We use cookies to understand how you use our site and to improve your experience.
This includes personalizing content and advertising.
By pressing "Accept All" or closing out of this banner, you consent to the use of all cookies and similar technologies and the sharing of information they collect with third parties.
You can reject marketing cookies by pressing "Deny Optional," but we still use essential, performance, and functional cookies.
In addition, whether you "Accept All," Deny Optional," click the X or otherwise continue to use the site, you accept our Privacy Policy and Terms of Service, revised from time to time.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Preformed Line Products Posts Y/Y Earnings & Sales Growth in Q1
Read MoreHide Full Article
Shares of Preformed Line Products Company (PLPC - Free Report) have gained 0.2% since reporting results for the first quarter of 2025. This compares with the S&P 500 index’s 1.5% rally over the same time frame. Over the past month, the stock has risen 2.6% compared to the S&P 500’s 12.4% growth.
Earnings & Sales Performance
In the first quarter ended March 31, 2025, Preformed Line Products reported net sales of $148.5 million, a 5% increase from $140.9 million in the prior-year period. The company posted net income of $11.5 million, or $2.33 per diluted share, up 20% from $9.6 million, or $1.94 per share, a year ago.
Gross profit rose year over year to $48.7 million from $44.1 million, with the gross margin expanding 150 basis points to 32.8%. Management attributed the margin expansion to a favorable product mix and better leverage on fixed costs. Excluding the $4.4-million negative foreign currency translation impact, sales increased 9% year over year.
Preformed Line Products Company Price, Consensus and EPS Surprise
Pre-tax income came in at $13.7 million, up 15% from $11.9 million in the year-ago quarter, with the pre-tax margin improving by 80 basis points to 9.2%. Sales grew across both the USA and Americas regions, with USA sales increasing 5% and the broader Americas region rising 39% year over year.
The communications business recorded a 15% increase in revenues from the first quarter of 2024 due to higher fiber closure product sales. Energy segment sales also rose 4%, driven by strength in transmission line products, while the special industries segment saw a 10% decline, mainly attributed to weakness in the EMEA region.
Management Commentary
Rob Ruhlman, executive chairman, noted that the company had a solid start to 2025, following a strong finish in 2024. He highlighted the USA communications business and international operations as key contributors to top-line growth.
However, Ruhlman expressed caution regarding the potential impacts of newly enacted tariffs on customer demand. He stated that PLPC's domestic manufacturing presence positions the company to better manage the high-tariff environment. The company expects cost increases related to steel and aluminum inputs. It is implementing targeted pricing adjustments and cost-containment strategies to mitigate margin pressures.
Factors Influencing Headline Numbers
The 5% year-over-year revenue rise was largely driven by demand in the USA and other Americas markets. The product mix was favorable, contributing to margin improvement and enhanced fixed-cost leverage. Sales were particularly robust in the communications segment, wherein PLP-USA experienced 30% year-over-year growth. On the downside, softness in EMEA impacted special industries’ sales. Additionally, higher personnel-related costs slightly offset the gains from increased gross profit.
Cash flow from operations was $5.7 million in the quarter. The free cash flow declined year over year due to a $7.1-million increase in the capital expenditure, which included the purchase of land and a building in Spain. Despite this, Preformed Line Products reported a trailing 12-month free cash flow conversion rate of 118%. Cash and cash equivalents stood at $54.8 million at the end of March 2025, down from $57.2 million at the end of 2024. The company maintained strong liquidity, with 92% availability under its global credit facility.
Other Developments
In the quarter, PLPC increased its long-term debt to fund the acquisition of land and a building in Spain, a move aimed at supporting international operational expansion. Additional borrowings in the United States and international markets, including a $12.1-million aircraft loan and $15.3 million in overseas financing, were noted, though the company reported no significant debt maturities in the near term.
Overall, Preformed Line Products delivered a steady financial performance in the first quarter of 2025, balancing top-line growth with margin preservation in the face of foreign exchange headwinds and emerging cost pressures.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Preformed Line Products Posts Y/Y Earnings & Sales Growth in Q1
Shares of Preformed Line Products Company (PLPC - Free Report) have gained 0.2% since reporting results for the first quarter of 2025. This compares with the S&P 500 index’s 1.5% rally over the same time frame. Over the past month, the stock has risen 2.6% compared to the S&P 500’s 12.4% growth.
Earnings & Sales Performance
In the first quarter ended March 31, 2025, Preformed Line Products reported net sales of $148.5 million, a 5% increase from $140.9 million in the prior-year period. The company posted net income of $11.5 million, or $2.33 per diluted share, up 20% from $9.6 million, or $1.94 per share, a year ago.
Gross profit rose year over year to $48.7 million from $44.1 million, with the gross margin expanding 150 basis points to 32.8%. Management attributed the margin expansion to a favorable product mix and better leverage on fixed costs. Excluding the $4.4-million negative foreign currency translation impact, sales increased 9% year over year.
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 came in at $13.7 million, up 15% from $11.9 million in the year-ago quarter, with the pre-tax margin improving by 80 basis points to 9.2%. Sales grew across both the USA and Americas regions, with USA sales increasing 5% and the broader Americas region rising 39% year over year.
The communications business recorded a 15% increase in revenues from the first quarter of 2024 due to higher fiber closure product sales. Energy segment sales also rose 4%, driven by strength in transmission line products, while the special industries segment saw a 10% decline, mainly attributed to weakness in the EMEA region.
Management Commentary
Rob Ruhlman, executive chairman, noted that the company had a solid start to 2025, following a strong finish in 2024. He highlighted the USA communications business and international operations as key contributors to top-line growth.
However, Ruhlman expressed caution regarding the potential impacts of newly enacted tariffs on customer demand. He stated that PLPC's domestic manufacturing presence positions the company to better manage the high-tariff environment. The company expects cost increases related to steel and aluminum inputs. It is implementing targeted pricing adjustments and cost-containment strategies to mitigate margin pressures.
Factors Influencing Headline Numbers
The 5% year-over-year revenue rise was largely driven by demand in the USA and other Americas markets. The product mix was favorable, contributing to margin improvement and enhanced fixed-cost leverage. Sales were particularly robust in the communications segment, wherein PLP-USA experienced 30% year-over-year growth. On the downside, softness in EMEA impacted special industries’ sales. Additionally, higher personnel-related costs slightly offset the gains from increased gross profit.
Cash flow from operations was $5.7 million in the quarter. The free cash flow declined year over year due to a $7.1-million increase in the capital expenditure, which included the purchase of land and a building in Spain. Despite this, Preformed Line Products reported a trailing 12-month free cash flow conversion rate of 118%. Cash and cash equivalents stood at $54.8 million at the end of March 2025, down from $57.2 million at the end of 2024. The company maintained strong liquidity, with 92% availability under its global credit facility.
Other Developments
In the quarter, PLPC increased its long-term debt to fund the acquisition of land and a building in Spain, a move aimed at supporting international operational expansion. Additional borrowings in the United States and international markets, including a $12.1-million aircraft loan and $15.3 million in overseas financing, were noted, though the company reported no significant debt maturities in the near term.
Overall, Preformed Line Products delivered a steady financial performance in the first quarter of 2025, balancing top-line growth with margin preservation in the face of foreign exchange headwinds and emerging cost pressures.