Cleveland, October 28, 2026 / PRNewswire / -- Preformed Line Products Company (Nasdaq ticker: PLPC) announced its financial results for the third quarter of 2026 today.
Key Points of the Third Quarter of 2026:
- Quarterly net sales amounted to $209.5 million, representing a 18% increase compared to the third quarter of 2025.
- The quarterly gross margin was 33.4%, an increase of 370 basis points compared to the third quarter of 2025.
- The diluted earnings per share for the quarter were $3.56, an increase of $3.03 compared to the third quarter of 2025. Excluding the impact of costs related to the termination of U.S. pension plans in the third quarter of 2025, earnings per share increased by 70% year-over-year.
- Quarterly operating cash flow increased by 95% compared to the third quarter of 2025; it grew by 32% in the first nine months up to September 30, 2026.
In the third quarter of 2026, net sales amounted to 209.5 million US dollars, compared to 178.1 million US dollars in the same period of the previous year, representing a year-on-year increase of 18%. PLP-USA continued to perform strongly in 2026, driven mainly by growth in sales in the transmission and distribution markets. In the international business segment, net sales in the Americas increased by 7% when calculated using a fixed exchange rate, benefiting from the acquisition of Delta Star Conetores Electr token issuance Ltda (“Delta Star”) in May 2026, as well as an increase in sales in the communications business; net sales in the Asia-Pacific region increased by 17% when calculated using a fixed exchange rate, primarily driven by an increase in energy sales. Currency exchange adjustments added 3.1 million US dollars to net sales in the third quarter of 2026.
The quarterly net profit as of September 30, 2026, was $18 million, equivalent to $3.56 per diluted share; in the same period of 2025, it was $2.6 million, or $0.53 per diluted share. Excluding the expenses related to the termination of U.S. pension plans in the third quarter of 2025, earnings per diluted share increased by 70%. The growth in net profit was mainly driven by higher sales volumes, a more favorable product mix, the leverage effect of fixed costs, and price increases implemented in 2025 and early 2026. Some of this increase was offset by rising sales and freight costs, as well as additional human resources invested to support market growth for core products. The adverse effects of tariffs also continued to drag down net profit. Foreign exchange conversion had a positive impact of $400,000 on the net profit for the third quarter of 2026.
In the first nine months of 2026, net sales increased by 21% to $598.5 million; in the same period of 2025, they were $496.2 million. Net sales for all business segments saw year-over-year growth, due to an increase in sales of energy and communication products, with PLP-USA experiencing the most significant growth, with a 28% increase in net sales. In the first nine months up to September 30, 2026, exchange rate fluctuations added $16.2 million to net sales.
For the first nine months ending September 30, 2026, the net profit was $50.1 million, equivalent to $10.18 per diluted share; for the same period in 2025, it was $26.8 million, or $5.42 per diluted share. If calculated after adjusting for termination costs of U.S. pension plans, the diluted earnings per share increased by $3.20, representing a growth of 46%. The increase in net profit was due to higher sales volumes and the benefits of price hikes in 2025 and early 2026, but this was partially offset by higher labor, sales, and freight costs, tariff expenses, as well as a higher effective tax rate during the first nine months. Foreign exchange conversion had a positive impact of $1 million on the net profit for the first nine months ending September 30, 2026.
Executive Chairman Rob Ruhlman stated: "This is another quarter of outstanding performance, with sales and net profit approaching the records set just last quarter. Our net sales increased by 18% to $209.5 million, and our gross margin rose by 370 basis points year-over-year to 33.4%, demonstrating our resilience in a challenging business environment. Our firm commitment to local manufacturing continues to bring us a strategic advantage, and PLP-USA achieved net sales of over $100 million for the second consecutive quarter. This performance directly reflects the strong demand we see in the US energy market, as well as the strategic investments we have made in talent, manufacturing, and engineering capabilities. At the beginning of October, we welcomed US Senator Bernie Moreno to visit our PLP operations base in Peninsula, Ohio, to witness firsthand our commitment to American manufacturing."
He stated, "Sustained growth is also generating strong cash flows. In the first nine months of this year, we achieved $68.1 million in operating cash flow, held $99.3 million in cash at the end of each quarter, and had $53.9 million in available credit lines. This financial strength enables us to do three things simultaneously: invest in our employees and facilities, pursue targeted acquisitions, and continue to return capital to our shareholders."
He also stated, "Although we are still experiencing a record-breaking year so far, the business environment remains challenging. Tariffs continue to pose obstacles, and the geopolitical landscape is constantly changing. However, our investment in manufacturing in the United States, our diversified global presence covering 20 countries, and our wide range of product offerings give me confidence that we are well-prepared to cope with these pressures and sustain the growth momentum we have already established."
He added, "Finally, I am very pleased to lead our senior management team (as well as our families) to New York in September to ring the closing bell on NASDAQ and celebrate the company's 25th anniversary of going public. This opportunity is not only a recognition of our glorious past but also an affirmation of a bright future. I am willing to share this honor with more than 4,000 PLP colleagues around the world. Our focus remains the same: to continue to provide our customers with the high-quality products and excellent customer service they expect."
Presentation materials regarding the third-quarter performance will also be released on the PLP website, with the URL being www.plp.com / investor-relations.
Forward-looking Statements
This press release contains “forward-looking statements” as defined by Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934, which relate to the company’s circumstances, including the beliefs and expectations of the company and its management regarding the company’s future performance or expected financial results. Except for historical information, the matters discussed in this press release are forward-looking statements that involve risks and uncertainties, and actual results may differ significantly from those stated in these statements. Factors that could cause significant differences between actual results and forward-looking statements include, but are not limited to: uncertainties in the global business environment and economic conditions affected by inflation, rising interest rates, tariffs, labor disruptions, military conflicts, international hostilities, political instability, exchange rates, natural disasters, and public health pandemics; the intensity of demand for the company’s products and the availability of financing (including in the context of price increases); the product mix sold; the level of competition faced by the company’s products and customer pricing pressure; the cost, supply, and quality of raw materials required for product manufacturing as well as customer demand; opportunities for business growth through acquisitions and the ability to successfully integrate acquired businesses; changes in regulations and tax rates; security vulnerabilities; litigation and claims; and the company’s ability to continue to develop proprietary technology and maintain high-quality products and customer service to meet or exceed new industry performance standards and individual customer expectations. For additional factors, please refer to the “Forward-Looking Statements” and “Risk Factors” sections in the company’s 2025 Form 10-K annual report filed with the U.S. Securities and Exchange Commission on March 5, 2026, and subsequent documents. The company’s 2026 Form 10-K annual report and other documents filed with the U.S. Securities and Exchange Commission can be found on the SEC website at http :// www.sec.gov. The company does not assume any obligation to update or supplement such forward-looking statements as a result of subsequent events.
About PLP
PLP protects the most critical connections around the world by building a stronger and more reliable network. The company's precision engineering solutions are trusted by global energy and communication service providers, enabling better performance and longer lifespans. PLP operates in 20 countries and functions as a unified global enterprise, providing high-quality products and excellent services to customers worldwide.
Non-GAAP Financial Information
This financial report press release contains several financial indicators that are not GAAP. These financial indicators include adjusted earnings, as well as adjusted basic and diluted earnings per share, which are different from the most directly comparable indicators calculated in accordance with U.S. Generally Accepted Accounting Principles (GAAP) GAAP. The adjustments between each financial indicator and the most directly comparable GAAP indicator are included in this press release. Management believes that these financial indicators are useful to investors as they provide additional and meaningful financial information that should be considered when evaluating the company's business performance and trends, and they also facilitate investors' comparison of the company's financial performance over different periods.
The company's adjusted net profit and adjusted diluted earnings per share for the year ending September 30, 2025, are calculated as follows:
