What changed in this filing

/stocks — the workspaceLOADING

Item 1. Financial Statements

2025-07-31 compared with 2025-05-02 · 194 added, 73 removed, 443 unchanged (38% of the section changed)

2 unchanged sentences

CONSOLIDATED BALANCE SHEETS

March 31, 2025 December 31, 2024

June 30, 2025 December 31, 2024

(Thousands of dollars, except share and per share data) (Unaudited)

27 unchanged sentences

SHAREHOLDERS' EQUITY

Common shares – $ 2 par value per share, 15,000,000 shares authorized, 4,940,131 and 4,913,621 issued and outstanding, at March 31, 2025 and December 31, 2024

Common shares $ 2 par value per share, 15,000,000 shares authorized, 4,924,737 and 4,913,621 issued and outstanding, at June 30, 2025 and December 31, 2024

13,823 13,752

Common shares issued to rabbi trust, 223,034 and 222,887 shares at March 31, 2025 and December 31, 2024, respectively

Common shares issued to rabbi trust, 223,168 and 222,887 shares at June 30, 2025 and December 31, 2024, respectively

( 9,613 ) ( 9,575 )

2 unchanged sentences

Retained earnings 575,368 553,179

Treasury shares, at cost, 1,969,354 and 1,961,772 shares at March 31, 2025 and December 31, 2024, respectively

Treasury shares, at cost, 1,986,382 and 1,961,772 shares at June 30, 2025 and December 31, 2024, respectively

( 130,163 ) ( 126,800 )

7 unchanged sentences

STATEMENTS OF CONSOLIDATED INCOME

Three Months Ended March 31,

Three Months Ended June 30, Six Months Ended June 30,

2025 2024 2025 2024

(Thousands, except per share data)

13 unchanged sentences

Other income, net 116 91 523 126

182 ( 131 ) 723 168

INCOME BEFORE INCOME TAXES 17,306 11,161 30,977 23,019

1 unchanged sentence

NET INCOME $ 12,700 $ 9,367 $ 24,253 $ 18,970

Net income attributable to noncontrolling interests ( 36 ) ( 7 )

Net expense (income) attributable to noncontrolling interests 5 ( 1 ) ( 31 ) ( 8 )

NET INCOME ATTRIBUTABLE TO PREFORMED LINE PRODUCTS COMPANY SHAREHOLDERS $ 12,705 $ 9,366 $ 24,222 $ 18,962

8 unchanged sentences

STATEMENTS OF CONSOLIDATED COMPREHENSIVE INCOME

Three Months Ended March 31,

Three Months Ended June 30, Six Months Ended June 30,

2025 2024 2025 2024

(Thousands of dollars)

4 unchanged sentences

Other comprehensive income (loss), net of tax 13,804 ( 5,882 ) 20,598 ( 12,358 )

Comprehensive income attributable to noncontrolling interests ( 36 ) ( 7 )

Comprehensive expense (income) attributable to noncontrolling interests 5 ( 1 ) ( 31 ) ( 8 )

COMPREHENSIVE INCOME ATTRIBUTABLE TO PREFORMED LINE PRODUCTS COMPANY SHAREHOLDERS $ 26,509 $ 3,484 $ 44,820 $ 6,604

2 unchanged sentences

STATEMENTS OF CONSOLIDATED CASH FLOWS

Three Months Ended March 31,

Six Months Ended June 30,

(Thousands of dollars)

14 unchanged sentences

Purchases of investments ( 451 ) —

Acquisition of businesses, net of cash ( 4,180 ) —

NET CASH USED IN INVESTING ACTIVITIES ( 22,209 ) ( 4,281 )

FINANCING ACTIVITIES

Payments of notes payable to banks ( 1,966 ) ( 5,307 )

(Payments) proceeds of notes payable to banks ( 3,436 ) 163

Proceeds from long-term debt 10,837 53,099

5 unchanged sentences

Purchase of common shares for treasury from related parties ( 3,232 ) ( 5,908 )

Other ( 1,474 ) ( 2,473 )

NET CASH USED IN FINANCING ACTIVITIES ( 4,790 ) ( 33,504 )

Effects of exchange rate changes on cash, cash equivalents and restricted cash 4,080 ( 2,445 )

Net decrease in cash, cash equivalents and restricted cash ( 2,409 ) ( 7,748 )

Net increase (decrease) in cash, cash equivalents and restricted cash 9,664 ( 6,183 )

Cash, cash equivalents and restricted cash at beginning of year 57,244 53,607

20 unchanged sentences

Balance at March 31, 2025 $ 13,820 $ ( 9,594 ) $ 9,594 $ 62,205 $ 563,678 $ ( 127,812 ) $ ( 70,865 ) $ ( 5,250 ) $ 435,776 $ 45 $ 435,821

Net income 12,705 12,705 ( 5 ) 12,700

Foreign currency translation adjustment 13,681 13,681 13,681

Pension adjustment, net of tax 123 123 123

Total comprehensive income 26,509 ( 5 ) 26,504

Purchase of 17,028 common shares

( 2,351 ) ( 2,351 ) ( 2,351 )

Stock incentive plan activity

3 1,814 1,817 1,817

Common shares issued to rabbi trust of 134 , net

( 19 ) 19 — —

Cash dividends declared – $ 0.20 per share

( 1,015 ) ( 1,015 ) ( 1,015 )

Balance at June 30, 2025 $ 13,823 $ ( 9,613 ) $ 9,613 $ 64,019 $ 575,368 $ ( 130,163 ) $ ( 57,184 ) $ ( 5,127 ) $ 460,736 $ 40 $ 460,776

PREFORMED LINE PRODUCTS COMPANY

STATEMENTS OF CONSOLIDATED SHAREHOLDERS' EQUITY

Accumulated Other Comprehensive Income (Loss)

Common Shares Common Shares Issued to Rabbi Trust Deferred Compensation Liability Paid in Capital Retained Earnings Treasury Shares Cumulative Translation Adjustment Unrecognized Pension Benefit Cost Total Preformed Line Products Company Equity Noncontrolling Interests Total Equity

(In thousands, except share and per share data) Common Shares Common Shares Issued to Rabbi Trust Deferred Compensation Liability Paid in Capital Retained Earnings Treasury Shares Cumulative Translation Adjustment Unrecognized Pension Benefit Cost Total Preformed Line Products Company Equity Noncontrolling Interests Total Equity

Balance at December 31, 2023 $ 13,607 $ ( 10,183 ) $ 10,183 $ 60,958 $ 520,154 $ ( 118,249 ) $ ( 55,828 ) $ ( 4,478 ) $ 416,164 $ ( 8 ) $ 416,156

10 unchanged sentences

Balance at March 31, 2024 $ 13,711 $ ( 10,214 ) $ 10,214 $ 61,408 $ 528,733 $ ( 123,701 ) $ ( 62,393 ) $ ( 4,389 ) $ 413,369 $ ( 1 ) $ 413,368

Net income 9,366 9,366 1 9,367

Foreign currency translation adjustment ( 5,971 ) ( 5,971 ) ( 5,971 )

Pension adjustment, net of tax 89 89 89

Total comprehensive income 3,484 1 3,485

Stock incentive plan activity

— 953 953 953

Purchase of 4,540 common shares

( 568 ) ( 568 ) ( 568 )

Common shares distributed from rabbi trust of 146 , net

( 19 ) 19 — —

Cash dividends declared – $ 0.20 per share

( 1,020 ) ( 1,020 ) ( 1,020 )

Balance at June 30, 2024 $ 13,711 $ ( 10,233 ) $ 10,233 $ 62,361 $ 537,079 $ ( 124,269 ) $ ( 68,364 ) $ ( 4,300 ) $ 416,218 $ - $ 416,218

See notes to consolidated financial statements (unaudited).

10 unchanged sentences

In the opinion of management, these consolidated financial statements contain all estimates and adjustments, consisting of normal recurring accruals, required to fairly present the financial position, results of operations, and cash flows for the interim periods.

Operating results for the three months ended March 31, 2025 are not necessarily indicative of the results to be expected for the full-year ending December 31, 2025.

Operating results for the three and six months ended June 30, 2025 are not necessarily indicative of the results to be expected for the full-year ending December 31, 2025.

Noncontrolling interests are presented in the Company’s consolidated financial statements as if parent company investors (controlling interests) and other minority investors (noncontrolling interests) in partially-owned subsidiaries have similar economic interests in a single entity.

3 unchanged sentences

Certain prior year amounts have been reclassified to conform to the current year presentation.

Recently Adopted or Issued Accounting Pronouncements

Recently Adopted or Issued Accounting Pronouncements and Regulations

In November 2023, the FASB issued Accounting Standards Update ("ASU") No.

21 unchanged sentences

The Company is evaluating the impact of adopting this ASU.

New Regulations

On July 4, 2025, the One Big Beautiful Bill Act ("OBBBA") was enacted in the U.S.

The OBBBA includes significant provisions, such as the permanent extension of certain expiring provisions of the Tax Cuts and Jobs Act, modifications to the international tax framework and the restoration of favorable tax treatment for certain businesses.

The legislation has multiple effective dates, with certain provisions effective in 2025 and others implemented through 2027.

The Company is currently assessing its impact on the consolidated financial statements.

NOTE 2 - REVENUE

5 unchanged sentences

The Company’s revenues by segment and product type are as follows:

Three Months Ended March 31, 2025

Three Months Ended June 30, 2025

Product Type PLP-USA The Americas EMEA Asia-Pacific Consolidated

3 unchanged sentences

Total 100 % 100 % 100 % 100 % 100 %

Three Months Ended March 31, 2024

Three Months Ended June 30, 2024

Product Type PLP-USA The Americas EMEA Asia-Pacific Consolidated

3 unchanged sentences

Total 100 % 100 % 100 % 100 % 100 %

Six Months Ended June 30, 2025

Product Type PLP-USA The Americas EMEA Asia-Pacific Consolidated

Energy 61 % 84 % 71 % 76 % 70 %

Communications 34 % 15 % 21 % 3 % 23 %

Special Industries 5 % 1 % 8 % 21 % 7 %

Total 100 % 100 % 100 % 100 % 100 %

Six Months Ended June 30, 2024

Product Type PLP-USA The Americas EMEA Asia-Pacific Consolidated

Energy 66 % 78 % 71 % 78 % 71 %

Communications 28 % 21 % 24 % 4 % 22 %

Special Industries 6 % 1 % 5 % 18 % 7 %

Total 100 % 100 % 100 % 100 % 100 %

Credit Losses for Receivables

4 unchanged sentences

The change in the allowance for credit losses includes expense and net write-offs, which are identified in the following table:

Three Months Ended March 31,

Six Months Ended June 30,

Allowance for credit losses, beginning of period $ 6,958 $ 8,260

(Reductions) additions charged to costs and expenses ( 67 ) 66

Additions (reductions) charged to costs and expenses 296 ( 1,409 )

Write-offs ( 141 ) ( 199 )

5 unchanged sentences

The components of inventory are as follows:

March 31, 2025 December 31, 2024

June 30, 2025 December 31, 2024

Raw materials $ 86,143 $ 75,138

4 unchanged sentences

Inventories at LIFO cost $ 143,369 $ 129,913

Costs for inventories of certain material, mainly in the U.S., are determined using the Last-In First-Out ("LIFO") method and totaled approximately $ 42.4 million at March 31, 2025 and $ 46.5 million at December 31, 2024.

Costs for inventories of certain material, mainly in the U.S., are determined using the Last-In First-Out ("LIFO") method and totaled approximately $ 41.3 million at June 30, 2025 and $ 46.5 million at December 31, 2024.

An actual valuation of inventories under the LIFO method can be made only at the end of the year based on the inventory levels and costs at that time.

1 unchanged sentence

Because these estimates are subject to change and may be different than the actual inventory levels and costs at the end of the year, interim results are subject to the final year-end LIFO inventory valuation.

During the three-month periods ended March 31, 2025 and 2024, the net change in LIFO inventories resulted in an expense of $ 0.5 million and $ 0.2 million, respectively, to Cost of products sold.

The Company’s reserves for excess and obsolete inventory were $ 16.6 million at March 31, 2025 and $ 17.7 million at December 31, 2024.

During the three-month periods ended June 30, 2025 and 2024, the net change in LIFO inventories resulted in expense of $ 1.9 million and $ 0.3 million, respectively, to Cost of products sold.

During the six-month periods ended June 30, 2025 and 2024, the net change in LIFO inventories resulted in expense of $ 2.4 million and of $ 0.4 million, respectively, to Cost of products sold.

The Company’s reserves for slow moving and obsolete inventory were $ 17.5 million at June 30, 2025 and $ 17.7 million at December 31, 2024.

NOTE 4 - PROPERTY AND EQUIPMENT, NET

Major classes of property, plant and equipment are as follows:

March 31, 2025 December 31, 2024

June 30, 2025 December 31, 2024

Land and improvements $ 27,141 $ 20,204

12 unchanged sentences

The Company is not a party to any pending legal proceedings that the Company believes would, individually or in the aggregate, have a material adverse effect on its financial condition, results of operations or cash flow.

As of March 31, 2025 and December 31, 2024, there were zero reserves for known global legal matters.

As of March 31, 2025 and December 31, 2024, the Company has included $ 9.3 million and $ 6.7 million, respectively, of advanced payments by customers for future projects in Accrued expenses and other liabilities on the Consolidated Balance Sheet.

As of June 30, 2025 and December 31, 2024, there were zero reserves for known global legal matters.

As of June 30, 2025 and December 31, 2024, the Company has included $ 8.1 million and $ 6.7 million, respectively, of advanced payments by customers for future projects in Accrued expenses and other liabilities on the Consolidated Balance Sheet.

NOTE 6 - PENSION PLANS

1 unchanged sentence

Net periodic pension expense for the U.S.

Plan for the three-month periods ended March 31, 2025 and 2024, respectively, follows:

Three Months Ended March 31,

Plan for the three- and six-month periods ended June 30, 2025 and 2024, respectively, follows:

Three Months Ended June 30, Six Months Ended June 30,

2025 2024 2025 2024

Interest cost $ 395 $ 387 $ 790 $ 775

2 unchanged sentences

Net periodic pension expense $ 204 $ 19 $ 409 $ 38

There were no contributions to the U.S.

Plan during the three months ended March 31, 2025 and 2024.

The Company is evaluating whether to make additional contributions to the U.S.

Plan during 2025.

In August 2023, the Board of Directors of the Company approved a resolution to terminate the U.S.

Plan and certain administrative actions have been undertaken to proceed with the termination.

Components of pension expense are included in Other income, net in the Consolidated Statements of Income.

The Company is in the process of terminating the U.S.

In July 2025, the Company settled the majority of its obligations under the U.S.

Plan by providing lump-sum payments of $ 13.1 million to eligible participants who elected to receive them, and the Company expects to settle the remaining future obligations under the U.S.

Plan through the purchase of annuity contracts from one or more highly rated insurance companies in the third quarter of 2025.

The Company estimates that it will record a total non-cash pre-tax charge associated with the U.S.

Plan termination during the third quarter of 2025 of between $ 8.5 million and $ 9.5 million, which primarily represents the acceleration of deferred charges currently accrued in accumulated other comprehensive loss.

Prior to termination, the Company expects to contribute between $ 2.5 million and $ 3.5 million to fully fund the U.S.

There were no contributions to the U.S.

Plan during the six months ended June 30, 2025 and 2024.

NOTE 7 - ACCUMULATED OTHER COMPREHENSIVE INCOME ("AOCI")

The following tables set forth the total changes in AOCI by component, net of tax:

Three Months Ended March 31, 2025 Three Months Ended March 31, 2024

Three Months Ended June 30, 2025 Three Months Ended June 30, 2024

Benefit Cost Cumulative

2 unchanged sentences

Adjustment Total

Balance at April 1 $ ( 5,250 ) $ ( 70,865 ) $ ( 76,115 ) $ ( 4,389 ) $ ( 62,393 ) $ ( 66,782 )

Other comprehensive income (loss) before reclassifications:

Foreign currency translation adjustment — 13,681 13,681 — ( 5,971 ) ( 5,971 )

Loss on pension asset — — — — — —

Amounts reclassified from AOCI:

Amortization of defined benefit pension actuarial gain (a) 123 — 123 89 — 89

Net current period other comprehensive income (loss) 123 13,681 13,804 89 ( 5,971 ) ( 5,882 )

Balance at June 30 $ ( 5,127 ) $ ( 57,184 ) $ ( 62,311 ) $ ( 4,300 ) $ ( 68,364 ) $ ( 72,664 )

Six Months Ended June 30, 2025 Six Months Ended June 30, 2024

Benefit Cost Cumulative

Adjustment Total

Benefit Cost Cumulative

Adjustment Total

Balance at January 1 $ ( 5,373 ) $ ( 77,536 ) $ ( 82,909 ) $ ( 4,478 ) $ ( 55,828 ) $ ( 60,306 )

Other comprehensive income before reclassifications:

Other comprehensive income (loss) before reclassifications:

Foreign currency translation adjustment — 20,352 20,352 — ( 12,536 ) ( 12,536 )

Loss on pension asset — — — — — —

Amounts reclassified from AOCI:

Amortization of defined benefit pension actuarial loss (a) 123 — 123 89 — 89

Amortization of defined benefit pension actuarial gain (a) 246 — 246 178 — 178

Net current period other comprehensive income (loss) 246 20,352 20,598 178 ( 12,536 ) ( 12,358 )

Balance at March 31 $ ( 5,250 ) $ ( 70,865 ) $ ( 76,115 ) $ ( 4,389 ) $ ( 62,393 ) $ ( 66,782 )

Balance at June 30 $ ( 5,127 ) $ ( 57,184 ) $ ( 62,311 ) $ ( 4,300 ) $ ( 68,364 ) $ ( 72,664 )

(a) This AOCI component is included in the computation of net periodic pension expense as noted in Note 6 – Pension Plans.

NOTE 8 - DEBT AND CREDIT ARRANGEMENTS

The Company maintains a credit facility (the "Facility") with a capacity of $ 90.0 million.

As of June 30, 2025, the Company maintained a credit facility (the "Facility") with PNC Bank, National Association ("PNC") with a capacity of $ 90.0 million.

On March 14, 2025, the Company amended the Facility to extend the maturity date from March 2, 2026 to June 30, 2028.

In addition, the amendment increased the amount of unsecured borrowings that the Company is permitted to incur outside of the Facility from $ 40.0 million to $ 60.0 million and included APRESA – PLP Spain, S.A.

as an additional borrower.

The interest rate for U.S.

borrowing 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 %.

At March 31, 2025, the Company had utilized $ 7.5 million with $ 82.5 million available on the Facility.

There were no long-term outstanding letters of credit on the Facility as of March 31, 2025.

At June 30, 2025, the Company had utilized $ 10.4 million with $ 79.6 million available on the Facility.

There were no long-term outstanding letters of credit on the Facility as of June 30, 2025.

Our bank debt to equity percentage was 7.9 %.

The Facility contains, among other provisions, requirements for maintaining levels of net worth and profitability.

At March 31, 2025, the Company was in compliance with these covenants.

At June 30, 2025, the Company was in compliance with these covenants.

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.

1 unchanged sentence

The loan is payable in 119 equal monthly installments, which commenced on March 1, 2021 with a final payment of any outstanding principal and accrued interest due and payable on the final monthly payment date.

Of the $ 12.1 million outstanding on this debt facility at March 31, 2025, $ 2.1 million was classified as current.

Of the $ 11.6 million outstanding on this debt facility at June 30, 2025, $ 2.1 million was classified as current.

The aircraft has been pledged as collateral against the loan.

The Company has other borrowing facilities at certain of its foreign subsidiaries, which consist of overdraft lines, working capital credit lines, and facilities for the issuance of letters of credit and short-term borrowing needs.

At March 31, 2025, and December 31, 2024, $ 15.3 million and $ 8.8 million were outstanding, of which $ 7.2 million and $ 8.2 million were classified as current, respectively.

At June 30, 2025, and December 31, 2024, $ 14.2 million and $ 8.8 million were outstanding, of which $ 6.3 million and $ 8.2 million were classified as current, respectively.

These facilities support commitments made in the ordinary course of business.

The Company's Asia-Pacific segment had $ 0.1 million in restricted cash used to secure bank guarantees at March 31, 2025 and December 31, 2024.

The Company's Asia-Pacific segment had $ 0.1 million in restricted cash used to secure bank guarantees at June 30, 2025 and December 31, 2024.

The restricted cash is shown on the Company’s Consolidated Balance Sheets in Cash, cash equivalents and restricted cash.

Subsequent Event - Facility Borrowing Capacity:

On July 30, 2025, the Company amended the Facility to reduce the borrowing capacity from $ 90.0 million to $ 60.0 million as well as increase the indebtedness limit secured by mortgages, security interests or other liens permitted from $ 35.0 million to $ 55.0 million.

There were no other material changes to the Facility.

Subsequent Event - Additional Foreign Borrowings:

On July 16, 2025, PLP Poland (Belos) S.A.

("PLP Poland"), a subsidiary of the Company, entered into a non-revolving investment loan with Bank Polska Kasa Opieki Spolka Akcynja ("Bank Pekao S.A") to finance the construction of a new manufacturing plant for an amount up to PLN 100.3 million ($ 27.4 million).

The maturity date of the loan is January 31, 2035 and is payable in annual installments in the amounts of PLN 5.3 million ($ 1.5 million) in 2026, PLN 9.0 million ($ 2.5 million) in 2027, PLN 9.6 million ($ 2.6 million) in 2028 through 2034, and PLN 18.8 million ($ 5.2 million) in 2035.

The loan will bear interest at the one month Warsaw Interbank Offered Rate ("WIBOR") plus 1.0 % unless the Company does not meet the covenants as set forth in the Facility with PNC, at which point the WIBOR spread becomes 1.5 %.

The current manufacturing plant owned by PLP Poland, the plant under construction and all fixed assets within the plants are pledged as collateral against the loan.

The loan also is guaranteed by the Company.

NOTE 9 - INCOME TAXES

For the three-month period ended March 31, 2025 and 2024, the Company’s effective tax rate was 16 % and 19 %, respectively.

The lower effective tax rate for the three months ended March 31, 2025 compared to the three months ended March 31, 2024 was primarily due to the favorable impact from the increase in excess tax benefits on share-based compensation, the decrease of nondeductible compensation, and favorable impact from the mix of earned income in certain foreign jurisdictions.

For the three-month period ended June 30, 2025 and 2024, the Company’s effective tax rate was 27 % and 16 %, respectively.

For the six-month period ended June 30, 2025 and 2024, the Company’s effective tax rate was 22 % and 18 %, respectively.

The higher effective tax rates for the three and six months ended June 30, 2025 compared to the three and six months ended June 30, 2024 were due to the unfavorable impact from certain adjustments including nondeductible compensation and non-recurring rate benefits received in 2024 from amending prior year returns, partially offset by a favorable impact from the mix of earned income in certain foreign jurisdictions.

The Company provides valuation allowances against deferred tax assets when it is more likely than not that some portion or all of its deferred tax assets will not be realized.

During the period ended March 31, 2025, the Company did not record any additional valuation allowances in various jurisdictions on its deferred tax assets.

For the three-month periods ending March 31, 2025 and 2024, the Company did not record any new uncertain tax positions.

During the period ended June 30, 2025, the Company did not record any additional valuation allowances in various jurisdictions on its deferred tax assets.

For the six-month periods ending June 30, 2025 and 2024, the Company did not record any new uncertain tax positions.

NOTE 10 - COMPUTATION OF EARNINGS PER SHARE

1 unchanged sentence

Diluted earnings per share were calculated by dividing net income by the weighted-average of all potentially dilutive common shares that were outstanding during the periods presented.

The calculation of basic and diluted earnings per share for the three months ended March 31, was as follows:

Three Months Ended March 31,

The calculation of basic and diluted earnings per share for the three and six months ended June 30, was as follows:

Three Months Ended June 30, Six Months Ended June 30,

2025 2024 2025 2024

Net income $ 12,705 $ 9,366 $ 24,222 $ 18,962

6 unchanged sentences

Diluted $ 2.56 $ 1.89 $ 4.89 $ 3.83

For the three months ended March 31, 2025 and 2024, there were 7,500 and zero share-based awards, respectively, excluded from the calculation of diluted earnings per share as the effect would have been anti-dilutive.

For the three months ended June 30, 2025 and 2024, there were 13,293 and 5,570 share-based awards respectively, excluded from the calculation of diluted earnings per share as the effect would have been anti-dilutive.

For the six months ended June 30, 2025 and 2024, there were 7,500 and zero share-based awards excluded from the calculation of diluted earnings per share as there was no anti-dilutive effect.

NOTE 11 - GOODWILL AND OTHER INTANGIBLES

The Company’s finite and indefinite-lived intangible assets consist of the following:

March 31, 2025 December 31, 2024

June 30, 2025 December 31, 2024

Gross Carrying

11 unchanged sentences

The Company performs additional interim impairment assessments as circumstances warrant.

There were no indicators of impairment noted for the period ending March 31, 2025.

There were no indicators of impairment noted for the period ending June 30, 2025.

The Company may use both quantitative and qualitative approaches when testing goodwill for impairment.

12 unchanged sentences

Currency translation — 856 1,977 — 2,833

Balance at March 31, 2025 $ 3,078 $ 9,245 $ 15,423 $ — $ 27,746

Balance at June 30, 2025 $ 3,078 $ 9,714 $ 16,726 $ — $ 29,518

NOTE 12 - FAIR VALUE OF FINANCIAL ASSETS AND LIABILITIES

6 unchanged sentences

and (Level 3 Inputs) unobservable inputs that are not corroborated by market data.

The following table summarizes the Company’s assets and liabilities, recorded and measured at fair value, in the Consolidated Balance Sheets as of March 31, 2025 and December 31, 2024:

The following table summarizes the Company’s assets and liabilities, recorded and measured at fair value, in the Consolidated Balance Sheets as of June 30, 2025 and December 31, 2024:

Description Balance as of

March 31, 2025 Quoted Prices in Active Markets for

June 30, 2025 Quoted Prices in Active Markets for

Identical Assets or Liabilities

25 unchanged sentences

Accordingly, the changes in the fair value of the foreign currency forward contracts are recognized in each accounting period in Other operating expense (income), net on the Consolidated Statements of Income together with the transaction gain or loss from the related balance sheet position.

For the three months ended March 31, 2025, and 2024, the Company recognized a net gain of $ 0.1 million and a net loss of $ 0.2 million, respectively, on foreign currency forward contracts.

For the three and six months ended June 30, 2025, the Company recognized net losses of zero and net gains of $ 0.1 million, respectively, on foreign currency forward contracts.

For the three and six months ended June 30, 2024, the Company recognized net losses of zero and $ 0.2 million, respectively, on foreign currency forward contracts.

The Company has a non-qualified supplemental profit sharing plan for its executives (the "Supplemental Profit Sharing Plan").

The liability for the unfunded Supplemental Profit Sharing Plan was $ 9.5 million at March 31, 2025 and $ 9.0 million at December 31, 2024.

The liability for the unfunded Supplemental Profit Sharing Plan was $ 10.1 million at June 30, 2025 and $ 9.0 million at December 31, 2024.

These amounts are recorded within Other noncurrent liabilities on the Company’s Consolidated Balance Sheets.

2 unchanged sentences

The Company measures the fair value of the Supplemental Profit Sharing Plan liability using the market values of the participants’ underlying investment accounts.

The Company had zero fixed income investments as of March 31, 2025.

The Company had zero fixed income investments as of June 30, 2025.

The Company’s fixed income investments as of December 31, 2024 of $ 1.1 million are recorded in Other assets on the Consolidated Balance Sheet and are valued using the closing price on the active market on which the securities are traded.

There were no unrealized gains on the fixed income investments for the periods ended March 31, 2025 and 2024.

There were no unrealized gains on the fixed income investments for the periods ended June 30, 2025 and 2024.

The carrying value of the Company’s current financial instruments, which include cash, cash equivalents and restricted cash, accounts receivable, accounts payable and short-term debt, approximates fair value because of the short-term maturity of these instruments.

At March 31, 2025 and December 31, 2024, the fair value of the Company’s long-term debt was estimated using discounted cash flows analyses, based on the Company’s current incremental borrowing rates for similar types of borrowing arrangements that are considered to be Level 2 inputs.

At June 30, 2025 and December 31, 2024, the fair value of the Company’s long-term debt was estimated using discounted cash flows analyses, based on the Company’s current incremental borrowing rates for similar types of borrowing arrangements that are considered to be Level 2 inputs.

Based on the analysis performed, the fair value and the carrying value of the Company’s long-term debt are as follows:

March 31, 2025 December 31, 2024

June 30, 2025 December 31, 2024

Carrying Value Fair Value Carrying Value

13 unchanged sentences

The CODM considers forecast-to-actual and actual to prior period variances for both measures when making decisions about the allocation of operating and capital resources to each segment.

The CODM also uses segment sales and income before income taxes for the performance of each segment by comparing the results of each segment with one another and in determining the incentive compensation of certain employees.

The following tables present a summary of the Company’s reportable segments for the three months ended March 31, 2025 and 2024.

The CODM also uses segment gross sales and income before income taxes for the performance of each segment by comparing the results of each segment with one another and in determining the incentive compensation of certain employees.

The following tables present a summary of the Company’s reportable segments for the three- and six-month periods ended June 30, 2025 and 2024.

Financial results for the PLP-USA segment include the elimination of all segments’ intercompany profit in inventory.

Three Months Ended March 31, 2025

Three Months Ended June 30, 2025

PLP-USA The Americas EMEA Asia-Pacific Total

Gross sales $ 81,703 $ 30,856 $ 33,575 $ 34,673 $ 180,807

Intersegment sales ( 2,413 ) ( 2,348 ) ( 1,665 ) ( 4,780 ) ( 11,206 )

Net sales 79,290 28,508 31,910 29,893 169,601

Cost of products sold 51,228 20,084 22,399 20,491 114,202

Gross profit 28,062 8,424 9,511 9,402 55,399

Costs and expenses 17,413 6,736 7,950 6,176 38,275

Operating Income 10,649 1,688 1,561 3,226 17,124

Interest income 102 182 70 30 384

Interest expense ( 10 ) ( 26 ) ( 164 ) ( 118 ) ( 318 )

Other (expense) income, net ( 204 ) 42 248 30 116

Income before income taxes 10,537 1,886 1,715 3,168 17,306

Income tax expense 2,792 584 353 877 4,606

Total noncontrolling interest — — 5 — 5

Total net income attributable to Preformed Line Products Company shareholders $ 7,745 $ 1,302 $ 1,367 $ 2,291 $ 12,705

Three Months Ended June 30, 2024

PLP-USA The Americas EMEA Asia-Pacific Total

Gross sales $ 62,712 $ 23,762 $ 33,463 $ 28,467 $ 148,404

Intersegment sales 2,812 1,947 1,424 3,501 9,684

Net sales 59,900 21,815 32,039 24,966 138,720

Cost of products sold 39,157 15,103 22,675 17,512 94,447

Gross profit 20,743 6,712 9,364 7,454 44,273

Costs and expenses 16,939 4,644 5,388 6,010 32,981

Operating Income 3,804 2,068 3,976 1,444 11,292

Interest income — 279 50 18 346

Interest expense ( 251 ) ( 36 ) ( 149 ) ( 133 ) ( 568 )

Other (expense) income, net ( 19 ) 56 54 — 91

Income before income taxes 3,534 2,367 3,931 1,329 11,161

Income tax expense 189 572 954 79 1,794

Total noncontrolling interest — — ( 1 ) — ( 1 )

Total net income attributable to Preformed Line Products Company shareholders $ 3,345 $ 1,796 $ 2,975 $ 1,250 $ 9,366

Six Months Ended June 30, 2025

PLP-USA The Americas EMEA Asia-Pacific Total

$ 158,123 $ 55,314 $ 65,152 $ 59,678 $ 338,267

20 unchanged sentences

$ 16,182 $ 2,698 $ 2,555 $ 2,787 $ 24,222

Three Months Ended March 31, 2024

Six Months Ended June 30, 2024

PLP-USA The Americas EMEA Asia-Pacific Total

13 unchanged sentences

Total net income attributable to Preformed Line Products Company shareholders $ 8,661 $ 2,693 $ 4,555 $ 3,053 $ 18,962

Three Months Ended March 31,

Three Months Ended June 30, Six Months Ended June 30,

2025 2024 2025 2024

Expenditure for long-lived assets

7 unchanged sentences

The Americas 880 834 1,687 2,203

EMEA 970 827 1,838 1,663

Asia-Pacific 760 731 1,471 1,447

Total depreciation and amortization $ 5,728 $ 5,321 $ 11,253 $ 11,028

March 31, 2025 December 31, 2024

June 30, 2025 December 31, 2024

Identifiable assets

12 unchanged sentences

NOTE 14 - ACQUISITION OF BUSINESSES

Subsequent Event - Acquisition of JAP Telecom

Acquisition of JAP Telecom

On May 1, 2025, the Company acquired all issued and outstanding shares of J.A.P.

1 unchanged sentence

JAP Telecom is a leading Brazilian designer, manufacturer, and supplier of connectivity solutions for the South American telecommunications infrastructure market with a product portfolio including fiber optic splice closures, connectivity devices, and infrastructure accessories tailored to the specific needs of the local market.

JAP Telecom's annual sales for the year ending December 31, 2024 were approximately $ 4.6 million (R$ 26.1 million).

JAP Telecom's annual sales for the year ending December 31, 2024 were approximately $ 4.6 million.

The acquisition expands the Company's operational capabilities in the region and strengthens the Company's position in the global communications market.

The purchase price was approximately $ 5.8 million (R$ 33.0 million), net of cash as of the closing date.

The purchase price was approximately $ 5.3 million, net of cash as of the closing date.

The acquisition of JAP Telecom is accounted for using the acquisition method of accounting, which requires the assets acquired and liabilities assumed to be recognized at their respective fair values on the acquisition date.

The process of estimating the fair values of certain tangible assets, identifiable intangible assets and assumed liabilities requires the use of judgment in determining the appropriate assumptions and estimates.

The opening balance sheet is preliminary, and no measurement period adjustments have been recorded as of June 30, 2025.

Future adjustments are not expected to have a material impact to the Consolidated Statements of Income.

From the date of the acquisition through June 30, 2025, the Company’s consolidated financial statements included JAP Telecom sales of approximately $ 1.0 million and is reported in The Americas segment.

Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.

What changed 10-Q

Item 1. Financial Statements