What changed in this filing

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Item 2. Management’s Discussion and Analysis

2026-04-30 compared with 2025-10-30 · 85 added, 175 removed, 143 unchanged (65% of the section changed)

5 unchanged sentences

Our primary products support, protect, connect, terminate, and secure cables and wires.

We provide helical solutions, connectors, fiber optic and copper splice closures, solar hardware mounting applications, and electric vehicle charging station foundations.

We provide helical solutions, string hardware, connectors, insulators, fiber optic and copper splice closures, solar hardware mounting applications, and electric vehicle charging station foundations.

We also provide aerial drone inspection services for utility assets including transmission and distribution power lines, substations, and generation facilities.

11 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 and nine months ended September 30, 2025 and 2024.

The following discussion describes our results of operations for the three months ended March 31, 2026 and 2025.

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 $178.1 million increased $31.1 million for the three months ended September 30, 2025 year-over-year and net sales of $496.2 million increased $69.6 million for the nine months ended September 30, 2025 year-over-year, mainly due to an increase in energy and communication sales for the quarter.

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

Additionally, PLP-USA LIFO inventory valuation costs have accelerated due to tariffs, resulting in charges of $3.8 million and $6.2 million for the three-month and nine-month periods ending September 30, 2025.

These amounts exclude cash-tax savings generated from lower pre-tax book income.

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.

Net sales of $176.3 million increased $27.7 million for the three months ended March 31, 2026 year-over-year, mainly due to an increase in energy and communication sales, led by PLP-USA.

Tariffs and geopolitical developments continue to present headwinds related to raw material imports and commodity prices, impacting essential inputs like steel, aluminum and plastic resins.

While we continue to manage trade matters and commodity prices proactively, further tariff increases or geopolitical events 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.

Please see Note 5 of the Notes to the Consolidated Financial Statements for further considerations on tariffs and potential refunds as a result of the February 2026 Supreme Court ruling.

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

The fluctuations of foreign currencies during the three and nine months ended September 30, 2025 had a favorable impact on net sales of $1.9 million and an unfavorable impact of $3.0 million, respectively.

The fluctuations on foreign currencies had a favorable impact of $0.3 million on net income for the three months ended September 30, 2025 and a de minimis impact on net income for the nine months ended September 30, 2025.

The fluctuations of foreign currencies during the three and nine months ended September 30, 2024 had an unfavorable impact on net sales of $0.8 million and $1.1 million, respectively.

The fluctuations on foreign currencies during the three and nine months ended September 30, 2024 had an unfavorable impact on net income of $0.1 million and $0.2 million, respectively.

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

The fluctuations of foreign currencies during the three months ended March 31, 2026 and March 31, 2025 had a favorable impact on net sales of $7.2 million and unfavorable impact of $4.4 million, respectively.

The effect of currency translation had a favorable impact of $0.1 million and an unfavorable impact of $0.2 million on net income during the three months ended March 31, 2026 and 2025, 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, 2026, was as follows:

Foreign Currency Translation Impact

Three Months Ended September 30, 2025 Nine Months Ended September 30, 2025

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

Net Sales Net Income

(Thousands of dollars) 2026 2025 2026 2025

The Americas $ 2,262 $ (3,204) $ 86 $ (206)

2 unchanged sentences

Total $ 7,196 $ (4,395) $ 132 $ (223)

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

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

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.

As necessary, we will modify redundant processes and further utilize our global manufacturing network to manage costs, including tariff-related impacts, increase sales volume and deliver value to our customers.

Period cost containment continues to be a priority for the Company in 2025, and we continue to monitor and control discretionary spending where necessary.

As necessary, we will modify redundant processes and further utilize our global manufacturing network to manage costs, including tariff impacts, increase sales volume and deliver value to our customers.

We closely monitor developments in trade policy and geo-political instability and actively evaluate strategies to mitigate the impact of tariffs or supply chain constraints, including sourcing alternatives, where needed.

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 September 30, 2025, our liquidity remains strong with our bank debt to equity percentage at 8.3%.

As of March 31, 2026, our liquidity remains strong with our bank debt to equity percentage at 8.9%.

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 September 30, 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 March 31, 2026 and 2025.

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

Three Months Ended September 30,

Three Months Ended March 31,

(Thousands of dollars) 2026 2025 Change

4 unchanged sentences

OPERATING INCOME 13,716 7.8 13,130 8.8 586

Other (expense) income, net (10,776) (6.1) 38 — (10,814)

Other income, net 614 0.3 541 0.4 73

INCOME BEFORE INCOME TAXES 14,330 8.1 13,671 9.2 659

Income tax (benefit) expense (263) (0.1) 2,734 1.9 (2,997)

Income tax expense 3,781 2.1 2,118 1.4 1,663

NET INCOME 10,549 6.0 11,553 7.8 (1,004)

Net expense (income) attributable to noncontrolling interests 7 0.0 (16) 0.0 23

Net income attributable to noncontrolling interests (25) 0.0 (36) 0.0 11

NET INCOME ATTRIBUTABLE TO PREFORMED LINE PRODUCTS COMPANY SHAREHOLDERS $ 10,524 6.0 % $ 11,517 7.8 % $ (993)

1 unchanged sentence

Excluding the effect of currency translation, net sales increased 14% as summarized in the following table:

Three Months Ended September 30,

Three Months Ended March 31,

(Thousands of dollars) 2026 2025 Change Change

5 unchanged sentences

The increase in PLP-USA net sales of $19.3 million, or 26%, was primarily due to higher volumes in energy and communications sales.

International net sales for the three months ended September 30, 2025 were favorably affected by $1.9 million when local currencies were converted to U.S.

International net sales for the three months ended March 31, 2026 were favorably affected by $7.2 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 $29.3 million increased $9.3 million, or 47%, 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 $38.1 million increased $3.1 million, or 9%, primarily due to higher volumes in energy product sales and special industry sales.

Asia-Pacific net sales of $29.9 million increased $1.5 million, or 5%, primarily due to higher volumes in special industry sales.

The Americas net sales of $25.1 million increased $0.5 million, or 2%, primarily due to higher volumes in communications sales due to the acquisition of JAP Telecom in May 2025.

EMEA net sales of $33.3 million increased $0.1 million primarily due to higher volumes in special industry sales.

Asia-Pacific net sales of $24.6 million increased $0.6 million, or 3%, primarily due to higher volumes in energy product sales and communications sales.

Gross profit.

1 unchanged sentence

Excluding the effect of currency translation, gross profit increased $4.6 million, or 9%, as summarized in the following table:

Three Months Ended September 30,

Three Months Ended March 31,

(Thousands of dollars) 2026 2025 Change Change

4 unchanged sentences

Consolidated $ 55,220 $ 48,671 $ 6,549 $ 1,969 $ 4,580 9 %

PLP-USA gross profit of $23.7 million increased by $2.3 million, or 11%, compared to the same period in 2024, primarily due to higher sales volumes, partially offset by higher tariff and manufacturing costs, including LIFO valuation costs.

International gross profit for the period ended September 30, 2025 was favorably impacted by $0.6 million when local currencies were translated to U.S.

PLP-USA gross profit of $32.5 million increased by $5.7 million, or 21%, compared to the same period in 2025, primarily due to higher sales volumes and the benefit of price increases enacted in 2025, partially offset by higher tariff and manufacturing costs.

International gross profit for the period ended March 31, 2026 was favorably impacted by $2.0 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 $2.2 million, or 33%, which was primarily the result of higher sales volumes.

EMEA gross profit increased $2.5 million, or 26%, primarily due to higher sales volumes and favorable product mix.

Asia-Pacific gross profit decreased $0.5 million, or 6%, which was primarily driven by higher inventory adjustments.

The Americas gross profit decreased $0.9 million, or 13%, which was primarily the result of unfavorable product mix.

EMEA gross profit decreased $0.7 million, or 7%, primarily due to unfavorable product mix and increased manufacturing costs.

Asia-Pacific gross profit increased $0.5 million, or 8%, which was primarily driven by higher sales volumes.

Costs and expenses.

Costs and expenses of $39.7 million for the three months ended September 30, 2025 increased $4.3 million, or 12%, when compared to 2024.

Costs and expenses of $41.5 million for the three months ended March 31, 2026 increased $6.0 million, or 17%, when compared to 2025.

Excluding the effect of currency translation and intercompany transactions, costs and expenses increased $4.4 million, or 12%, as summarized in the following table:

Three Months Ended September 30,

Three Months Ended March 31,

(Thousands of dollars) 2026 2025 Change Change

7 unchanged sentences

Consolidated $ 41,504 $ 35,541 $ 5,963 $ 1,605 $ — $ 4,358 12 %

Excluding intercompany transactions, PLP-USA costs and expenses increased $2.5 million, or 15% year-over-year, primarily due to higher selling costs and personnel costs.

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

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

Excluding intercompany transactions, PLP-USA costs and expenses increased $3.0 million, or 18% year-over-year, primarily due to increased selling and personnel costs supporting strategic market growth initiatives in core product offerings in both energy and communications.

International costs and expenses for the three months ended March 31, 2026 were unfavorably impacted when local currencies were translated to U.S.

dollars and favorably 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 $7.5 million increased $1.1 million primarily due to an increase in selling, general, and administrative costs.

EMEA costs and expenses of $8.3 million increased by $0.1 million primarily due to an increase in personnel costs.

Asia-Pacific costs and expenses of $7.7 million increased $0.1 million primarily due to an increase in personnel costs and engineering costs.

Other Expense, net.

Other expense, net of $10.8 million for the three months ended September 30, 2025 was unfavorable by $10.8 million when compared to the nominal Other income, net for the three months ended September 30, 2024.

The unfavorable movement was mainly due to an $11.7 million pension termination charge recorded, partially offset by government incentives received in 2025 related to our facility in China.

The Americas costs and expenses of $5.9 million increased $1.0 million primarily due to increases in personnel and administrative costs.

EMEA costs and expenses of $7.9 million increased by $0.3 million primarily due to increases in selling, administrative and engineering costs.

Asia-Pacific costs and expenses of $5.8 million increased $0.1 million primarily due to an increase in personnel costs.

Other Income, net.

Other income, net of $0.6 million for the three months ended March 31, 2026 was favorable by $0.1 million when compared to $0.5 million of Other income, net for the three months ended March 31, 2025.

The favorable movement was mainly due to an increase in interest income.

Income taxes.

Income taxes for the three months ended September 30, 2025 and 2024 were $(0.3) million and $2.7 million based on pre-tax income of $2.4 million and $10.4 million, respectively.

The tax rate for the three months ended September 30, 2025 and 2024 was (11)% and 26%, respectively.

The lower effective tax rates for the three months ended September 30, 2025 compared to the three months ended September 30, 2024 was due 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.

As a result of the preceding items, net income for the three months ended September 30, 2025 was $2.6 million, compared to $7.7 million for 2024.

Income taxes for the three months ended March 31, 2026 and 2025 were $3.8 million and $2.1 million based on pre-tax income of $14.3 million and $13.7 million, respectively.

The tax rate for the three months ended March 31, 2026 and 2025 was 26% and 16%, respectively.

The higher effective tax rates for the three months ended March 31, 2026 compared to the three months ended March 31, 2025 was primarily due to a valuation allowance of approximately $1.3 million recorded on deferred tax assets related to the Company's French subsidiary.

As a result of the preceding items, net income for the three months ended March 31, 2026 was $10.5 million, compared to $11.6 million for 2025.

Excluding the effect of currency translation, net income decreased $1.1 million as summarized in the following table.

The decrease in net income was due to the pension termination charge recorded in the third quarter of 2025, offset by increases in operating income described above:

Three Months Ended September 30,

(Thousands of dollars) 2025 2024 Change Change

Net income (loss)

PLP-USA $ (1,684) $ 3,059 $ (4,743) $ — $ (4,743) (155) %

The Americas 1,455 1,574 (119) 3 (122) (8) %

EMEA 2,987 1,337 1,650 111 1,539 115 %

Asia-Pacific (132) 1,710 (1,842) 143 (1,985) (116) %

Consolidated $ 2,626 $ 7,680 $ (5,054) $ 257 $ (5,311) (69) %

NINE MONTHS ENDED SEPTEMBER 30, 2025 COMPARED TO NINE MONTHS ENDED SEPTEMBER 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 nine months ended September 30, 2025 and 2024.

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

Nine Months Ended September 30,

(Thousands of dollars) 2025 2024 Change

Net sales $ 496,229 100.0 % $ 426,597 100.0 % $ 69,632

Cost of products sold 339,310 68.4 292,415 68.5 46,895

GROSS PROFIT 156,919 31.6 134,182 31.5 22,737

Costs and expenses 113,533 22.9 100,938 23.7 12,595

OPERATING INCOME 43,386 8.7 33,244 7.8 10,142

Other (expense) income, net (10,053) (2.0) 205 — (10,258)

INCOME BEFORE INCOME TAXES 33,333 6.7 33,449 7.8 (116)

Income tax (benefit) expense 6,461 1.3 6,783 1.6 (322)

NET INCOME 26,872 5.4 26,666 6.3 206

Net income attributable to noncontrolling interests (24) (0.0) (24) (0.0) —

NET INCOME ATTRIBUTABLE TO PREFORMED LINE PRODUCTS COMPANY SHAREHOLDERS $ 26,848 5.4 % $ 26,642 6.2 % $ 206

In 2025, net sales were $496.2 million, an increase of $69.6 million, or 16%, compared to 2024.

Excluding the effect of currency translation, net sales increased 17% as summarized in the following table:

Nine Months Ended September 30,

(Thousands of dollars) 2025 2024 Change Change

Translation Change

Translation %

PLP-USA $ 234,113 $ 196,191 $ 37,922 $ — $ 37,922 19 %

The Americas 80,118 60,026 20,092 (5,103) 25,195 42 %

EMEA 99,977 93,630 6,347 3,121 3,226 3 %

Asia-Pacific 82,021 76,750 5,271 (1,034) 6,305 8 %

Consolidated $ 496,229 $ 426,597 $ 69,632 $ (3,016) $ 72,648 17 %

The increase in PLP-USA net sales of $37.9 million, or 19%, was primarily due to higher volumes in energy and communications product sales.

International net sales for the nine months ended September 30, 2025 were unfavorably affected by $3.0 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 $80.1 million increased $25.2 million, or 42%, primarily due to an increase in energy product sales and an increase in communications sales due to the acquisition of JAP Telecom in May 2025.

EMEA net sales of $100.0 million increased $3.2 million, or 3% primarily due to higher volume in energy product and special industry sales.

Asia-Pacific net sales of $82.0 million increased $6.3 million, or 8%, primarily due to volume increases in energy product and special industries sales.

Gross profit.

Gross profit of $156.9 million for 2025 increased $22.7 million, or 17%, compared to 2024.

Excluding the effect of currency translation, gross profit increased $23.6 million, or 18%, as summarized in the following table:

Nine Months Ended September 30,

(Thousands of dollars) 2025 2024 Change Change

Translation Change

Translation %

PLP-USA $ 78,575 $ 66,821 $ 11,754 $ — $ 11,754 18 %

The Americas 24,573 18,448 6,125 (1,580) 7,705 42 %

EMEA 30,798 27,009 3,789 976 2,813 10 %

Asia-Pacific 22,973 21,904 1,069 (299) 1,368 6 %

Consolidated $ 156,919 $ 134,182 $ 22,737 $ (903) $ 23,640 18 %

PLP-USA gross profit of $78.6 million increased by $11.8 million, or 18%, 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, including LIFO valuation costs.

International gross profit for the period ended September 30, 2025 was unfavorably impacted by $0.9 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 $7.7 million, or 42%, which was primarily the result of higher sales volumes.

EMEA gross profit increased $2.8 million, or 10%, primarily due to higher sales volume and favorable product mix.

Asia-Pacific gross profit increased $1.4 million, or 6%, which was primarily driven by higher sales volume.

Costs and expenses.

Costs and expenses of $113.5 million for the nine months ended September 30, 2025 increased $12.6 million, or 12%, when compared to 2024.

Excluding the effect of currency translation and intercompany transactions, costs and expenses increased $13.0 million, or 13%, as summarized in the following table:

Nine Months Ended September 30,

(Thousands of dollars) 2025 2024 Change Change

Translation Change Due to Intercompany Transactions Change Excluding

and Intercompany Transactions

Costs and expenses

PLP-USA $ 50,832 $ 52,460 $ (1,628) $ — $ (7,169) $ 5,541 11 %

The Americas 19,697 14,344 5,353 (957) 3,232 3,078 21 %

EMEA 23,572 18,743 4,829 664 1,390 2,775 15 %

Asia-Pacific 19,432 15,391 4,041 (132) 2,547 1,626 11 %

Consolidated $ 113,533 $ 100,938 $ 12,595 $ (425) $ — $ 13,020 13 %

PLP-USA costs and expenses of $50.8 million increased $5.5 million, or 11% year-over-year.

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

International costs and expenses for the nine months ended September 30, 2025 were favorably impacted by $0.4 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 $19.7 million increased $3.1 million primarily due to an increase in personnel costs and the impact of foreign currency remeasurement.

EMEA costs and expenses of $23.6 million increased by $2.8 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 $19.4 million increased $1.6 million primarily due to a gain on the sale of capital assets in the first quarter of 2024 that did not recur.

Other Expense, net.

Other expense, net of $10.1 million for the nine months ended September 30, 2025 was unfavorable by $10.3 million when compared to Other income, net for the nine months ended September 30, 2024 of $0.2 million.

The unfavorable movement was mainly due to an $11.7 million pension termination charge recorded in the third quarter of 2025, offset by government incentives received in 2025 related to our facility in China.

Income taxes.

Income taxes for the nine months ended September 30, 2025 and 2024 were $6.5 million and $6.8 million based on pre-tax income of $33.3 million and $33.4 million, respectively.

The tax rate for the nine months ended September 30, 2025 and 2024 was 19% and 20%, respectively.

The effective tax rate for the nine months ended September 30, 2025 was lower than the effective tax rate for the same period in 2024 mainly 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.

As a result of the preceding items, net income for the nine months ended September 30, 2025 was $26.8 million, compared to $26.6 million for 2024.

Excluding the effect of currency translation, net income increased $0.2 million as summarized in the following table.

The increase in net income was due to increases in operating income described above, offset by the pension termination charge recorded in the third quarter of 2025.

Nine Months Ended September 30,

The decrease in net income was due to the increase in income taxes as described above:

Three Months Ended March 31,

(Thousands of dollars) 2026 2025 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 nine months of 2025, we used cash of $30.0 million for capital expenditures, mainly related to new facilities in the EMEA region.

We ended the first nine months of 2025 with $72.9 million of cash, cash equivalents and restricted cash (collectively, “Cash”).

During the first three months of 2026, we used cash of $10.0 million for capital expenditures, mainly related to new facilities in the EMEA region.

We ended the first three months of 2026 with $69.5 million of cash, cash equivalents and restricted cash (collectively, “Cash”).

Our Cash is held in various locations throughout the world.

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

At March 31, 2026, 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 September 30, 2025 was $38.9 million.

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

At September 30, 2025, our unused availability under the Facility was $52.1 million and our bank debt to equity percentage was 8.3%.

Total debt, including notes payable, at March 31, 2026 was $41.9 million.

The Company maintained a credit facility (the "Facility") with PNC Bank, National Association ("PNC") with a capacity of $60.0 million and a maturity date of June 30, 2028.

The interest rate 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, 2026, the Company had utilized $7.1 million with $52.9 million available on the Facility.

There were no long-term outstanding letters of credit on the Facility as of March 31, 2026.

Our bank debt to equity percentage was 8.9%.

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.

At March 31, 2026, 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.

As of September 30, 2025, $11.1 million was outstanding on this debt facility, of which $2.1 million was classified as current.

As of March 31, 2026, $10.1 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.

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, 2026 and December 31, 2025, $24.8 million and $20.9 million were outstanding, of which $5.2 million and $4.6 million were classified as current, respectively.

Of the $24.8 million outstanding at March 31, 2026, $16.5 million is attributable to the Poland subsidiary and $7.5 million is attributable to the Spain subsidiary.

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 PLN100.3 million ($27.6 million).

("PLP Poland"), a subsidiary of the Company, entered into a non-revolving investment loan with Bank Polska Kasa Opieki Spółka Akcyjna ("Bank Pekao S.A") to finance the construction of a new manufacturing plant for an amount up to PLN100.3 million ($26.9 million).

The maturity date of the loan is January 31, 2035 and is payable in annual installments in the amounts of PLN5.3 million ($1.4 million) in 2026, PLN9.0 million ($2.4 million) in 2027, PLN9.6 million ($2.6 million) in 2028 through 2034, and PLN18.8 million ($4.9 million) in 2035.

2 unchanged sentences

The loan also is guaranteed by the Company.

Our Asia-Pacific segment had $0.1 million in restricted cash for the periods ended September 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.

The Company's Asia-Pacific segment had $0.3 million and $0.1 million in restricted cash used to secure bank guarantees at March 31, 2026 and December 31, 2025, respectively.

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

We expect that our major source of funding for 2026 and beyond will be our operating cash flows, our existing Cash as well as our Facility agreement.

2 unchanged sentences

We believe our future operating cash flows will be more than sufficient to cover debt repayments, other contractual obligations, capital expenditures and dividends for the next 12 months and thereafter for the foreseeable future.

In addition, we believe our borrowing capacity provides substantial financial resources, if needed, to supplement funding of capital expenditures and/or acquisitions.

In addition, we believe our borrowing capacity provides substantial financial

resources, if needed, to supplement funding of capital expenditures and/or acquisitions.

We also believe that we can further expand our borrowing capacity, if necessary;

1 unchanged sentence

Sources and Uses of Cash

Net cash provided by operating activities for the nine months ended September 30, 2025 was $51.5 million compared to $43.4 million in the comparable prior year nine-month period.

The $8.1 million increase was primarily a result of the net favorable movement in non-cash items of $22.9 million, including the pension termination, offset by changes in operating assets and liabilities.

Net cash used in investing activities for the nine months ended September 30, 2025 was $33.2 million compared to $7.7 million in the comparable prior year nine-month period.

The $25.5 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 nine months ended September 30, 2025 was $7.3 million compared to $40.8 million in the comparable prior year nine-month period.

The $33.5 million change was primarily the result of a reduction in net payments of long-term debt.

Net cash provided by operating activities for the three months ended March 31, 2026 was $6.0 million compared to $5.7 million in the comparable prior year three-month period.

The $0.3 million increase was primarily a result of the net favorable movement in non-cash items including shared based compensation and depreciation and amortization, offset by changes in operating assets and liabilities.

Net cash used in investing activities for the three months ended March 31, 2026 was $9.9 million compared to $9.7 million in the comparable prior year three-month period.

The $0.2 million change was primarily a result of a reduction in proceeds from the sale of investments year over year.

Net cash used in financing activities for the three months ended March 31, 2026 was $10.0 million compared to a nominal amount for the comparable prior year three-month period.

The $10.0 million change was primarily the result of share repurchases from related parties and a reduction in the net payments of notes payable to banks.

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 September 30, 2025, we had $1.8 million of current operating lease liabilities and $6.2 million of noncurrent operating lease liabilities.

Total liabilities related to finance lease obligations were approximately $0.7 million at September 30, 2025.

As of September 30, 2025, the Company had total outstanding guarantees of $14.7 million.

At March 31, 2026, we had $1.5 million of current operating lease liabilities and $5.5 million of noncurrent operating lease liabilities.

Total liabilities related to finance lease obligations were approximately $0.6 million at March 31, 2026.

As of March 31, 2026, the Company had total outstanding guarantees of $13.7 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 September 30, 2025, the Company had total outstanding letters of credit of $3.5 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 September 30, 2025, and December 31, 2024, $19.9 million and $8.8 million was outstanding, of which $5.5 million and $8.2 million were classified as current, respectively.

As of March 31, 2026, the Company had total outstanding letters of credit of $3.7 million.

At March 31, 2026, and December 31, 2025, $24.8 million and $20.9 million were outstanding, of which $5.2 million and $4.6 million were classified as current, respectively.

Of the $24.8 million outstanding at March 31, 2026, $16.5 million is attributable to the Poland subsidiary and $7.5 million is attributable to the Spain subsidiary.

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 or future 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.

• The impact of global economic conditions, including the impact of inflation, previously enacted or future tariffs and related economic uncertainty (including the outcome of legal challenges and refunds), 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 (such as the 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);

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• The relative degree of competitive and customer price pressure on the Company’s products;

• The cost, availability and quality of raw materials required for the manufacture of products and any tariffs that may be associated with the purchase of these products or components of these products.

The Company’s supply chain could face disruptions and constraints from such tariffs, inflationary pressures and ongoing wars and military conflicts, which could have a material, adverse effect on the ability to secure raw materials and supplies;

• The cost, availability and quality of raw materials required for the manufacture of products and any tariffs that have been, and in the future may be, associated with the purchase of these products or components of these products.

The Company’s supply chain has faced and could continue to face disruptions and constraints from such tariffs, inflationary pressures and ongoing wars and military conflicts, which could have a material, adverse effect on the ability to secure raw materials and supplies and customer demand;

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

• Changes and uncertainty in significant government regulations and funding priorities, 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 other regulatory matters, 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