Preformed Line Products Company is an international designer and manufacturer of products and systems employed in the construction and maintenance of overhead, ground-mounted and underground networks for energy, telecommunication, cable, data communication and other similar industries. The Company's primary products support, protect, connect, terminate and secure cables and wires, and it provides formed wire solutions, connectors, fiber optic and copper splice closures, solar hardware mounting applications, and electric vehicle charging station foundations. The Company serves a worldwide market through strategically located domestic and international manufacturing facilities, and its customers include public and private energy utilities and communication companies, cable operators, governmental agencies, contractors and subcontractors, distributors and value-added resellers. The Company is not dependent on a single customer or small group of customers, though it has one customer accounting for 10.7% ¹ of the Company's consolidated revenues.

All of the markets that the Company serves are highly competitive, and the principal methods of competition are price, performance, and service. The Company believes it is the world's largest manufacturer of formed wire products for energy and communications markets. Domestically, there are several competitors for formed wire products, and the Company has leveraged its expertise and is very strong in the global market. The OSP closure market is one of the most competitive product areas for the Company, with a number of primary competitors and several smaller niche competitors, and the Company believes it is one of four leading suppliers of OSP closures. The Company's competitive advantages include a strong and stable workforce, its Research and Engineering Center and engineering departments that maintain a strong technical support function, vertical integration in manufacturing and distribution, a high level of customer service and customer responsiveness, and domestic and international sales and manufacturing locations that ensure close support and proximity to customers worldwide.

The Company generates revenue through the design, manufacture, and marketing of products and systems for overhead and underground networks in the energy, telecommunication, cable, and data communication industries. Net sales include products and shipping and handling charges, net of estimates for product returns, and revenue is recognized when the Company satisfies performance obligations and control of the product is transferred to the customer, primarily based on shipping terms. The Company's revenue is derived from three product categories: Energy Products, Communications Products, and Special Industries Products, and it serves customers including public and private energy utilities, communication companies, cable operators, contractors, subcontractors, distributors, and value-added resellers. The Company's business is not dependent on a single customer, though one customer accounted for 10.7% ² of consolidated revenues.

Energy Products are used for supporting, protecting, terminating and splicing transmission and distribution lines as well as bolted, welded, and compressed connectors for substations, and include formed wire products, string hardware products, polymer insulators, wildlife protection, substation fittings and motion control devices like spacer dampers. Energy products were approximately 71% ³, 71% ⁴, and 64% ⁵ of the Company's revenues in 2025, 2024 and 2023, respectively. Communications Products include rugged outside plant (OSP) closures to protect and support wireline and wireless networks, such as fiber optic cable or copper cable, from moisture, environmental hazards and other potential contaminants, and also include demarcation related products, formed wire products, utility pole line hardware, motion control products and cable storage devices. Communications products were approximately 22% ⁶, 22% ⁷, and 29% ⁸ of the Company's revenues in 2025, 2024 and 2023, respectively. Special Industries Products include hardware assemblies, pole line hardware, plastic products, cable dynamics/vibration solutions, interior/exterior connectors, tools, and urethane solutions, as well as the Inspection Services group which provides drone inspection services for utility assets, and solar framing and electric vehicle offerings including mounting solutions for photovoltaic solar applications and pre-fabricated EV charging station foundations. Special Industries products were approximately 7% ⁹, 7% ¹⁰, and 7% ¹¹ of the Company's revenues in 2025, 2024 and 2023, respectively.

In May 2025, the Company acquired JAP Telecom, which contributed to an increase in communications sales in The Americas segment. On July 16, 2025, PLP Poland, a subsidiary of the Company, entered into a non-revolving investment loan with Bank Pekao S.A to finance the construction of a new manufacturing plant for an amount up to PLN100.3 million ($27.9 million) ¹², with a maturity date of January 31, 2035. The Company also purchased a new facility in Spain, contributing to capital expenditures of $40.1 million ¹³ in 2025, of which $24.8 million ¹⁴ relates to the construction of the new Poland facility and purchase of the new Spain facility. In the fourth quarter of 2025, the Company increased its quarterly dividend by 5% to $0.21 ¹⁵ per share, the first such increase since the Company's shares began trading on NASDAQ in 2001. The Company completed its U.S. Plan termination in the third quarter of 2025 through the purchase of a group annuity contract, recording a total non-cash pre-tax charge of $11.7 million ¹⁶ associated with the termination. The Company repurchased 8,700 ¹⁷ shares in the fourth quarter of 2025 at an average price of $217.23 ¹⁸ per share.

Net sales for the year ended December 31, 2025 were $669.3 million ¹⁹, an increase of $75.6 million ²⁰ year-over-year, mainly due to an increase in energy and communication sales. Gross profit was $208.5 million ²¹ for 2025, an increase of $18.7 million ²² compared to 2024. Operating income was $55.1 million ²³ for 2025, compared to $50.8 million ²⁴ in 2024. Net income attributable to Preformed Line Products Company shareholders was $35.3 million ²⁵ for 2025, compared to $37.1 million ²⁶ for 2024. Diluted earnings per share were $7.14 ²⁷ in 2025, compared to $7.50 ²⁸ in 2024. Net cash provided by operating activities was $73.5 million ²⁹ for 2025, compared to $67.5 million ³⁰ for 2024.

The Company's growth is positioned around the digitalization and electrification megatrends, which are increasing the need for power generation and highlighting the need for bolstering grid reliability, strengthening grid resilience, and upgrading aging infrastructure. The continuing need for high-speed and efficient communication systems has led to further investment in network build-outs, and the Company believes its focused portfolio is well-positioned to respond to these trends. The Company expects that its leadership position in the domestic energy and communications markets and the ability to deliver reliable products quickly will position it for continued growth as transmission grids, distribution lines, and substation projects, as well as communication networks, are enhanced, upgraded and extended. The Company's international business is also mainly concentrated in the energy and communications markets, and the Company believes it is well positioned to supply the needs of the world's diverse energy and communication markets as a result of its focused portfolio and strategic operational footprint, including expansion from recent acquisitions, investment in new manufacturing facilities and product designs and technologies.

The Company has continued to invest in the business to expand into new markets, evaluate strategic mergers and acquisitions, improve efficiency, develop new products and increase its capacity. The Company's backlog increased approximately 22% ³¹ to $232.8 million ³², further showing the strength of its core markets. The Company expects that substantially all of the backlog existing at December 31, 2025 of $232.8 million ³³ is expected to be shipped to customers in 2026. The Company is also focused on assessing its global market opportunities and overall manufacturing capacity in conjunction with the requirements of local manufacturing in the markets that it serves, and as necessary, will modify redundant processes and further utilize its global manufacturing network to manage costs, including tariff-related impacts, increase sales volume and deliver value to its customers.

The Company's gross profit margin was 31.2% ³⁴ in 2025, compared to 32.0% ³⁵ in 2024. The Company has implemented price increases in the U.S. and internationally to mitigate rising material and tariff costs, and additional increases may be needed in the future to maintain profit margins. The Company's PLP-USA LIFO inventory valuation costs have accelerated due to tariffs, resulting in pre-tax charges of $9.0 million ³⁶ for the year ended December 31, 2025. The Company incurred tariff costs of approximately $15.1 million ³⁷ in 2025. The Company continues to manage trade matters proactively, and further tariff increases may give rise to inflationary pressures, which may require further price adjustments to maintain profit margin.

The Company has 26 ³⁸ manufacturing facilities domestically and internationally to strategically serve its worldwide markets. The Company has continued to invest in the business, including the construction of a new manufacturing plant in Poland and the purchase of a new facility in Spain. The Company's Research and Engineering Center, a 38,000-square-foot ³⁹ facility located at its corporate headquarters in Mayfield Village, Ohio, is used to simulate a wide range of external conditions encountered by the Company's products to ensure quality, durability and performance. The Company believes that its properties have been adequately maintained, are in good condition generally and are suitable and adequate for its business as presently conducted, and most of its manufacturing facilities remain capable of handling volume increases.

Capital expenditures were $40.1 million ⁴⁰ in 2025, of which $24.8 million ⁴¹ relates to the construction of the new Poland facility and purchase of the new Spain facility. Research and development costs are expensed as incurred and were $23.7 million ⁴² in 2025. The Company increased its quarterly dividend by 5% to $0.21 ⁴³ per share in the fourth quarter of 2025. On November 1, 2023, the Board of Directors authorized a plan to repurchase up to an additional 212,952 ⁴⁴ of Preformed Line Products Company common shares, resulting in a total of 250,000 ⁴⁵ shares available for repurchase with no expiration date. As of December 31, 2025, the Company had $83.4 million ⁴⁶ of cash, cash equivalents and restricted cash, and total debt, including notes payable, was $39.5 million ⁴⁷.

The high tariff environment, especially on raw material imports, particularly steel and aluminum, continue to be impactful, and the Company incurred tariff costs of approximately $15.1 million ⁴⁸ in 2025. The tariffs outlook remains uncertain, particularly following the February 2026 U.S. Supreme Court ruling that set aside unlawfully imposed tariffs, and the Company is unable to predict the upcoming effects of tariffs that remain in effect (including on steel and aluminum) or may be newly enacted, as well as any refunds that may be available. The Company's PLP-USA's LIFO inventory valuation costs have accelerated due to tariffs, resulting in pre-tax charges of $9.0 million ⁴⁹ for the year ended December 31, 2025. The Company also faces risks from foreign currency volatility, which could materially impact operating results, and the Company's operations are exposed to general geopolitical risks, such as political and economic instability, social unrest, acts of war, military conflict, international hostilities, terrorism and changes in diplomatic and trade relationships.

The Company's international operations subject it to additional business risks, including unexpected changes in legislative or regulatory requirements, tariffs and other barriers, potentially longer payment cycles, greater difficulty in accounts receivable collection, reduced protection of intellectual property rights, potentially adverse taxes and the burdens of complying with a variety of international laws. International sales account for a substantial portion of the Company's net sales at 53% ⁵⁰, 55% ⁵¹, and 48% ⁵² in 2025, 2024 and 2023, respectively. The Company is also subject to foreign currency volatility, which could materially impact operating results, including the impact of hyper-inflationary conditions in certain economies, particularly where exchange controls limit or eliminate the Company's ability to convert from local currency. The Company's operations are also exposed to general geopolitical risks, such as political and economic instability, social unrest, acts of war, military conflict, international hostilities or the perception that hostilities may be imminent, terrorism and changes in diplomatic and trade relationships, including any retaliatory measures, sanctions or tariffs imposed in response to any acts of war or military conflicts.

Management's message emphasizes that the Company's business continues to be concentrated in the energy and communications markets, sitting at the intersection of digitalization and electrification megatrends that are increasing the need for power generation and highlighting the need for bolstering grid reliability, strengthening grid resilience, and upgrading aging infrastructure. Management states that the Company's focused portfolio is well-positioned to respond to these trends and priorities, and that the Company's leadership position in the domestic energy and communications markets and the ability to deliver reliable products quickly will position it for continued growth. Management notes that the 2025 sales amount of $669.3 million ⁵⁹ is among the highest annual sales amount in the Company's history, falling just behind the sales recorded in the year-ended December 31, 2023 of $669.7 million ⁶⁰, and that the Company's backlog increased approximately 22% ⁶¹ to $232.8 million ⁶², further showing the strength of its core markets. Management emphasizes that the Company remains steadfast in its commitment to U.S. manufacturing and continues to manage trade matters proactively, and that while uncertainty remains in the global economy due to tariffs and trade matters, the Company believes its business portfolio, including its significant U.S. manufacturing footprint, as well as its financial position, are sound and strategically well-positioned. Management's strategic priorities include assessing global market opportunities and overall manufacturing capacity in conjunction with the requirements of local manufacturing in the markets served, modifying redundant processes and further utilizing the global manufacturing network to manage costs including tariff-related impacts, increasing sales volume, and delivering value to customers, as well as continuing to invest in the business to expand into new markets, evaluate strategic mergers and acquisitions, improve efficiency, develop new products and increase capacity.

For the fiscal year ended December 31, 2025, total net sales were $669.3 million ⁶³ compared to $593.7 million ⁶⁴ in 2024. Net income attributable to Preformed Line Products Company shareholders was $35.3 million ⁶⁵ in 2025 versus $37.1 million ⁶⁶ in 2024. Diluted earnings per share were $7.14 ⁶⁷ in 2025 compared to $7.50 ⁶⁸ in 2024. Operating income was $55.1 million ⁶⁹ in 2025 versus $50.8 million ⁷⁰ in 2024. Gross profit was $208.5 million ⁷¹ in 2025 compared to $189.8 million ⁷² in 2024, representing gross margins of 31.2% ⁷³ and 32.0% ⁷⁴, respectively. Net cash provided by operating activities was $73.5 million ⁷⁵ in 2025 versus $67.5 million ⁷⁶ in 2024. The Company's total debt, including notes payable, was $39.5 million ⁷⁷ at December 31, 2025, and cash, cash equivalents and restricted cash was $83.4 million ⁷⁸. A significant one-time item in 2025 was a non-cash pre-tax pension termination expense of $11.7 million ⁷⁹ recorded in the third quarter related to the termination of the U.S. Plan, which reduced net income. On a segment basis, PLP-USA net sales were $312.6 million ⁸⁰ in 2025 versus $266.7 million ⁸¹ in 2024, The Americas net sales were $108.8 million ⁸² versus $90.3 million ⁸³, EMEA net sales were $133.1 million ⁸⁴ versus $128.2 million ⁸⁵, and Asia-Pacific net sales were $114.8 million ⁸⁶ versus $108.5 million ⁸⁷.

The Company's sales to the energy and communication industries represent a substantial portion of historical sales, and demand depends primarily on capital spending by customers, which is affected by general economic conditions, access to financing, government regulation, and technological factors, and some customers may significantly reduce or delay spending. The Company incurred tariff costs of approximately $15.1 million ⁵³ in 2025, and the high tariff environment, especially on raw materials like steel and aluminum, has impacted profit margins, with PLP-USA's LIFO inventory valuation costs resulting in pre-tax charges of $9.0 million ⁵⁴ for the year ended December 31, 2025. International sales account for a substantial portion of net sales at 53% ⁵⁵ in 2025, exposing the Company to risks including foreign currency volatility, political and economic instability, tariffs, and other trade barriers. The Company's total debt, including notes payable, was $39.5 million ⁵⁶ at December 31, 2025, and the interest rate for its credit facility is defined as SOFR plus 1.225% ⁵⁷, exposing the Company to interest rate risk, with a 100 basis point increase in interest rates resulting in an increase in interest expense of approximately $0.2 million ⁵⁸ for the year ended December 31, 2025. The Company's information technology systems are vulnerable to security breaches and other disruptions, which could interfere with operations and compromise information, exposing the Company to liability.