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Item 2. Management’s Discussion and Analysis

2025-07-31 compared with 2025-05-02 · 166 added, 69 removed, 149 unchanged (61% of the section changed)

19 unchanged sentences

We evaluate segment performance and allocate resources based on several factors primarily based on gross sales and income before income taxes.

The following discussion describes our results of operations for the three months ended March 31, 2025 and 2024.

The following discussion describes our results of operations for the three and six months ended June 30, 2025 and 2024.

Our consolidated financial statements are prepared in conformity with United States ("U.S.") generally accepted accounting principles ("GAAP").

Our discussions of the financial results include non-GAAP measures (e.g., foreign currency impact) to provide additional information concerning our financial results and provide information that we believe is useful to the readers of our financial statements in the assessment of our performance and operating trends.

Net sales of $148.5 million increased $7.6 million for the three months ended March 31, 2025 year-over-year, mainly due to an increase in energy and communication sales for the quarter.

While inflationary pressures have subsided, recently enacted tariffs or other trade matters may give rise to further inflationary pressures, which may require further price adjustments to maintain profit margin, and any price increases may have a negative effect on demand.

While our significant domestic manufacturing footprint provides a competitive advantage in the current high tariff environment, raw materials imports, particularly steel and aluminum, will be most impacted.

Net sales of $169.6 million increased $30.9 million for the three months ended June 30, 2025 year-over-year and net sales of $318.1 million increased $38.5 million for the six months ended June 30, 2025 year-over-year, mainly due to an increase in energy and communication sales for the quarter.

While we continue to manage trade matters proactively, further tariff increases may give rise to inflationary pressures, which may require further price adjustments to maintain profit margin, and any price increases may have a negative effect on demand.

Our financial statements are subject to fluctuations in the exchange rates of foreign currencies in relation to the U.S.

PLPC's foreign currency exchange gains or (losses) were primarily related to translating into U.S.

dollars its foreign currency denominated loans, trade receivables and payables from its foreign subsidiaries at the March 31, 2025 exchange rates.

The fluctuations of foreign currencies during the three months ended March 31, 2025 and March 31, 2024 had an unfavorable impact on net sales of $4.4 million and favorable impact of $0.7 million, respectively.

The effect of currency translation had an unfavorable impact of $0.2 million and a de minimis impact on net income during the three months ended March 31, 2025 and 2024, respectively.

On a reportable segment basis, the impact of foreign currency translation on net sales and net income for the three months ended March 31, 2025, was as follows:

The fluctuations of foreign currencies during the three and six months ended June 30, 2025 had an unfavorable impact on net sales of $0.5 million and $4.9 million, respectively.

The fluctuations on foreign currencies had a de minimis impact on net income for the three-month period ended June 30, 2025 and an unfavorable impact on net income of $0.3 million, for the six-month period ended June 30, 2025.

The fluctuations of foreign currencies during the three and six months ended June 30, 2024 had an unfavorable impact on net sales of $1.1 million and $0.3 million, respectively.

The fluctuations on foreign currencies during the three and six months ended June 30, 2024 had a de minimis impact on net income.

On a reportable segment basis, the impact of foreign currency translation on net sales and net income for the three and six months ended June 30, 2025, was as follows:

Foreign Currency Translation Impact

Net Sales Net Income

(Thousands of dollars) 2025 2024 2025 2024

Three Months Ended June 30, 2025 Six Months Ended June 30, 2025

(Thousands of dollars) Net Sales Net Income Net Sales Net Income

The Americas $ (2,065) $ (84) $ (5,270) $ (290)

3 unchanged sentences

While uncertainty remains in the global economy due to tariffs and trade matters, we believe our business portfolio, including our significant U.S.

manufacturing footprint and our financial position are sound and strategically well-positioned.

manufacturing footprint, as well as our financial position, are sound and strategically well-positioned.

We remain focused on assessing our global market opportunities and overall manufacturing capacity in conjunction with the requirements of local manufacturing in the markets that we serve.

2 unchanged sentences

We have continued to invest in the business to expand into new markets for the Company, evaluate strategic mergers and acquisitions, improve efficiency, develop new products and increase our capacity.

As of March 31, 2025, our liquidity remains strong with our bank debt to equity percentage at 8.0 %.

As of June 30, 2025, our liquidity remains strong with our bank debt to equity percentage at 7.9%.

We can borrow needed funds at a competitive interest rate under the Facility.

RESULTS OF OPERATIONS

The following table sets forth a summary of the Company’s Statements of Consolidated Income and the percentage of net sales for the three months ended March 31, 2025 and 2024.

The following table sets forth a summary of the Company’s Statements of Consolidated Income and the percentage of net sales for the three months ended June 30, 2025 and 2024.

The Company’s past operating results are not necessarily indicative of future operating results.

Three Months Ended March 31,

(Thousands of dollars) 2025 2024

Three Months Ended June 30,

(Thousands of dollars) 2025 2024 Change

Net sales $ 169,601 100.0 % $ 138,720 100.0 % $ 30,881

3 unchanged sentences

OPERATING INCOME 17,124 10.1 11,292 8.1 5,832

Other income, net 541 0.4 299 0.2 242

Other income (expense), net 182 0.1 (131) (0.1) 313

INCOME BEFORE INCOME TAXES 17,306 10.2 11,161 8.0 6,145

1 unchanged sentence

NET INCOME 12,700 7.5 9,367 6.8 3,333

Net income attributable to noncontrolling interests (36) 0.0 (7) 0.0 (29)

Net loss (income) attributable to noncontrolling interests 5 0.0 (1) 0.0 6

NET INCOME ATTRIBUTABLE TO PREFORMED LINE PRODUCTS COMPANY SHAREHOLDERS $ 12,705 7.5 % $ 9,366 6.8 % $ 3,339

1 unchanged sentence

Excluding the effect of currency translation, net sales increased 23% as summarized in the following table:

Three Months Ended March 31,

Three Months Ended June 30,

(Thousands of dollars) 2025 2024 Change Change

4 unchanged sentences

Consolidated $ 169,601 $ 138,720 $ 30,881 $ (533) $ 31,414 23 %

The increase in PLP-USA net sales of $3.3 million, or 5%, was primarily due to higher volumes in communications sales.

International net sales for the three months ended March 31, 2025 were unfavorably affected by $4.4 million when local currencies were converted to U.S.

The increase in PLP-USA net sales of $19.4 million, or 32%, was primarily due to higher volumes in energy and communications sales.

International net sales for the three months ended June 30, 2025 were unfavorably affected by $0.5 million when local currencies were converted to U.S.

The following discussion of changes in net sales excludes the effect of currency translation.

The Americas net sales of $22.3 million increased $7.1 million, or 39%, primarily due to higher volumes in energy product sales, partially offset by lower communications sales.

EMEA net sales of $30.0 million increased $1.8 million, or 6%, primarily due to higher volume in energy product sales.

Asia-Pacific net sales of $22.3 million decreased $0.1 million, or 1%, primarily due to lower volumes in energy product sales.

The Americas net sales of $28.5 million increased $8.8 million, or 40%, primarily due to higher volumes in energy product sales and an increase in communications sales due to the acquisition of JAP Telecom in May 2025.

EMEA net sales of $31.9 million decreased $1.7 million, or 5%, primarily due to lower volume in communications product sales, partially offset by an increase in special industry sales.

Asia-Pacific net sales of $29.9 million increased $4.9 million, or 20%, primarily due to higher volumes in energy product sales.

Gross profit.

1 unchanged sentence

Excluding the effect of currency translation, gross profit increased $11.3 million, or 26%, as summarized in the following table:

Three Months Ended March 31,

Three Months Ended June 30,

(Thousands of dollars) 2025 2024 Change Change

4 unchanged sentences

Consolidated $ 55,399 $ 44,273 $ 11,126 $ (199) $ 11,325 26 %

PLP-USA gross profit of $26.8 million increased by $2.1 million, or 9%, compared to the same period in 2024, primarily due to higher sales volumes and favorable product mix.

International gross profit for the period ended March 31, 2025 was unfavorably impacted by $1.3 million when local currencies were translated to U.S.

PLP-USA gross profit of $28.1 million increased by $7.3 million, or 35%, compared to the same period in 2024, primarily due to higher sales volumes and favorable product mix, partially offset by higher tariff and manufacturing costs.

International gross profit for the period ended June 30, 2025 was unfavorably impacted by $0.2 million when local currencies were translated to U.S.

The following discussion of gross profit changes excludes the effects of currency translation.

The Americas gross profit increased $3.1 million, or 63%, which was primarily the result of higher sales volume and enhanced fixed cost leverage.

EMEA gross profit increased $0.6 million, or 8%, primarily due to higher sales volumes and favorable product mix.

Asia-Pacific gross profit decreased $0.1 million, or 1%, which was primarily driven by lower sales volumes and unfavorable product mix.

The Americas gross profit increased $2.3 million, or 35%, which was primarily the result of higher sales volumes.

EMEA gross profit decreased $0.3 million, or 3%, primarily due to lower sales volumes.

Asia-Pacific gross profit increased $2.0 million, or 26%, which was primarily driven by higher sales volumes.

Costs and expenses.

Costs and expenses of $35.5 million for the three months ended March 31, 2025 increased $3.0 million, or 9%, when compared to 2024.

Excluding the effect of currency translation, costs and expenses increased $3.8 million, or 12%, as summarized in the following table:

Three Months Ended March 31,

Costs and expenses of $38.3 million for the three months ended June 30, 2025 increased $5.3 million, or 16%, when compared to 2024, which are similar results when the effect of currency translation and intercompany transactions is excluded, as summarized in the following table:

Three Months Ended June 30,

(Thousands of dollars) 2025 2024 Change Change

8 unchanged sentences

Excluding intercompany transactions, PLP-USA costs and expenses increased $2.2 million, or 13% year-over-year, primarily due to higher selling costs and personnel costs.

International costs and expenses for the three months ended March 31, 2025 were favorably impacted by $0.9 million when local currencies were translated to U.S.

International costs and expenses for the three months ended June 30, 2025 were nominally impacted when local currencies were translated to U.S.

dollars and unfavorably impacted by intercompany transactions with PLP-USA.

The following discussion of costs and expenses excludes the effect of currency translation and intercompany transactions.

The Americas costs and expenses of $5.5 million increased $0.4 million primarily due to increased selling costs.

EMEA costs and expenses of $7.4 million increased by $0.9 million primarily due to increased selling, general, and administrative costs.

The Americas costs and expenses of $6.7 million increased $1.5 million primarily due to an increase in selling, general, and administrative and the impact of foreign currency remeasurement.

EMEA costs and expenses of $8.0 million increased by $1.8 million primarily due to a recovery of bad debt in the second quarter of 2024 that did not recur.

Asia-Pacific costs and expenses of $6.2 million decreased $0.2 million primarily due to a reduction in selling costs.

Other Income (Expense), net.

Other income, net of $0.2 million for the three months ended June 30, 2025 was favorable by $0.3 million when compared to Other expense, net for the three months ended June 30, 2024 of $0.1 million.

The favorable movement was mainly due to lower interest expense from reduced debt balances.

Income taxes.

Income taxes for the three months ended June 30, 2025 and 2024 were $4.6 million and $1.8 million based on pre-tax income of $17.3 million and $11.2 million, respectively.

The tax rate for the three months ended June 30, 2025 and 2024 was 27% and 16%, respectively.

The effective tax rate for the three months ended June 30, 2025 was higher than the effective tax rate for the same period in 2024 mainly 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.

As a result of the preceding items, net income for the three months ended June 30, 2025 was $12.7 million, compared to $9.4 million for 2024.

Excluding the effect of currency translation, net income increased $3.4 million as summarized in the following table.

The increase in net income was due to increases in operating income described above as well as lower interest expense, partially offset by higher tax expense:

Three Months Ended June 30,

(Thousands of dollars) 2025 2024 Change Change

Net income (loss)

PLP-USA $ 7,745 $ 3,345 $ 4,400 $ — $ 4,400 132 %

The Americas 1,302 1,796 (494) (84) (410) (23) %

EMEA 1,367 2,975 (1,608) 51 (1,659) (56) %

Asia-Pacific 2,291 1,250 1,041 6 1,035 83 %

Consolidated $ 12,705 $ 9,366 $ 3,339 $ (27) $ 3,366 36 %

SIX MONTHS ENDED JUNE 30, 2025 COMPARED TO SIX MONTHS ENDED JUNE 30, 2024

The following table sets forth a summary of the Company’s Statements of Consolidated Income and the percentage of net sales for the six months ended June 30, 2025 and 2024.

The Company’s past operating results are not necessarily indicative of future operating results.

Six Months Ended June 30,

(Thousands of dollars) 2025 2024 Change

Net sales $ 318,142 100.0 % $ 279,625 100.0 % $ 38,517

Cost of products sold 214,072 67.3 191,220 68.4 22,852

GROSS PROFIT 104,070 32.7 88,405 31.6 15,665

Costs and expenses 73,816 23.2 65,554 23.4 8,262

OPERATING INCOME 30,254 9.5 22,851 8.2 7,403

Other income, net 723 0.2 168 0.1 555

INCOME BEFORE INCOME TAXES 30,977 9.7 23,019 8.2 7,958

Income taxes 6,724 2.1 4,049 1.4 2,675

NET INCOME 24,253 7.6 18,970 6.8 5,283

Net income attributable to noncontrolling interests (31) (0.0) (8) (0.0) (23)

NET INCOME ATTRIBUTABLE TO PREFORMED LINE PRODUCTS COMPANY SHAREHOLDERS $ 24,222 7.6 % $ 18,962 6.8 % $ 5,260

In 2025, net sales were $318.1 million, an increase of $38.5 million, or 14%, compared to 2024.

Excluding the effect of currency translation, net sales increased 16% as summarized in the following table:

Six Months Ended June 30,

(Thousands of dollars) 2025 2024 Change Change

Translation Change

Translation %

PLP-USA $ 153,296 $ 130,637 $ 22,659 $ — $ 22,659 17 %

The Americas 50,787 40,173 10,614 (5,270) 15,884 40 %

EMEA 61,903 60,693 1,210 1,081 129 — %

Asia-Pacific 52,156 48,122 4,034 (740) 4,774 10 %

Consolidated $ 318,142 $ 279,625 $ 38,517 $ (4,929) $ 43,446 16 %

The increase in PLP-USA net sales of $22.7 million, or 17%, was primarily due to higher volumes in energy and communications product sales.

International net sales for the six months ended June 30, 2025 were unfavorably affected by $4.9 million when local currencies were converted to U.S.

The following discussion of changes in net sales excludes the effect of currency translation.

The Americas net sales of $50.8 million increased $15.9 million, or 40%, primarily due to an increase in energy product sales.

EMEA net sales of $61.9 million increased $0.1 million, primarily due to higher volume in energy product sales.

Asia-Pacific net sales of $52.2 million increased $4.8 million, or 10%, primarily due to volume increases in energy product and special industries sales.

Gross profit.

Gross profit of $104.1 million for 2025 increased $15.7 million, or 18%, compared to 2024.

Excluding the effect of currency translation, gross profit increased $17.2 million, or 19%, as summarized in the following table:

Six Months Ended June 30,

(Thousands of dollars) 2025 2024 Change Change

Translation Change

Translation %

PLP-USA $ 54,900 $ 45,439 $ 9,461 $ — $ 9,461 21 %

The Americas 15,511 11,678 3,833 (1,640) 5,473 47 %

EMEA 18,388 17,682 706 357 349 2 %

Asia-Pacific 15,271 13,606 1,665 (231) 1,896 14 %

Consolidated $ 104,070 $ 88,405 $ 15,665 $ (1,514) $ 17,179 19 %

PLP-USA gross profit of $54.9 million increased by $9.5 million, or 21%, compared to the same period in 2024, primarily due to higher sales volumes and favorable product mix, partially offset by higher tariff and manufacturing costs.

International gross profit for the period ended June 30, 2025 was unfavorably impacted by $1.5 million when local currencies were translated to U.S.

The following discussion of gross profit changes excludes the effects of currency translation.

The Americas gross profit increased $5.5 million, or 47%, which was primarily the result of higher sales volumes and favorable product mix.

EMEA gross profit increased $0.3 million, or 2%, primarily due to favorable product mix.

Asia-Pacific gross profit increased $1.9 million, or 14%, which was primarily driven by higher sales volume and favorable product mix.

Costs and expenses.

Costs and expenses of $73.8 million for the six months ended June 30, 2025 increased $8.3 million, or 13%, when compared to 2024.

Excluding the effect of currency translation and intercompany transactions, costs and expenses increased $9.2 million, or 14%, as summarized in the following table:

Six Months Ended June 30,

(Thousands of dollars) 2025 2024 Change Change

Translation Change Due to Intercompany Transactions Change Excluding

and Intercompany Transactions

Costs and expenses

PLP-USA $ 34,567 $ 35,102 $ (535) $ — $ (3,553) $ 3,018 9 %

The Americas 12,224 9,364 2,860 (1,016) 1,921 1,955 21 %

EMEA 15,300 11,519 3,781 237 900 2,644 23 %

Asia-Pacific 11,725 9,569 2,156 (121) 732 1,545 16 %

Consolidated $ 73,816 $ 65,554 $ 8,262 $ (900) $ — $ 9,162 14 %

PLP-USA costs and expenses of $34.6 million increased $3.0 million, or 9% year-over-year.

PLP-USA’s increase was primarily attributable to higher selling costs and personnel costs.

International costs and expenses for the six months ended June 30, 2025 were favorably impacted by $0.9 million when local currencies were translated to U.S.

dollars and unfavorably impacted by intercompany transactions with PLP-USA.

The following discussion of costs and expenses excludes the effect of currency translation and intercompany transactions.

The Americas costs and expenses of $12.2 million increased $2.0 million primarily due to an increase in personnel costs and the impact of foreign currency remeasurement.

EMEA costs and expenses of $15.3 million increased by $2.6 million primarily due to higher personnel cost and a recovery of bad debt in the second quarter of 2024 that did not recur.

Asia-Pacific costs and expenses of $11.7 million increased $1.5 million primarily due to a gain on the sale of capital assets in the first quarter of 2024 that did not recur.

Other income, net.

Other income, net of $0.5 million for the three months ended March 31, 2025 was favorable by $0.2 million when compared to Other income, net for the three months ended March 31, 2024 of $0.3 million.

The favorable movement was due to lower interest expense from reduced debt balances and a government incentive received in the first quarter of 2025 related to our new facility in China, offset by lower interest income for the three months ended March 31, 2025.

Other income, net of $0.7 million for the six months ended June 30, 2025 was favorable by $0.5 million when compared to Other income, net for the six months ended June 30, 2024 of $0.2 million.

The favorable movement was due to lower interest expense from reduced debt balances and a government incentive received in the first quarter of 2025 related to our facility in China, partially offset by lower interest income for the six months ended June 30, 2025.

Income taxes.

Income taxes for the three months ended March 31, 2025 and 2024 were $2.1 million and $2.3 million based on pre-tax income of $13.7 million and $11.9 million, respectively.

The tax rate for the three months ended March 31, 2025 and 2024 was 16% and 19%, respectively.

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

As a result of the preceding items, net income for the three months ended March 31, 2025 was $11.5 million, compared to $9.6 million for 2024.

Income taxes for the six months ended June 30, 2025 and 2024 were $6.7 million and $4.0 million based on pre-tax income of $31.0 million and $23.0 million, respectively.

The tax rate for the six months ended June 30, 2025 and 2024 was 22% and 18%, respectively.

The effective tax rate for the six months ended June 30, 2025 was higher than the effective tax rate for the same period in 2024 mainly 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.

As a result of the preceding items, net income for the six months ended June 30, 2025 was $24.2 million, compared to $19.0 million for 2024.

Excluding the effect of currency translation, net income increased $5.5 million as summarized in the following table.

The increase in net income was due to increases in operating income described above as well as lower interest expense and lower tax expense:

Three Months Ended March 31,

The increase in net income was due to increases in operating income described above, partially offset by lower interest income and higher tax expense:

Six Months Ended June 30,

(Thousands of dollars) 2025 2024 Change Change

Translation Change

Translation %

Net income (loss)

11 unchanged sentences

Our investments include expenditures required for equipment and facilities as well as expenditures in support of our strategic initiatives.

During the first three months of 2025, we used cash of $11.0 million for capital expenditures.

We ended the first three months of 2025 with $54.8 million of cash, cash equivalents and restricted cash (collectively, “Cash”).

During the first six months of 2025, we used cash of $19.4 million for capital expenditures.

We ended the first six months of 2025 with $66.9 million of cash, cash equivalents and restricted cash (collectively, “Cash”).

Our Cash is held in various locations throughout the world.

At March 31, 2025, the majority of our Cash was held outside the U.S.

At June 30, 2025, the majority of our Cash was held outside the U.S.

We expect most accumulated non-U.S.

6 unchanged sentences

We currently have not identified any potential material impact on our liquidity from customer credit issues.

Total debt, including notes payable, at March 31, 2025 was $34.9 million.

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

Total debt, including notes payable, at June 30, 2025 was $36.2 million.

The Company maintained a credit facility (the "Facility") 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

At March 31, 2025, our unused availability under the Facility was $82.5 million and our bank debt to equity percentage was 8.0%.

Subsequently, 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.

At June 30, 2025, our unused availability under the Facility was $79.6 million and 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.

Our Asia-Pacific segment had $0.1 million in restricted cash for the periods ended March 31, 2025 and December 31, 2024, respectively.

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

Our Asia-Pacific segment had $0.1 million in restricted cash for the periods ended June 30, 2025 and December 31, 2024, respectively.

The restricted cash was used to secure bank guarantees and is included in Cash, cash equivalents and restricted cash on the Consolidated Balance Sheets.

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.

As of March 31, 2025, $12.1 million was

outstanding on this debt facility, of which $2.1 million was classified as current.

As of June 30, 2025, $11.6 million was outstanding on this debt facility, of which $2.1 million was classified as current.

The aircraft has been pledged as collateral against the loan.

Subsequently, 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 PLN100.3 million ($27.4 million).

The maturity date of the loan is January 31, 2035 and is payable in annual installments in the amounts of PLN5.3 million ($1.5 million) in 2026, PLN9.0 million ($2.5 million) in 2027, PLN9.6 million ($2.6 million) in 2028 through 2034, and PLN18.8 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

We expect that our major source of funding for 2025 and beyond will be our operating cash flows, our existing Cash as well as our Facility agreement.

6 unchanged sentences

Sources and Uses of Cash

Net cash provided by operating activities for the three months ended March 31, 2025 was $5.7 million compared to $5.8 million in the comparable prior year three-month period.

Net cash provided by operating activities for the six months ended June 30, 2025 was $32.6 million compared to $34.0 million in the comparable prior year six-month period.

The $1.4 million decrease was primarily a result of changes in operating assets and liabilities offset by an increase in net income.

Net cash used in investing activities for the three months ended March 31, 2025 was $9.7 million compared to $0.7 million in the comparable prior year three-month period.

The $9.0 million change was primarily a result of an increase in capital expenditures during the current period, primarily related to the acquisition of new land and a building in Spain.

Net cash used in financing activities for the three months ended March 31, 2025 was less than $0.1 million compared to $11.7 million in the comparable prior year three-month period.

The $11.7 million change was primarily the result of a reduction in long-term debt.

Net cash used in investing activities for the six months ended June 30, 2025 was $22.2 million compared to $4.3 million in the comparable prior year six-month period.

The $17.9 million change was primarily a result of the acquisition of JAP Telecom in May 2025 and an increase in capital expenditures, primarily related to the acquisition of new land and a building in Spain and the construction of a new manufacturing plant in Poland.

Net cash used in financing activities for the six months ended June 30, 2025 was $4.8 million compared to $33.5 million in the comparable prior year six-month period.

The $28.7 million change was primarily the result of a reduction in net payments of long-term debt.

We have commitments under operating leases primarily for office and manufacturing space, transportation equipment, office and computer equipment and finance leases primarily for equipment.

At March 31, 2025, we had $1.8 million of current operating lease liabilities and $6.5 million of noncurrent operating lease liabilities.

Total liabilities related to finance lease obligations were less than $0.6 million at March 31, 2025.

As of March 31, 2025, the Company had total outstanding guarantees of $14.2 million.

At June 30, 2025, we had $1.8 million of current operating lease liabilities and $6.7 million of noncurrent operating lease liabilities.

Total liabilities related to finance lease obligations were less than $0.7 million at June 30, 2025.

As of June 30, 2025, the Company had total outstanding guarantees of $14.6 million.

Additionally, certain domestic and foreign customers require the Company to issue letters of credit or performance bonds as a condition of placing an order.

As of March 31, 2025, the Company had total outstanding letters of credit of $1.2 million.

As of June 30, 2025, the Company had total outstanding letters of credit of $2.9 million.

The Company has 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 was 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 was 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.

9 unchanged sentences

• The overall demand for cable anchoring and control hardware for electrical transmission and distribution lines on a worldwide basis, which has a slow growth rate in mature markets such as the United States (“U.S.”), Canada, Australia and Western Europe and may grow slowly or experience prolonged delay in developing regions despite expanding power needs;

• The potential impact of global economic conditions, including the impact of inflation, recently enacted tariffs, and rising interest rates, on the Company’s ongoing profitability and future growth opportunities in the Company’s core markets in the U.S.

and other foreign countries, which may experience continued or further instability due to political and economic conditions, social unrest, acts of war, military conflict (including the ongoing Russian-Ukrainian and Israeli-Palestinian conflicts), international hostilities or the perception that hostilities may be imminent, terrorism, changes in diplomatic and trade relationships and public health concerns (including viral outbreaks such as COVID-19);

• The potential impact of global economic conditions, including the impact of inflation, recently enacted tariffs and related economic uncertainty, and rising interest rates, on the Company’s ongoing profitability and future growth opportunities in the Company’s core markets in the U.S.

and other foreign countries, which may experience continued or further instability due to political and economic conditions, social unrest, acts of war, military conflict (including the ongoing Russian-Ukrainian, Israeli-Palestinian and Iranian conflicts), international hostilities or the perception that hostilities may be imminent, terrorism, changes in diplomatic and trade relationships and public health concerns (including viral outbreaks such as COVID-19);

• The ability of the Company’s customers to raise funds needed to build the infrastructure projects their customers require;

11 unchanged sentences

• Strikes, labor disruptions and other fluctuations in labor costs;

• Changes and uncertainty in significant government regulations, including those affecting environmental compliance or regulatory or third-party litigation matters;

• Changes and uncertainty in significant government regulations and funding priorities, including those affecting environmental compliance or regulatory or third-party litigation matters;

• Security breaches or other disruptions to the Company’s information technology structure;

3 unchanged sentences

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 2. Management’s Discussion and Analysis