financial statements (unaudited).
8
PREFORMED LINE PRODUCTS COMPANY
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(UNAUDITED)
(Tables in thousands of dollars, except share and per share data, unless specifically noted)
NOTE 1 - SIGNIFICANT ACCOUNTING POLICIES
The accompanying unaudited consolidated financial statements of Preformed Line Products Company and subsidiaries (the “Company” or “PLPC”) have been prepared in accordance with United States ("U.S.") generally accepted accounting principles ("GAAP") for interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all the information and footnotes required by GAAP for complete financial statements. This Form 10-Q should be read in conjunction with the consolidated financial statements and accompanying notes included in our Form 10-K for the year ended December 31, 2025 filed on March 5, 2026 with the Securities and Exchange Commission. Management has evaluated subsequent events through the date this Form 10-Q was filed with the Securities and Exchange Commission.
The preparation of these consolidated financial statements requires management to make estimates and assumptions that affect the amounts reported in the consolidated financial statements and the accompanying notes. Actual results could differ from these estimates. In the opinion of management, these consolidated financial statements contain all estimates and adjustments, consisting of normal recurring accruals, required to fairly present the financial position, results of operations, and cash flows for the interim periods. Operating results for the three and nine months ended September 30, 2026 are not necessarily indicative of the results to be expected for the full-year ending December 31, 2026.
Noncontrolling interests are presented in the Company’s consolidated financial statements as if parent company investors (controlling interests) and other minority investors (noncontrolling interests) in partially-owned subsidiaries have similar economic interests in a single entity. As a result, investments in noncontrolling interests are reported as equity in the Company’s consolidated financial statements. Additionally, the Company’s consolidated financial statements include 100 % of a controlled subsidiary’s earnings, rather than only its share. Transactions between the parent company and noncontrolling interests are reported in equity as transactions between stockholders, provided that these transactions do not create a change in control.
Recently Adopted or Issued Accounting Pronouncements and Regulations
Not Yet Adopted
In November 2024, the FASB issued Accounting Standards Update No. 2024-03, “Income Statement – Reporting Comprehensive Income – Expense Disaggregation Disclosures (Subtopic 220-40): Disaggregation of Income Statement Expenses.” This ASU improves disclosures about a public business entity’s expenses and addresses requests from investors for more detailed information about the types of expenses commonly presented in expense captions. Coupled with recent standards that enhanced the disaggregation of revenue and income tax information, the disaggregated expense information required by the amendments in this ASU will enable investors to better understand the major components of an entity’s income statement. This ASU is effective for annual reporting periods beginning after December 15, 2026, and interim reporting periods beginning after December 15, 2027, with early adoption permitted. The Company is evaluating the impact of adopting this ASU.
In September 2025, the FASB issued Accounting Standards Update No. 2025-06, "Intangibles - Goodwill and Other – Internal-Use Software (Subtopic 350-40): Targeted Improvements to the Accounting for Internal-Use Software." This ASU removes all references to software development "project stages." Instead, capitalization begins when the following conditions are met: management has authorized funding the software project, it is probable that the project will be completed and the software will be used for its intended function. This ASU is effective for annual periods beginning after December 15, 2027, and for interim periods within those annual reporting periods, with early adoption permitted. The Company is evaluating the impact of adopting this ASU.
New Regulations
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NOTE 2 - REVENUE
Revenue Recognition
Sales are recognized when obligations under the terms of the contract are satisfied and control of promised goods or services has transferred to our customers. Control is transferred when the customer has the ability to direct the use of and obtain benefits from the goods or services and is primarily based on shipping terms. Sales are measured as the amount of consideration the Company expects to receive in exchange for transferring products.
Disaggregated Revenue
The Company’s revenues by segment and product type are as follows:
| Three Months Ended September 30, 2026 | |||||||||||||||||
| Product Type | PLP-USA | The Americas | EMEA | Asia-Pacific | Consolidated | ||||||||||||
| Energy | |||||||||||||||||
| Communications | |||||||||||||||||
| Special Industries | |||||||||||||||||
| Total | |||||||||||||||||
| Three Months Ended September 30, 2025 | |||||||||||||||||
| Product Type | PLP-USA | The Americas | EMEA | Asia-Pacific | Consolidated | ||||||||||||
| Energy | |||||||||||||||||
| Communications | |||||||||||||||||
| Special Industries | |||||||||||||||||
| Total | |||||||||||||||||
| Nine Months Ended September 30, 2026 | |||||||||||||||||
| Product Type | PLP-USA | The Americas | EMEA | Asia-Pacific | Consolidated | ||||||||||||
| Energy | |||||||||||||||||
| Communications | |||||||||||||||||
| Special Industries | |||||||||||||||||
| Total | |||||||||||||||||
| Nine Months Ended September 30, 2025 | |||||||||||||||||
| Product Type | PLP-USA | The Americas | EMEA | Asia-Pacific | Consolidated | ||||||||||||
| Energy | |||||||||||||||||
| Communications | |||||||||||||||||
| Special Industries | |||||||||||||||||
| Total | |||||||||||||||||
Credit Losses for Receivables
The Company maintains an allowance for credit losses for estimated losses resulting from the inability of its customers to make required payments. The Company uses a current expected credit loss model in order to immediately recognize an estimate of credit losses that are expected to occur over the life of the financial instruments, mainly trade receivables. Additionally, the allowance is based upon identified delinquent accounts, customer payment patterns and other analyses of historical data trends. Receivable balances
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are written off against an allowance for credit losses after a final determination has been made. The change in the allowance for credit losses includes expense and net write-offs, which are identified in the following table:
| Nine Months Ended September 30, | |||||||||||
| 2026 | 2025 | ||||||||||
| Allowance for credit losses, beginning of period | $ | $ | |||||||||
| Additions charged to costs and expenses | |||||||||||
| Write-offs | ( | ( | |||||||||
| Foreign exchange and other | |||||||||||
| Allowance for credit losses, end of period | $ | $ | |||||||||
NOTE 3 - INVENTORIES, NET
Inventories, net
Inventory is carried at lower of cost or net realizable value. The components of inventory are as follows:
| September 30, 2026 | December 31, 2025 | ||||||||||
| Raw materials | $ | $ | |||||||||
| Work-in-process | |||||||||||
| Finished products | |||||||||||
| Inventories, net of excess and obsolete inventory reserve | |||||||||||
| Excess of current cost over LIFO cost | ( | ( | |||||||||
| Inventories at LIFO cost | $ | $ | |||||||||
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NOTE 4 - PROPERTY AND EQUIPMENT, NET
Major classes of property, plant and equipment are as follows:
| September 30, 2026 | December 31, 2025 | ||||||||||
| Land and improvements | $ | $ | |||||||||
| Buildings and improvements | |||||||||||
| Machinery, equipment and aircraft | |||||||||||
| Construction in progress | |||||||||||
| Property, plant and equipment, gross | |||||||||||
| Less accumulated depreciation | ( | ( | |||||||||
| Property, plant and equipment, net | $ | $ | |||||||||
On July 21, 2026, PLP Canada LTD ("PLP Canada"), a subsidiary of the Company, acquired a facility and the related property for a purchase price of approximately $16.7 million. The newly acquired facility will replace PLP Canada's existing facility and is intended to expand PLP Canada's manufacturing capacity and support future growth initiatives. The purchase was funded with cash on hand. On July 28, 2026, subsequent to the facility purchase, PLP Canada obtained a term loan to finance a portion of the facility's purchase price. See Note 8. for further detail on the term loan.
NOTE 5 - CONTINGENCIES AND OTHER LIABILITIES
Contingent Liabilities
The Company can be party to a variety of pending legal proceedings and claims arising in the normal course of business, including, but not limited to, litigation relating to employment, workers’ compensation, product liability, environmental and intellectual property. The Company has liability insurance to cover many of these claims. Although the outcomes of these matters are not predictable with certainty, the Company records a liability when it is both probable that a liability has been incurred and the amount of the loss can be reasonably estimated. In the event the Company determines that a loss is not probable, but is reasonably possible, and the likelihood to develop what the Company believes to be a reasonable range of potential loss exists, the Company will include disclosure related to such matters. To the extent that there is a reasonable possibility the losses could exceed amounts already accrued, the Company will adjust the accrual in the period in which the determination is made, disclose an estimate of the additional loss or range of loss and if the amount of such adjustment cannot be reasonably estimated, disclose that an estimate cannot be made.
The Company is not a party to any pending legal proceedings that the Company believes would, individually or in the aggregate, have a material adverse effect on its financial condition, results of operations or cash flows. For the period ended September 30, 2026 and the year ending December 31, 2025, there were no
Advanced Customer Payments
As of September 30, 2026 and December 31, 2025, the Company has included $11.6 million and $4.7 million, respectively of advance payments by customers for future projects in Accrued expenses and other liabilities on the Consolidated Balance Sheets.
Tariff Considerations
In February 2026, the U.S. Supreme Court ruled that certain tariffs under the International Emergency Economic Powers Act (“IEEPA”) were invalid, and in March 2026, the U.S. Court of International Trade ruled that the U.S. Customs and Border Protection (“CBP”) must refund duties imposed under IEEPA. During the three- and nine-month periods ended September 30, 2026, the Company received certain refunds of duties imposed under IEEPA; however, the amounts received did not have a material impact on the consolidated financial statements. While the Company is actively engaged in the refund process, uncertainty persists with respect to the timing and magnitude of future refunds.
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NOTE 6 - PENSION PLANS
The Company completed the termination of the Preformed Line Products Company Employees’ Retirement Plan (the “U.S. Plan”) in the third quarter of 2025 through the purchase of a group annuity contract. Prior to the termination, the U.S. Plan was amended to provide certain participants who are not currently receiving benefits the opportunity during an election period of April 1, 2025 to May 31, 2025 to elect to receive their benefit in the form of a lump sum. Lump-sum payments of approximately $13.1 million were made during July and August of 2025 in connection with such elections. In August 2025, the Company contributed approximately $2.9 million to the U.S. Plan and purchased an annuity contract through a financial institution for approximately $18.0 million to fully liquidate the U.S. Plan. As of the year ended December 31, 2025, the Company recorded a total non-cash pre-tax charge associated with the U.S. Plan termination of $11.7 million, of which $8.8 million represents the acceleration of deferred charges previously accrued in accumulated other comprehensive loss and $2.9 million represents the actuarial loss.
Due to the termination of the U.S. Plan in August 2025, there was no net periodic pension expense for the three and nine months ended September 30, 2026.
Excluding the pension termination charges, net periodic pension expense for the U.S. Plan for the three- and nine-month periods ended September 30, 2025, respectively, follows:
| Three Months Ended September 30, 2025 | Nine Months Ended September 30, 2025 | |||||||||||||
| Interest cost | $ | $ | ||||||||||||
| Expected return on plan assets | ( | ( | ||||||||||||
| Recognized net actuarial loss | ||||||||||||||
| Net periodic pension expense | $ | $ | ||||||||||||
NOTE 7 - ACCUMULATED OTHER COMPREHENSIVE INCOME ("AOCI")
The following tables set forth the total changes in AOCI by component, net of tax:
| Three Months Ended September 30, 2026 | Three Months Ended September 30, 2025 | ||||||||||||||||||||||||||||||||||
| Unrecognized Benefit Cost | Cumulative Translation Adjustment | Total | Unrecognized Benefit Cost | Cumulative Translation Adjustment | Total | ||||||||||||||||||||||||||||||
| Balance at June 30 | $ | $ | ( | $ | ( | $ | ( | $ | ( | $ | ( | ||||||||||||||||||||||||
| Other comprehensive income (loss) before reclassifications: | |||||||||||||||||||||||||||||||||||
| Foreign currency translation adjustment | — | ( | ( | — | |||||||||||||||||||||||||||||||
| Amounts reclassified from AOCI: | |||||||||||||||||||||||||||||||||||
| Amortization of defined benefit pension activity (a) | — | — | |||||||||||||||||||||||||||||||||
| Recognition of deferred losses from pension termination (a) | — | — | |||||||||||||||||||||||||||||||||
| Net current period other comprehensive (loss) income | ( | ( | |||||||||||||||||||||||||||||||||
| Balance at September 30 | $ | $ | ( | $ | ( | $ | $ | ( | $ | ( | |||||||||||||||||||||||||
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| Nine Months Ended September 30, 2026 | Nine Months Ended September 30, 2025 | ||||||||||||||||||||||||||||||||||
| Unrecognized Benefit Cost | Cumulative Translation Adjustment | Total | Unrecognized Benefit Cost | Cumulative Translation Adjustment | Total | ||||||||||||||||||||||||||||||
| Balance at January 1 | $ | $ | ( | $ | ( | $ | ( | $ | ( | $ | ( | ||||||||||||||||||||||||
| Other comprehensive income (loss) before reclassifications: | |||||||||||||||||||||||||||||||||||
| Foreign currency translation adjustment | — | ( | ( | — | |||||||||||||||||||||||||||||||
| Amounts reclassified from AOCI: | |||||||||||||||||||||||||||||||||||
| Amortization of defined benefit pension activity (a) | — | — | |||||||||||||||||||||||||||||||||
| Recognition of deferred losses from pension termination (a) | — | — | |||||||||||||||||||||||||||||||||
| Net current period other comprehensive (loss) income | ( | ( | |||||||||||||||||||||||||||||||||
| Balance at September 30 | $ | $ | ( | $ | ( | $ | $ | ( | $ | ( | |||||||||||||||||||||||||
NOTE 8 - DEBT AND CREDIT ARRANGEMENTS
Total debt, including notes payable, at September 30, 2026 was $55.9 million and our bank debt to equity percentage was 10.9 %. The major components of the Company’s debt are described below.
PNC Bank Credit Facility
As of September 30, 2026, the Company maintained a credit facility (the "Facility") with PNC Bank, National Association ("PNC") with a capacity of $60.0 million and a maturity date of June 30, 2028. The interest rate is defined as the Secured Overnight Financing Rate (“SOFR”) plus 1.225 % unless the Company’s funded debt to Earnings before Interest, Taxes and Depreciation ratio exceeds 3.00 to 1, at which point the SOFR spread becomes 1.600 %. At September 30, 2026, the Company had utilized $6.1 million with $53.9 million available on the Facility. There were no long-term outstanding letters of credit on the Facility as of September 30, 2026. The Facility contains, among other provisions, requirements for maintaining levels of net worth and profitability. At September 30, 2026, the Company was in compliance with these covenants.
Corporate Aircraft Term Loan
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. The term of the loan is 120 months at a fixed interest rate of 2.744 %. The loan is payable in 119 equal monthly installments, which commenced on March 1, 2021 with a final payment of any outstanding principal and accrued interest due and payable on the final monthly payment date. Of the $9.1 million outstanding on this debt facility at September 30, 2026, $2.1 million was classified as current. The aircraft has been pledged as collateral against the loan.
International Borrowing Facilities
The Company has other borrowing facilities at certain of its foreign subsidiaries, which consist of overdraft lines, working capital credit lines, and facilities for the issuance of letters of credit and short-term borrowing needs. At September 30, 2026, and December 31, 2025, $40.8 million and $20.9 million were outstanding, of which $6.5 million and $4.6 million were classified as current, respectively. Of the $40.8 million outstanding at September 30, 2026, $21.8 million is attributable to the Poland subsidiary, $6.6 million is attributable to the Spain subsidiary, and $10.6 million is attributable to the Canada subsidiary. These facilities support commitments made in the ordinary course of business.
On July 16, 2025, PLP Poland (Belos) S.A. ("PLP Poland"), a subsidiary of the Company, entered into a non-revolving investment loan with Bank Polska Kasa Opieki Spółka Akcyjna ("Bank Pekao S.A") to finance the construction of a new manufacturing plant for an amount up to PLN100.3 million ($26.0 million) with a maturity date of January 31, 2035.
On June 30, 2026, PLP Poland amended its non-revolving investment loan agreement with Bank Pekao S.A. to defer the start of annual repayments from June 30, 2026 to January 31, 2027. Following the amendment, PLP Poland will make annual installments in the amounts of PLN9.0 million ($2.4 million) in 2027, PLN9.6 million ($2.5 million) in 2028, PLN9.8 2.5 22.9 million ($6.1 million) in 2035.
The loan bears 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
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owned by PLP Poland, the plant under construction and all fixed assets within the plants are pledged as collateral against the loan. The loan is guaranteed by the Company.
On July 28, 2026, in connection with the acquisition of a facility and related land in Canada (the "Property"), PLP Canada entered into a Term Loan Agreement (the "Term Loan") with Citibank N.A. providing for borrowings of CAD15.0 million ($10.6 million). The proceeds of the Term Loan were used to refinance a portion of the Company's cash investment in the acquisition of the Property.
The Term Loan bears interest at a variable rate equal to the Canadian Overnight Repo Rate Average ("CORRA") plus 1.25 % per annum and matures on July 28, 2029. Principal payments are due in annual installments of CAD0.8 0.5 13.4 million ($9.6 million) due at maturity in 2029.
The Term Loan contains a negative covenant that restricts PLP Canada from pledging, mortgaging, or otherwise using the Property as collateral for any other indebtedness without the prior written consent of the lender. The Term Loan also contains, among other provisions, requirements for maintaining levels of net worth and profitability. The loan is guaranteed by the Company.
Restricted Cash
The Company's Asia-Pacific segment had $0.5 million and $0.1 million in restricted cash used to secure bank guarantees at September 30, 2026 and December 31, 2025, respectively. The restricted cash is shown on the Company’s Consolidated Balance Sheets in Cash, cash equivalents and restricted cash.
NOTE 9 - INCOME TAXES
For the three-month period ended September 30, 2026 and 2025, the Company’s effective tax rate was 30 % and (11 )%, respectively. The higher effective tax rate was mainly a result of the tax benefit recorded in the third quarter of 2025 due to the release of amounts in Other Comprehensive Income attributed to the Company’s pension termination as well as an increase in non-deductible officers' compensation and stock option expense recognized in the quarter.
For the nine-month period ended September 30, 2026 and 2025, the Company's effective tax rate was 27 % and 19 %, respectively. The higher effective tax rate was mainly due to the tax benefit recorded in the third quarter of 2025 from the release of amounts in Other Comprehensive Income attributed to the Company’s pension termination and a valuation allowance recorded in Q1 2026 on deferred tax assets related to the Company’s French subsidiary.
The Company provides valuation allowances against deferred tax assets when it is more likely than not that some portion or all of its deferred tax assets will not be realized. During the nine-month period ended September 30, 2026, no other valuation allowances were recorded other than the amount recorded related to the Company's French subsidiary in the first quarter of 2026.
For the nine-month period ended September 30, 2026 and 2025, the Company did not
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NOTE 10 - COMPUTATION OF EARNINGS PER SHARE
Basic earnings per share were computed by dividing net income by the weighted-average number of common shares outstanding for each respective period. Diluted earnings per share were calculated by dividing net income by the weighted-average of all potentially dilutive common shares that were outstanding during the periods presented.
The calculation of basic and diluted earnings per share for the three and nine months ended September 30, was as follows:
| Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||
| 2026 | 2025 | 2026 | 2025 | ||||||||||||||||||||
| Numerator | |||||||||||||||||||||||
| Net income | $ | $ | $ | $ | |||||||||||||||||||
| Denominator | |||||||||||||||||||||||
| Determination of shares (in thousands) | |||||||||||||||||||||||
| Weighted-average common shares outstanding | |||||||||||||||||||||||
| Dilutive effect – share-based awards | |||||||||||||||||||||||
| Diluted weighted-average common shares outstanding | |||||||||||||||||||||||
| Earnings per common share | |||||||||||||||||||||||
| Basic | $ | $ | $ | $ | |||||||||||||||||||
| Diluted | $ | $ | $ | $ | |||||||||||||||||||
NOTE 11 - GOODWILL AND OTHER INTANGIBLES
The Company’s finite and indefinite-lived intangible assets consist of the following:
| September 30, 2026 | December 31, 2025 | ||||||||||||||||||||||
Gross Carrying Amount | Accumulated Amortization | Gross Carrying Amount | Accumulated Amortization | ||||||||||||||||||||
| Finite-lived intangible assets | |||||||||||||||||||||||
| Patents | $ | $ | ( | $ | $ | ( | |||||||||||||||||
| Land use rights | ( | ( | |||||||||||||||||||||
| Trademark | ( | ( | |||||||||||||||||||||
| Technology | ( | ( | |||||||||||||||||||||
| Customer relationships | ( | ( | |||||||||||||||||||||
| $ | $ | ( | $ | $ | ( | ||||||||||||||||||
| Indefinite-lived intangible assets | |||||||||||||||||||||||
| Goodwill | $ | $ | |||||||||||||||||||||
The Company’s measurement date for its annual impairment test for goodwill is October 1st of each year. The Company performs additional interim impairment assessments as circumstances warrant. There were no indicators of impairment noted for the period ended September 30, 2026.
The Company may use both quantitative and qualitative approaches when testing goodwill for impairment. For selected reporting units where the qualitative approach is utilized, a qualitative evaluation of events and circumstances impacting the reporting unit is performed to determine if it is more likely than not that the fair value of the reporting unit exceeds its carrying amount. If that determination is made, no further evaluation is necessary. Otherwise, the Company performs a quantitative impairment test on the reporting unit.
For the quantitative approach, the Company uses a combination of the income approach, which uses a discounted cash flow methodology, and the market approach, which uses comparable market multiples in computing fair value by reporting unit. The
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Company then compares the fair value of the reporting unit with its carrying value to assess if goodwill has been impaired. The fair value estimates are subjective and sensitive to significant assumptions, such as revenue growth rates, operating margins, the weighted average cost of capital, and estimated market multiples, all of which are affected by expectations of future market or economic conditions. The Company believes that the methodologies, significant assumptions, and weightings used are reasonable and result in appropriate fair values of the reporting units.
The Company’s only intangible asset with an indefinite life is goodwill. The Company’s goodwill is not deductible for tax purposes. Changes in the carrying amount of goodwill by segment are shown in the following table:
| PLP-USA | The Americas | EMEA | Asia-Pacific | Total | |||||||||||||||||||||||||
| Balance at January 1, 2026 | $ | $ | $ | $ | $ | ||||||||||||||||||||||||
| Acquisition Adjustments | |||||||||||||||||||||||||||||
| Currency translation | ( | ( | ( | ||||||||||||||||||||||||||
| Balance at September 30, 2026 | $ | $ | $ | $ | $ | ||||||||||||||||||||||||
NOTE 12 - FAIR VALUE OF FINANCIAL ASSETS AND LIABILITIES
Fair value is measured based on an exit price, representing the amount that would be received to sell an asset or paid to satisfy a liability in an orderly transaction between market participants. The Company measures and records certain assets and liabilities at fair value. A fair value hierarchy is used for those assets and liabilities measured at fair value that distinguishes between assumptions based on market data (observable inputs), and the Company’s assumptions (unobservable inputs). The hierarchy consists of the following three levels: (Level 1 Inputs) quoted market prices in active markets for identical assets or liabilities; (Level 2 Inputs) observable market-based inputs or unobservable inputs that are corroborated by market data; and (Level 3 Inputs) unobservable inputs that are not corroborated by market data.
The following table summarizes the Company’s assets and liabilities, recorded and measured at fair value, in the Consolidated Balance Sheets as of September 30, 2026 and December 31, 2025:
| Description | Balance as of September 30, 2026 | Quoted Prices in Active Markets for Identical Assets or Liabilities (Level 1) | Significant Other Observable Inputs (Level 2) | Significant Unobservable Inputs (Level 3) | ||||||||||||||||||||||
| Assets: | ||||||||||||||||||||||||||
| Interest Rate Swap | $ | $ | $ | $ | ||||||||||||||||||||||
| Total assets | $ | $ | $ | $ | ||||||||||||||||||||||
| Liabilities: | ||||||||||||||||||||||||||
| Foreign currency forward contracts | $ | $ | $ | $ | ||||||||||||||||||||||
| Supplemental profit sharing plan | ||||||||||||||||||||||||||
| Total liabilities | $ | $ | $ | $ | ||||||||||||||||||||||
| Description | Balance as of December 31, 2025 | Quoted Prices in Active Markets for Identical Assets or Liabilities (Level 1) | Significant Other Observable Inputs (Level 2) | Significant Unobservable Inputs (Level 3) | ||||||||||||||||||||||
| Liabilities: | ||||||||||||||||||||||||||
| Foreign currency forward contracts | $ | $ | $ | $ | ||||||||||||||||||||||
| Supplemental profit sharing plan | ||||||||||||||||||||||||||
| Total liabilities | $ | $ | $ | $ | ||||||||||||||||||||||
The Company operates internationally and enters into intercompany transactions denominated in foreign currencies. Consequently, the Company is subject to market risk arising from exchange rate movements between the dates foreign currency transactions occur and
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The Company has a non-qualified supplemental profit sharing plan for its executives (the "Supplemental Profit Sharing Plan"). The liability for the unfunded Supplemental Profit Sharing Plan was $12.1 million at September 30, 2026 and $10.8 million at December 31, 2025. These amounts are recorded within Other noncurrent liabilities on the Company’s Consolidated Balance Sheets. The Supplemental Profit Sharing Plan allows participants the ability to hypothetically invest their proportionate award into various investment options, which primarily includes mutual funds. The Company credits earnings, gains and losses to the participants’ deferred compensation account balances based on the investments selected by the participants. The Company measures the fair value of the Supplemental Profit Sharing Plan liability using the market values of the participants’ underlying investment accounts.
The carrying value of the Company’s current financial instruments, which include cash, cash equivalents and restricted cash, accounts receivable, accounts payable and short-term debt, approximates fair value because of the short-term maturity of these instruments.
| September 30, 2026 | December 31, 2025 | ||||||||||||||||||||||
Fair Value | Carrying Value | Fair Value | Carrying Value | ||||||||||||||||||||
| Long-term debt and related current maturities | $ | $ | $ | $ | |||||||||||||||||||
NOTE 13 - SEGMENT INFORMATION
The Company reports its segments in four geographic regions: PLP-USA, The Americas, EMEA (Europe, Middle East & Africa) and Asia-Pacific in accordance with accounting standards codified in FASB ASC 280, "Segment Reporting". Each segment distributes a full range of the Company’s primary products. The PLP-USA segment is comprised of U.S. operations manufacturing the Company’s traditional products primarily supporting domestic energy, telecommunications and special industries products. The other three segments, The Americas, EMEA and Asia-Pacific, support the Company’s energy, telecommunications, data communication and special industries 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 ("CODM"), 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 Company rather than the results of any individual business component of the segment.
The amount of each segment’s performance reported to the CODM is for purposes of making decisions about allocating resources to the segment and assessing its performance. The Company evaluates segment performance and allocates resources based on several factors primarily based on gross sales and income before income taxes.
The CODM uses both gross sales and income before income taxes for each segment predominantly in the annual budget and forecasting process as well as monitoring actual results. The CODM considers forecast-to-actual and actual to prior period variances for both measures when making decisions about the allocation of operating and capital resources to each segment. The CODM also uses segment gross sales and income before income taxes for the performance of each segment by comparing the results of each segment with one another and in determining the incentive compensation of certain employees.
The following tables present a summary of the Company’s reportable segments for the three and nine month periods ended September 30, 2026 and 2025.
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| Three Months Ended September 30, 2026 | |||||||||||||||||
| PLP-USA | The Americas | EMEA | Asia-Pacific | Total | |||||||||||||
| Gross sales | $ | $ | $ | $ | $ | ||||||||||||
| Intersegment sales | ( | ( | ( | ( | ( | ||||||||||||
| Net sales | |||||||||||||||||
| Less: | |||||||||||||||||
| Cost of products sold | |||||||||||||||||
| Gross profit | |||||||||||||||||
| Costs and expenses | |||||||||||||||||
| Operating Income | |||||||||||||||||
| Interest income | |||||||||||||||||
| Interest expense | ( | ( | ( | ( | ( | ||||||||||||
| Other income, net | ( | ||||||||||||||||
| Income before income taxes | |||||||||||||||||
Income tax expense | |||||||||||||||||
| Total noncontrolling interest | |||||||||||||||||
| Total net income attributable to Preformed Line Products Company shareholders | $ | $ | $ | $ | $ | ||||||||||||
| Three Months Ended September 30, 2025 | |||||||||||||||||
| PLP-USA | The Americas | EMEA | Asia-Pacific | Total | |||||||||||||
| Gross sales | $ | $ | $ | $ | $ | ||||||||||||
| Intersegment sales | ( | ( | ( | ( | ( | ||||||||||||
| Net sales | |||||||||||||||||
| Less: | |||||||||||||||||
| Cost of products sold | |||||||||||||||||
| Gross profit | |||||||||||||||||
| Costs and expenses | |||||||||||||||||
| Operating Income (Loss) | ( | ||||||||||||||||
| Interest income | |||||||||||||||||
| Interest expense | ( | ( | ( | ( | ( | ||||||||||||
| Other (expense) income, net | ( | ( | |||||||||||||||
| (Loss) Income before income taxes | ( | ||||||||||||||||
| Income tax expense | ( | ( | |||||||||||||||
| Total noncontrolling interest | |||||||||||||||||
| Total net (loss) income attributable to Preformed Line Products Company shareholders | $ | ( | $ | $ | $ | ( | $ | ||||||||||
19
| Nine Months Ended September 30, 2026 | |||||||||||||||||
| PLP-USA | The Americas | EMEA | Asia-Pacific | Total | |||||||||||||
Gross sales | $ | $ | $ | $ | $ | ||||||||||||
Intersegment sales | ( | ( | ( | ( | ( | ||||||||||||
Net sales | |||||||||||||||||
| Less: | |||||||||||||||||
Cost of products sold | |||||||||||||||||
Gross profit | |||||||||||||||||
| Costs and expenses | |||||||||||||||||
Operating income | |||||||||||||||||
Interest income | |||||||||||||||||
Interest expense | ( | ( | ( | ( | ( | ||||||||||||
| Other income, net | |||||||||||||||||
| Income before income taxes | |||||||||||||||||
Income tax expense | |||||||||||||||||
Total noncontrolling interest | ( | ( | |||||||||||||||
Total net income attributable to Preformed Line Products Company shareholders | $ | $ | $ | $ | $ | ||||||||||||
| Nine Months Ended September 30, 2025 | |||||||||||||||||
| PLP-USA | The Americas | EMEA | Asia-Pacific | Total | |||||||||||||
| Gross sales | $ | $ | $ | $ | $ | ||||||||||||
| Intersegment sales | ( | ( | ( | ( | ( | ||||||||||||
| Net sales | |||||||||||||||||
| Less: | |||||||||||||||||
| Cost of products sold | |||||||||||||||||
| Gross profit | |||||||||||||||||
| Costs and expenses | |||||||||||||||||
| Operating income | |||||||||||||||||
| Interest income | |||||||||||||||||
| Interest expense | ( | ( | ( | ( | ( | ||||||||||||
| Other (expense) income, net | ( | ( | |||||||||||||||
| Income before income taxes | |||||||||||||||||
| Income tax expense | |||||||||||||||||
| Total noncontrolling interest | ( | ( | |||||||||||||||
| Total net income attributable to Preformed Line Products Company shareholders | $ | $ | $ | $ | $ | ||||||||||||
20
| Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||||||||
2026 | 2025 | 2026 | 2025 | ||||||||||||||||||||||||||
| Expenditure for long-lived assets | |||||||||||||||||||||||||||||
| PLP-USA | $ | $ | $ | $ | |||||||||||||||||||||||||
| The Americas | |||||||||||||||||||||||||||||
| EMEA | |||||||||||||||||||||||||||||
| Asia-Pacific | |||||||||||||||||||||||||||||
| Total expenditure for long-lived assets | $ | $ | $ | $ | |||||||||||||||||||||||||
| Depreciation and amortization | ||||||||||||||||||||||||||||||||
| PLP-USA | $ | $ | $ | $ | ||||||||||||||||||||||||||||
| The Americas | ||||||||||||||||||||||||||||||||
| EMEA | ||||||||||||||||||||||||||||||||
| Asia-Pacific | ||||||||||||||||||||||||||||||||
| Total depreciation and amortization | $ | $ | $ | $ | ||||||||||||||||||||||||||||
| September 30, 2026 | December 31, 2025 | ||||||||||
| Identifiable assets | |||||||||||
| PLP-USA | $ | $ | |||||||||
| The Americas | |||||||||||
| EMEA | |||||||||||
| Asia-Pacific | |||||||||||
| Total identifiable assets | $ | $ | |||||||||
Long-lived assets | |||||||||||
| PLP-USA | $ | $ | |||||||||
| The Americas | |||||||||||
| EMEA | |||||||||||
| Asia-Pacific | |||||||||||
Total long-lived assets | $ | $ | |||||||||
21
NOTE 14 - ACQUISITION OF BUSINESSES
Acquisition of JAP Telecom
On May 1, 2025, the Company acquired all issued and outstanding shares of J.A.P. Industria De Materiais Para Telefonia Ltda., ("JAP Telecom") an entity headquartered in Pedreira, Brazil. JAP Telecom is a leading Brazilian designer, manufacturer, and supplier of connectivity solutions for the South American telecommunications infrastructure market with a product portfolio including fiber optic splice closures, connectivity devices, and infrastructure accessories tailored to the specific needs of the local market. JAP Telecom's annual sales for the year ending December 31, 2024 were approximately $4.6 million. The acquisition expands the Company's operational capabilities in the region and strengthens the Company's position in the global communications market. The purchase price was approximately $5.8 million, net of cash received.
The acquisition of JAP Telecom is accounted for using the acquisition method of accounting, which requires the assets acquired and liabilities assumed to be recognized at their respective fair values on the acquisition date. The process of estimating the fair values of certain tangible assets, identifiable intangible assets and assumed liabilities requires the use of judgment in determining the appropriate assumptions and estimates. The fair value of the identifiable net assets as acquired was $4.9 million.
Goodwill is calculated as the excess of the consideration transferred over the net identifiable assets recognized and represents the anticipated synergies of acquiring JAP Telecom. The goodwill recognized of $0.8 million is not deductible for tax purposes.
All measurement period adjustments were completed within a year from the acquisition date, and such adjustments did not have a material impact on the Company's results of operations and financial position.
For the nine-month period ended September 30, 2026, the Company’s consolidated financial statements included JAP Telecom sales of approximately $4.8 million and is reported in The Americas segment.
Acquisition of Delta Star
On May 5, 2026, the Company acquired all issued and outstanding shares of Delta Star Conetores Electricos Ltda ("Delta Star"), an entity headquartered in Salto, Brazil. Delta Star is a manufacturer of high-quality substation connectors designed to support reliable, long-term grid performance. The acquisition expands the Company's operational capabilities in South America related to substation hardware and components and strengthens the Company's position in the energy market. Delta Star's unaudited annual sales for the year ended December 31, 2025 were approximately $8.0 million. The purchase price was approximately $11.1 million, net of cash received.
The acquisition of Delta Star is accounted for using the acquisition method of accounting, which requires the assets acquired and liabilities assumed to be recognized at their respective fair values on the acquisition date. The process of estimating the fair values of certain tangible assets, identifiable intangible assets and assumed liabilities requires the use of judgment in determining the appropriate assumptions and estimates. The opening balance sheet is preliminary and subject to further measurement period adjustments. Goodwill is calculated as the excess of the consideration transferred over the net identifiable assets recognized and represents the anticipated synergies of acquiring Delta Star. The preliminary goodwill recognized of $6.3 million is not deductible for tax purposes. The preliminary fair value of the identifiable net assets was $4.8 million.
From the acquisition date through September 30, 2026, the Company’s consolidated financial statements included Delta Star sales of approximately $3.8 million and is reported in The Americas segment.
22
ITEM 2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS
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, string hardware, connectors, insulators, fiber optic and copper splice closures, solar hardware mounting applications, and electric vehicle charging station foundations. We also provide aerial drone inspection services for utility assets including transmission and distribution power lines, substations, and generation facilities. We are respected around the world for quality, dependability and market-leading customer service. Our goal is to continue to achieve profitable growth as a leader in the research, innovation, development, manufacture, and marketing of technically advanced products and services related to energy, communications and cable systems and to take advantage of this leadership position to sell additional quality products in familiar markets. We have sales and manufacturing operations in 20 different countries.
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 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 nine months ended September 30, 2026 and 2025. Our consolidated financial statements are prepared in conformity with United States ("U.S.") generally accepted accounting principles ("GAAP"). Our discussions of the financial results include non-GAAP measures (e.g., foreign currency impact) to provide additional information concerning our financial results and provide information that we believe is useful to the readers of our financial statements in the assessment of our performance and operating trends.
Net sales of $209.5 million increased $31.4 million for the three months ended September 30, 2026 year-over-year and net sales of $598.5 million increased $102.2 million for the nine months ended September 30, 2026 year-over-year, mainly due to an increase in energy and, to a lesser extent, communications sales, led by PLP-USA. While the nine months ended September 30, 2026 sales amounts are the highest in the Company's history, tariffs, especially Section 232 tariffs, and geopolitical developments continue to present headwinds related to raw material imports, commodity prices and freight costs, impacting essential inputs like steel, aluminum and plastic resins. While we continue to manage trade matters and commodity prices proactively, further tariff increases or geopolitical events 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. Please see Note 5 of the Notes to the Consolidated Financial Statements for further considerations on tariffs and refund process as a result of the February 2026 Supreme Court ruling.
Our financial statements are subject to fluctuations in the exchange rates of foreign currencies in relation to the U.S. dollar. The fluctuations of foreign currencies during the three and nine months ended September 30, 2026 had a favorable impact on net sales of $3.1 million and $16.2 million, respectively. The fluctuations on foreign currencies had a favorable impact of $0.4 million and $1.0 million on net income for the three- and nine-months ended September 30, 2026, respectively. The fluctuations of foreign currencies during the three and nine months ended September 30, 2025 had a favorable impact on net sales of $1.9 million and unfavorable impact of $3.0 million, respectively. The fluctuations on foreign currencies had a favorable impact on net income of $0.3 million for the three months ended September 30, 2025 and a de minimis impact on net income for the nine months ended September 30, 2025. On a reportable segment basis, the impact of foreign currency translation on net sales and net income for the three- and nine- months ended September 30, 2026, was as follows:
23
| Foreign Currency Translation Impact | |||||||||||||||||||||||
| Three Months Ended September 30, 2026 | Nine Months Ended September 30, 2026 | ||||||||||||||||||||||
| (Thousands of dollars) | Net Sales | Net Income | Net Sales | Net Income | |||||||||||||||||||
| The Americas | $ | 1,649 | $ | 166 | $ | 6,624 | $ | 474 | |||||||||||||||
| EMEA | 145 | 80 | 4,937 | 269 | |||||||||||||||||||
| Asia-Pacific | 1,275 | 120 | 4,672 | 276 | |||||||||||||||||||
| Total | $ | 3,069 | $ | 366 | $ | 16,233 | $ | 1,019 | |||||||||||||||
While uncertainty remains in the global economy due to trade matters and geopolitical instability, we believe our business portfolio, which is focused on key megatrends impacting both the power and telecommunications markets, as well as our significant U.S. manufacturing footprint, and financial position, are sound and strategically well-positioned. We remain focused on assessing our global market opportunities and overall manufacturing capacity in conjunction with the requirements of local manufacturing in the markets that we serve. As necessary, we will modify redundant processes and further utilize our global manufacturing network to manage costs, including tariff impacts, increase sales volume and deliver value to our customers. We closely monitor developments in trade policy and geopolitical instability and actively evaluate strategies to mitigate the impact of tariffs or supply chain constraints, including sourcing alternatives, where needed. We have continued to invest in the business to expand into new markets for the Company, evaluate strategic mergers and acquisitions, improve efficiency, develop new products and increase our capacity. As of September 30, 2026, our liquidity remains strong with our bank debt to equity percentage at 10.9%. 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 September 30, 2026 and 2025. The Company’s past operating results are not necessarily indicative of future operating results.
| Three Months Ended September 30, | |||||||||||||||||||||||||||||
| (Thousands of dollars) | 2026 | 2025 | Change | ||||||||||||||||||||||||||
| Net sales | $ | 209,501 | 100.0 | % | $ | 178,087 | 100.0 | % | $ | 31,414 | |||||||||||||||||||
| Cost of products sold | 139,499 | 66.6 | 125,238 | 70.3 | 14,261 | ||||||||||||||||||||||||
| GROSS PROFIT | 70,002 | 33.4 | 52,849 | 29.7 | 17,153 | ||||||||||||||||||||||||
| Costs and expenses | 45,105 | 21.5 | 39,717 | 22.3 | 5,388 | ||||||||||||||||||||||||
| OPERATING INCOME | 24,897 | 11.9 | 13,132 | 7.4 | 11,765 | ||||||||||||||||||||||||
| Other income (expense), net | 659 | 0.3 | (10,776) | (6.1) | 11,435 | ||||||||||||||||||||||||
| INCOME BEFORE INCOME TAXES | 25,556 | 12.2 | 2,356 | 1.3 | 23,200 | ||||||||||||||||||||||||
| Income tax expense (benefit) | 7,540 | 3.6 | (263) | (0.1) | 7,803 | ||||||||||||||||||||||||
| NET INCOME | 18,016 | 8.6 | 2,619 | 1.5 | 15,397 | ||||||||||||||||||||||||
| Net loss attributable to noncontrolling interests | 20 | 0.0 | 7 | 0.0 | 13 | ||||||||||||||||||||||||
| NET INCOME ATTRIBUTABLE TO PREFORMED LINE PRODUCTS COMPANY SHAREHOLDERS | $ | 18,036 | 8.6 | % | $ | 2,626 | 1.5 | % | $ | 15,410 | |||||||||||||||||||
24
Net sales. In 2026, net sales were $209.5 million, an increase of $31.4 million, or 18%, compared to 2025. Excluding the effect of currency translation, net sales increased 16% as summarized in the following table:
| Three Months Ended September 30, | |||||||||||||||||||||||||||||||||||
| (Thousands of dollars) | 2026 | 2025 | Change | Change Due to Currency Translation | Change Excluding Currency Translation | % Change | |||||||||||||||||||||||||||||
| Net sales | |||||||||||||||||||||||||||||||||||
| PLP-USA | $ | 102,704 | $ | 80,817 | $ | 21,887 | $ | — | $ | 21,887 | 27 | % | |||||||||||||||||||||||
| The Americas | 33,003 | 29,332 | 3,671 | 1,649 | 2,022 | 7 | % | ||||||||||||||||||||||||||||
| EMEA | 37,650 | 38,073 | (423) | 145 | (568) | (1) | % | ||||||||||||||||||||||||||||
| Asia-Pacific | 36,144 | 29,865 | 6,279 | 1,275 | 5,004 | 17 | % | ||||||||||||||||||||||||||||
| Consolidated | $ | 209,501 | $ | 178,087 | $ | 31,414 | $ | 3,069 | $ | 28,345 | 16 | % | |||||||||||||||||||||||
The increase in PLP-USA net sales of $21.9 million, or 27%, was primarily due to higher volumes in energy sales and, to a lesser extent, communications sales. International net sales for the three months ended September 30, 2026 were favorably affected by $3.1 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 $33.0 million increased $2.0 million, or 7%, primarily due to higher volumes in energy sales mainly due to the acquisition of Delta Star in May 2026 and higher communications volumes. EMEA net sales of $37.7 million decreased $0.6 million primarily due to lower volumes in communications sales. Asia-Pacific net sales of $36.1 million increased $5.0 million, or 17%, primarily due to higher volumes in energy sales.
Gross profit. Gross profit of $70.0 million for 2026 increased $17.2 million, or 32%, compared to 2025. Excluding the effect of currency translation, gross profit increased $16.2 million, or 31%, as summarized in the following table:
| Three Months Ended September 30, | |||||||||||||||||||||||||||||||||||
| (Thousands of dollars) | 2026 | 2025 | Change | Change Due to Currency Translation | Change Excluding Currency Translation | % Change | |||||||||||||||||||||||||||||
| Gross profit | |||||||||||||||||||||||||||||||||||
| PLP-USA | $ | 37,280 | $ | 23,674 | $ | 13,606 | $ | — | $ | 13,606 | 57 | % | |||||||||||||||||||||||
| The Americas | 10,363 | 9,063 | 1,300 | 539 | 761 | 8 | % | ||||||||||||||||||||||||||||
| EMEA | 12,449 | 12,410 | 39 | 108 | (69) | (1) | % | ||||||||||||||||||||||||||||
| Asia-Pacific | 9,910 | 7,702 | 2,208 | 323 | 1,885 | 24 | % | ||||||||||||||||||||||||||||
| Consolidated | $ | 70,002 | $ | 52,849 | $ | 17,153 | $ | 970 | $ | 16,183 | 31 | % | |||||||||||||||||||||||
PLP-USA gross profit of $37.3 million increased by $13.6 million, or 57%, compared to the same period in 2025, primarily due to higher sales volumes, favorable product mix and the benefit of price increases enacted in 2025 and 2026, partially offset by increased material and manufacturing costs. International gross profit for the period ended September 30, 2026 was favorably impacted by $1.0 million when local currencies were translated to U.S. dollars. The following discussion of gross profit changes excludes the effects of currency translation. The Americas gross profit increased $0.8 million, or 8%, which was primarily the result of higher sales volume driven by the acquisition of Delta Star in May 2026. EMEA gross profit had a decrease of $0.1 million due to an increase in material costs. Asia-Pacific gross profit increased $1.9 million, or 24%, which was primarily driven by higher sales volume and favorable product mix.
25
Costs and expenses. Costs and expenses of $45.1 million for the three months ended September 30, 2026 increased $5.4 million, or 14%, when compared to 2025. Excluding the effect of currency translation and intercompany transactions, costs and expenses increased $5.0 million, or 13%, as summarized in the following table:
| Three Months Ended September 30, | |||||||||||||||||||||||||||||||||||||||||
| (Thousands of dollars) | 2026 | 2025 | Change | Change Due to Currency Translation | Change Due to Intercompany Transactions | Change Excluding Currency and Intercompany Transactions | % Change | ||||||||||||||||||||||||||||||||||
| Costs and expenses | |||||||||||||||||||||||||||||||||||||||||
| PLP-USA | $ | 24,092 | $ | 16,264 | $ | 7,828 | $ | — | $ | 2,673 | $ | 5,155 | 32 | % | |||||||||||||||||||||||||||
| The Americas | 7,151 | 7,474 | (323) | 305 | (920) | 292 | 4 | % | |||||||||||||||||||||||||||||||||
| EMEA | 7,372 | 8,272 | (900) | (31) | (522) | (347) | (4) | % | |||||||||||||||||||||||||||||||||
| Asia-Pacific | 6,490 | 7,707 | (1,217) | 125 | (1,231) | (111) | (1) | % | |||||||||||||||||||||||||||||||||
| Consolidated | $ | 45,105 | $ | 39,717 | $ | 5,388 | $ | 399 | $ | — | $ | 4,989 | 13 | % | |||||||||||||||||||||||||||
Excluding intercompany transactions, PLP-USA costs and expenses increased $5.2 million, or 32% year-over-year, primarily due to increased selling and personnel costs, supporting strategic market growth initiatives in core product offerings in both energy and communications. International costs and expenses for the three months ended September 30, 2026 were unfavorably impacted when local currencies were translated to U.S. dollars and favorably impacted by intercompany transactions with PLP-USA. The following discussion of costs and expenses excludes the effect of currency translation and intercompany transactions. The Americas costs and expenses of $7.2 million increased $0.3 million primarily due to increases in personnel costs, offset by the impact of foreign currency remeasurement. EMEA costs and expenses of $7.4 million decreased by $0.3 million primarily due to decreases in personnel and selling costs. Asia-Pacific costs and expenses of $6.5 million decreased $0.1 million primarily due to foreign currency remeasurement, offset by increases in personnel costs.
Other Income (Expense), net. Other income, net of $0.7 million for the three months ended September 30, 2026 was favorable by $11.5 million when compared to $10.8 million of Other expense, net for the three months ended September 30, 2025. The favorable movement was mainly due to the $11.7 million pension termination charge recorded in Q3 2025.
Income taxes. Income taxes for the three months ended September 30, 2026 and 2025 were $7.5 million and $(0.3) million based on pre-tax income of $25.6 million and $2.4 million, respectively. The tax rate for the three months ended September 30, 2026 and 2025 was 30% and (11)%, respectively. The higher effective tax rate for the three months ended September 30, 2026 compared to the three months ended September 30, 2025 was a result of the tax benefit recorded at Q3 2025 due to the release of amounts in Other Comprehensive Income attributed to the Company’s pension termination as well as an increase in non-deductible officers' compensation and stock option expense recognized in the quarter.
Net income. As a result of the preceding items, net income for the three months ended September 30, 2026 was $18.0 million, compared to $2.6 million for 2025. Excluding the effect of currency translation, net income increased $15.0 million as summarized in the following table. The increase in net income was due to increases in operating income and other income as described above.
| Three Months Ended September 30, | |||||||||||||||||||||||||||||||||||
| (Thousands of dollars) | 2026 | 2025 | Change | Change Due to Currency Translation | Change Excluding Currency Translation | % Change (a) | |||||||||||||||||||||||||||||
| Net income (loss) | |||||||||||||||||||||||||||||||||||
| PLP-USA | $ | 9,079 | $ | (1,684) | $ | 10,763 | $ | — | $ | 10,763 | NM | ||||||||||||||||||||||||
| The Americas | 2,813 | 1,455 | 1,358 | 166 | 1,192 | 82 | % | ||||||||||||||||||||||||||||
| EMEA | 3,898 | 2,987 | 911 | 80 | 831 | 28 | % | ||||||||||||||||||||||||||||
| Asia-Pacific | 2,246 | (132) | 2,378 | 120 | 2,258 | NM | |||||||||||||||||||||||||||||
| Consolidated | $ | 18,036 | $ | 2,626 | $ | 15,410 | $ | 366 | $ | 15,044 | NM | ||||||||||||||||||||||||
(a)NM = Not meaningful; percentage change is not considered meaningful to investors due to the nature or magnitude of the underlying amounts.
NINE MONTHS ENDED SEPTEMBER 30, 2026 COMPARED TO NINE MONTHS ENDED SEPTEMBER 30, 2025
The following table sets forth a summary of the Company’s Statements of Consolidated Income and the percentage of net sales for the nine months ended September 30, 2026 and 2025. The Company’s past operating results are not necessarily indicative of future operating results.
26
| Nine Months Ended September 30, | |||||||||||||||||||||||||||||
| (Thousands of dollars) | 2026 | 2025 | Change | ||||||||||||||||||||||||||
| Net sales | $ | 598,460 | 100.0 | % | $ | 496,229 | 100.0 | % | $ | 102,231 | |||||||||||||||||||
| Cost of products sold | 400,226 | 66.9 | 339,310 | 68.4 | 60,916 | ||||||||||||||||||||||||
| GROSS PROFIT | 198,234 | 33.1 | 156,919 | 31.6 | 41,315 | ||||||||||||||||||||||||
| Costs and expenses | 131,719 | 22.0 | 113,533 | 22.9 | 18,186 | ||||||||||||||||||||||||
| OPERATING INCOME | 66,515 | 11.1 | 43,386 | 8.7 | 23,129 | ||||||||||||||||||||||||
| Other income (expense), net | 1,817 | 0.3 | (10,053) | (2.0) | 11,870 | ||||||||||||||||||||||||
| INCOME BEFORE INCOME TAXES | 68,332 | 11.4 | 33,333 | 6.7 | 34,999 | ||||||||||||||||||||||||
| Income tax expense | 18,259 | 3.1 | 6,461 | 1.3 | 11,798 | ||||||||||||||||||||||||
| NET INCOME | 50,073 | 8.4 | 26,872 | 5.4 | 23,201 | ||||||||||||||||||||||||
| Net income attributable to noncontrolling interests | (5) | (0.0) | (24) | (0.0) | 19 | ||||||||||||||||||||||||
| NET INCOME ATTRIBUTABLE TO PREFORMED LINE PRODUCTS COMPANY SHAREHOLDERS | $ | 50,068 | 8.4 | % | $ | 26,848 | 5.4 | % | $ | 23,220 | |||||||||||||||||||
Net sales. In 2026, net sales were $598.5 million, an increase of $102.2 million, or 21%, compared to 2025. Excluding the effect of currency translation, net sales increased 17% as summarized in the following table:
| Nine Months Ended September 30, | |||||||||||||||||||||||||||||||||||
| (Thousands of dollars) | 2026 | 2025 | Change | Change Due to Currency Translation | Change Excluding Currency Translation | % Change | |||||||||||||||||||||||||||||
| Net sales | |||||||||||||||||||||||||||||||||||
| PLP-USA | $ | 300,321 | $ | 234,113 | $ | 66,208 | $ | — | $ | 66,208 | 28 | % | |||||||||||||||||||||||
| The Americas | 92,047 | 80,118 | 11,929 | 6,624 | 5,305 | 7 | % | ||||||||||||||||||||||||||||
| EMEA | 112,616 | 99,977 | 12,639 | 4,937 | 7,702 | 8 | % | ||||||||||||||||||||||||||||
| Asia-Pacific | 93,476 | 82,021 | 11,455 | 4,672 | 6,783 | 8 | % | ||||||||||||||||||||||||||||
| Consolidated | $ | 598,460 | $ | 496,229 | $ | 102,231 | $ | 16,233 | $ | 85,998 | 17 | % | |||||||||||||||||||||||
The increase in PLP-USA net sales of $66.2 million, or 28%, was primarily due to higher volumes in energy sales and, to a lesser extent, communications sales. International net sales for the nine months ended September 30, 2026 were favorably affected by $16.2 million when local currencies were converted to U.S. dollars. The following discussion of changes in net sales excludes the effect of currency translation. The Americas net sales of $92.0 million increased $5.3 million, or 7%, primarily due to an increase in communications sales due to the acquisition of JAP Telecom in May 2025 and, to a lesser extent, an increase in energy sales primarily related to the acquisition of Delta Star in May 2026. EMEA net sales of $112.6 million increased $7.7 million, or 8% primarily due to higher volumes in energy product sales. Asia-Pacific net sales of $93.5 million increased $6.8 million, or 8%, primarily due to volume increases in energy product and special industries sales.
Gross profit. Gross profit of $198.2 million for 2026 increased $41.3 million, or 26%, compared to 2025. Excluding the effect of currency translation, gross profit increased $36.5 million, or 23%, as summarized in the following table:
| Nine Months Ended September 30, | |||||||||||||||||||||||||||||||||||
| (Thousands of dollars) | 2026 | 2025 | Change | Change Due to Currency Translation | Change Excluding Currency Translation | % Change | |||||||||||||||||||||||||||||
| Gross profit | |||||||||||||||||||||||||||||||||||
| PLP-USA | $ | 109,048 | $ | 78,575 | $ | 30,473 | $ | — | $ | 30,473 | 39 | % | |||||||||||||||||||||||
| The Americas | 28,037 | 24,573 | 3,464 | 2,057 | 1,407 | 6 | % | ||||||||||||||||||||||||||||
| EMEA | 35,095 | 30,798 | 4,297 | 1,575 | 2,722 | 9 | % | ||||||||||||||||||||||||||||
| Asia-Pacific | 26,054 | 22,973 | 3,081 | 1,172 | 1,909 | 8 | % | ||||||||||||||||||||||||||||
| Consolidated | $ | 198,234 | $ | 156,919 | $ | 41,315 | $ | 4,804 | $ | 36,511 | 23 | % | |||||||||||||||||||||||
PLP-USA gross profit of $109.0 million increased by $30.5 million, or 39%, compared to the same period in 2025, primarily due to higher sales volumes and fixed cost leverage, in addition to the benefit of price increases enacted in 2025 and 2026, partially offset by material and manufacturing costs. International gross profit for the period ended September 30, 2026 was favorably impacted by $4.8
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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 $1.4 million, or 6%, which was primarily the result of higher sales volumes. EMEA gross profit increased $2.7 million, or 9%, primarily due to higher sales volume and favorable product mix. Asia-Pacific gross profit increased $1.9 million, primarily from higher sales volume, offset by unfavorable product mix.
Costs and expenses. Costs and expenses of $131.7 million for the nine months ended September 30, 2026 increased $18.2 million, or 16%, when compared to 2025. Excluding the effect of currency translation and intercompany transactions, costs and expenses increased $15.1 million, or 13%, as summarized in the following table:
| Nine Months Ended September 30, | |||||||||||||||||||||||||||||||||||||||||
| (Thousands of dollars) | 2026 | 2025 | Change | Change Due to Currency Translation | Change Due to Intercompany Transactions | Change Excluding Currency and Intercompany Transactions | % Change | ||||||||||||||||||||||||||||||||||
| Costs and expenses | |||||||||||||||||||||||||||||||||||||||||
| PLP-USA | $ | 68,980 | $ | 50,832 | $ | 18,148 | $ | — | $ | 5,473 | $ | 12,675 | 25 | % | |||||||||||||||||||||||||||
| The Americas | 20,210 | 19,697 | 513 | 1,359 | (2,593) | 1,747 | 9 | % | |||||||||||||||||||||||||||||||||
| EMEA | 23,821 | 23,572 | 249 | 1,013 | (1,490) | 726 | 3 | % | |||||||||||||||||||||||||||||||||
| Asia-Pacific | 18,708 | 19,432 | (724) | 678 | (1,390) | (12) | — | % | |||||||||||||||||||||||||||||||||
| Consolidated | $ | 131,719 | $ | 113,533 | $ | 18,186 | $ | 3,050 | $ | — | $ | 15,136 | 13 | % | |||||||||||||||||||||||||||
Excluding intercompany transactions, PLP-USA costs and expenses of $69.0 million increased $12.7 million, or 25% year-over-year. PLP-USA’s increase was primarily attributable to higher personnel and selling costs. International costs and expenses for the nine months ended September 30, 2026 were unfavorably impacted by $3.1 million when local currencies were translated to U.S. dollars and favorably impacted by intercompany transactions with PLP-USA. The following discussion of costs and expenses excludes the effect of currency translation and intercompany transactions. The Americas costs and expenses of $20.2 million increased $1.7 million primarily due to an increase in personnel and selling costs. EMEA costs and expenses of $23.8 million increased by $0.7 million primarily due to higher personnel and facility costs. Asia-Pacific costs and expenses of $18.7 million had a de minimis change.
Other Income (Expense), net. Other income, net of $1.8 million for the nine months ended September 30, 2026 was favorable by $11.9 million when compared to Other expense, net for the nine months ended September 30, 2025 of $10.1 million. The favorable movement was mainly due to the $11.7 million pension termination charge recorded in Q3 2025.
Income taxes. Income taxes for the nine months ended September 30, 2026 and 2025 were $18.3 million and $6.5 million based on pre-tax income of $68.3 million and $33.3 million, respectively. The tax rate for the nine months ended September 30, 2026 and 2025 was 27% and 19%, respectively. The effective tax rate for the nine months ended September 30, 2026 was higher than the effective tax rate for the same period in 2025 mainly due to the tax benefit recorded at Q3 2025 from the release of amounts in Other Comprehensive Income attributed to the Company’s pension termination and a valuation allowance recorded in Q1 2026 on deferred tax assets related to the Company’s French subsidiary.
Net income. As a result of the preceding items, net income for the nine months ended September 30, 2026 was $50.1 million, compared to $26.8 million for 2025. Excluding the effect of currency translation, net income increased $22.2 million as summarized in the following table. The increase in net income was due to increases in operating income and other income as described above:
| Nine Months Ended September 30, | |||||||||||||||||||||||||||||||||||
| (Thousands of dollars) | 2026 | 2025 | Change | Change Due to Currency Translation | Change Excluding Currency Translation | % Change | |||||||||||||||||||||||||||||
| Net income (loss) | |||||||||||||||||||||||||||||||||||
| PLP-USA | $ | 31,454 | $ | 14,497 | $ | 16,957 | $ | — | $ | 16,957 | 117 | % | |||||||||||||||||||||||
| The Americas | 6,662 | 4,153 | 2,509 | 474 | 2,035 | 49 | % | ||||||||||||||||||||||||||||
| EMEA | 6,777 | 5,542 | 1,235 | 269 | 966 | 17 | % | ||||||||||||||||||||||||||||
| Asia-Pacific | 5,175 | 2,656 | 2,519 | 276 | 2,243 | 84 | % | ||||||||||||||||||||||||||||
| Consolidated | $ | 50,068 | $ | 26,848 | $ | 23,220 | $ | 1,019 | $ | 22,201 | 83 | % | |||||||||||||||||||||||
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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, 2025 filed on March 5, 2026 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 nine months of 2026, we used cash of $43.7 million for capital expenditures, mainly related to new facilities in the EMEA region and Canada. We ended the first nine months of 2026 with $99.3 million of cash, cash equivalents and restricted cash (collectively, “Cash”). Our Cash is held in various locations throughout the world. At September 30, 2026, the majority of our Cash was held outside the U.S. We expect most accumulated non-U.S. Cash balances will remain outside of the U.S. and that we will meet U.S. liquidity needs through future operating cash flows, use of U.S. Cash balances, external borrowings, or some combination of these sources. We complete comprehensive reviews of our significant customers and their creditworthiness by analyzing financial statements for customers where we have identified a measure of increased risk. We closely monitor payments and developments which may signal possible customer credit issues. We currently have not identified any potential material impact on our liquidity from customer credit issues.
Total debt, including notes payable, at September 30, 2026 was $55.9 million. The Company maintained a credit facility (the "Facility") with PNC Bank, National Association ("PNC") with a capacity of $60.0 million and a maturity date of June 30, 2028. The interest rate is defined as the Secured Overnight Financing Rate (“SOFR”) plus 1.225% unless the Company’s funded debt to Earnings before Interest, Taxes and Depreciation ratio exceeds 3.00 to 1, at which point the SOFR spread becomes 1.600%. At September 30, 2026, the Company had utilized $6.1 million with $53.9 million available on the Facility. There were no long-term outstanding letters of credit on the Facility as of September 30, 2026. Our bank debt to equity percentage was 10.9%. The Facility contains, among other provisions, requirements for maintaining levels of net worth and profitability. At September 30, 2026, the Company was in compliance with these covenants.
On January 19, 2021, the Company received funding for a term loan from PNC Equipment Finance, LLC in the principal amount of $20.5 million for the full amount of the purchase price for a new corporate aircraft. As of September 30, 2026, $9.1 million was outstanding on this debt facility, of which $2.1 million was classified as current. The aircraft has been pledged as collateral against the loan.
The Company has other borrowing facilities at certain of its foreign subsidiaries, which consist of overdraft lines, working capital credit lines, and facilities for the issuance of letters of credit and short-term borrowing needs. At September 30, 2026 and December 31, 2025, $40.8 million and $20.9 million were outstanding, of which $6.5 million and $4.6 million were classified as current, respectively. Of the $40.8 million outstanding at September 30, 2026, $21.8 million is attributable to the Poland subsidiary, $6.6 million is attributable to the Spain subsidiary and $10.6 million is attributable to the Canada subsidiary. These facilities support commitments made in the ordinary course of business.
On July 16, 2025, PLP Poland (Belos) S.A. ("PLP Poland"), a subsidiary of the Company, entered into a non-revolving investment loan with Bank Polska Kasa Opieki Spółka Akcyjna ("Bank Pekao S.A") to finance the construction of a new manufacturing plant for an amount up to PLN100.3 million ($26.0 million) with a maturity date of January 31, 2035.
On June 30, 2026, PLP Poland amended its non-revolving investment loan agreement with Bank Pekao S.A. to defer the start of annual repayments from June 30, 2026 to January 31, 2027. Following the amendment, PLP Poland will make annual installments in the amounts of PLN9.0 million ($2.4 million) in 2027, PLN9.6 million ($2.5 million) in 2028, PLN9.8 million ($2.5 million) annually from 2029 through 2034, and PLN22.9 million ($6.1 million) in 2035.
The loan bears 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.
On July 28, 2026, in connection with the acquisition of a facility and related land in Canada (the "Property"), PLP Canada entered into a Term Loan Agreement (the "Term Loan") with Citibank N.A. providing for borrowings of CAD15.0 million ($10.6 million). The proceeds of the Term Loan were used to refinance a portion of the Company's cash investment in the acquisition of the Property.
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The Term Loan bears interest at a variable rate equal to the Canadian Overnight Repo Rate Average ("CORRA") plus 1.25% per annum and matures on July 28, 2029. Principal payments are due in annual installments of CAD0.8 million ($0.5 million) in each of 2027 and 2028, with the remaining principal balance of CAD13.4 million ($9.6 million) due at maturity in 2029.
The Term Loan contains a negative covenant that restricts PLP Canada from pledging, mortgaging, or otherwise using the acquired property as collateral for any other indebtedness without the prior written consent of the lender. The Term Loan also contains, among other provisions, requirements for maintaining levels of net worth and profitability.
The Company's Asia-Pacific segment had $0.5 million and $0.1 million in restricted cash used to secure bank guarantees at September 30, 2026 and December 31, 2025, respectively. The restricted cash is shown on the Company’s Consolidated Balance Sheets in Cash, cash equivalents and restricted cash.
We expect that our major source of funding for 2026 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 nine months ended September 30, 2026 was $68.1 million compared to $51.5 million in the comparable prior year nine-month period. The $16.6 million increase was primarily a result of the increase in net income, partially offset by the net unfavorable movement in non-cash items primarily from the pension termination charge recorded in Q3 2025.
Net cash used in investing activities for the nine months ended September 30, 2026 was $52.5 million compared to $33.2 million in the comparable prior year nine-month period. The $19.3 million change was primarily a result of the acquisition of Delta Star in May 2026, an increase in capital expenditures primarily related to the purchase of a building in Canada, as well as lower net proceeds from investments.
Net cash used in financing activities for the nine months ended September 30, 2026 was $0.4 million compared to $7.3 million in the comparable prior year nine-month period. The $6.9 million change was primarily the result of an increase in proceeds from long term debt and notes payable to banks, offset by an increase in common share repurchases.
We have commitments under operating leases primarily for office and manufacturing space, transportation equipment, office and computer equipment and finance leases primarily for equipment. At September 30, 2026, we had $1.9 million of current operating lease liabilities and $6.6 million of noncurrent operating lease liabilities. Total liabilities related to finance lease obligations were approximately $0.5 million at September 30, 2026.
As of September 30, 2026, the Company had total outstanding guarantees of $13.6 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 September 30, 2026, the Company had total outstanding letters of credit of $3.0 million.
The Company has other borrowing facilities at certain of its foreign subsidiaries, which consist of overdraft lines, working capital credit lines, and facilities for the issuance of letters of credit and short-term borrowing needs. At September 30, 2026, and December 31, 2025, $40.8 million and $20.9 million were outstanding, of which $6.5 million and $4.6 million were classified as current, respectively. Of the $40.8 million outstanding at September 30, 2026, $21.8 million is attributable to the Poland subsidiary, $6.6 million is attributable to the Spain subsidiary and $10.6 million is attributable to the Canada subsidiary. 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 as “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.
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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, historically, 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 impact of global economic conditions, including the impact of inflation, previously enacted or future tariffs and related economic uncertainty (including the outcome of legal challenges and refunds), and rising interest rates, on the Company’s ongoing profitability and future growth opportunities in the Company’s core markets in the U.S. and other foreign countries, which may experience continued or further instability due to political and economic conditions, social unrest, acts of war, military conflict (such as the Russian-Ukrainian, Israeli-Palestinian and Iranian conflicts), international hostilities or the perception that hostilities may be imminent, terrorism, changes in diplomatic and trade relationships and public health concerns (including viral outbreaks such as COVID-19);
•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 have been, and in the future may be, associated with the purchase of these products or components of these products. The Company’s supply chain has faced and could continue to face disruptions and constraints from such tariffs, inflationary pressures and ongoing wars and military conflicts, which could have a material, adverse effect on the ability to secure raw materials and supplies and customer demand;
•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 other regulatory matters, 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, 2025 which was filed on March 5, 2026.
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ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK
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, 2025. 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, 2025.
ITEM 4. CONTROLS AND PROCEDURES
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 September 30, 2026.
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 three-month period ended September 30, 2026 that materially affected or are reasonably likely to materially affect the Company’s internal control over financial reporting.
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PART II – OTHER INFORMATION
ITEM 1. LEGAL PROCEEDINGS
Information regarding the Company’s current legal proceedings is presented in Note 5 of the Notes to the Consolidated Financial Statements.
ITEM 1A. RISK FACTORS
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, 2025 filed with the SEC on March 5, 2026. In addition, the ongoing tariff developments and new and ongoing conflicts involving 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.
ITEM 2. UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS
On November 1, 2023, the Board of Directors authorized a new plan to repurchase up to an additional 212,952 of Preformed Line Products Company common shares, resulting in a total of 250,000 shares available for repurchase with no expiration date. The following table reflects repurchases for the three-month period ended September 30, 2026.
| Period | Total Number of Shares Purchased | Average Price Paid per Share ($) | Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs | Maximum Number of Shares that may yet be Purchased under the Plans or Programs | ||||||||||||||||||||||
| July | — | $ | — | — | 75,779 | |||||||||||||||||||||
| August | 610 | $ | 468.03 | 610 | 75,169 | |||||||||||||||||||||
| September | 200 | $ | 435.21 | 200 | 74,969 | |||||||||||||||||||||
| Total | 810 | |||||||||||||||||||||||||
ITEM 3. DEFAULTS UPON SENIOR SECURITIES
None.
ITEM 4. MINE SAFETY DISCLOSURES
None.
ITEM 5. OTHER INFORMATION
33
ITEM 6. EXHIBITS AND FINANCIAL STATEMENT SCHEDULES
| Exhibit Number | Exhibit | |||||||
| 31.1 | Certification of the Principal Executive Officer, Robert G. Ruhlman, pursuant to Section 302 of the Sarbanes-Oxley Act of 2002, filed herewith. | |||||||
| 31.2 | Certification of the Principal Accounting Officer, Andrew S. Klaus, pursuant to Section 302 of the Sarbanes-Oxley Act of 2002, filed herewith. | |||||||
| 32.1 | Certification of the Principal Executive Officer, Robert G. Ruhlman, pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, furnished. | |||||||
| 32.2 | Certification of the Principal Accounting Officer, Andrew S. Klaus, pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, furnished. | |||||||
| 101.INS | Inline XBRL Instance Document. | |||||||
| 101.SCH | Inline XBRL Taxonomy Extension Schema Document. | |||||||
| 101.CAL | Inline XBRL Taxonomy Extension Calculation Linkbase Document. | |||||||
| 101.DEF | Inline XBRL Taxonomy Extension Definition Linkbase Document. | |||||||
| 101.LAB | Inline XBRL Taxonomy Extension Label Linkbase Document. | |||||||
| 104 | Cover Page Interactive Data File (embedded within the inline XBRL document) | |||||||
34
SIGNATURES
Pursuant to the requirements of Section 13 or 15(d) of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
| Preformed Line Products Company | ||||||||
| October 29, 2026 | /s/ Robert G. Ruhlman | |||||||
| Robert G. Ruhlman | ||||||||
| Executive Chairman | ||||||||
| (principal executive officer) | ||||||||
| October 29, 2026 | /s/ Andrew S. Klaus | |||||||
| Andrew S. Klaus | ||||||||
| Chief Financial Officer | ||||||||
| (principal financial and accounting officer) | ||||||||
35