Preformed Line Products Company (PLPC) Q4 2025 earnings summary

Executive summary

• Net sales reached $669.3 million for 2025, up 13% year-over-year, with strong growth in both USA (up 17%) and international markets (up 9%).

• Adjusted net income rose 16% to $43.0 million, excluding a $11.7 million pre-tax U.S. pension plan termination charge.

• Diluted EPS was $7.14; adjusted EPS increased 16% to $8.70, reflecting strong operational performance despite tariff headwinds and a pension termination charge.

• Backlog grew 22% to $232.8 million, reflecting robust demand in core energy and communications markets.

• Dividend increased 5% to $0.21 per share, the first increase since 2001, highlighting commitment to shareholder returns.

Financial highlights

• Gross profit margin for 2025 was 31.2%, down 80 bps from 2024 due to tariff and LIFO inventory costs.

• Net income for 2025 was $35.3 million ($7.14 per diluted share), down 5% year-over-year, impacted by the pension plan charge.

• Q4 2025 net sales were $173.1 million, up 4% year-over-year; Q4 net income was $8.4 million, down 19%.

• Free cash flow for 2025 was $(11.3) million, reflecting $40.1 million in capex for facility investments.

• Gross profit for 2025 was $208.5 million, up from $189.8 million in 2024.

Outlook and guidance

• Strong sales and adjusted EPS growth expected to continue, supported by robust backlog and strategic investments.

• Market outlook remains positive, driven by grid modernization, broadband expansion, renewables, and EV infrastructure.

• Strong cash generation expected to support investments in product development, facility modernization, and strategic acquisitions.

• New Poland facility to come online in late 2026, with additional contributions anticipated from the new Spain facility.

• Ongoing monitoring of tariffs and potential for further price adjustments.