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What changed in PREFORMED LINE PRODUCTS CO's 10-K — 2024 vs 2025

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Paragraph-level year-over-year comparison of PREFORMED LINE PRODUCTS CO's 2024 and 2025 10-K annual filings, covering the Business, Risk Factors, Legal Proceedings, Cybersecurity, MD&A and Market Risk sections. Every new, removed and edited paragraph is highlighted side-by-side so you can see exactly what management changed in the 2025 report.

+169 added−156 removedSource: 10-K (2026-03-05) vs 10-K (2025-03-13)

Top changes in PREFORMED LINE PRODUCTS CO's 2025 10-K

169 paragraphs added · 156 removed · 133 edited across 7 sections

Item 1. Business

Business — how the company describes what it does

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Biggest changeCosts related to shipping and freight have similarly fallen from their 2022 peak. Given the uncertainties in the macro-economic environment, we cannot determine if these trends 7 will continue. If inflationary pressures persist or new tariffs are sustained, it may require further price adjustments to maintain profit margin and any price increases may have a negative effect on demand.
Biggest changeAs new tariffs are enacted, additional trade restrictions are imposed or inflationary pressures emerge, it may require further price adjustments to maintain profit margin and any price increases may have a negative effect on demand.
The Company’s locations are focused on efforts to reduce its waste, water and energy consumption through the implementation of such programs as pollution prevention, recycling waste materials in both manufacturing and office facilities, reducing solid waste disposal, reducing harmful air emissions, and implementing alternative energy sources. Some locations have also achieved the ISO-14001: Environmental Management Systems Certification.
The Company’s locations are focused on efforts to reduce its waste, water and energy consumption through the implementation of such programs as pollution prevention, recycling waste materials in both manufacturing and office facilities, reducing solid waste disposal, reducing air emissions, and implementing alternative energy sources. Some locations have also achieved the ISO-14001: Environmental Management Systems Certification.
The Company also quickly provides repair products to 8 customers in the event of emergencies or natural disasters such as hurricanes, tornadoes, earthquakes, floods or ice storms. PLP is a trusted supplier when natural disasters occur. The Company maintains a tradition of supporting numerous charitable organizations and promoting community involvement.
The Company also quickly provides repair products to customers in the event of emergencies or natural disasters such as hurricanes, tornadoes, earthquakes, floods or ice storms. PLP is a trusted supplier when natural disasters occur. The Company maintains a tradition of supporting numerous charitable organizations and promoting community involvement.
This is evident through the Company’s commitment to supporting fiber-optic connectivity, which is more energy efficient than copper cable. Additionally, the Company's product offerings bolster grid reliability and efficiency, increase resilience to climate events and enable transitions to new sources of energy and upgrade aging infrastructure.
This is evident through the Company’s commitment to supporting fiber-optic connectivity, which is more energy efficient than copper cable. 8 Additionally, the Company's product offerings bolster grid reliability and efficiency, increase resilience to climate events and enable transitions to new sources of energy and upgrade aging infrastructure.
The Company’s position in the industry is further reinforced by its long-standing leadership role in many key international technical organizations which are charged with the responsibility of establishing industry-wide specifications and performance criteria, including IEEE (Institute of Electrical and Electronics Engineers), CIGRE (Counsiel Internationale des Grands Reseaux Electriques a Haute Tension), and IEC (International Electromechanical Commission).
The Company’s position in the industry is further reinforced by its long-standing leadership role in many key international technical organizations which are charged with the responsibility of establishing industry-wide specifications and performance criteria, including IEEE (Institute of Electrical and Electronics Engineers), CIGRE (Conseil Internationale des Grands Reseaux Electriques a Haute Tension), and IEC (International Electromechanical Commission).
The Company believes it is in compliance in all material respects, with all applicable environmental laws and the Company is not aware of any noncompliance or obligation to investigate or remediate contamination that could reasonably be expected to result in a material liability. The Company does not expect to make any material capital expenditures during 2025 for environmental control facilities.
The Company believes it is in compliance in all material respects with all applicable environmental laws and the Company is not aware of any noncompliance or obligation to investigate or remediate contamination that could reasonably be expected to result in a material liability. The Company does not expect to make any material capital expenditures during 2026 for environmental control facilities.
The Company’s goal is to create a work environment that enables employees to perform in an environment where they feel respected and valued. As a global company with employees in 21 countries, the Company values its broad diversity of cultures, ethnicities, races, languages, religions, sexual and gender orientations and a diverse, open and inclusive work environment.
The Company’s goal is to create a work environment that enables employees to perform in an environment where they feel respected and valued. As a global company with employees in many countries, the Company values its broad diversity of cultures, ethnicities, races, languages, religions, sexual and gender orientations and a diverse, open and inclusive work environment.
These communications products serve all segments of the telecommunications industry including but not limited to network operators, broadband service providers, wireless internet service providers, enterprise networks, educational institutions, and electric utilities deploying fiber optics. Communications products were approximately 22%, 29%, and 33% of the Company’s revenues in 2024, 2023 and 2022, respectively.
These communications products serve all segments of the telecommunications industry including but not limited to network operators, broadband service providers, wireless internet service providers, enterprise networks, educational institutions, and electric utilities deploying fiber optics. Communications products were approximately 22%, 22%, and 29% of the Company’s revenues in 2025, 2024 and 2023, respectively.
Additional energy product offerings include a wide array of string hardware products, polymer insulators, wildlife protection, substation fittings and motion control devices like spacer dampers. Energy products were approximately 71%, 64%, and 59% of the Company’s revenues in 2024, 2023 and 2022, respectively.
Additional energy product offerings include a wide array of string hardware products, polymer insulators, wildlife protection, substation fittings and motion control devices like spacer dampers. Energy products were approximately 71%, 71%, and 64% of the Company’s revenues in 2025, 2024 and 2023, respectively.
Approximately 26% of the Company’s employees are located in the U.S. The Company views its employees and culture as keys to its success and believes that its employees are its greatest asset.
Approximately 24% of the Company’s employees are located in the U.S. The Company views its employees and culture as keys to its success and believes that its employees are its greatest asset.
The Company’s 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. The Company has one customer accounting for 11.1% of the Company's consolidated revenues.
The Company’s 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. The Company has one customer accounting for 10.7% of the Company's consolidated revenues.
Donations and investments in enhancing the lives of the people within the communities it impacts are an integral part of who the Company is and how it intends to represent its values. Human Capital At December 31, 2024, the Company had 3,401 employees, the overwhelming majority of which are full-time employees.
Donations and investments in enhancing the lives of the people within the communities it impacts are an integral part of who the Company is and how it intends to represent its values. Human Capital At December 31, 2025, the Company had 3,734 employees, the overwhelming majority of which are full-time employees.
International registrations amounted to 278 registrations in 47 countries, with 5 pending international registrations. U.S. patents are issued for terms of 20 years beginning with the date of filing of the patent application. Patents issued by international countries generally expire 20 years after filing. U.S. and international patents are not renewable after expiration of their initial term.
International registrations amounted to 242 registrations in 47 countries, with 4 pending international registrations. U.S. patents are issued for terms of 20 years beginning with the date of filing of the patent application. Patents issued by international countries generally expire 20 years after filing. U.S. and international patents are not renewable after expiration of their initial term.
Additionally, the Company owns and uses a substantial body of proprietary information and numerous trademarks. The Company relies on nondisclosure agreements to protect trade secrets and other proprietary data and technology. As of December 31, 2024, the Company had obtained U.S. registration on 31 trademarks, and 5 trademark applications remained pending.
Additionally, the Company owns and uses a substantial body of proprietary information and numerous trademarks. The Company relies on nondisclosure agreements to protect trade secrets and other proprietary data and technology. As of December 31, 2025, the Company had obtained U.S. registration on 35 trademarks, and no trademark applications remained pending.
Backlog Orders Order backlog was approximately $191.0 million at the end of 2024 and $172.6 million at the end of 2023. All customer orders entered are firm at the time of entry. Substantially all of the backlog existing at December 31, 2024 is expected to be shipped to customers in 2025.
Backlog Orders Order backlog was approximately $232.8 million at the end of 2025 and $191.0 million at the end of 2024. All customer orders entered are firm at the time of entry. Substantially all of the backlog existing at December 31, 2025 is expected to be shipped to customers in 2026.
In addition to monitoring and managing compliance with environmental regulations, the Company is also committed to sustainability and environmental protection initiatives. For example, the Company is committed to protecting wildlife by working with utility companies to design and manufacture wildlife protection products that aid in reducing wildlife mortalities from interaction with electric power distribution lines, structures, and equipment.
In addition to monitoring and managing compliance with environmental regulations, the Company is also committed to being a responsible steward of the environment. For example, the Company is committed to protecting wildlife by working with utility companies to design and manufacture wildlife protection products that aid in reducing wildlife mortalities from interaction with electric power distribution lines, structures, and equipment.
As of December 31, 2024, the Company had in force 68 U.S. patents and 116 international patents in 21 countries and had 41 pending U.S. patent applications and 114 pending international applications. While such domestic and international patents expire from time to time, the Company continues to apply for and obtain patent protection on a regular basis.
As of December 31, 2025, the Company had in force 75 U.S. patents and 104 international patents in 21 countries and had 38 pending U.S. patent applications and 97 pending international applications. While such domestic and international patents expire from time to time, the Company continues to apply for and obtain patent protection on a regular basis.
Special Industries products were approximately 7%, 7%, and 8% of the Company’s revenues in 2024, 2023 and 2022, respectively. International Operations The international operations of the Company are essentially the same as its domestic (“PLP-USA”) business.
Special Industries products were approximately 7%, 7%, and 7% of the Company’s revenues in 2025, 2024 and 2023, respectively. International Operations The international operations of the Company are similar to its domestic (“PLP-USA”) business.
However, there are other potential sources available for these materials, and the Company believes that it could relocate the tooling and processes to other manufacturers if necessary. During the twelve months ending December 31, 2024, the previous inflationary headwinds we experienced related to raw materials, specifically plastic resins, aluminum and sand (grit), have generally subsided.
However, there are other potential sources available for these materials, and the Company believes that it could relocate the tooling and processes to other manufacturers if necessary. During the twelve months ending December 31, 2025, the high tariff environment significantly impacted the costs of raw material imports, especially steel and aluminum.
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Given the current macro-economic and political climates, the February 2026 U.S. Supreme Court ruling that set aside unlawfully imposed tariffs (but not tariffs on steel and aluminum) and the further tariff actions that 7 followed, it is difficult to predict the scope, duration, and application of current and future tariffs and other trade measures.
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Further, to the extent amounts are refunded for previously paid tariffs that impacted the Company, it is unknown how such refunds would be processed or the timeline for doing so and whether any such amounts would be recovered by the Company.

Item 1A. Risk Factors

Risk Factors — what could go wrong, per management

40 edited+9 added−2 removed51 unchanged
Biggest changeFurther, it is difficult to predict what impact, if any, changes in federal policy, including environmental, immigration, trade and tax policies, will have on our industry, the economy as a whole, consumer confidence and spending. As a result, the nature, timing and impact on our business of potential changes to the current legal and regulatory frameworks are uncertain.
Biggest changeSuch developments underscore the pace of change and the potential for legal challenges and implementation uncertainty affecting the regulatory environment in which we operate. It is difficult to predict what continued impact changes in federal policy, including environmental, immigration, trade and tax policies, will have on our industry, the economy as a whole, consumer confidence and spending.
The duration and scope of the any future viral outbreak or health pandemic cannot be predicted, and therefore, any anticipated negative financial impact to the Company’s operating results cannot be reasonably estimated.
The duration and scope of any future viral outbreak or health pandemic cannot be predicted, and therefore, any anticipated negative financial impact to the Company’s operating results cannot be reasonably estimated.
The trend toward consolidation of the energy, telecommunications and data communication industries may require the Company to quickly adapt to rapidly changing market conditions and customer requirements. In addition, as the Company expands its offerings in new areas, its success with these products 11 and services will depend on its ability to offer quality, reliability and other competitive advantages.
The trend toward consolidation of the energy, telecommunications and data communication industries may require the Company to quickly adapt to rapidly changing market conditions and customer requirements. In addition, as the Company expands its offerings in new areas, its success with these products and services will depend on its ability to offer quality, reliability and other competitive advantages.
At any given time, the Company may also be subject to litigation or claims related to its products, suppliers, customers, employees, shareholders, distributors, sales representatives, intellectual property or acquisitions, among other things, the disposition of 13 which may have an adverse effect upon the Company’s business, financial condition, or results of operation.
At any given time, the Company may also be subject to litigation or claims related to its products, suppliers, customers, employees, shareholders, distributors, sales representatives, intellectual property or acquisitions, among other things, the disposition of which may have an adverse effect upon the Company’s business, financial condition, or results of operation.
For example, the Company is subject to antitrust and tax requirements, anti-boycott regulations, import/export/customs regulations and other international trade regulations, the USA Patriot Act and the Foreign Corrupt Practices Act. Any new regulatory or trade initiatives, including tariffs, could impact the Company’s operations in certain countries.
For example, the Company is subject to antitrust and tax requirements, anti-boycott regulations, import/export/customs regulations and 10 other international trade regulations, the USA Patriot Act and the Foreign Corrupt Practices Act. Any new regulatory or trade initiatives, including tariffs, could impact the Company’s operations in certain countries.
The amount of capital spending and, therefore, the Company’s sales and profitability are affected by a variety of factors, including 9 general economic conditions, access by customers to financing, government regulation, demand for energy and cable services, energy prices, technological factors and the ability of our customers to utilize available inventory.
The amount of capital spending and, therefore, the Company’s sales and profitability are affected by a variety of factors, including general economic conditions, access by customers to financing, government regulation, demand for energy and cable services, energy prices, technological factors and the ability of our customers to utilize available inventory.
In addition, the pace of technological development in the telecommunication market is rapid and these advances (i.e., wireless, fiber optic network infrastructure, etc.) and the ability of the Company’s larger competitors or new providers to adapt more efficiently may adversely affect the Company’s ability to compete in the telecommunications market.
In addition, the pace of technological development in the telecommunication market is rapid and these advances (i.e., wireless or fiber optic network infrastructure) and the ability of the Company’s larger competitors or new providers to adapt more efficiently may adversely affect the Company’s ability to compete in the telecommunications market.
These factors include actual or anticipated fluctuations in the Company’s operating results; changes in, or the inability to, achieve estimates of, its operating results by analysts, investors or management; analysts’ recommendations regarding its stock or its competitors’ stock; sales of substantial amounts of its common shares by shareholders; actions or announcements by the Company or its competitors; the maintenance and growth of the value of the Company’s brands; litigation; legislation or other regulatory developments affecting the Company or its industry; widespread illness or pandemics; natural disasters; cyber-attacks; terrorist acts; war or other calamities and changes in general market and economic conditions.
These factors include, among others, actual or anticipated fluctuations in the Company’s operating results; changes in, or the inability to, achieve estimates of, its operating results by analysts, investors or management; analysts’ recommendations regarding its stock or its competitors’ stock; sales of substantial amounts of its common shares by shareholders; actions or announcements by the Company or its competitors; the maintenance and growth of the value of the Company’s brands; litigation; legislation or other regulatory developments affecting the Company or its industry; widespread illness or pandemics; natural disasters; cyber-attacks; terrorist acts; war or other calamities and changes in general market and economic conditions.
The concentration of revenue in such industries is expected to continue into the foreseeable future. Demand for products to these industries depends primarily on capital spending by customers for constructing, rebuilding, maintaining or upgrading their systems.
The concentration of revenue in such industries is expected to continue into the foreseeable future. Demand for products to these 9 industries depends primarily on capital spending by customers for constructing, rebuilding, maintaining or upgrading their systems.
The Company’s operations have been affected by and could continue to be adversely affected by global economic conditions such as recession, political or social unrest, economic instability, inflation, rising interest rates, 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, public health concerns or otherwise.
The Company’s operations have been affected by and could continue to be adversely affected by global economic conditions such as recession, political or social unrest, economic instability, inflation, rising interest rates, tariffs and other trade restrictions, 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, public health concerns or otherwise.
Despite the Company’s cybersecurity measures and oversight of such matters by the Audit Committee and the Board of Directors, which are continuously reviewed and upgraded, the Company’s information technology networks and infrastructure and protected data may still be vulnerable to damage, disruptions or shutdowns due to attack by hackers or breaches, employee error or malfeasance, power outages, computer viruses, telecommunication or utility failures, systems failures, service providers including cloud services, natural disasters or other catastrophic events.
Despite the Company’s cybersecurity measures and oversight of such matters by the Audit Committee and the Board of Directors, which are continuously reviewed and upgraded, the Company’s information technology networks and infrastructure and protected data are still vulnerable to damage, disruptions or shutdowns due to attack by hackers or breaches, employee error or malfeasance, power outages, computer viruses, telecommunication or utility failures, systems failures, service providers including cloud services, natural disasters or other catastrophic events.
Congress, the Trump administration or any new administration have impacted among other things, the U.S. and global economy, international trade relations, unemployment, immigration, healthcare, taxation, the U.S. regulatory environment, inflation and other areas.
Congress, the Trump administration or any new administration have impacted among other things, the U.S. and global economy, international trade 13 relations, unemployment, immigration, healthcare, taxation, the U.S. regulatory environment, inflation and other areas.
Further, the Company’s ability to anticipate changes in technology and industry standards and to successfully develop and introduce new products on a timely basis is a significant factor in the Company’s ability to grow and remain competitive. New product development often requires long-term forecasting of market trends, development and implementation of new designs and processes and a substantial capital commitment.
The 11 Company’s ability to anticipate changes in technology and industry standards and to successfully develop and introduce new products on a timely basis is a significant factor in the Company’s ability to grow and remain competitive. New product development often requires long-term forecasting of market trends, development and implementation of new designs and processes and a substantial capital commitment.
The Trump administration has called for significant changes to U.S. trade, healthcare, immigration and government regulatory policy and has begun implementing policy changes at a rapid pace. Changes to U.S. policy implemented by the U.S.
The Trump administration has called for significant changes to U.S. trade, healthcare, immigration and government regulatory policy and has implemented policy changes at a rapid pace. Changes to U.S. policy implemented by the U.S.
The impact of COVID-19 or any other viral outbreak or health pandemic could potentially exacerbate all the risks discussed and lead to the creation of new risks, any of which could have a material adverse effect on the Company’s business, operating results and financial condition.
The impact of any viral outbreak or health pandemic could potentially exacerbate all the risks discussed and lead to the creation of new risks, any of which could have a material adverse effect on the Company’s business, operating results and financial condition.
Additionally, the Company collects and stores certain data, including proprietary business information, and may have access to confidential or personal information in certain of its businesses that is subject to privacy and security laws, regulations and customer-imposed controls.
Additionally, the Company collects and stores certain data, including proprietary business information, and has access to confidential or personal information in certain of its businesses that is subject to privacy and security laws, regulations and customer-imposed controls.
As a result, the market price of the Company’s common shares is similarly volatile and could be subject to wide fluctuations in response to a number of factors, some of which may be beyond the Company’s control.
The stock market in general is highly volatile. As a result, the market price of the Company’s common shares is similarly volatile and could be subject to wide fluctuations in response to a number of factors, some of which may be beyond the Company’s control.
Unresolved Staff Comments The Company does not have any unresolved staff comments.
Unresolved Staff Comments The Company does not have any unresolved staff comments. 14
The introduction of new laws or regulations, or changes in existing laws or regulations, including minimum wage increases, mandated benefits, climate change-related disclosures or other requirements that impose additional obligations on the Company, could increase the costs of doing business.
The introduction of new laws or regulations, or changes in existing laws or regulations, including minimum wage increases, mandated benefits, climate change-related disclosures or other requirements that impose additional obligations on the Company, have increased and could further increase the costs of doing business.
The energy and communication industries are characterized by rapid change in technology and customer requirements. 5G, wireless and other communication technologies currently being deployed may represent a threat to copper, coaxial and fiber optic-based systems by reducing the need and desire for wire-line networks.
The energy and communication industries are characterized by rapid change in technology and customer requirements. Low Earth Orbit (LEO) Satellite communication, 5G, wireless and other communication technologies currently being deployed may represent a threat to copper, coaxial and fiber optic-based systems by reducing the need and desire for wire-line networks.
The Company has implemented price increases in the U.S. and internationally to mitigate rising material costs, and additional increases may be needed in the future to maintain profit margins. Price increases may have impacted or could continue to impact the demand for the Company’s products.
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. Price increases could impact the demand for the Company’s products.
These covenants may restrict the Company’s operations and prevent it from pursuing opportunities that would otherwise be in the Company’s best interest for long-term growth. The Facility is currently scheduled to expire on March 2, 2026.
These covenants may restrict the Company’s operations and prevent it from pursuing opportunities that would otherwise be in the Company’s best interest for long-term growth. The Facility is currently scheduled to expire on June 30, 2028.
The interest rate for the Facility is defined as the Secured Overnight Financing Rate ("SOFR") plus 1.125% unless the Company’s funded debt to Earnings before Interest, Taxes and Depreciation ratio exceeds 2.25 to 1, at which point the SOFR spread becomes 1.500%. The Facility agreement also contains, among other provisions, requirements for maintaining levels of net worth and profitability.
The interest rate for the Facility 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%. The Facility agreement also contains, among other provisions, requirements for maintaining levels of net worth and profitability.
If changes in the availability of materials or delays in the supply chain or transportation industry, among other factors, negatively impact the Company’s ability to meet customer expectations, its sales and profits may suffer.
If changes in the availability of materials or delays in the supply chain or transportation industry or advances in the products and level of customer service offered by competitors, among other factors, negatively impact the Company’s ability to meet customer expectations, its sales and profits may suffer.
It is possible for such vulnerabilities to remain undetected for an extended period, up to and including several years. In addition, the Company is subject to various data privacy laws in the many jurisdictions in which it operates, which are rapidly changing and require extensive compliance efforts.
Use of artificial intelligence may increase these vulnerabilities, as well. It is possible for such vulnerabilities to remain undetected for an 12 extended period, up to and including several years. In addition, the Company is subject to various data privacy laws in the many jurisdictions in which it operates, which are rapidly changing and require extensive compliance efforts.
Any events that compromise the Company’s systems or any failures to comply with applicable privacy laws could result in legal claims or proceedings, liability or penalties under privacy laws, disruption in operations, and damage to the Company’s reputation, which could adversely affect the Company’s business. 12 The Company depends on maintaining a skilled workforce, and any interruption in the workforce could negatively impact the Company’s operating results and financial condition.
Any events that compromise the Company’s systems or any failures to comply with applicable privacy laws could result in legal claims or proceedings, liability or penalties under privacy laws, disruption in operations, and damage to the Company’s reputation, which could adversely affect the Company’s business.
Failure to comply with any such legal requirements could subject the Company to monetary liabilities and other sanctions, which could harm its business, results of operations and financial condition. 10 The Company is also subject to foreign currency volatility, which could materially impact the Company’s 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 is also subject to foreign currency volatility, which could materially impact the Company’s 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.
Despite planning, a real estate project may entail uncertainties regarding cost, timeliness, personnel and materials, and any of these variables may negatively impact the Company’s operating results and financial condition. The Company’s stock price is subject to volatility. The stock market in general is highly volatile.
The Company may also face unforeseen difficulties if we decide to build, lease, expand, redesign, relocate or consolidate facilities. Despite planning, a real estate project may entail uncertainties regarding cost, timeliness, personnel and materials, and any of these variables may negatively impact the Company’s operating results and financial condition. The Company’s stock price is subject to volatility.
The Company’s ability to sustain and grow its business requires a commitment to hire, retain and develop a highly skilled and diverse management team and workforce.
The Company depends on maintaining a skilled workforce, and any interruption in the workforce could negatively impact the Company’s operating results and financial condition. The Company’s ability to sustain and grow its business requires a commitment to hire, retain and develop a highly skilled and diverse management team and workforce.
These risks of conducting business internationally and the instability in global economic conditions may have a material adverse effect on the Company’s business, operating results and financial condition. The Company's financial condition and results could be adversely affected by its level of debt and changes in interest rates. Any period of interest rate increases may adversely affect the Company’s profitability.
The Company's financial condition and results could be adversely affected by its level of debt and changes in interest rates. Any period of interest rate increases may adversely affect the Company’s profitability. In addition, a higher level of floating rate debt would increase the exposure to changes in interest rates.
The Company may not be able to pass on further price increases in raw materials to the Company’s customers through increases in product prices. In addition, any decrease or delay in the availability of these materials or interruptions generally in the global supply chain could slow production and delivery to the Company’s customers.
The Company may not be able to pass on further price increases in raw materials to the Company’s customers through increases in product prices.
The Company’s international operations subject the Company to additional business risks that may have a material adverse effect on the Company’s business, operating results and financial condition. International sales account for a substantial portion of the Company’s net sales (55%, 48%, and 47% in 2024, 2023 and 2022, respectively).
As a result of these factors, the Company’s operating results and financial condition could be adversely affected. The Company’s international operations subject the Company to additional business risks that may have a material adverse effect on the Company’s business, operating results and financial condition.
Until we know what policy changes are made, whether those policy changes are challenged and subsequently upheld by the court system and how those changes impact our business and the business of our competitors over the long term, we will not know if, overall, we will benefit from them or be negatively affected by them.
As such policy changes continue to be made, face legal challenges and court rulings, uncertainty remains as to how those changes will further impact our business and the business of our competitors over the long term, and the extent to which we will benefit from them or be negatively affected by them.
In limited circumstances, the Company relies on sole source suppliers for certain materials and may face challenges or delays in establishing an alternative source. As a result of these factors, the Company’s operating results and financial condition could be adversely affected.
In addition, any decrease or delay in the availability of these materials or interruptions generally in the global supply chain could slow production and delivery to the Company’s customers. In limited circumstances, the Company relies on sole source suppliers for certain materials and may face challenges or delays in establishing an alternative source.
Any such disruption could cause delays in the production and distribution of the Company’s products and the loss of sales and customers. Moreover, these types of events could negatively impact consumer spending or the economy in the impacted regions or depending upon the severity, globally, or lead to long-term volatility in the currency markets.
Moreover, these types of events could negatively impact consumer spending or the economy in the impacted regions or depending upon the severity, globally, or lead to long-term volatility in the currency markets. These risks of conducting business internationally and the instability in global economic conditions may have a material adverse effect on the Company’s business, operating results and financial condition.
These efforts directly impact the Company’s ability to deliver its growth objectives and execute its strategy, though the Company is susceptible to interruptions in the workforce that could affect the Company’s operating results and financial condition. A material disruption or unforeseen difficulties with any of our manufacturing facilities could negatively impact our operating results and financial condition.
The Company continues to develop and invest in human capital through continuing education, work-related certifications, and talent and performance management systems. These efforts directly impact the Company’s ability to deliver its growth objectives and execute its strategy, though the Company remains susceptible to interruptions in the workforce that could affect the Company’s operating results and financial condition.
Labor shortages or increased labor-related costs could also directly affect our financial condition. Additionally, the health of the Company's employees is critical, and workplace safety is the Company's top priority. The Company continues to develop and invest in human capital through continuing education, work-related certifications, and talent and performance management systems.
Labor shortages or increased labor-related costs have directly affected our results and, if they are significant or sustained, could adversely affect our results of operations and financial condition. Additionally, the health of the Company's employees is critical, and workplace safety is the Company's top priority.
In addition, a higher level of floating rate debt would increase the exposure to changes in interest rates. As of December 31, 2024, the Company’s total debt, including notes payable, was $28.6 million and the unused availability under its credit facility (the "Facility") was $82.8 million.
As of December 31, 2025, the Company’s total debt, including notes payable, was $39.5 million and the unused availability under its credit facility (the "Facility") was $52.0 million.
The Company operates 25 manufacturing facilities domestically and internationally to strategically serve its worldwide markets. Equipment failures, operational interruptions, natural disasters and other unanticipated disruptions may decrease our ability to manufacture our products in a timely manner at our anticipated cost.
Equipment failures, operational interruptions, natural disasters and other unanticipated disruptions may decrease our ability to manufacture our products in a timely manner at our anticipated cost. Interruptions in our production due to such a disruption may lead to decreasing sales and necessitate capital expenditures, therefore negatively impacting our operating results and financial condition.
The Company’s cost of sales may be materially adversely affected by increases in the market prices of the raw materials used in the Company’s manufacturing processes.
The Company’s cost of sales may be adversely affected by increases in the market prices of the raw materials used in the Company’s manufacturing processes. The Company has experienced, and is expected to continue to experience, a high tariff environment and inflationary pressures that have impacted its profit margins, primarily due to tariffs on raw materials (specifically, steel and aluminum).
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Over the past few years, the Company has experienced temporary inflationary pressures that have impacted its profit margins, primarily due to raw materials increases (specifically, plastic resins, steel, aluminum, petroleum and sand (grit)), coupled with increased freight costs and tariffs.
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While tariffs imposed under the International Emergency Economic Powers Act (IEEPA) in 2025 were ruled to be illegal in February 2026 by the U.S. Supreme Court, the steel and aluminum tariffs remain in place and additional tariffs have been and may continue to be established.
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Interruptions in our production due to such a disruption may lead to decreasing sales and necessitating capital expenditures, therefore negatively impacting our operating results and financial condition. The Company may also face unforeseen difficulties if we decide to build, lease, expand, redesign, relocate or consolidate facilities.
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Further, to the extent amounts are refunded for previously paid tariffs that impacted the Company, it is unknown how such refunds would be processed or the timeline for doing so and whether any such amounts would be recovered by the Company.
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International sales account for a substantial portion of the Company’s net sales (53%, 55%, and 48% in 2025, 2024 and 2023, respectively).
Added
Failure to comply with any such legal requirements could subject the Company to monetary liabilities and other sanctions, which could harm its business, results of operations and financial condition.
Added
Any such disruption could cause delays in the production and distribution of the Company’s products and the loss of sales and customers, particularly in regions where the Company maintains manufacturing operations or relies on cross border sourcing.
Added
Further, artificial intelligence tools are increasingly being used in our industry, and we are evaluating the use of such tools throughout our company. There are risks involved in developing and using artificial intelligence tools in our operations.
Added
A material disruption or unforeseen difficulties with any of our manufacturing facilities could negatively impact our operating results and financial condition. The Company operates 26 manufacturing facilities domestically and internationally to strategically serve its worldwide markets.
Added
For example, President Trump imposed tariffs on foreign countries under the International Emergency Economic Powers Act (IEEPA) in 2025. In February 2026, the U.S. Supreme Court held that the IEEPA does not authorize the President to impose tariffs, therefore striking the tariffs that President Trump imposed pursuant to the IEEPA.
Added
As a result, the nature, timing and impact on our business of potential changes to the current legal and regulatory frameworks are uncertain.

Item 1C. Cybersecurity

Cybersecurity — threats and controls disclosure

7 edited+4 added−2 removed5 unchanged
Biggest changeThe Director of Global Information Systems, who manages information security training and awareness program, updates the Audit Committee periodically regarding information security matters. The findings from the Company’s annual third-party and internal information security audits also are reported to the Audit Committee.
Biggest changeIn addition to the Audit Committee’s oversight, the full Board of Directors receives periodic updates relating to information security and cybersecurity risks. The Board of Directors receives an annual report from its independent cybersecurity advisor. The Director of Global IT Infrastructure & Security, who manages information security training and awareness program, updates the Audit Committee periodically regarding information security matters.
Further, as of part of the Company’s overall information security program, the Company conducts a security awareness program, which includes training that reinforces the Company’s security management policies, standards, and practices, as well as the 14 expectation that employees comply with these policies, standards and practices.
Further, as part of the Company’s overall information security program, the Company conducts a security awareness program, which includes training that reinforces the Company’s security management policies, standards, and practices, as well as the expectation that employees comply with these policies, standards and practices, and facilitates identifying potential cybersecurity risks and protecting the Company’s resources and information.
The Director of Global Information Systems reported to the CFO and coordinated with the IT resources across all subsidiary operations to discuss risk management initiatives, testing and training, recent trends and technological developments, and periodic reviews of third-party providers. In October 2024, the Director of Global Information Systems left the Company to pursue other opportunities.
From January 2025 to September 2025, the Director of Global Information Systems had oversight responsibilities for PLP's information systems and cybersecurity. The Director of Global Information Systems reported to the CFO and coordinated with the IT resources across all subsidiary operations to discuss risk management initiatives, testing and training, recent trends and technological developments, and periodic reviews of third-party providers.
The Company also actively engages with key vendors and industry participants as part of its efforts, which are reported to the Audit Committee. In addition to the Audit Committee’s oversight, the full Board of Directors receives periodic updates relating to information security and cyber security risks. The Board of Directors receives an annual report from its independent cybersecurity advisor.
The findings from the Company’s annual third-party and internal information security audits also are reported to the Audit Committee. The Company also actively engages with key vendors and industry participants as part of its efforts, which are reported to the Audit Committee.
The Company uses a variety of processes to address cybersecurity threats related to the use of third-party technology and services, including pre-acquisition diligence, imposition of contractual obligations, and ongoing monitoring. To date, there has not been any previous cybersecurity incident that has materially affected the Company's business strategy, results of operations or financial condition. See Item 1A.
To date, there have not been any previous cybersecurity incidents that have materially affected the Company's business strategy, results of operations or financial condition. See Item 1A.
During the interim period before a replacement was appointed, the CFO provided more active oversight to address the Director of Global Information System's responsibilities, including reporting to the Audit Committee.
In September 2025, the Director of Global Information Systems left the Company to pursue other opportunities. During the interim period before a replacement was appointed, the CFO provided more active oversight to address the Director of Global Information System's responsibilities. In December 2025, the Company reorganized its technology functions to align with evolving operational and cybersecurity requirements.
The Company’s security awareness program engages personnel through mandatory periodic training on identifying potential cybersecurity risks and protecting the Company’s resources and information. The Company also annually engages third parties (as well as its internal audit department) to audit the Company’s information security programs.
The Company also annually engages third parties (as well as its internal audit department) to audit the Company’s information security programs. The Company uses a variety of processes to address cybersecurity threats related to the use of third-party technology and services, including pre-acquisition diligence, imposition of contractual obligations, and ongoing monitoring.
Removed
Through October 2024, the Director of Global Information Systems had oversight responsibilities for PLP’s information systems and cyber security, a role he held for 15 years. He attended regular education programs regarding enterprise cybersecurity and supporting technologies.
Added
As part of this reorganization, the Company established the new role of Director of Global IT Infrastructure & Security which reports to the CFO, and the position was filled on December 1, 2025.
Removed
The vacancy was filled on February 3, 2025 and the new Director of Global Information Systems joined the Company with over 30 years of professional IT experience where he held Director and Chief Information Officer roles at large global companies and provided technology consulting and cybersecurity services to companies across various industries.
Added
This role is responsible for leading the global team that manages and delivers all IT infrastructure services and security protocols, including network operations, servers and storage, database management, data center operations, messaging and collaboration services, service delivery, end‑user computing, telephony, and remote site support.
Added
The Director, who will provide periodic strategic updates to the Audit Committee, is also charged with developing and implementing strategic and operational initiatives, establishing standards, policies, and procedures, overseeing daily operational activities, and providing direction to IT personnel.
Added
The individual appointed to this role brings over 25 years of IT leadership experience, including serving in Director‑level and Chief Information Officer positions.

Item 2. Properties

Properties — owned and leased real estate

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Biggest changeWe believe that our properties have been adequately maintained, are in good condition generally and are suitable and adequate for our business as presently conducted. The extent to which we utilize our properties varies by property and from time to time and aligns with manufacturing needs. Most of our manufacturing facilities remain capable of handling volume increases. Item 3.
Biggest changeWe believe that our properties have been adequately maintained, are in good condition generally and are suitable and adequate for our business as presently conducted. The extent to which we utilize our properties varies by property and aligns with manufacturing needs. Most of our manufacturing facilities remain capable of handling volume increases. Item 3.
Item 2. Properties Our corporate headquarters is located in Mayfield Village, Ohio, and, at December 31, 2024, the Company maintained 25 manufacturing plants. We also maintain various sales, research and engineering, administrative offices and distribution centers throughout the world. None of these manufacturing plants, administrative offices or distribution centers are individually material to our operations.
Item 2. Properties Our corporate headquarters is located in Mayfield Village, Ohio, and, at December 31, 2025, the Company maintained 26 manufacturing plants. We also maintain various sales, research and engineering, administrative offices and distribution centers throughout the world. None of these manufacturing plants, administrative offices or distribution centers are individually material to 15 our operations.

Item 5. Market for Registrant's Common Equity

Market for Common Equity — stock, dividends, buybacks

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Biggest changeThe comparison of the cumulative total returns for each investment assumes that $100 was invested in PLP's common shares and the respective indices on December 31, 2019 through December 31, 2024 and assumes the reinvestment of dividends. 17 2019 2020 2021 2022 2023 2024 PREFORMED LINE PRODUCTS CO 100.00 115.12 110.12 143.07 231.46 222.39 NASDAQ MARKET INDEX 100.00 144.92 177.06 119.45 172.77 223.87 PEER GROUP INDEX 100.00 117.89 140.53 119.39 153.64 163.08 Repurchases of Equity Securities 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.
Biggest changeThe comparison of the cumulative total returns for each investment assumes that $100 was invested in PLP's common shares and the respective indices on December 31, 2020 through December 31, 2025 and assumes the reinvestment of dividends. 18 2020 2021 2022 2023 2024 2025 PREFORMED LINE PRODUCTS CO 100.00 95.65 124.28 201.06 193.18 314.11 NASDAQ MARKET INDEX 100.00 122.18 82.43 119.22 154.48 187.14 PEER GROUP INDEX 100.00 119.19 101.26 130.35 138.36 189.32 Repurchases of Equity Securities 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 graph compares the cumulative total return to holders of PLP's common shares against the cumulative total return of the NASDAQ Composite Index and the Hemscott Industry Group 627 (Industrial Electrical Equipment) (the “Peer Group Index”) for the five-year period ended December 31, 2024.
The following graph compares the cumulative total return to holders of PLP's common shares against the cumulative total return of the NASDAQ Composite Index and the Hemscott Industry Group 627 (Industrial Electrical Equipment) (the “Peer Group Index”) for the five-year period ended December 31, 2025.
Therefore, there can be no assurance that the Company will continue to make such dividend payments in the future. Number of common shareholders As of February 19, 2025, the Company had approximately 5,988 shareholders of record. Performance Graph Historical share price performance should not be relied upon as an indication of future share price performance.
Therefore, there can be no assurance that the Company will continue to make such dividend payments in the future. Number of common shareholders As of March 4, 2026, the Company had approximately 6,385 shareholders of record. Performance Graph Historical share price performance should not be relied upon as an indication of future share price performance.
Year Ended December 31, 2024 2023 Quarter High Low Dividend High Low Dividend First $ 138.00 $ 120.23 $ 0.20 $ 128.04 $ 79.29 $ 0.20 Second 135.33 120.42 0.20 172.40 119.62 0.20 Third 137.87 112.94 0.20 182.06 151.00 0.20 Fourth 143.56 121.10 0.20 162.36 110.28 0.20 While the Company expects to continue to pay dividends of a comparable amount in the near term, the declaration and payment of future dividends will be made at the discretion of the Company’s Board of Directors in light of the needs of the Company.
Year Ended December 31, 2025 2024 Quarter High Low Dividend High Low Dividend First $ 152.34 $ 120.05 $ 0.20 $ 138.00 $ 120.23 $ 0.20 Second 159.93 130.74 0.20 135.33 120.42 0.20 Third 206.33 140.59 0.20 137.87 112.94 0.20 Fourth 239.80 186.26 0.21 143.56 121.10 0.20 While the Company expects to continue to pay dividends of a comparable amount in the near term, the declaration and payment of future dividends will be made at the discretion of the Company’s Board of Directors in light of the needs of the Company.
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 October — $ — — 181,757 November 2,260 $ 131.43 2,260 179,497 December — $ — — 179,497 Total 2,260 Item 6. [Reserved]
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 October 850 $ 227.43 850 127,179 November 5,850 $ 217.17 5,850 121,329 December 2,000 $ 207.23 2,000 119,329 Total 8,700 Item 6. [Reserved] 19

Item 7. Management's Discussion & Analysis

Management's Discussion & Analysis (MD&A) — revenue / margin commentary

56 edited+21 added−13 removed28 unchanged
Biggest changeExcluding the effect of currency translation, gross profit decreased $43.5 million, or 19%, as summarized in the following table: 21 Year Ended December 31, (Thousands of dollars) 2024 2023 Change Change Due to Currency Translation Change Excluding Currency Translation % Change Gross profit PLP-USA $ 92,969 $ 138,961 $ (45,992) $ — $ (45,992) (33) % The Americas 28,608 30,005 (1,397) (1,807) 410 1 EMEA 36,796 36,372 424 462 (38) — Asia-Pacific 31,438 29,510 1,928 (224) 2,152 7 Consolidated $ 189,811 $ 234,848 $ (45,037) $ (1,569) $ (43,468) (19) % PLP-USA gross profit of $93.0 million decreased by $46.0 million, or 33%, compared to the same period in 2023, primarily due to lower sales volumes and unfavorable product mix.
Biggest changeExcluding the effect of currency translation, gross profit increased $18.6 million, or 10%, as summarized in the following table: 22 Year Ended December 31, (Thousands of dollars) 2025 2024 Change Change Due to Currency Translation Change Excluding Currency Translation % Change Gross profit PLP-USA $ 105,857 $ 92,969 $ 12,888 $ — $ 12,888 14 % The Americas 31,737 28,608 3,129 (1,158) 4,287 15 EMEA 39,267 36,796 2,471 1,545 926 3 Asia-Pacific 31,678 31,438 240 (217) 457 1 Consolidated $ 208,539 $ 189,811 $ 18,728 $ 170 $ 18,558 10 % PLP-USA gross profit of $105.9 million increased by $12.9 million, or 14%, compared to the same period in 2024, primarily due to higher sales volumes and favorable product mix benefited by price increases enacted in 2025, partially offset by higher tariff and manufacturing costs, including LIFO valuation costs.
The MD&A is provided as a supplement to, and should be read in conjunction with, our audited consolidated financial statements and related notes included elsewhere in this report. 18 OVERVIEW Preformed Line Products Company (the “Company”, “PLPC”, “we”, “us”, or “our”) was incorporated in Ohio in 1947.
The MD&A is provided as a supplement to, and should be read in conjunction with, our audited 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.
Revenue is measured as the amount of consideration the Company expects to receive in exchange for transferring products. All revenue is recognized when the 24 Company satisfies the performance obligations under the contract and control of the product is transferred to the customer, primarily based on shipping terms.
Revenue is measured as the amount of consideration the Company expects to receive in exchange for transferring products. All revenue is recognized when the Company satisfies the performance obligations under the contract and control of the product is transferred to the customer, primarily based on shipping terms.
Historically, our international sales were primarily related to the medium voltage distribution segment of the energy market but have grown through acquisition and new product development to include a significant contribution from the transmission and telecommunications markets.
Historically, our international sales were primarily related to the medium voltage distribution segment of the energy market but have grown through acquisition and new product development to include a significant contribution from the transmission, substation and telecommunications markets.
The Company believes that the methodologies, significant assumptions, and weightings used are reasonable and result in appropriate fair values of the reporting units. Impairment assessments inherently involve management judgments regarding a number of assumptions.
The Company believes that the methodologies, significant assumptions, and weightings used are reasonable and result in appropriate fair values of the reporting units. 26 Impairment assessments inherently involve management judgments regarding a number of assumptions.
We provide helical solutions, connectors, 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.
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.
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 December 31, 2024, the Company had total outstanding letters of credit of $1.3 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 December 31, 2025, the Company had total outstanding letters of credit of $3.1 million.
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. At December 31, 2024, the outstanding balance on the term loan was $12.6 million, of which $2.1 million was classified as current.
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. At December 31, 2025, the outstanding balance on the term loan was $10.6 million, of which $2.1 million was classified as current.
For additional discussion of our results of operations for the year ended December 31, 2022, see our Annual Report on Form 10-K for the year ended December 31, 2022, filed with the SEC on March 3, 2023. Our consolidated financial statements are prepared in conformity with U.S. generally accepted accounting principles ("GAAP").
For additional discussion of our results of operations for the year ended December 31, 2023, see our Annual Report on Form 10-K for the year ended December 31, 2023, filed with the SEC on March 8, 2024. Our consolidated financial statements are prepared in conformity with U.S. generally accepted accounting principles ("GAAP").
We believe that our leadership position in the domestic energy and communications markets and the ability to deliver reliable products quickly will position us for continued growth as transmission grids and communication networks are enhanced, upgraded and extended. Our international business is also mainly concentrated in the energy and communications markets.
We believe that our leadership position in the domestic energy and communications markets and the ability to deliver reliable products quickly will position us for continued growth as transmission grids, distribution lines, and substation projects, as well as communication networks, are enhanced, upgraded and extended. Our international business is also mainly concentrated in the energy and communications markets.
We have commitments under operating leases primarily for office and manufacturing space, transportation equipment, office and computer equipment and capital leases, primarily for equipment. See Note 8 in the Notes to Consolidated Financial Statements for more information. As of December 31, 2024, the Company had total outstanding guarantees of $11.3 million.
We have commitments under operating leases primarily for office and manufacturing space, transportation equipment, office and computer equipment and capital leases, primarily for equipment. See Note 8 in the Notes to Consolidated Financial Statements for more information. As of December 31, 2025, the Company had total outstanding guarantees of $14.1 million.
A $1.6 million, or 3.2%, net increase resulting from earnings in jurisdictions with higher tax rates than the U.S. federal statutory rate where such earnings are permanently reinvested. 3. A $1.6 million, or 3.2%, net decrease resulting from generation of foreign tax credits. 4. A $1.2 million, or 2.4%, net decrease resulting from other stock compensation. 5.
A $1.6 million, or 3.2%, net increase resulting from earnings in jurisdictions with higher tax rates than the U.S. federal statutory rate where such earnings are permanently reinvested. 3. A $1.6 million, or 3.2%, net decrease resulting from generation of foreign tax credits. 4. A $1.2 million, or 2.4%, net decrease resulting from excess tax benefits from RSUs. 5.
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. In 2024, we used cash of $14.7 million for capital expenditures.
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.
International net sales for the year ended December 31, 2024 were unfavorably affected by $4.2 million when local currencies were converted to U.S. dollars. The following discussion of changes in net sales excludes the effect of currency translation.
International net sales for the year ended December 31, 2025 were favorably affected by $1.4 million when local currencies were converted to U.S. dollars. The following discussion of changes in net sales excludes the effect of currency translation.
We believe that we are well positioned to supply the needs of the world’s diverse energy and communication markets as a result of our focused portfolio and strategic operational footprint, including expansion from recent acquisitions and product designs and technologies. PREFACE The following discussion describes our results of operations for the years ended December 31, 2024, 2023 and 2022.
We believe that we are well positioned to supply the needs of the world’s diverse energy and communication markets as a result of our focused portfolio and strategic operational footprint, including expansion from recent acquisitions, investment in new manufacturing facilities and product designs and technologies. 20 PREFACE The following discussion describes our results of operations for the years ended December 31, 2025 and 2024.
The following items had the most significant impact on the difference between our statutory U.S. federal income tax rate of 21.0%: 22 2024 1. A $2.0 million, or 4.0%, net increase resulting from Non-deductible officers' compensation. 2.
The following items had the most significant impact on the difference between our statutory U.S. federal income tax rate of 21.0%: 2025 1. A $1.7 million, or 3.8%, net increase resulting from non-deductible officers' compensation 2.
The effect of currency translation had an unfavorable impact on net income in the year ended December 31, 2024 of $0.7 million and an unfavorable impact of $0.2 million in the year ended December 31, 2023.
The effect of currency translation had a favorable impact on net income in the year ended December 31, 2025 of $0.1 million and an unfavorable impact of $0.7 million in the year ended December 31, 2024.
At December 31, 2024, the Company was in compliance with these covenants. Our Asia-Pacific segment had $0.1 million and $0.2 million in restricted cash for the years ended December 31, 2024 and 2023. The restricted cash was used to secure bank debt and is included in Cash, cash equivalents and restricted cash on the balance sheet.
Our Asia-Pacific segment had $0.1 million in restricted cash for the years ended December 31, 2025 and 2024. The restricted cash was used to secure bank debt and is included in Cash, cash equivalents and restricted cash on the balance sheet.
CRITICAL ACCOUNTING POLICIES AND ESTIMATES Our discussion and analysis of our financial condition and results of operations are based upon the consolidated financial statements, which have been prepared in accordance with GAAP.
These facilities support commitments made in the ordinary course of business. 25 CRITICAL ACCOUNTING POLICIES AND ESTIMATES Our discussion and analysis of our financial condition and results of operations are based upon the consolidated financial statements, which have been prepared in accordance with GAAP.
Net Cash used in financing activities for the years ended December 31, 2024 and 2023 was $47.8 million and $48.9 million, respectively. The year-over-year change was primarily the result of decreased share repurchases offset by increased net payments of long-term debt.
Net Cash used in financing activities for the years ended December 31, 2025 and 2024 was $9.2 million and $47.8 million, respectively. The $38.6 million change was primarily the result of a reduction in net payments of long-term debt.
Total debt, including notes payable, at December 31, 2024 was $28.6 million. At December 31, 2024, our unused availability under our credit facility (the "Facility") was $82.8 million and our bank debt to equity percentage was 6.8%. The Facility contains, 23 among other provisions, requirements for maintaining levels of net worth and profitability.
At December 31, 2025, our unused availability under our credit facility (the "Facility") was $52.0 million and our bank debt to equity percentage was 8.3%. The Facility contains, among other provisions, requirements for maintaining levels of net worth and profitability. At December 31, 2025, the Company was in compliance with these covenants.
Year Ended December 31, (Thousands of dollars) 2024 2023 Change Change Due to Currency Translation Change Excluding Currency Translation % Change Net income (loss) PLP-USA $ 13,940 $ 45,392 $ (31,452) $ — $ (31,452) (69) % The Americas 8,951 5,755 3,196 (803) 3,999 69 EMEA 7,762 5,796 1,966 128 1,838 32 Asia-Pacific 6,441 6,389 52 (52) 104 2 Consolidated $ 37,094 $ 63,332 $ (26,238) $ (727) $ (25,511) (40) % 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, fund additional investments, including acquisitions, and make dividend payments to shareholders.
Year Ended December 31, (Thousands of dollars) 2025 2024 Change Change Due to Currency Translation Change Excluding Currency Translation % Change Net income (loss) PLP-USA $ 19,512 $ 13,940 $ 5,572 $ — $ 5,572 40 % The Americas 5,395 8,951 (3,556) (225) (3,331) (37) EMEA 5,342 7,762 (2,420) 123 (2,543) (33) Asia-Pacific 5,034 6,441 (1,407) 154 (1,561) (24) Consolidated $ 35,283 $ 37,094 $ (1,811) $ 52 $ (1,863) (5) % 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, fund additional investments, including acquisitions, and make dividend payments to shareholders.
A $1.8 million, or 2.2%, net increase resulting from earnings in various U.S States. 4. A $1.7 million, or 2.0%, net increase resulting from earnings in jurisdictions with higher tax rates than the U.S. federal statutory rate where such earnings are permanently reinvested. Net income.
A $1.6 million, or 3.5%, net increase resulting from an increase in withholding taxes and from earnings in jurisdictions with higher tax rates than the U.S. federal statutory rate where such earnings are permanently reinvested. 3. A $1.4 million, or 3.1%, net decrease resulting from the U.S. pension plan termination charge. 4.
The fluctuations of foreign currencies during the years ended December 31, 2024 and December 31, 2023 had an unfavorable impact on net sales of $4.2 million and a favorable impact of $0.4 million, respectively.
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 years ended December 31, 2025 and December 31, 2024 had a favorable impact on net sales of $1.4 million and an unfavorable impact of $4.2 million, respectively.
We expect the majority of accumulated non-U.S. cash balances will remain outside of the U.S. and that we will meet U.S. liquidity needs through future cash flows, use of U.S. cash balances, external borrowings, or some combination of these sources.
We expect the majority of accumulated non-U.S. cash balances will remain outside of the U.S. and that we will meet U.S. liquidity needs through future cash flows, use of U.S. cash balances, external borrowings, or some combination of these sources. 24 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.
Likewise, should we determine that we would not be able to realize all or part of our net deferred tax assets in the future, an adjustment to the valuation allowance would be charged to expense in the period such determination was made. 25 Pension Obligations We record obligations and expenses related to a pension benefit plan based on actuarial valuations, which include key assumptions on discount rates, expected returns on plan assets and compensation increases.
Likewise, should we determine that we would not be able to realize all or part of our net deferred tax assets in the future, an adjustment to the valuation allowance would be charged to expense in the period such determination was made.
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. 19 Net sales of $593.7 million for the year ended December 31, 2024 decreased $76.0 million year-over-year, mainly due to the continued inventory destocking occurring primarily in the U.S. markets.
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.
Other income, net as of the year ended December 31, 2024 was favorable by $1.8 million when compared to Other expense, net for the year ended December 31, 2024 of $1.8 million.
Other expense, net as of the year ended December 31, 2025 was unfavorable by $9.5 million when compared to the nominal Other income, net for the year ended December 31, 2024. The unfavorable movement was mainly due to the $11.7 million U.S.
International gross profit for the period ended December 31, 2024 was unfavorably impacted by $1.6 million when local currencies were translated to U.S. dollars. The following discussion of gross profit changes excludes the effects of currency translation.
International gross profit for the period ended December 31, 2025 was favorably impacted by $0.2 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 $4.3 million, or 15%, which was primarily the result of higher sales volumes, offset by unfavorable product mix.
The Company’s past operating results are not necessarily indicative of future operating results. 20 Year Ended December 31, (Thousands of dollars) 2024 2023 Change Net sales $ 593,714 100.0 % $ 669,679 100.0 % $ (75,965) Cost of products sold 403,903 68.0 434,831 64.9 (30,928) GROSS PROFIT 189,811 32.0 234,848 35.1 (45,037) Costs and expenses 139,054 23.4 150,694 22.5 (11,640) OPERATING INCOME 50,757 8.5 84,154 12.6 (33,397) Other income (expense), net 13 0.0 (1,810) (0.3) 1,823 INCOME BEFORE INCOME TAXES 50,770 8.6 82,344 12.3 (31,574) Income taxes 13,659 2.3 19,007 2.8 (5,348) NET INCOME 37,111 6.3 63,337 9.5 (26,226) Net income attributable to noncontrolling interests (17) (0.0) (5) (0.0) (12) NET INCOME ATTRIBUTABLE TO PREFORMED LINE PRODUCTS COMPANY SHAREHOLDERS $ 37,094 6.2 % $ 63,332 9.5 % $ (26,238) 2024 RESULTS OF OPERATIONS COMPARED TO 2023 Net sales.
The Company’s past operating results are not necessarily indicative of future operating results. 21 Year Ended December 31, (Thousands of dollars) 2025 2024 Change Net sales $ 669,338 100.0 % $ 593,714 100.0 % $ 75,624 Cost of products sold 460,799 68.8 403,903 68.0 56,896 GROSS PROFIT 208,539 31.2 189,811 32.0 18,728 Costs and expenses 153,404 22.9 139,054 23.4 14,350 OPERATING INCOME 55,135 8.2 50,757 8.5 4,378 Other (expense) income, net (9,515) (1.4) 13 0.0 (9,528) INCOME BEFORE INCOME TAXES 45,620 6.8 50,770 8.6 (5,150) Income tax expense 10,313 1.5 13,659 2.3 (3,346) NET INCOME 35,307 5.3 37,111 6.3 (1,804) Net income attributable to noncontrolling interests (24) (0.0) (17) (0.0) (7) NET INCOME ATTRIBUTABLE TO PREFORMED LINE PRODUCTS COMPANY SHAREHOLDERS $ 35,283 5.3 % $ 37,094 6.2 % $ (1,811) 2025 RESULTS OF OPERATIONS COMPARED TO 2024 Net sales.
Asia-Pacific gross profit increased $2.2 million, or 7%, which was primarily driven by favorable product mix. Costs and expenses. Costs and expenses of $139.1 million for the year ended December 31, 2024 decreased $11.6 million, or 8%, when compared to 2023.
EMEA gross profit increased $0.9 million, or 3%, due to favorable product mix. Asia-Pacific gross profit increased $0.5 million, or 1%, which was primarily driven by higher sales volume, partially offset by higher inventory reserves. Costs and expenses. Costs and expenses of $153.4 million for the year ended December 31, 2025 increased $14.4 million, or 10%, when compared to 2024.
See Note 7 in the Notes to Consolidated Financial Statements for more information. We expect that our major source of funding for 2025 and beyond will be our operating cash flows, our existing cash and cash equivalents as well as our Facility agreement. The Facility agreement has an expiration date of March 2, 2026.
We expect that our major source of funding for 2026 and beyond will be our operating cash flows, our existing cash and cash equivalents as well as our Facility agreement. The Facility agreement has an expiration date of June 30, 2028. Except for current earnings in certain jurisdictions, our operating income is deemed to be indefinitely reinvested in foreign jurisdictions.
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 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.
The 2025 expected long-term return on plan assets o f 4.75% reflects the plan’s historical returns and represents our best estimate of the likely future returns on the plan’s asset mix. We believe the assumptions used in recording obligations under the plans are reasonable based on prior experience, market conditions and the advice of plan actuaries.
We believe the assumptions used in recording obligations under the plans are reasonable based on prior experience, market conditions and the advice of plan actuaries.
Our effective tax rate increased primarily due to the limitations on the deductibility of compensation and the unfavorable impact from the mix of income earned in jurisdictions with a higher tax rate than the U.S. This was partially offset by a favorable impact from increase in excess tax benefit on share-based compensation.
Plan termination and a reduction in the unfavorable impact from the mix of income earned in jurisdictions with a higher tax rate than the U.S. This was partially offset by an unfavorable impact from the decrease in certain tax credits.
Net Cash used in investing activities for the years ended December 31, 2024 and 2023 was $12.4 million and $44.8 million, respectively. The $32.4 million decrease was primarily a result of decreases in acquisition activity and capital expenditures during the current period.
Net Cash used in investing activities for the years ended December 31, 2025 and 2024 was $43.4 million and $12.4 million, respectively.
A $1.2 million, or 2.3%, net increase resulting from the inclusion of Global Intangible Low-Taxed Income. 2023 1. A $3.7 million, or 4.5%, net decrease resulting from generation of foreign tax credits. 2. A $3.0 million, or 3.6%, net increase resulting from the inclusion of Global Intangible Low-Taxed Income. 3.
A $1.2 million, or 2.6%, net decrease resulting from excess tax benefits from executive compensation in the form of restricted stock units (or "RSUs"). 5. A $0.7 million, or 1.5%, net decrease resulting from the generation of foreign tax credits. 2024 1. A $2.0 million, or 4.0%, net increase resulting from non-deductible officers' compensation. 2.
Excluding the effect of currency translation, costs and expenses decreased $10.9 million, or 7%, as summarized in the following table: Year Ended December 31, (Thousands of dollars) 2024 2023 Change Change Due to Currency Translation Change Excluding Currency Translation % Change Costs and expenses PLP-USA $ 72,593 $ 79,289 $ (6,696) $ — $ (6,696) (8) % The Americas 18,655 22,724 (4,069) (799) (3,270) (14) EMEA 26,090 28,193 (2,103) 257 (2,360) (8) Asia-Pacific 21,716 20,488 1,228 (158) 1,386 7 Consolidated $ 139,054 $ 150,694 $ (11,640) $ (700) $ (10,940) (7) % PLP-USA costs and expenses of $72.6 million decreased $6.7 million, or 8% year-over-year.
Excluding the effect of currency translation, costs and expenses increased $13.8 million, or 10%, as summarized in the following table: Year Ended December 31, (Thousands of dollars) 2025 2024 Change Change Due to Currency Translation Change Due to Intercompany Transactions Change Excluding Currency and Intercompany Transactions % Change Costs and expenses PLP-USA $ 69,922 $ 72,593 $ (2,671) $ — $ (8,876) $ 6,205 9 % The Americas 25,566 18,655 6,911 (623) 3,494 4,040 22 EMEA 32,000 26,090 5,910 1,275 1,865 2,770 11 Asia-Pacific 25,916 21,716 4,200 (76) 3,517 759 3 Consolidated $ 153,404 $ 139,054 $ 14,350 $ 576 $ — $ 13,774 10 % PLP-USA costs and expenses of $69.9 million increased $6.2 million, or 9% year-over-year.
At December 31, 2024, and December 31, 2023, $8.8 million and $13.3 million were outstanding, of which $8.2 million and $11.4 million were classified as current, respectively. These facilities support commitments made in the ordinary course of business.
At December 31, 2025, and December 31, 2024, $20.9 million and $8.8 million were outstanding, of which $4.6 million and $8.2 million were classified as current, respectively.
Sources and Uses of Cash Net Cash provided by operating activities for the years ended December 31, 2024 and 2023 was $67.5 million and $107.6 million, respectively. The $40.1 million decrease was primarily a result of a decrease in net income and decrease in cash from working capital.
Sources and Uses of Cash Net Cash provided by operating activities for the years ended December 31, 2025 and 2024 was $73.5 million and $67.5 million, respectively. The $6.0 million increase was primarily a result of the net favorable movement in non-cash items of $13.8 million, including the U.S. pension plan termination, offset by changes in operating assets and liabilities.
The Americas net sales of $90.3 million increased $9.2 million, or 11%, primarily due to higher volumes in energy product sales, partially offset by lower communication sales. EMEA net sales of $128.2 million decreased $8.6 million, or 6%, primarily due to lower volume in communications sales, partially offset by increased volumes in energy product sales.
EMEA net sales of $133.1 million decreased $0.8 million, or 1%, primarily due to lower volume in communications sales, partially offset by increased volumes in energy product sales. Asia-Pacific net sales of $114.8 million increased $7.1 million, or 7%, primarily due to volume increases in energy product sales and special industry sales. Gross Profit.
As a result of the preceding items, net income for the year ended December 31, 2024 was $37.1 million, compared to $63.3 million for 2023. Excluding the effect of currency translation, net income decreased $25.5 million as summarized in the following table.
A $1.2 million, or 2.3%, net increase resulting from the inclusion of Global Intangible Low-Taxed Income. Net income. As a result of the preceding items, net income for the year ended December 31, 2025 was $35.3 million, compared to $37.1 million for 2024.
PLP-USA’s decrease was primarily attributable to lower selling costs and lower personnel and professional services costs, primarily as a result of cost containment efforts. International costs and expenses for the year ended December 31, 2024 had a favorable impact by $0.7 million when local currencies were translated to U.S. dollars.
International costs and expenses for the year ended December 31, 2025 had a unfavorable impact by $0.6 million when local currencies were translated to U.S. dollars and was unfavorably impacted by intercompany transactions with PLP-USA. The following discussion of costs and expenses excludes the effect of currency translation and intercompany transactions.
On a reportable segment basis, the impact of foreign currency translation on net sales and net income for the years ended December 31, 2024 and 2023, respectively, was as follows: Foreign Currency Translation Impact Net Sales Net Income (Thousands of dollars) 2024 2023 2024 2023 The Americas $ (5,005) $ 1,771 $ (803) $ 166 EMEA 1,738 1,696 128 (101) Asia-Pacific (903) (3,042) (52) (278) Total $ (4,170) $ 425 $ (727) $ (213) Although customer destocking efforts in the PLP-USA communications and energy markets have impacted our 2024 results, we believe our business portfolio and our financial position are sound and strategically well-positioned.
On a reportable segment basis, the impact of foreign currency translation on net sales and net income for the years ended December 31, 2025 and 2024, respectively, was as follows: Foreign Currency Translation Impact Net Sales Net Income (Thousands of dollars) 2025 2024 2025 2024 The Americas $ (3,489) $ (5,005) $ (225) $ (803) EMEA 5,655 1,738 123 128 Asia-Pacific (760) (903) 154 (52) Total $ 1,406 $ (4,170) $ 52 $ (727) The following table sets forth a summary of the Company’s Statements of Consolidated Income and the percentage of net sales for the years ended December 31, 2025 and 2024.
Excluding the effect of currency translation, net sales decreased 11% as summarized in the following table: Year Ended December 31, (Thousands of dollars) 2024 2023 Change Change Due to Currency Translation Change Excluding Currency Translation % Change Net sales PLP-USA $ 266,704 $ 345,613 $ (78,909) $ — $ (78,909) (23) % The Americas 90,280 86,059 4,221 (5,005) 9,226 11 EMEA 128,241 135,080 (6,839) 1,738 (8,577) (6) Asia-Pacific 108,489 102,927 5,562 (903) 6,465 6 Consolidated $ 593,714 $ 669,679 $ (75,965) $ (4,170) $ (71,795) (11) % The decrease in PLP-USA net sales of $78.9 million, or 23%, was primarily due to lower volumes in communications and energy product sales due to customer destocking efforts.
Excluding the effect of currency translation, net sales increased 13% as summarized in the following table: Year Ended December 31, (Thousands of dollars) 2025 2024 Change Change Due to Currency Translation Change Excluding Currency Translation % Change Net sales PLP-USA $ 312,619 $ 266,704 $ 45,915 $ — $ 45,915 17 % The Americas 108,767 90,280 18,487 (3,489) 21,976 24 EMEA 133,123 128,241 4,882 5,655 (773) (1) Asia-Pacific 114,829 108,489 6,340 (760) 7,100 7 Consolidated $ 669,338 $ 593,714 $ 75,624 $ 1,406 $ 74,218 13 % The increase in PLP-USA net sales of $45.9 million, or 17%, was primarily due to higher volumes in communications and energy product sales.
At December 31, 2024, we had $57.2 million of cash, cash equivalents and restricted cash (collectively “Cash”). Our Cash is held in various locations throughout the world. At December 31, 2024, the majority of our cash is held outside the U.S.
In 2025, we used cash of $40.1 million for capital expenditures, of which $24.8 million relates to the construction of the new Poland facility and purchase of the new Spain facility. At December 31, 2025, we had $83.4 million of cash, cash equivalents and restricted cash (collectively “Cash”). Our Cash is held in various locations throughout the world.
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 that may signal possible customer credit issues. We currently have not identified any potential material impact on our liquidity from customer credit issues.
We closely monitor payments and developments that 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 December 31, 2025 was $39.5 million.
Period cost containment has been a priority for the Company in 2024, shown through a reduction in costs and expenses of approximately 8%. Our liquidity remains strong with our bank debt to equity percentage at 6.8%. We can borrow needed funds at a competitive interest rate under our credit facility.
Additionally, the Company's backlog increased approximately 22% to $232.8 million, further showing the strength of our core markets. As of December 31, 2025, our liquidity remains strong with our bank debt to equity percentage at 8.3%. We can borrow needed funds at a competitive interest rate under our credit facility.
If inflationary pressures persist or new tariffs are sustained, it may require further price adjustments to maintain profit margin and any price increases may have a negative effect on demand. Our financial statements are subject to fluctuations in the exchange rates of foreign currencies in relation to the U.S. dollar.
Further tariff increases 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. The tariffs outlook remains uncertain, particularly following the February 2026 U.S.
If necessary, we will modify redundant processes and further utilize our global manufacturing network to manage costs, increase sales volume and deliver value to our customers. 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.
We closely monitor developments in trade policy and actively evaluate strategies to mitigate the impact of tariffs, including sourcing alternatives and optimizing our supply chain. 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.
Income taxes for the years ended December 31, 2024 and 2023 were $13.7 million and $19.0 million based on pre-tax income of $50.8 million and $82.3 million, respectively. The effective tax rate for the years ended December 31, 2024 and 2023 was 26.9% and 23.1%, respectively.
Plan termination charge recorded in the third quarter of 2025, partially offset by government incentives received in 2025 related to our facility in China. Income taxes. Income taxes for the years ended December 31, 2025 and 2024 were $10.3 million and $13.7 million based on pre-tax income of $45.6 million and $50.8 million, respectively.
EMEA costs and expenses of $26.1 million decreased by $2.4 million primarily due to lower personnel costs and bad debt expenses. Asia-Pacific costs and expenses of $21.7 million increased $1.4 million primarily due to the net impact of the sale of capital assets year over year and foreign currency remeasurement. Other (expense) income, net .
Asia-Pacific costs and expenses of $25.9 million increased $0.8 million primarily due to a gain on the sale of capital assets in the first quarter of 2024 that did not recur, offset by a recovery of bad debt. Other (expense) income, net .
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. Our continued commitment to manufacturing in the U.S. positions us well for Build America, Buy America requirements of the Broadband Equity, Access, and Deployment Program.
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-related impacts, increase sales volume and deliver value to our customers.
In 2024, net sales were $593.7 million, a decrease of $76.0 million, or 11%, compared to 2023.
In 2025, net sales were $669.3 million, an increase of $75.6 million, or 13%, compared to 2024.
These actuarial assumptions are reviewed annually and modified as appropriate. The effect of modifications is generally recorded or amortized over future periods. The discount rate of 5.77% at December 31, 2024 reflects an analysis of yield curves as of the end of the year and the schedule of expected cash needs of the plan.
Pension Obligations For the remaining international pension plans, we record obligations and expenses related to a pension benefit plan based on actuarial valuations, which include key assumptions on discount rates, expected returns on plan assets and compensation increases. These actuarial assumptions are reviewed annually and modified as appropriate. The effect of modifications is generally recorded or amortized over future periods.
More recently, increasing commodity prices, inflation, tariffs, rising interest rates, transportation costs, and foreign currency fluctuations have led to a challenging operating environment. While these factors generally moderated in 2024, they may continue to provide inherent uncertainty going forward.
The continuing need for high-speed and efficient communication systems has led to further investment in network build-outs. Our focused portfolio is well-positioned to respond to these trends and priorities. While our markets remain robust, increasing commodity prices, inflation, tariffs, rising interest rates, transportation costs, and foreign currency fluctuations have led to a challenging operating environment.
Removed
MARKET OVERVIEW Our business continues to be concentrated in the energy and communications markets. During the past several years, industry consolidation continued as distributor and service provider integrations occurred in our major markets. There has also been a historical lack of commitment by developed countries to upgrade and strengthen their electrical grids and communication networks despite the growing need.
Added
MARKET OVERVIEW Our business continues to be concentrated in the energy and communications markets. We sit at the intersection of various economic and social megatrends impacting our markets, both domestically and internationally. The digitalization and electrification megatrends, which are increasing the need for power generation, have highlighted the need for bolstering grid reliability, strengthening grid resilience, and upgrading aging infrastructure.
Removed
The increasing need for power generation and efficient communication systems has highlighted the need for bolstering grid reliability, strengthening grid resilience to climate events, upgrading aging infrastructure, enhancing communication networks and transitioning to new sources of energy. Our focused portfolio is well-positioned to respond to these priorities.
Added
Although some of these pressures have shown periods of moderation, they may continue to provide inherent uncertainty going forward.
Removed
The inflationary headwinds we experienced in 2022 and early 2023 related to raw materials, specifically plastic resins, aluminum and sand (grit), have generally subsided. Costs related to shipping and freight have similarly fallen from their 2022 peak.
Added
Net sales of $669.3 million for the year ended December 31, 2025 increased $75.6 million year-over-year, mainly due to an increase in energy and communication sales for the year. The 2025 sales amount 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.
Removed
Decreases in these underlying costs along with the impacts of our previous price increases benefited gross margins in 2023 and have not meaningfully impacted the results during the twelve months ending December 31, 2024.
Added
Our strong liquidity also allowed us to increase our quarterly dividend by 5% to $0.21 per share in the fourth quarter of 2025, the first such increase since the Company's shares began trading on NASDAQ stock exchange in 2001.
Removed
PLP’s foreign currency exchange gains or (losses) were primarily related to translating into U.S. dollars its foreign currency denominated loans, trade receivables and payables from its foreign subsidiaries at the December 2024 year-end exchange rates.
Added
Notwithstanding the Company's positive momentum and strong core markets, the high tariff environment, especially on raw material imports, particularly steel and aluminum, continue to be impactful. In 2025, the Company incurred tariff costs of approximately of $15.1 million.
Removed
While PLP-USA sales results were down compared to the period ended December 31, 2023, our international segments had sales amounts comparable with prior year, showing our international footprint provides cyclical benefits. Our cash generation remains strong as evidenced through a significant reduction in debt levels.
Added
Additionally, PLP-USA's LIFO inventory valuation costs have accelerated due to tariffs, resulting in pre-tax charges of $9.0 million for the year ended December 31, 2025. While we remain steadfast in our commitment to U.S. manufacturing, we continue to manage trade matters proactively.
Removed
A consolidated decrease in debt of $33.7 million as of December 31, 2024 was primarily a result of improved cash conversion and less funding needs for capital expenditures and business acquisitions. See Note 7 "Debt and Credit Arrangements" in the Notes to Consolidated Financial Statements for more information related to our debt position.
Added
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.
Removed
The following table sets forth a summary of the Company’s Statements of Consolidated Income and the percentage of net sales for the years ended December 31, 2024 and 2023.
Added
While uncertainty remains in the global economy due to tariffs and trade matters, we believe our business portfolio, including our significant U.S. manufacturing footprint, as well as our financial position, are sound and strategically well-positioned.
Removed
Asia-Pacific net sales of $108.5 million increased $6.5 million, or 6%, primarily due to volume increases in energy product sales. Gross Profit. Gross profit of $189.8 million for 2024 decreased $45.0 million, or 19%, compared to 2023.
Added
The Americas net sales of $108.8 million increased $22.0 million, or 24%, primarily due to an increase in energy product sales and an increase in communications sales due to the acquisition of JAP Telecom in May 2025.
Removed
The Americas gross profit increased $0.4 million, or 1%, which was primarily the result of higher sales volumes, offset by increased depreciation expense and freight costs. EMEA gross profit decreased nominally, which was primarily driven by decreased sales volumes offset by favorable product mix and favorable resolution of a warranty claim.
Added
Gross profit of $208.5 million for 2025 increased $18.7 million, or 10%, compared to 2024.
Removed
The following discussion of costs and expenses excludes the effect of currency translation. The Americas costs and expenses of $18.7 million decreased $3.3 million primarily due to a legal settlement in the third quarter of 2023 and the impact of foreign currency remeasurement.
Added
PLP-USA’s increase was primarily attributable to personnel costs supporting strategic market growth in core product offerings in both energy and communications, primarily for sales, sales support and engineering resources, as well as higher selling and professional service costs.
Removed
The favorable movement was due to higher interest income earned on cash balances in certain international jurisdictions and lower interest expense from reduced debt balances for the year ended December 31, 2024. Income taxes.
Added
The Americas costs and expenses of $25.6 million increased $4.0 million primarily due to the acquisition of JAP Telecom in May 2025, an increase in personnel costs and the impact of foreign currency remeasurement.

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Item 7A. Quantitative and Qualitative Disclosures About Market Risk

Market Risk — interest-rate, FX, commodity exposure

4 edited+0 added−6 removed3 unchanged
Biggest changeAs of December 31, 2024, the Company had $0.1 million in foreign currency forward exchange assets and $0.1 million foreign currency forward exchange liabilities outstanding. The Company does not hold derivatives for trading purposes.
Biggest changeAs of December 31, 2025, the Company had no foreign currency forward exchange assets and $0.1 million foreign currency forward exchange liabilities outstanding. The Company does not hold derivatives for trading purposes. The Company's primary currency rate exposures are related to foreign denominated debt, intercompany debt, forward exchange contracts, foreign denominated receivables and payables and cash and short-term investments.
As such, beginning July 1, 2018, the functional currency for the Company’s Argentina subsidiary became the U.S. dollar. Revenue from operations in Argentina represented less than 1% of total consolidated net sales for the years ended December 31, 2024, 2023 and 2022.
As such, beginning July 1, 2018, the functional currency for the Company’s Argentina subsidiary became the U.S. dollar. Revenue from operations in Argentina represented less than 1% of total consolidated net sales for the years ended December 31, 2025, 2024 and 2023.
The Company is subject to interest rate risk on its variable rate revolving credit facilities and term notes, which consisted of long-term borrowings of $7.2 million at December 31, 2024. A 100 basis point increase in the interest rate would have resulted in an increase in interest expense of approximately $0.1 million for the year ended December 31, 2024.
The Company is subject to interest rate risk on its variable rate revolving credit facilities and term notes, which consisted of long-term borrowings of $17.9 million at December 31, 2025. A 100 basis point increase in the interest rate would have resulted in an increase in interest expense of approximately $0.2 million for the year ended December 31, 2025. 27
A hypothetical 10% change in currency rates would have a favorable/unfavorable impact on income before tax of $3.0 million. The Company is exposed to market risk, including changes in interest rates.
A hypothetical 10% change in currency rates would have a favorable/unfavorable impact on fair values on such instruments of approximately $4.7 million. A hypothetical 10% change in currency rates would have a favorable/unfavorable impact on income before tax of $2.0 million. The Company is exposed to market risk, including changes in interest rates.
Removed
The Company's primary currency rate exposures are related to foreign denominated debt, intercompany debt, forward exchange contracts, foreign denominated receivables and payables and cash and short-term investments. A hypothetical 10% change in currency rates would have a favorable/unfavorable impact on fair values on such instruments of approximately $6.9 million.
Removed
Included in the Company’s accounting for the defined benefit pension plan (the "U.S. Plan") are assumptions on future discount rates and the expected return on Plan assets. The Company considers current market conditions, including changes in interest rates and Plan asset investment returns.
Removed
Actuarial assumptions may differ materially from actual results due to changing market, demographic and economic conditions or higher or lower withdrawal rates. These differences may result in a significant impact to the amount of net pension expense or income recorded in the future. A discount rate is used to determine the present value of future payments.
Removed
In general, a pension liability increases as the discount rate decreases and decreases as the discount rate increases. The discount rate used to determine the future benefit obligation was 5.77% and 5.34% at December 31, 2024 and 2023, respectively. The discount rate is a significant factor in determining the amounts reported.
Removed
A 50 basis point change in the discount rate of 5.77% used at December 31, 2024 would have a $1.7 million change on the Plan’s projected benefit obligation. The Company developed the expected return on Plan assets by considering various factors which include targeted asset allocation percentages, historical returns, and expected future returns.
Removed
The Company assumed an expected rate of return of 6.25% for the year ended December 31, 2024 and 7.00% for the year ended December 31, 2023. A 50 basis point change in the expected rate of return would have a $0.1 million effect on the Plan’s subsequent year’s net periodic pension cost. 26

Other PLPC 10-K year-over-year comparisons