Earnings

Preformed Line Products Sales Miss Second-Quarter Record

The Tip Desk · November 2, 2026 · 3 min read

Third-quarter net sales were $209.5 million as diluted earnings reached $3.56 a share after a year-ago pension-termination charge.

Preformed Line Products Company (PLPC) reported third-quarter 2026 net sales of $209.5 million, an 18% increase from $178.1 million a year earlier, a slower year-over-year pace than the 25% rise recorded in the second quarter.

The Cleveland-based maker of precision-engineered products for energy and communications networks said sales were down from the record $212.7 million posted in the immediately preceding quarter. Gross profit margin was 33.4%, up 370 basis points from the year-ago quarter.

Net income was $18.0 million, or $3.56 a share, compared with $2.6 million, or $0.53 a share, in the third quarter of 2025. The year-ago period included an $11.7 million pension termination expense. Adjusted for that charge, diluted earnings per share rose 70%. Operating income was $24.9 million.

The company said the increase in net income was primarily driven by higher sales volumes, favorable product mix, fixed-cost leverage and the benefit of price increases enacted in 2025 and early 2026. Those gains were partially offset by higher selling and freight costs and investments in personnel supporting strategic market growth in core product offerings. Tariff headwinds continued to affect net income. Foreign-currency translation added $3.1 million to net sales and had a favorable $0.4 million impact on net income.

PLP-USA continued its 2026 performance, delivering more than $100 million of net sales for the second straight quarter, driven primarily by sales growth in transmission and distribution markets. Executive Chairman Rob Ruhlman said the quarter’s sales and net income were nearing the records set in the second quarter.

Among international segments, The Americas net sales grew 7% on a constant-currency basis, benefiting from the May 2026 acquisition of Delta Star Conetores Electricos Ltda and higher communications volumes. Asia-Pacific net sales grew 17% on a constant-currency basis, driven by higher volumes in energy sales.

Cash flow from operations rose 95% from the third quarter of 2025. The company ended the quarter with $99.3 million in cash and $53.9 million of available credit. Ruhlman said that financial strength allows the company to invest in people and facilities, pursue targeted acquisitions and continue returning capital to shareholders.

For the nine months ended September 30, 2026, net sales increased 21% to $598.5 million from $496.2 million a year earlier. All segments recorded a year-over-year increase in net sales due to higher volumes of energy and communications sales, with PLP-USA contributing 28% net sales growth. Foreign-currency translation rates increased nine-month net sales by $16.2 million.

Net income for the nine months was $50.1 million, or $10.18 a share, compared with $26.8 million, or $5.42 a share, a year earlier. Adjusted for U.S. Pension Plan termination charges, diluted EPS was up $3.20, or 46%. The company attributed the nine-month increase in net income to higher sales volumes and the benefit of price increases enacted in 2025 and early 2026, partially offset by higher personnel, selling and freight costs, tariff expenses and a higher effective tax rate. Foreign-currency translation had a favorable $1.0 million impact on nine-month net income. Cash flow from operations was up 32% for the nine-month period.

Ruhlman said the operating environment remains challenging, with tariffs continuing to present headwinds and the geopolitical landscape constantly changing. He said investments in domestic U.S. manufacturing, a global footprint across 20 countries and the breadth of the product portfolio give the company confidence it is well-positioned to navigate those pressures.

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