PREFORMED LINE PRODUCTS CO 10-Q

ITEM 1. FINANCIAL STATEMENTS PREFORMED LINE PRODUCTS COMPANY CONSOLIDATED BALANCE SHEETS September 30, 2025 December 31, 2024 (Thousands of dollars, except share and per share data) (Unaudited) ASSETS Cash, cash equivalents and restricted cash $ 72,946 $ 57,244 Accounts receivable, net 120,794 111,402 Inventories, net 146,089 129,913 Prepaid expenses 14,117 11,720 Other current assets 6,330 5,514 TOTAL CURRENT ASSETS 360,276 315,793 Property, plant and equipment, net 217,781 195,086 Operating lease, right-of-use assets 9,932 10,117 Goodwill 30,480 26,685 Other intangible assets, net 9,672 9,656 Deferred income taxes 7,310 6,546 Other assets 9,172 9,994 TOTAL ASSETS $ 644,623 $ 573,877 LIABILITIES AND SHAREHOLDERS' EQUITY Trade accounts payable $ 48,858 $ 41,951 Notes payable to banks 2,847 7,782 Operating lease liabilities, current 1,804 1,588 Current portion of long-term debt 4,660 2,430 Accrued compensation and other benefits 30,728 25,904 Accrued expenses and other liabilities 24,452 25,503 Dividends payable 1,198 1,293 Income taxes payable 1,896 1,962 TOTAL CURRENT LIABILITIES 116,443 108,413 Long-term debt, less current portion 31,346 18,357 Operating lease liabilities, noncurrent 6,180 6,538 Deferred income taxes 5,655 3,766 Other noncurrent liabilities 18,661 14,479 SHAREHOLDERS' EQUITY Common shares $ 2 par value per share, 15,000,000 shares authorized, 4,901,871 and 4,913,621 issued and outstanding, at September 30, 2025 and December 31, 2024 13,831 13,752 Common shares issued to rabbi trust, 222,506 and 222,887 shares at September 30, 2025 and December 31, 2024, respectively ( 9,586 ) ( 9,575 ) Deferred compensation liability 9,586 9,575 Paid-in capital 65,641 65,093 Retained earnings 576,985 553,179 Treasury shares, at cost, 2,013,240 and 1,961,772 shares at September 30, 2025 and December 31, 2024, respectively ( 134,676 ) ( 126,800 ) Accumulated other comprehensive loss ( 55,476 ) ( 82,909 ) TOTAL PREFORMED LINE PRODUCTS COMPANY SHAREHOLDERS' EQUITY 466,305 422,315 Noncontrolling interest 33 9 TOTAL SHAREHOLDERS' EQUITY 466,338 422,324 TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY $ 644,623 $ 573,877 See notes to consolidated financial statements (unaudited). 3 PREFORMED LINE PRODUCTS COMPANY STATEMENTS OF CONSOLIDATED INCOME (UNAUDITED) Three Months Ended September 30, Nine Months Ended September 30, 2025 2024 2025 2024 (Thousands, except per share data) Net sales $ 178,087 $ 146,973 $ 496,229 $ 426,597 Cost of products sold 125,238 101,195 339,310 292,415 GROSS PROFIT 52,849 45,778 156,919 134,182 Costs and expenses Selling 13,252 12,318 38,525 36,146 General and administrative 19,149 16,414 55,440 48,272 Research and engineering 6,182 5,545 17,356 16,334 Other operating expense, net 1,134 1,109 2,212 186 39,717 35,386 113,533 100,938 OPERATING INCOME 13,132 10,392 43,386 33,244 Other income (expense) Interest income 683 538 1,577 1,856 Interest expense ( 312 ) ( 564 ) ( 1,006 ) ( 1,840 ) Pension termination expense ( 11,657 ) — ( 11,657 ) — Other income, net 510 64 1,033 189 ( 10,776 ) 38 ( 10,053 ) 205 INCOME BEFORE INCOME TAXES 2,356 10,430 33,333 33,449 Income tax (benefit) expense ( 263 ) 2,734 6,461 6,783 NET INCOME $ 2,619 $ 7,696 $ 26,872 $ 26,666 Net expense (income) attributable to noncontrolling interests 7 ( 16 ) ( 24 ) ( 24 ) NET INCOME ATTRIBUTABLE TO PREFORMED LINE PRODUCTS COMPANY SHAREHOLDERS $ 2,626 $ 7,680 $ 26,848 $ 26,642 AVERAGE NUMBER OF SHARES OF COMMON STOCK OUTSTANDING: Basic 4,915 4,904 4,925 4,911 Diluted 4,941 4,977 4,951 4,959 EARNINGS PER SHARE OF COMMON STOCK ATTRIBUTABLE TO PREFORMED LINE PRODUCTS COMPANY SHAREHOLDERS: Basic $ 0.53 $ 1.57 $ 5.45 $ 5.42 Diluted $ 0.53 $ 1.54 $ 5.42 $ 5.37 See notes to consolidated financial statements (unaudited). 4 PREFORMED LINE PRODUCTS COMPANY STATEMENTS OF CONSOLIDATED COMPREHENSIVE INCOME (UNAUDITED) Three Months Ended September 30, Nine Months Ended September 30, 2025 2024 2025 2024 (Thousands of dollars) Net income $ 2,619 $ 7,696 $ 26,872 $ 26,666 Other comprehensive income (loss), net of tax: Foreign currency translation adjustment 1,708 7,483 22,060 ( 5,053 ) Pension adjustment, net of tax 5,127 89 5,373 267 Other comprehensive income (loss), net of tax 6,835 7,572 27,433 ( 4,786 ) Comprehensive expense (income) attributable to noncontrolling interests 7 ( 16 ) ( 24 ) ( 24 ) COMPREHENSIVE INCOME ATTRIBUTABLE TO PREFORMED LINE PRODUCTS COMPANY SHAREHOLDERS $ 9,461 $ 15,252 $ 54,281 $ 21,856 See notes to consolidated financial statements (unaudited). 5 PREFORMED LINE PRODUCTS COMPANY STATEMENTS OF CONSOLIDATED CASH FLOWS (UNAUDITED) Nine Months Ended September 30, 2025 2024 (Thousands of dollars) OPERATING ACTIVITIES Net income $ 26,872 $ 26,666 Adjustments to reconcile net income to net cash provided by operations: Depreciation and amortization 16,889 15,982 Deferred income taxes 1,265 ( 3,012 ) Share-based compensation expense 3,973 1,949 Pension termination expense 11,657 — Loss (gain) on sale of property and equipment 24 ( 1,939 ) Other, net 3,066 999 Changes in operating assets and liabilities Contributions to company pension plan ( 2,872 ) — Other, net ( 9,351 ) 2,768 NET CASH PROVIDED BY OPERATING ACTIVITIES 51,523 43,413 INVESTING ACTIVITIES Capital expenditures ( 29,977 ) ( 11,220 ) Proceeds from the sale of property and equipment 324 3,493 Proceeds from sale of investments 1,679 — Purchases of investments ( 451 ) — Acquisition of businesses, net of cash ( 4,746 ) — NET CASH USED IN INVESTING ACTIVITIES ( 33,171 ) ( 7,727 ) FINANCING ACTIVITIES (Payments) proceeds of notes payable to banks ( 5,025 ) 914 Proceeds from long-term debt 19,035 94,023 Payments of long-term debt ( 5,463 ) ( 122,075 ) Dividends paid ( 3,137 ) ( 3,097 ) Proceeds from issuance of common shares 397 160 Stock incentive plan payments ( 3,799 ) — Purchase of common shares for treasury ( 389 ) ( 113 ) Purchase of common shares for treasury from related parties ( 7,487 ) ( 8,141 ) Other ( 1,474 ) ( 2,473 ) NET CASH USED IN FINANCING ACTIVITIES ( 7,342 ) ( 40,802 ) Effects of exchange rate changes on cash, cash equivalents and restricted cash 4,692 ( 993 ) Net increase (decrease) in cash, cash equivalents and restricted cash 15,702 ( 6,109 ) Cash, cash equivalents and restricted cash at beginning of year 57,244 53,607 CASH, CASH EQUIVALENTS AND RESTRICTED CASH AT END OF PERIOD $ 72,946 $ 47,498 See notes to consolidated financial statements (unaudited). 6 PREFORMED LINE PRODUCTS COMPANY STATEMENTS OF CONSOLIDATED SHAREHOLDERS' EQUITY Accumulated Other Comprehensive Income (Loss) (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, 2024 $ 13,752 $ ( 9,575 ) $ 9,575 $ 65,093 $ 553,179 $ ( 126,800 ) $ ( 77,536 ) $ ( 5,373 ) $ 422,315 $ 9 $ 422,324 Net income 11,517 11,517 36 11,553 Foreign currency translation adjustment 6,671 6,671 6,671 Pension adjustment, net of tax 123 123 123 Total comprehensive income 18,311 36 18,347 Purchase of 860 common shares ( 131 ) ( 131 ) ( 131 ) Stock incentive plan activity 68 ( 2,888 ) ( 881 ) ( 3,701 ) ( 3,701 ) Common shares issued to rabbi trust of 147 , net ( 19 ) 19 — — Cash dividends declared – $ 0.20 per share ( 1,018 ) ( 1,018 ) ( 1,018 ) 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 Net income 2,626 2,626 ( 7 ) 2,619 Foreign currency translation adjustment 1,708 1,708 1,708 Pension adjustment, net of tax 5,127 5,127 5,127 Total comprehensive income 9,461 ( 7 ) 9,454 Purchase of 26,858 common shares ( 4,513 ) ( 4,513 ) ( 4,513 ) Stock incentive plan activity 8 1,622 1,630 1,630 Common shares distributed from rabbi trust of 662 , net 27 ( 27 ) — — Cash dividends declared – $ 0.20 per share ( 1,009 ) ( 1,009 ) ( 1,009 ) Balance at September 30, 2025 $ 13,831 $ ( 9,586 ) $ 9,586 $ 65,641 $ 576,985 $ ( 134,676 ) $ ( 55,476 ) $ — $ 466,305 $ 33 $ 466,338 7 Accumulated Other Comprehensive Income (Loss) (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 Net income 9,596 9,596 7 9,603 Foreign currency translation adjustment ( 6,565 ) ( 6,565 ) ( 6,565 ) Pension adjustment, net of tax 89 89 89 Total comprehensive income 3,120 7 3,127 Stock incentive plan activity 104 450 ( 5,452 ) ( 4,898 ) ( 4,898 ) Common shares distributed from rabbi trust of 4,477 , net ( 31 ) 31 — — Cash dividends declared – $ 0.20 per share ( 1,017 ) ( 1,017 ) ( 1,017 ) 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 Net income 7,680 7,680 16 7,696 Foreign currency translation adjustment 7,483 7,483 7,483 Pension adjustment, net of tax 89 89 89 Total comprehensive income 15,252 16 15,268 Stock incentive plan activity 4 747 751 751 Purchase of 17,822 common shares ( 2,234 ) ( 2,234 ) ( 2,234 ) Common shares distributed from rabbi trust of 16,046 , net 676 ( 676 ) — — Cash dividends declared – $ 0.20 per share ( 1,016 ) ( 1,016 ) ( 1,016 ) Balance at September 30, 2024 $ 13,715 $ ( 9,557 ) $ 9,557 $ 63,108 $ 543,743 $ ( 126,503 ) $ ( 60,881 ) $ ( 4,211 ) $ 428,971 $ 16 $ 428,987 See notes to consolidated financial statements (unaudited). 8 PREFORMED LINE PRODUCTS COMPANY NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) (Tables in thousands of dollars, except share and per share data, unless specifically noted) NOTE 1 - SIGNIFICANT ACCOUNTING POLICIES The accompanying unaudited consolidated financial statements of Preformed Line Products Company and subsidiaries (the “Company” or “PLPC”) have been prepared in accordance with United States ("U.S.") generally accepted accounting principles ("GAAP") for interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all the information and footnotes required by GAAP for complete financial statements. This Form 10-Q should be read in conjunction with the consolidated financial statements and accompanying notes included in our Form 10-K for the year ended December 31, 2024 filed on March 13, 2025 with the Securities and Exchange Commission. Management has evaluated subsequent events through the date this Form 10-Q was filed with the Securities and Exchange Commission. The preparation of these consolidated financial statements requires management to make estimates and assumptions that affect the amounts reported in the consolidated financial statements and the accompanying notes. Actual results could differ from these estimates. 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 and nine months ended September 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. As a result, investments in noncontrolling interests are reported as equity in the Company’s consolidated financial statements. Additionally, the Company’s consolidated financial statements include 100 % of a controlled subsidiary’s earnings, rather than only its share. Transactions between the parent company and noncontrolling interests are reported in equity as transactions between stockholders, provided that these transactions do not create a change in control. Certain prior year amounts have been reclassified to conform to the current year presentation. Recently Adopted or Issued Accounting Pronouncements and Regulations Adopted In November 2023, the FASB issued Accounting Standards Update ("ASU") No. 2023-07, “Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures.” This ASU enhances reportable segment disclosures on both an annual and interim basis primarily in regards to the disclosure of significant segment expenses that are regularly provided to the chief operating decision maker ("CODM") and included within the reported measure(s) of segment profit or loss. In addition, the ASU requires disclosure, by segment, of other items included in the reported measure(s) of segment profit or loss, including qualitative information describing the composition, nature and type of each item. The ASU also expands disclosure requirements related to the CODM, including how the reported measure(s) of segment profit or loss are used to assess segment performance and allocate resources, the method used to allocate overhead for significant segment expenses and others. Lastly, all current required annual segment reporting disclosures under Topic 280 are now effective for interim periods. The ASU was effective for the Company's 2024 fiscal year and interim periods beginning with the quarter ended March 31, 2025. The adoption of this new standard did not have a material impact on the consolidated financial statements, other than the updated segment disclosures included within Note 13, "Segment Information". Not Yet Adopted In December 2023, the FASB issued Accounting Standards Update No. 2023-09, “Income Taxes (Topic 740): Improvements to Income Tax Disclosures.” This ASU enhances income tax disclosures by providing information to better assess how an entity's operations, related tax risks, tax planning and operational opportunities affect its tax rate and prospects for future cash flows. This ASU requires additional disclosures to the annual effective tax rate reconciliation including specific categories and further disaggregated reconciling items that meet the quantitative threshold. Additionally, the ASU requires disclosures relating to income tax expense and payments made to federal, state, local and foreign jurisdictions. This ASU is effective for fiscal years beginning after December 15, 2024. The Company is evaluating the impact of adopting this ASU and expects the standard will only impact its income tax disclosures with no material impact to the consolidated financial statements. In November 2024, the FASB issued Accounting Standards Update No. 2024-03, “Income Statement – Reporting Comprehensive Income – Expense Disaggregation Disclosures (Subtopic 220-40): Disaggregation of Income Statement Expenses.” This ASU improves disclosures about a public business entity’s expenses and addresses requests from investors for more detailed information about the types of expenses commonly presented in expense captions. Coupled with recent standards that enhanced the disaggregation of revenue and income tax information, the disaggregated expense information required by the amendments in this ASU will enable investors to better understand the major components of an entity’s income statement. This ASU is effective for annual reporting 9 periods beginning after December 15, 2026, and interim reporting periods beginning after December 15, 2027, with early adoption permitted. The Company is evaluating the impact of adopting this ASU. In September 2025, the FASB issued Accounting Standards Update No. 2025-06, "Intangibles - Goodwill and Other – Internal-Use Software (Subtopic 350-40): Targets Improvements to the Accounting for Internal-Use Software." This ASU removes all references to software development "project stages." Instead, capitalization begins when the following conditions are met; management has authorized funding the software project, it is probable that the project will be completed and the software will be used for its intended function. This ASU is effective for annual periods beginning after December 15, 2027, and for interim periods within those annual reporting periods, with early adoption permitted. 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 the OBBBA's impact on the consolidated financial statements. 10 NOTE 2 - REVENUE Revenue Recognition Sales are recognized when obligations under the terms of the contract are satisfied and control of promised goods or services have transferred to our customers. Control is transferred when the customer has the ability to direct the use of and obtain benefits from the goods or services and is primarily based on shipping terms. Sales are measured as the amount of consideration the Company expects to receive in exchange for transferring products. Disaggregated Revenue The Company’s revenues by segment and product type are as follows: Three Months Ended September 30, 2025 Product Type PLP-USA The Americas EMEA Asia-Pacific Consolidated Energy 60 % 84 % 75 % 73 % 69 % Communications 34 % 15 % 20 % 2 % 23 % Special Industries 6 % 1 % 5 % 25 % 8 % Total 100 % 100 % 100 % 100 % 100 % Three Months Ended September 30, 2024 Product Type PLP-USA The Americas EMEA Asia-Pacific Consolidated Energy 61 % 79 % 71 % 78 % 70 % Communications 32 % 18 % 24 % 3 % 23 % Special Industries 7 % 3 % 5 % 19 % 7 % Total 100 % 100 % 100 % 100 % 100 % Nine Months Ended September 30, 2025 Product Type PLP-USA The Americas EMEA Asia-Pacific Consolidated Energy 61 % 84 % 73 % 75 % 68 % Communications 34 % 15 % 20 % 3 % 23 % Special Industries 5 % 1 % 7 % 22 % 8 % Total 100 % 100 % 100 % 100 % 99 % Nine Months Ended September 30, 2024 Product Type PLP-USA The Americas EMEA Asia-Pacific Consolidated Energy 64 % 78 % 71 % 77 % 71 % Communications 30 % 20 % 24 % 3 % 22 % Special Industries 6 % 2 % 5 % 20 % 7 % Total 100 % 100 % 100 % 100 % 100 % Credit Losses for Receivables The Company maintains an allowance for credit losses for estimated losses resulting from the inability of its customers to make required payments. The Company uses a current expected credit loss model in order to immediately recognize an estimate of credit losses that are expected to occur over the life of the financial instruments, mainly trade receivables. Additionally, the allowance is based upon identified delinquent accounts, customer payment patterns and other analyses of historical data trends. Receivable balances 11 are written off against an allowance for credit losses after a final determination has been made. The change in the allowance for credit losses includes expense and net write-offs, which are identified in the following table: Nine Months Ended September 30, 2025 2024 Allowance for credit losses, beginning of period $ 6,958 $ 8,260 Additions (reductions) charged to costs and expenses 893 ( 1,165 ) Write-offs ( 250 ) ( 209 ) Foreign exchange and other 57 ( 203 ) Allowance for credit losses, end of period $ 7,658 $ 6,683 NOTE 3 - INVENTORIES, NET Inventories, net Inventory is carried at lower of cost or net realizable value. The components of inventory are as follows: September 30, 2025 December 31, 2024 Raw materials $ 87,824 $ 75,138 Work-in-process 17,860 12,225 Finished products 56,850 52,792 Inventories, net of excess and obsolete inventory reserve 162,534 140,155 Excess of current cost over LIFO cost ( 16,445 ) ( 10,242 ) Inventories at LIFO cost $ 146,089 $ 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 $ 39.6 million at September 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. Accordingly, interim LIFO calculations are based on management’s estimates of expected year-end inventory levels and costs. 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 September 30, 2025 and 2024, the net change in LIFO inventories resulted in expense of $ 3.8 million and $ 0.2 million, respectively, to Cost of products sold. During the nine-month periods ended September 30, 2025 and 2024, the net change in LIFO inventories resulted in expense of $ 6.2 million and of $ 0.6 million, respectively, to Cost of products sold. The Company’s reserves for slow moving and obsolete inventory were $ 17.9 million at September 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: September 30, 2025 December 31, 2024 Land and improvements $ 27,133 $ 20,204 Buildings and improvements 130,641 125,076 Machinery, equipment and aircraft 268,297 252,759 Construction in progress 23,623 10,884 Property, plant and equipment, gross 449,694 408,923 Less accumulated depreciation ( 231,913 ) ( 213,837 ) Property, plant and equipment, net $ 217,781 $ 195,086 12 NOTE 5 - CONTINGENT AND OTHER LIABILITIES The Company can be party to a variety of pending legal proceedings and claims arising in the normal course of business, including, but not limited to, litigation relating to employment, workers’ compensation, product liability, environmental and intellectual property. The Company has liability insurance to cover many of these claims. Although the outcomes of these matters are not predictable with certainty, the Company records a liability when it is both probable that a liability has been incurred and the amount of the loss can be reasonably estimated. In the event the Company determines that a loss is not probable, but is reasonably possible, and the likelihood to develop what the Company believes to be a reasonable range of potential loss exists, the Company will include disclosure related to such matters. To the extent that there is a reasonable possibility the losses could exceed amounts already accrued, the Company will adjust the accrual in the period in which the determination is made, disclose an estimate of the additional loss or range of loss and if the amount of such adjustment cannot be reasonably estimated, disclose that an estimate cannot be made. 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 September 30, 2025 and December 31, 2024, there were zero reserves for known global legal matters. As of September 30, 2025 and December 31, 2024, the Company has included $ 6.7 million of advanced payments by customers for future projects in Accrued expenses and other liabilities on the Consolidated Balance Sheets. NOTE 6 - PENSION PLANS In 2024, the Company used a December 31 measurement date for the Preformed Line Products Company Employees’ Retirement Plan (the “U.S. Plan”). The Company completed its previously announced U.S. Plan termination in the third quarter of 2025 through the purchase of a group annuity contract. Prior to the termination, the U.S. Plan was amended to provide certain participants who are not currently receiving benefits the opportunity during an election period of April 1, 2025 to May 31, 2025 to elect to receive their benefit in the form of a lump sum. Lump-sum payments of approximately $ 13.1 million were made during July and August of 2025 in connection with such elections. In August 2025, the Company contributed approximately $ 2.9 million to the U.S. Plan and purchased an annuity contract through a financial institution for approximately $ 18.0 million to fully liquidate the U.S. Plan. Due to the termination of the U.S. Plan in August 2025, the Company remeasured the U.S. Plan at August 31, 2025. In the third quarter, the Company recorded a total non-cash pre-tax charge associated with the U.S. Plan termination of $ 11.7 million, of which $ 8.8 million represents the acceleration of deferred charges previously accrued in accumulated other comprehensive loss and $ 2.9 million represents the actuarial loss. This non-cash pre-tax charge is recognized within the pension termination expense line item on the Statement of Consolidated Income. Excluding the pension termination charges, net periodic pension expense for the U.S. Plan for the three- and nine-month periods ended September 30, 2025 and 2024, respectively, follows: Three Months Ended September 30, Nine Months Ended September 30, 2025 2024 2025 2024 Interest cost $ 268 $ 387 $ 1,058 $ 1,162 Expected return on plan assets ( 239 ) ( 485 ) ( 942 ) ( 1,456 ) Recognized net actuarial loss 110 117 432 351 Net periodic pension expense $ 139 $ 19 $ 548 $ 57 Components of the recurring pension expense are included in Other income, net in the Consolidated Statements of Income. 13 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 September 30, 2025 Three Months Ended September 30, 2024 Unrecognized Benefit Cost Cumulative Translation Adjustment Total Unrecognized Benefit Cost Cumulative Translation Adjustment Total Balance at June 30 $ ( 5,127 ) $ ( 57,184 ) $ ( 62,311 ) $ ( 4,300 ) $ ( 68,364 ) $ ( 72,664 ) Other comprehensive income (loss) before reclassifications: Foreign currency translation adjustment — 1,708 1,708 — 7,483 7,483 Amounts reclassified from AOCI: Amortization of defined benefit pension activity (a) 435 — 435 89 — 89 Recognition of deferred losses from pension termination (a) 4,692 — 4,692 — — — Net current period other comprehensive income 5,127 1,708 6,835 89 7,483 7,572 Balance at September 30 $ — $ ( 55,476 ) $ ( 55,476 ) $ ( 4,211 ) $ ( 60,881 ) $ ( 65,092 ) Nine Months Ended September 30, 2025 Nine Months Ended September 30, 2024 Unrecognized Benefit Cost Cumulative Translation Adjustment Total Unrecognized Benefit Cost Cumulative Translation Adjustment Total Balance at January 1 $ ( 5,373 ) $ ( 77,536 ) $ ( 82,909 ) $ ( 4,478 ) $ ( 55,828 ) $ ( 60,306 ) Other comprehensive income (loss) before reclassifications: Foreign currency translation adjustment — 22,060 22,060 — ( 5,053 ) ( 5,053 ) Amounts reclassified from AOCI: Amortization of defined benefit pension activity (a) 681 — 681 267 — 267 Recognition of deferred losses from pension termination (a) 4,692 — 4,692 — — — Net current period other comprehensive income (loss) 5,373 22,060 27,433 267 ( 5,053 ) ( 4,786 ) Balance at September 30 $ — $ ( 55,476 ) $ ( 55,476 ) $ ( 4,211 ) $ ( 60,881 ) $ ( 65,092 ) (a) This AOCI component is included in the computation of net periodic pension expense as noted in Note 6 – Pension Plans. 14 NOTE 8 - DEBT AND CREDIT ARRANGEMENTS PNC Bank Credit Facility As of September 30, 2025, the Company maintained a credit facility (the "Facility") with PNC Bank, National Association ("PNC") with a capacity of $ 60.0 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 PLP Spain as an additional borrower. 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 permitted indebtedness limit secured by mortgages, security interests or other liens from $ 35.0 million to $ 55.0 million. There were no other material changes to the Facility. 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 September 30, 2025, the Company had utilized $ 7.9 million with $ 52.1 million available on the Facility. There were no long-term outstanding letters of credit on the Facility as of September 30, 2025. Our bank debt to equity percentage was 8.3 %. The Facility contains, among other provisions, requirements for maintaining levels of net worth and profitability. At September 30, 2025, the Company was in compliance with these covenants. Corporate Aircraft Term Loan 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. The term of the loan is 120 months at a fixed interest rate of 2.744 %. 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 $ 11.1 million outstanding on this debt facility at September 30, 2025, $ 2.1 million was classified as current. The aircraft has been pledged as collateral against the loan. International Borrowing Facilities 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 September 30, 2025, and December 31, 2024, $ 19.9 million and $ 8.8 million were outstanding, of which $ 5.5 million and $ 8.2 million were classified as current, respectively. These facilities support commitments made in the ordinary course of business. 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 ($ 27.6 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 ($ 2.6 million) in 2027, PLN 9.6 million ($ 2.6 million) in 2028 through 2034, and PLN 18.8 million ($ 5.3 million) in 2035. The loan bears 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. Restricted Cash The Company's Asia-Pacific segment had $ 0.1 million in restricted cash used to secure bank guarantees at September 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. NOTE 9 - INCOME TAXES For the three-month period ended September 30, 2025 and 2024, the Company’s effective tax rate was ( 11 )% and 26 %, respectively. The lower effective tax rate for the three months ended September 30, 2025 compared to the three months ended September 30, 2024 was due to the decrease in income before income taxes attributable to the pension termination charges recorded in the third quarter of 2025 and a discrete tax benefit recorded related to the release of amounts in OCI attributed to the pension termination. For the nine-month period ended September 30, 2025 and 2024, the Company’s effective tax rate was 19 % and 20 %, respectively. The lower effective tax rates for the nine months ended September 30, 2025 compared to the nine months ended September 30, 2024 was due to a discrete tax benefit recorded in the third quarter related to the release of amounts in OCI attributed to the pension termination, partially offset by increased foreign withholding taxes in the same period in 2024. 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 September 30, 2025, the Company did not record any additional valuation allowances in various jurisdictions on its deferred tax assets. 15 For the nine-month periods ending September 30, 2025 and 2024, the Company did not record any new uncertain tax positions. NOTE 10 - COMPUTATION OF EARNINGS PER SHARE Basic earnings per share were computed by dividing net income by the weighted-average number of common shares outstanding for each respective period. 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 and nine months ended September 30, was as follows: Three Months Ended September 30, Nine Months Ended September 30, 2025 2024 2025 2024 Numerator Net income $ 2,626 $ 7,680 $ 26,848 $ 26,642 Denominator Determination of shares (in thousands) Weighted-average common shares outstanding 4,915 4,904 4,925 4,911 Dilutive effect – share-based awards 26 73 26 48 Diluted weighted-average common shares outstanding 4,941 4,977 4,951 4,959 Earnings per common share Basic $ 0.53 $ 1.57 $ 5.45 $ 5.42 Diluted $ 0.53 $ 1.54 $ 5.42 $ 5.37 For the three and nine months ended September 30, 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. NOTE 11 - GOODWILL AND OTHER INTANGIBLES The Company’s finite and indefinite-lived intangible assets consist of the following: September 30, 2025 December 31, 2024 Gross Carrying Amount Accumulated Amortization Gross Carrying Amount Accumulated Amortization Finite-lived intangible assets Patents $ 4,806 $ ( 4,806 ) $ 4,806 $ ( 4,806 ) Land use rights 718 ( 143 ) 637 ( 122 ) Trademark 1,948 ( 1,715 ) 1,910 ( 1,685 ) Technology 7,204 ( 4,630 ) 6,582 ( 3,933 ) Customer relationships 18,681 ( 12,391 ) 17,399 ( 11,132 ) $ 33,357 $ ( 23,685 ) $ 31,334 $ ( 21,678 ) Indefinite-lived intangible assets Goodwill $ 30,480 $ 26,685 The Company’s measurement date for its annual impairment test for goodwill is October 1st of each year. The Company performs additional interim impairment assessments as circumstances warrant. The Company may use both quantitative and qualitative approaches when testing goodwill for impairment. For selected reporting units where the qualitative approach is utilized, a qualitative evaluation of events and circumstances impacting the reporting unit is performed to determine if it is more likely than not that the fair value of the reporting unit exceeds its carrying amount. If that determination is made, no further evaluation is necessary. Otherwise, the Company performs a quantitative impairment test on the reporting unit. 16 For the quantitative approach, the Company uses a combination of the income approach, which uses a discounted cash flow methodology, and the market approach, which uses comparable market multiples in computing fair value by reporting unit. The Company then compares the fair value of the reporting unit with its carrying value to assess if goodwill has been impaired. The fair value estimates are subjective and sensitive to significant assumptions, such as revenue growth rates, operating margins, the weighted average cost of capital, and estimated market multiples, all of which are affected by expectations of future market or economic conditions. The Company believes that the methodologies, significant assumptions, and weightings used are reasonable and result in appropriate fair values of the reporting units. As a result of actual performance for the EMEA reporting unit falling short of internal forecasts, combined with an increase in projected capital expenditures related to the construction of a new manufacturing facility in 2025 and 2026, management identified a potential indicator of impairment as of September 30, 2025. The Company performed an interim impairment assessment and based on this review, the estimated fair value of the EMEA reporting unit exceeded its carrying amount by approximately 30 %. The interim impairment assessment was performed using the same methodologies as the annual assessments discussed above and included revised forecasts, which are subject to various risks and uncertainties, including forecasted revenue, expenses and cash flows. Accordingly, management concluded that no impairment of goodwill was required for the EMEA reporting unit as of September 30, 2025. No indicators of impairment were identified for the Company's other reporting units for the period ending September 30, 2025. The Company’s only intangible asset with an indefinite life is goodwill. The Company’s goodwill is not deductible for tax purposes. Changes in the carrying amount of goodwill by reporting unit are shown in the following table: PLP-USA The Americas EMEA Asia-Pacific Total Balance at January 1, 2025 $ 3,078 $ 8,858 $ 14,749 $ — $ 26,685 Acquisitions — 720 — — 720 Currency translation — 937 2,138 — 3,075 Balance at September 30, 2025 $ 3,078 $ 10,515 $ 16,887 $ — $ 30,480 NOTE 12 - FAIR VALUE OF FINANCIAL ASSETS AND LIABILITIES Fair value is measured based on an exit price, representing the amount that would be received to sell an asset or paid to satisfy a liability in an orderly transaction between market participants. The Company measures and records certain assets and liabilities at fair value. A fair value hierarchy is used for those assets and liabilities measured at fair value that distinguishes between assumptions based on market data (observable inputs), and the Company’s assumptions (unobservable inputs). The hierarchy consists of the following three levels: (Level 1 Inputs) quoted market prices in active markets for identical assets or liabilities; (Level 2 Inputs) observable market-based inputs or unobservable inputs that are corroborated by market data; 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 September 30, 2025 and December 31, 2024: Description Balance as of September 30, 2025 Quoted Prices in Active Markets for Identical Assets or Liabilities (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Assets: Foreign currency forward contracts $ — $ — $ — $ — Fixed income investments — — — — Total assets $ — $ — $ — $ — Liabilities: Foreign currency forward contracts $ 14 $ — $ 14 $ — Supplemental profit sharing plan 10,603 — 10,603 — Total liabilities $ 10,617 $ — $ 10,617 $ — 17 Description Balance as of December 31, 2024 Quoted Prices in Active Markets for Identical Assets or Liabilities (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Assets: Foreign currency forward contracts $ 65 $ — $ 65 $ — Fixed income investments 1,142 1,142 — — Total assets $ 1,207 $ 1,142 $ 65 $ — Liabilities: Foreign currency forward contracts $ 71 $ — $ 71 $ — Supplemental profit sharing plan 9,031 — 9,031 — Total liabilities $ 9,102 $ — $ 9,102 $ — The Company operates internationally and enters into intercompany transactions denominated in foreign currencies. Consequently, the Company is subject to market risk arising from exchange rate movements between the dates foreign currency transactions occur and the dates they are settled. The Company currently uses foreign currency forward contracts to reduce the risk related to some of these transactions. These contracts usually have maturities of 90 days or less and generally require an exchange of foreign currencies for U.S. dollars at maturity at rates stated in the contracts. These contracts are not designated as hedging instruments under U.S. GAAP. Accordingly, the changes in the fair value of the foreign currency forward contracts are recognized in each accounting period in Other income, net on the Consolidated Statements of Income together with the transaction gain or loss from the related balance sheet position. For the three and nine months ended September 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 nine months ended September 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 $ 10.6 million at September 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. The Supplemental Profit Sharing Plan allows participants the ability to hypothetically invest their proportionate award into various investment options, which primarily includes mutual funds. The Company credits earnings, gains and losses to the participants’ deferred compensation account balances based on the investments selected by the participants. 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 September 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 September 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 September 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: September 30, 2025 December 31, 2024 Fair Value Carrying Value Fair Value Carrying Value Long-term debt and related current maturities $ 32,969 $ 36,006 $ 17,474 $ 20,787 18 NOTE 13 - SEGMENT INFORMATION The Company reports its segments in four geographic regions: PLP-USA, The Americas, EMEA (Europe, Middle East & Africa) and Asia-Pacific in accordance with accounting standards codified in FASB ASC 280, "Segment Reporting". Each segment distributes a full range of the Company’s primary products. The PLP-USA segment is comprised of U.S. operations manufacturing the Company’s traditional products primarily supporting domestic energy, telecommunications and special industries products. The other three segments, The Americas, EMEA and Asia-Pacific, support the Company’s energy, telecommunications, data communication and special industries products in each respective geographical region. The segment managers responsible for each region report directly to the Company’s Executive Chairman, who is the CODM, and are accountable for the financial results and performance of their entire segment for which they are responsible. The business components within each segment are managed to maximize the results of the entire Company rather than the results of any individual business component of the segment. The amount of each segment’s performance reported to the CODM is for purposes of making decisions about allocating resources to the segment and assessing its performance. The Company evaluates segment performance and allocates resources based on several factors primarily based on gross sales and income before income taxes. The CODM uses both gross sales and income before income taxes for each segment predominantly in the annual budget and forecasting process as well as monitoring actual results. 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 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 nine-month periods ended September 30, 2025 and 2024. Financial results for the PLP-USA segment include the elimination of all segments’ intercompany profit in inventory. 19 Three Months Ended September 30, 2025 PLP-USA The Americas EMEA Asia-Pacific Total Gross sales $ 82,814 $ 32,032 $ 39,564 $ 35,142 $ 189,552 Intersegment sales ( 1,997 ) ( 2,700 ) ( 1,491 ) ( 5,277 ) ( 11,465 ) Net sales 80,817 29,332 38,073 29,865 178,087 Less: Cost of products sold 57,143 20,269 25,663 22,163 125,238 Gross profit 23,674 9,063 12,410 7,702 52,849 Costs and expenses 16,264 7,474 8,272 7,707 39,717 Operating Income (Loss) 7,410 1,589 4,138 ( 5 ) 13,132 Interest income 165 381 110 27 683 Interest expense ( 78 ) ( 6 ) ( 164 ) ( 64 ) ( 312 ) Other (expense) income, net ( 11,780 ) 61 37 535 ( 11,147 ) (Loss) Income before income taxes ( 4,283 ) 2,025 4,121 493 2,356 Income tax (benefit) expense ( 2,599 ) 570 1,141 625 ( 263 ) Total noncontrolling interest — — 7 — 7 Total net (loss) income attributable to Preformed Line Products Company shareholders $ ( 1,684 ) $ 1,455 $ 2,987 $ ( 132 ) $ 2,626 Three Months Ended September 30, 2024 PLP-USA The Americas EMEA Asia-Pacific Total Gross sales $ 68,274 $ 21,970 $ 34,333 $ 32,698 $ 157,275 Intersegment sales ( 2,720 ) ( 2,118 ) ( 1,396 ) ( 4,068 ) ( 10,302 ) Net sales 65,554 19,852 32,937 28,630 146,973 Less: Cost of products sold 44,171 13,082 23,610 20,332 101,195 Gross profit 21,383 6,770 9,327 8,298 45,778 Costs and expenses 17,357 4,981 7,223 5,825 35,386 Operating Income 4,026 1,789 2,104 2,473 10,392 Interest income 4 387 116 32 538 Interest expense ( 136 ) ( 20 ) ( 233 ) ( 175 ) ( 564 ) Other (expense) income, net ( 10 ) 51 29 ( 6 ) 64 Income before income taxes 3,883 2,207 2,016 2,324 10,430 Income tax expense 824 633 663 614 2,734 Total noncontrolling interest — — ( 16 ) — ( 16 ) Total net income attributable to Preformed Line Products Company shareholders $ 3,059 $ 1,574 $ 1,337 $ 1,710 $ 7,680 20 Nine Months Ended September 30, 2025 PLP-USA The Americas EMEA Asia-Pacific Total Gross sales $ 240,937 $ 87,346 $ 104,716 $ 94,820 $ 527,819 Intersegment sales ( 6,824 ) ( 7,228 ) ( 4,739 ) ( 12,799 ) ( 31,590 ) Net sales 234,113 80,118 99,977 82,021 496,229 Less: Cost of products sold 155,538 55,545 69,179 59,048 339,310 Gross profit 78,575 24,573 30,798 22,973 156,919 Costs and expenses 50,832 19,697 23,572 19,432 113,533 Operating income 27,743 4,876 7,226 3,541 43,386 Interest income 346 901 235 95 1,577 Interest expense ( 173 ) ( 39 ) ( 479 ) ( 315 ) ( 1,006 ) Other (expense) income, net ( 12,183 ) 134 307 1,118 ( 10,624 ) Income before income taxes 15,733 5,872 7,289 4,439 33,333 Income tax expense 1,236 1,719 1,723 1,783 6,461 Total noncontrolling interest — — ( 24 ) — ( 24 ) Total net income attributable to Preformed Line Products Company shareholders $ 14,497 $ 4,153 $ 5,542 $ 2,656 $ 26,848 Nine Months Ended September 30, 2024 PLP-USA The Americas EMEA Asia-Pacific Total Gross sales $ 204,068 $ 66,558 $ 97,824 $ 88,083 $ 456,533 Intersegment sales ( 7,877 ) ( 6,532 ) ( 4,194 ) ( 11,333 ) ( 29,936 ) Net sales 196,191 60,026 93,630 76,750 426,597 Less: Cost of products sold 129,370 41,578 66,621 54,846 292,415 Gross profit 66,821 18,448 27,009 21,904 134,182 Costs and expenses 52,460 14,344 18,743 15,391 100,938 Operating income 14,361 4,104 8,266 6,513 33,244 Interest income 3 1,581 203 69 1,856 Interest expense ( 820 ) ( 67 ) ( 537 ) ( 416 ) ( 1,840 ) Other (expense) income, net ( 39 ) 126 107 ( 5 ) 189 Income before income taxes 13,505 5,744 8,039 6,161 33,449 Income tax expense 1,784 1,476 2,122 1,401 6,783 Total noncontrolling interest — — ( 24 ) — ( 24 ) Total net income attributable to Preformed Line Products Company shareholders $ 11,719 $ 4,268 $ 5,893 $ 4,761 $ 26,642 21 Three Months Ended September 30, Nine Months Ended September 30, 2025 2024 2025 2024 Expenditure for long-lived assets PLP-USA $ 1,334 $ 1,152 $ 4,248 $ 5,656 The Americas 1,298 841 3,097 1,923 EMEA 7,602 1,050 21,102 2,557 Asia-Pacific 389 531 1,530 1,084 Total expenditure for long-lived assets $ 10,623 $ 3,574 $ 29,977 $ 11,220 Depreciation and amortization PLP-USA $ 3,338 $ 2,973 $ 9,596 $ 8,687 The Americas 915 799 2,600 3,002 EMEA 1,003 869 2,841 2,532 Asia-Pacific 750 744 2,222 2,192 Total depreciation and amortization $ 6,006 $ 5,385 $ 17,259 $ 16,413 September 30, 2025 December 31, 2024 Identifiable assets PLP-USA $ 264,451 $ 245,388 The Americas 115,071 103,456 EMEA 164,226 125,013 Asia-Pacific 100,875 100,020 Total identifiable assets $ 644,623 $ 573,877 Long-lived assets PLP-USA $ 114,469 $ 119,114 The Americas 25,529 20,446 EMEA 43,105 21,243 Asia-Pacific 34,678 34,283 Total long-lived assets $ 217,781 $ 195,086 NOTE 14 - ACQUISITION OF BUSINESSES Acquisition of JAP Telecom On May 1, 2025, the Company acquired all issued and outstanding shares of J.A.P. Industria De Materiais Para Telefonia Ltda., (JAP Telecom) an entity headquartered in Pedreira, Brazil. 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. 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, net of cash received. 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 material measurement period adjustments have been recorded as of September 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 September 30, 2025, the Company’s consolidated financial statements included JAP Telecom sales of approximately $ 2.3 million and is reported in The Americas segment. 22