PREFORMED LINE PRODUCTS ANNOUNCES FIRST QUARTER 2025 FINANCIAL RESULTS
CLEVELAND, May 1, 2025 /PRNewswire/ -- Preformed Line Products Company (NASDAQ:PLPC) today reported financial results for its first quarter of 2025.
Q1 2025 Highlights compared to Q1 2024:
- Net sales growth of 5%
- Gross margin increase of 150 bps
- Net income and fully diluted EPS increase of 20%
Net sales in the first quarter of 2025 were $148.5 million compared to $140.9 million in the first quarter of 2024, a 5% increase. PLP-USA as well as the international segments recorded sales growth compared to the first quarter of 2024 with the USA business benefiting from increased communication sales and the rest of the world experiencing growth in energy sales. Foreign currency translation had a negative impact of $4.4 million for the first quarter of 2025 net sales.
Net income for the quarter ended March 31, 2025, was $11.5 million, or $2.33 per diluted share, compared to $9.6 million, or $1.94 per diluted share, for the comparable period in 2024. The first quarter of 2025 net income was impacted by an increase in gross profit from higher sales levels, partially offset by higher personnel-related period expenses. Gross profit as a percentage of net sales was 32.8% for the first quarter of 2025, an increase of 150 basis points versus the same quarter in 2024.
Rob Ruhlman, Executive Chairman, said, "After a strong finish in 2024, we are off to a solid start for 2025. I am especially pleased with the sales growth in the USA communications business as well as growth in most of the international operations. While we remain optimistic about continued growth in our primary end markets, we are cautious about the impact on customer demand caused by the newly enacted tariffs. Our strong commitment to USA manufacturing will provide a competitive advantage in the current high-tariff environment, but we will incur certain cost increases related to key commodity inputs necessary for our USA production process, primarily steel and aluminum raw materials and component parts. We are actively working to mitigate the impact of cost increases caused by tariffs and other global commodity cost increases by implementing targeted selling price increases and continued focus on cost containment strategies. Our current focus is unchanged: provide our customers with the high-quality products and timely service they have come to expect from PLP."
A presentation on first quarter results will also be available on PLP's website at www.plp.com/investor-relations.
FORWARD-LOOKING STATEMENTS
This news release contains "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934 regarding the Company, including those statements regarding the Company's and management's beliefs and expectations concerning the Company's future performance or anticipated financial results, among others. Except for historical information, the matters discussed in this release are forward-looking statements that involve risks and uncertainties which may cause results to differ materially from those set forth in those statements. Among other things, factors that could cause actual results to differ materially from those expressed in such forward-looking statements include the uncertainty in global business conditions and the economy due to factors such as inflation, rising interest rates, tariffs, labor disruptions, military conflict, political instability, exchange rates, natural disasters and health epidemics, the strength of demand and availability of funding for the Company's products and the mix of products sold, the relative degree of competitive and customer price pressure on the Company's products, the cost, availability and quality of raw materials required for the manufacture of products, opportunities for business growth through acquisitions and the ability to successfully integrate any acquired businesses, changes in regulations and tax rates, security breaches, litigation and claims and the Company's ability to continue to develop proprietary technology and maintain high-quality products and customer service to meet or exceed new industry performance standards and individual customer expectations, and other factors described under the headings "Forward-Looking Statements" and "Risk Factors" in the Company's 2024 Annual Report on Form 10-K filed with the SEC on March 13, 2025 and subsequent filings with the SEC. The Annual Report on Form 10-K and the Company's other filings with the SEC can be found on the SEC's website at http://www.sec.gov. The Company assumes no obligation to update or supplement forward-looking statements that become untrue because of subsequent events.
ABOUT PLP
PLP protects the world's most critical connections by creating stronger and more reliable networks. The company's precision-engineered solutions are trusted by energy and communications providers worldwide to perform better and last longer. With locations in 20 countries, PLP works as a united global corporation, delivering high-quality products and unparalleled service to customers around the world.
PREFORMED LINE PRODUCTS COMPANY CONSOLIDATED BALANCE SHEETS | |||
March 31, 2025 | December 31, 2024 | ||
(Thousands of dollars, except share and per share data) | (Unaudited) | ||
ASSETS | |||
Cash, cash equivalents and restricted cash | $ 54,835 | $ 57,244 | |
Accounts receivable, net | 118,504 | 111,402 | |
Inventories, net | 135,098 | 129,913 | |
Prepaid expenses | 12,261 | 11,720 | |
Other current assets | 6,024 | 5,514 | |
TOTAL CURRENT ASSETS | 326,722 | 315,793 | |
Property, plant and equipment, net | 203,083 | 195,086 | |
Goodwill | 27,746 | 26,685 | |
Other intangible assets, net | 9,736 | 9,656 | |
Deferred income taxes | 6,284 | 6,546 | |
Other assets | 18,880 | 20,111 | |
TOTAL ASSETS | $ 592,451 | $ 573,877 | |
LIABILITIES AND SHAREHOLDERS' EQUITY | |||
Trade accounts payable | $ 45,252 | $ 41,951 | |
Notes payable to banks | 5,845 | 7,782 | |
Current portion of long-term debt | 3,378 | 2,430 | |
Accrued compensation and other benefits | 20,788 | 25,904 | |
Accrued expenses and other liabilities | 30,654 | 30,346 | |
TOTAL CURRENT LIABILITIES | 105,917 | 108,413 | |
Long-term debt, less current portion | 25,682 | 18,357 | |
Other noncurrent liabilities and deferred income taxes | 25,031 | 24,783 | |
SHAREHOLDERS' EQUITY | |||
Common shares – $2 par value per share, 15,000,000 shares authorized, 4,940,131 | 13,820 | 13,752 | |
Common shares issued to rabbi trust, 223,034 and 222,887 shares at March 31, 2025 | (9,594) | (9,575) | |
Deferred compensation liability | 9,594 | 9,575 | |
Paid-in capital | 62,205 | 65,093 | |
Retained earnings | 563,678 | 553,179 | |
Treasury shares, at cost, 1,969,354 and 1,961,772 shares at March 31, 2025 and | (127,812) | (126,800) | |
Accumulated other comprehensive loss | (76,115) | (82,909) | |
TOTAL PREFORMED LINE PRODUCTS COMPANY SHAREHOLDERS' EQUITY | 435,776 | 422,315 | |
Noncontrolling interest | 45 | 9 | |
TOTAL SHAREHOLDERS' EQUITY | 435,821 | 422,324 | |
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY | $ 592,451 | $ 573,877 | |
PREFORMED LINE PRODUCTS COMPANY STATEMENTS OF CONSOLIDATED INCOME | ||||
Three Months Ended March 31, | ||||
2025 | 2024 | |||
(Thousands, except per share data) | (Unaudited) | |||
Net sales | $ 148,541 | $ 140,904 | ||
Cost of products sold | 99,870 | 96,773 | ||
GROSS PROFIT | 48,671 | 44,131 | ||
Costs and expenses | ||||
Selling | 12,181 | 11,900 | ||
General and administrative | 17,626 | 16,608 | ||
Research and engineering | 5,479 | 5,431 | ||
Other operating expense (income), net | 255 | (1,367) | ||
35,541 | 32,572 | |||
OPERATING INCOME | 13,130 | 11,559 | ||
Other income (expense) | ||||
Interest income | 510 | 972 | ||
Interest expense | (376) | (708) | ||
Other income, net | 407 | 35 | ||
541 | 299 | |||
INCOME BEFORE INCOME TAXES | 13,671 | 11,858 | ||
Income tax expense | 2,118 | 2,255 | ||
NET INCOME | $ 11,553 | $ 9,603 | ||
Net loss (income) attributable to noncontrolling interests | (36) | (7) | ||
NET INCOME ATTRIBUTABLE TO PREFORMED LINE PRODUCTS COMPANY | $ 11,517 | $ 9,596 | ||
AVERAGE NUMBER OF SHARES OF COMMON STOCK OUTSTANDING: | ||||
Basic | 4,928 | 4,915 | ||
Diluted | 4,950 | 4,944 | ||
EARNINGS PER SHARE OF COMMON STOCK ATTRIBUTABLE TO PREFORMED | ||||
Basic | $ 2.34 | $ 1.95 | ||
Diluted | $ 2.33 | $ 1.94 | ||
Cash dividends declared per share | $ 0.20 | $ 0.20 | ||
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SOURCE Preformed Line Products Company