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Shares of Preformed Line Products Company (PLPC - Free Report) have declined 4.1% since reporting results for the second quarter of 2025. This compares unfavorably with the broader S&P 500 index, which fell 2.1% over the same period. Over the past month, the stock has experienced a steeper 10.2% decline, whereas the S&P 500 managed a modest 0.4% rise.
Solid Revenue & Earnings Growth
For the quarter ended June 30, 2025, PLPC reported net sales of $169.6 million, up 22% from $138.7 million in the same quarter of 2024. This top-line rally was driven by the strong performance in both energy and communication markets, particularly within the PLP-USA and Americas segments. The company’s diluted earnings per share (EPS) rose 35% to $2.56 from $1.89 a year ago. Net income grew to $12.7 million from $9.4 million in the prior-year quarter.
Gross profit also rose 25% year over year to $55.4 million, and the gross margin expanded by 80 basis points to 32.7% despite the adverse impacts of newly enacted tariffs and inflationary pressures on global commodities.
Preformed Line Products Company Price, Consensus and EPS Surprise
Pre-tax income for the quarter increased 55% year over year to $17.3 million, reflecting improvements in operational efficiency and pricing strategies aimed at offsetting input cost pressures. Regionally, PLP-USA led growth with a 32% increase in sales, while the Americas and the Asia-Pacific regions followed with gains of 31% and 20%, respectively. The EMEA region also contributed to overall international growth.
Segment-wise, energy products remained the company’s largest business, accounting for approximately 70% of the total second-quarter sales. Energy revenues climbed 21% to $118.7 million from $98.5 million in the second quarter of 2024. Communications sales rose 40% to $13.6 million, with PLP-USA alone contributing a 41% year-over-year increase, bolstered by fiber closure product demand and the JAP Telecom acquisition. Special industries grew 22% year over year to $37.3 million.
Management Commentary
Executive chairman Rob Ruhlman emphasized the company's continued momentum following a strong first quarter. He attributed the gains to broad-based strength across both domestic and international markets, particularly in the energy and communications segments. However, he acknowledged uncertainties stemming from newly enacted tariffs affecting goods sourced internationally by PLP-USA.
Management indicated that increased costs related to steel and aluminum, particularly under Section 232 tariffs, were partially offset through cost controls and pricing actions. The leadership team reiterated its focus on delivering quality and service to sustain long-term relationships with customers across the global market.
Factors Influencing Results
Several drivers supported PLP’s robust quarter. Volume growth in both end markets — energy and communications — played a central role. Pricing adjustments helped the company maintain the gross margin, even amid headwinds like tariffs and higher raw material costs. The acquisition of JAP Telecom added approximately $1 million in incremental sales in the quarter.
On the cost side, increases in selling, general and administrative expenses were noted, rising to a combined $31.8 million from $27.2 million a year earlier. This rise was partially offset by a 44% decline in interest expenses to $318,000 in the second quarter of 2025 from $568,000 in the second quarter of 2024.
Guidance
Management expressed cautious optimism regarding the growth trajectory of its core end markets. Ruhlman reaffirmed the company’s focus on quality, customer service and supply-chain resilience, noting that pricing strategies and manufacturing investments are expected to support future performance amid macroeconomic volatility.
Other Developments
In the quarter, PLPC completed the acquisition of JAP Telecom, a move aimed at strengthening its communications product portfolio. In addition, the company secured a $27.4-million loan on July 16, 2025, to finance the construction of a manufacturing facility in Poland. This expansion is expected to support production capacity and growth in the EMEA region. The company also acquired land and buildings in Spain in the quarter, reinforcing its long-term commitment to international operations.
Capital expenditure increased significantly due to the Poland facility investment. The free cash flow for the second quarter of 2025 returned to normalized levels at $18.6 million, although it was down from $24.7 million in the prior-year period, driven by higher capex and timing of receivables collections. The company reported a trailing 12-month free cash flow conversion rate of 94%, reflecting strong underlying cash generation.
In summary, Preformed Line Products posted a strong second quarter marked by robust revenue and earnings growth despite facing notable macroeconomic and trade-related challenges. While investor sentiment appears cautious in the near term, as reflected in the recent stock performance, management’s proactive cost and pricing strategies, along with strategic investments
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PLPC Q2 Earnings Grow 35% Y/Y, Stock Falls 10% on Tariff Fears
Shares of Preformed Line Products Company (PLPC - Free Report) have declined 4.1% since reporting results for the second quarter of 2025. This compares unfavorably with the broader S&P 500 index, which fell 2.1% over the same period. Over the past month, the stock has experienced a steeper 10.2% decline, whereas the S&P 500 managed a modest 0.4% rise.
Solid Revenue & Earnings Growth
For the quarter ended June 30, 2025, PLPC reported net sales of $169.6 million, up 22% from $138.7 million in the same quarter of 2024. This top-line rally was driven by the strong performance in both energy and communication markets, particularly within the PLP-USA and Americas segments. The company’s diluted earnings per share (EPS) rose 35% to $2.56 from $1.89 a year ago. Net income grew to $12.7 million from $9.4 million in the prior-year quarter.
Gross profit also rose 25% year over year to $55.4 million, and the gross margin expanded by 80 basis points to 32.7% despite the adverse impacts of newly enacted tariffs and inflationary pressures on global commodities.
Preformed Line Products Company Price, Consensus and EPS Surprise
Preformed Line Products Company price-consensus-eps-surprise-chart | Preformed Line Products Company Quote
Other Key Business Metrics
Pre-tax income for the quarter increased 55% year over year to $17.3 million, reflecting improvements in operational efficiency and pricing strategies aimed at offsetting input cost pressures. Regionally, PLP-USA led growth with a 32% increase in sales, while the Americas and the Asia-Pacific regions followed with gains of 31% and 20%, respectively. The EMEA region also contributed to overall international growth.
Segment-wise, energy products remained the company’s largest business, accounting for approximately 70% of the total second-quarter sales. Energy revenues climbed 21% to $118.7 million from $98.5 million in the second quarter of 2024. Communications sales rose 40% to $13.6 million, with PLP-USA alone contributing a 41% year-over-year increase, bolstered by fiber closure product demand and the JAP Telecom acquisition. Special industries grew 22% year over year to $37.3 million.
Management Commentary
Executive chairman Rob Ruhlman emphasized the company's continued momentum following a strong first quarter. He attributed the gains to broad-based strength across both domestic and international markets, particularly in the energy and communications segments. However, he acknowledged uncertainties stemming from newly enacted tariffs affecting goods sourced internationally by PLP-USA.
Management indicated that increased costs related to steel and aluminum, particularly under Section 232 tariffs, were partially offset through cost controls and pricing actions. The leadership team reiterated its focus on delivering quality and service to sustain long-term relationships with customers across the global market.
Factors Influencing Results
Several drivers supported PLP’s robust quarter. Volume growth in both end markets — energy and communications — played a central role. Pricing adjustments helped the company maintain the gross margin, even amid headwinds like tariffs and higher raw material costs. The acquisition of JAP Telecom added approximately $1 million in incremental sales in the quarter.
On the cost side, increases in selling, general and administrative expenses were noted, rising to a combined $31.8 million from $27.2 million a year earlier. This rise was partially offset by a 44% decline in interest expenses to $318,000 in the second quarter of 2025 from $568,000 in the second quarter of 2024.
Guidance
Management expressed cautious optimism regarding the growth trajectory of its core end markets. Ruhlman reaffirmed the company’s focus on quality, customer service and supply-chain resilience, noting that pricing strategies and manufacturing investments are expected to support future performance amid macroeconomic volatility.
Other Developments
In the quarter, PLPC completed the acquisition of JAP Telecom, a move aimed at strengthening its communications product portfolio. In addition, the company secured a $27.4-million loan on July 16, 2025, to finance the construction of a manufacturing facility in Poland. This expansion is expected to support production capacity and growth in the EMEA region. The company also acquired land and buildings in Spain in the quarter, reinforcing its long-term commitment to international operations.
Capital expenditure increased significantly due to the Poland facility investment. The free cash flow for the second quarter of 2025 returned to normalized levels at $18.6 million, although it was down from $24.7 million in the prior-year period, driven by higher capex and timing of receivables collections. The company reported a trailing 12-month free cash flow conversion rate of 94%, reflecting strong underlying cash generation.
In summary, Preformed Line Products posted a strong second quarter marked by robust revenue and earnings growth despite facing notable macroeconomic and trade-related challenges. While investor sentiment appears cautious in the near term, as reflected in the recent stock performance, management’s proactive cost and pricing strategies, along with strategic investments