What changed in this filing

/stocks — the workspaceLOADING

Item 2. Management’s Discussion and Analysis

2026-07-30 compared with 2026-04-30 · 172 added, 69 removed, 159 unchanged (60% of the section changed)

19 unchanged sentences

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

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

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

Net sales of $212.7 million increased $43.1 million for the three months ended June 30, 2026 year-over-year and net sales of $389.0 million increased $70.8 million for the six months ended June 30, 2026 year-over-year, mainly due to an increase in energy and, to a lesser extent, communication sales, led by PLP-USA.

While these sales amounts are the highest in the Company's history, tariffs, especially Section 232 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.

Please see Note 5 of the Notes to the Consolidated Financial Statements for further considerations on tariffs and refund process 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 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:

The fluctuations of foreign currencies during the three and six months ended June 30, 2026 had a favorable impact on net sales of $6.0 million and $13.2 million, respectively.

The fluctuations on foreign currencies had a favorable impact of $0.5 million and $0.7 million on net income for the three and six months ended June 30, 2026.

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

The fluctuations on foreign currencies during the three and six months ended June 30, 2025 had a de minimis impact and unfavorable impact of $0.3 million on net income, respectively.

On a reportable segment basis, the impact of foreign currency translation on net sales and net income for the three and six months ended June 30, 2026, was as follows:

Foreign Currency Translation Impact

Net Sales Net Income

(Thousands of dollars) 2026 2025 2026 2025

Three Months Ended June 30, 2026 Six Months Ended June 30, 2026

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

The Americas $ 2,713 $ 236 $ 4,975 $ 308

2 unchanged sentences

Total $ 5,968 $ 535 $ 13,164 $ 653

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.

While uncertainty remains in the global economy due to trade matters and geopolitical instability, we believe our business portfolio, which is focused on key megatrends impacting both the power and telecommunications markets, as well as our significant U.S.

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

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

2 unchanged sentences

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

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

As of June 30, 2026, our liquidity remains strong with our bank debt to equity percentage at 8.6%.

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

RESULTS OF OPERATIONS

The following table sets forth a summary of the Company’s Statements of Consolidated Income and the percentage of net sales for the three months ended March 31, 2026 and 2025.

The following table sets forth a summary of the Company’s Statements of Consolidated Income and the percentage of net sales for the three months ended June 30, 2026 and 2025.

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

Three Months Ended March 31,

Three Months Ended June 30,

(Thousands of dollars) 2026 2025 Change

8 unchanged sentences

NET INCOME 21,508 10.1 12,700 7.5 8,808

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

Net expense (income) attributable to noncontrolling interests — 0.0 5 0.0 (5)

NET INCOME ATTRIBUTABLE TO PREFORMED LINE PRODUCTS COMPANY SHAREHOLDERS $ 21,508 10.1 % $ 12,705 7.5 % $ 8,803

1 unchanged sentence

Excluding the effect of currency translation, net sales increased 22% as summarized in the following table:

Three Months Ended March 31,

Three Months Ended June 30,

(Thousands of dollars) 2026 2025 Change Change

4 unchanged sentences

Consolidated $ 212,681 $ 169,601 $ 43,080 $ 5,968 $ 37,112 22 %

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 March 31, 2026 were favorably affected by $7.2 million when local currencies were converted to U.S.

The increase in PLP-USA net sales of $25.0 million, or 32%, was primarily due to higher volumes in energy sales, and to a lesser extent, communications sales.

International net sales for the three months ended June 30, 2026 were favorably affected by $6.0 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 $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.

The Americas net sales of $34.0 million increased $2.8 million, or 10%, primarily due to higher volumes in energy sales mainly due to the acquisition of Delta Star in May 2026.

EMEA net sales of $41.7 million increased $8.2 million primarily due to higher volumes in energy sales.

Asia-Pacific net sales of $32.7 million increased $1.2 million, or 4%, primarily due to higher volumes in energy sales and special industry sales.

Gross profit.

1 unchanged sentence

Excluding the effect of currency translation, gross profit increased $15.7 million, or 28%, as summarized in the following table:

Three Months Ended March 31,

Three Months Ended June 30,

(Thousands of dollars) 2026 2025 Change Change

4 unchanged sentences

Consolidated $ 73,012 $ 55,399 $ 17,613 $ 1,871 $ 15,742 28 %

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.

PLP-USA gross profit of $39.2 million increased by $11.2 million, or 40%, compared to the same period in 2025, primarily due to higher sales volumes, favorable product mix and the benefit of price increases enacted in 2025, partially offset by increased material, tariff and manufacturing costs.

International gross profit for the period ended June 30, 2026 was favorably impacted by $1.9 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 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.

The Americas gross profit increased $1.6 million, or 18%, which was primarily the result of favorable product mix.

EMEA gross profit increased $3.4 million, or 36%, primarily due to higher sales volumes and favorable product mix.

Asia-Pacific gross profit decreased $0.4 million, or 5%, which was primarily driven by increased material costs.

Costs and expenses.

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.

Costs and expenses of $45.1 million for the three months ended June 30, 2026 increased $6.8 million, or 18%, when compared to 2025.

Excluding the effect of currency translation and intercompany transactions, costs and expenses increased $5.8 million, or 15%, as summarized in the following table:

Three Months Ended March 31,

Three Months Ended June 30,

(Thousands of dollars) 2026 2025 Change Change

8 unchanged sentences

Excluding intercompany transactions, PLP-USA costs and expenses increased $4.5 million, or 26% 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.

International costs and expenses for the three months ended June 30, 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 $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.

The Americas costs and expenses of $7.2 million increased $0.5 million primarily due to increases in personnel costs and selling costs.

EMEA costs and expenses of $8.6 million increased by $0.8 million primarily due to increases in personnel and selling costs.

Asia-Pacific costs and expenses of $6.4 million had a de minimis change.

Other Income, net.

Other income, net of $0.5 million for the three months ended June 30, 2026 was favorable by $0.3 million when compared to $0.2 million of Other income, net for the three months ended June 30, 2025.

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

Income taxes.

Income taxes for the three months ended June 30, 2026 and 2025 were $6.9 million and $4.6 million based on pre-tax income of $28.4 million and $17.3 million, respectively.

The tax rate for the three months ended June 30, 2026 and 2025 was 24% and 27%, respectively.

The lower effective tax rate for the three months ended June 30, 2026 compared to the three months ended June 30, 2025 was mainly due to the impact from certain nondeductible compensation adjustments in Q2 2025.

As a result of the preceding items, net income for the three months ended June 30, 2026 was $21.5 million, compared to $12.7 million for 2025.

Excluding the effect of currency translation, net income increased $8.3 million as summarized in the following table.

The increase in net income was due to increases in operating income as described above

Three Months Ended June 30,

(Thousands of dollars) 2026 2025 Change Change

Net income (loss)

PLP-USA $ 12,652 $ 7,745 $ 4,907 $ — $ 4,907 63 %

The Americas 3,167 1,302 1,865 236 1,629 125 %

EMEA 3,411 1,367 2,044 196 1,848 135 %

Asia-Pacific 2,278 2,291 (13) 103 (116) (5) %

Consolidated $ 21,508 $ 12,705 $ 8,803 $ 535 $ 8,268 65 %

SIX MONTHS ENDED JUNE 30, 2026 COMPARED TO SIX MONTHS ENDED JUNE 30, 2025

The following table sets forth a summary of the Company’s Statements of Consolidated Income and the percentage of net sales for the six months ended June 30, 2026 and 2025.

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

Six Months Ended June 30,

(Thousands of dollars) 2026 2025 Change

Net sales $ 388,959 100.0 % $ 318,142 100.0 % $ 70,817

Cost of products sold 260,727 67.0 214,072 67.3 46,655

GROSS PROFIT 128,232 33.0 104,070 32.7 24,162

Costs and expenses 86,614 22.3 73,816 23.2 12,798

OPERATING INCOME 41,618 10.7 30,254 9.5 11,364

Other income, net 1,158 0.3 723 0.2 435

INCOME BEFORE INCOME TAXES 42,776 11.0 30,977 9.7 11,799

Income tax expense 10,719 2.8 6,724 2.1 3,995

NET INCOME 32,057 8.2 24,253 7.6 7,804

Net income attributable to noncontrolling interests (25) (0.0) (31) (0.0) 6

NET INCOME ATTRIBUTABLE TO PREFORMED LINE PRODUCTS COMPANY SHAREHOLDERS $ 32,032 8.2 % $ 24,222 7.6 % $ 7,810

In 2026, net sales were $389.0 million, an increase of $70.8 million, or 22%, compared to 2025.

Excluding the effect of currency translation, net sales increased 18% as summarized in the following table:

Six Months Ended June 30,

(Thousands of dollars) 2026 2025 Change Change

Translation Change

Translation %

PLP-USA $ 197,617 $ 153,296 $ 44,321 $ — $ 44,321 29 %

The Americas 59,044 50,787 8,257 4,975 3,282 6 %

EMEA 74,966 61,903 13,063 4,792 8,271 13 %

Asia-Pacific 57,332 52,156 5,176 3,397 1,779 3 %

Consolidated $ 388,959 $ 318,142 $ 70,817 $ 13,164 $ 57,653 18 %

The increase in PLP-USA net sales of $44.3 million, or 29%, was primarily due to higher volumes in energy sales, and to a lesser extent, communications product sales.

International net sales for the six months ended June 30, 2026 were favorably affected by $13.2 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 $59.0 million increased $3.3 million, or 6%, primarily due to an increase in communications sales due to the acquisition of JAP Telecom in May 2025 and, to a lesser extent, an increase in energy sales primarily related to the acquisition of Delta Star.

EMEA net sales of $75.0 million increased $8.3 million, or 13% primarily due to higher volume in energy product sales.

Asia-Pacific net sales of $57.3 million increased $1.8 million, or 3%, primarily due to volume increases in energy product and special industries sales.

Gross profit.

Gross profit of $128.2 million for 2026 increased $24.2 million, or 23%, compared to 2025.

Excluding the effect of currency translation, gross profit increased $20.3 million, or 20%, as summarized in the following table:

Six Months Ended June 30,

(Thousands of dollars) 2026 2025 Change Change

Translation Change

Translation %

PLP-USA $ 71,768 $ 54,900 $ 16,868 $ — $ 16,868 31 %

The Americas 17,674 15,511 2,163 1,518 645 4 %

EMEA 22,646 18,388 4,258 1,467 2,791 15 %

Asia-Pacific 16,144 15,271 873 848 25 — %

Consolidated $ 128,232 $ 104,070 $ 24,162 $ 3,833 $ 20,329 20 %

PLP-USA gross profit of $71.8 million increased by $16.9 million, or 31%, 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 material, tariff and manufacturing costs.

International gross profit for the period ended June 30, 2026 was favorably impacted by $3.8 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 $0.6 million, or 4%, which was primarily the result of higher sales volumes.

EMEA gross profit increased $2.8 million, or 15%, primarily due to higher sales volume and favorable product mix.

Asia-Pacific gross profit had a de minimis increase, primarily from higher sales volume, offset by increased material costs.

Costs and expenses.

Costs and expenses of $86.6 million for the six months ended June 30, 2026 increased $12.8 million, or 17%, when compared to 2025.

Excluding the effect of currency translation and intercompany transactions, costs and expenses increased $10.1 million, or 14%, as summarized in the following table:

Six Months Ended June 30,

(Thousands of dollars) 2026 2025 Change Change

Translation Change Due to Intercompany Transactions Change Excluding

and Intercompany Transactions

Costs and expenses

PLP-USA $ 44,888 $ 34,567 $ 10,321 $ — $ 2,800 $ 7,521 22 %

The Americas 13,059 12,224 835 1,053 (1,673) 1,455 12 %

EMEA 16,449 15,300 1,149 1,044 (969) 1,074 7 %

Asia-Pacific 12,218 11,725 493 554 (158) 97 1 %

Consolidated $ 86,614 $ 73,816 $ 12,798 $ 2,651 $ — $ 10,147 14 %

PLP-USA costs and expenses of $44.9 million increased $7.5 million, or 22% year-over-year.

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

International costs and expenses for the six months ended June 30, 2026 were unfavorably impacted by $2.7 million 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 $13.1 million increased $1.5 million primarily due to an increase in personnel and selling costs.

EMEA costs and expenses of $16.4 million increased by $1.1 million primarily due to higher personnel cost and facility costs.

Asia-Pacific costs and expenses of $12.2 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.

Other income, net of $1.2 million for the six months ended June 30, 2026 was favorable by $0.5 million when compared to Other income, net for the six months ended June 30, 2025 of $0.7 million.

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

Income taxes.

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 increase in income taxes as described above:

Three Months Ended March 31,

Income taxes for the six months ended June 30, 2026 and 2025 were $10.7 million and $6.7 million based on pre-tax income of $42.8 million and $31.0 million, respectively.

The tax rate for the six months ended June 30, 2026 and 2025 was 25% and 22%, respectively.

The effective tax rate for the six months ended June 30, 2026 was higher than the effective tax rate for the same period in 2025 mainly due to a reduction in the net benefit related to incentive compensation and a valuation allowance recorded on deferred tax assets related to the Company's French subsidiary.

As a result of the preceding items, net income for the six months ended June 30, 2026 was $32.0 million, compared to $24.2 million for 2025.

Excluding the effect of currency translation, net income increased $7.2 million as summarized in the following table.

The increase in net income was due to increases in operating income as described above:

Six Months Ended June 30,

(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 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”).

During the first six months of 2026, we used cash of $17.0 million for capital expenditures, mainly related to new facilities in the EMEA region.

We ended the first six months of 2026 with $76.2 million of cash, cash equivalents and restricted cash (collectively, “Cash”).

Our Cash is held in various locations throughout the world.

At March 31, 2026, the majority of our Cash was held outside the U.S.

At June 30, 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 March 31, 2026 was $41.9 million.

Total debt, including notes payable, at June 30, 2026 was $42.8 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.

At June 30, 2026, the Company had utilized $6.7 million with $53.3 million available on the Facility.

There were no long-term outstanding letters of credit on the Facility as of June 30, 2026.

Our bank debt to equity percentage was 8.6%.

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

At March 31, 2026, the Company was in compliance with these covenants.

At June 30, 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 March 31, 2026, $10.1 million was outstanding on this debt facility, of which $2.1 million was classified as current.

As of June 30, 2026, $9.6 million was outstanding on this debt facility, of which $2.1 million was classified as current.

The aircraft has been pledged as collateral against the loan.

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.

At June 30, 2026 and December 31, 2025, $26.5 million and $20.9 million were outstanding, of which $4.8 million and $4.6 million were classified as current, respectively.

Of the $26.5 million outstanding at June 30, 2026, $17.7 million is attributable to the Poland subsidiary and $7.1 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 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.

On June 30, 2026, PLP Poland amended its non-revolving investment loan agreement with Bank Pekao S.A.

to defer the start of annual repayments from June 30, 2026 to January 31, 2027.

Following the amendment, PLP Poland will make annual installments in the amounts of PLN9.0 million ($2.4 million) in 2027, PLN9.6 million ($2.6 million) in 2028, PLN9.8 million ($2.6 million) annually from 2029 through 2034, and PLN22.9 million ($6.1 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%.

1 unchanged sentence

The loan also is guaranteed by the Company.

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.

On July 28, 2026, in connection with the acquisition of a facility and related land in Canada (the "Property"), PLP Canada entered into a Term Loan Agreement (the "Term Loan") with Citibank N.A.

providing for borrowings of approximately CAD15.0 million (approximately $10.7 million).

The proceeds of the Term Loan were used to refinance a portion of the Company's cash investment in the acquisition of the Property.

The Term Loan bears interest at a variable rate equal to the Canadian Overnight Repo Rate Average ("CORRA") plus 1.25% per annum and matures on July 28, 2029.

Principal payments are due in annual installments of approximately CAD0.8 million

(approximately $0.5 million) in each of 2027 and 2028, with the remaining principal balance of approximately CAD13.4 million (approximately $9.7 million) due at maturity in 2029.

The Term Loan contains a negative covenant that restricts PLP Canada from pledging, mortgaging, or otherwise using the acquired property as collateral for any other indebtedness without the prior written consent of the lender.

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

The Company's Asia-Pacific segment had $0.3 million and $0.1 million in restricted cash used to secure bank guarantees at June 30, 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.

3 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 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.

Net cash provided by operating activities for the six months ended June 30, 2026 was $31.3 million compared to $32.6 million in the comparable prior year six-month period.

The $1.3 million decrease was primarily a result of the increase in net income, the net favorable movement in non-cash items, including share based compensation and depreciation and amortization, offset by changes in operating assets and liabilities.

Net cash used in investing activities for the six months ended June 30, 2026 was $25.9 million compared to $22.2 million in the comparable prior year six-month period.

The $3.7 million change was primarily a result of the acquisition of Delta Star in May 2026 and lower net proceeds from investments, partially offset by a decrease in capital expenditures.

Net cash used in financing activities for the six months ended June 30, 2026 was $13.0 million compared to $4.8 million in the comparable prior year six-month period.

The $8.2 million change was primarily the result of share repurchases from related parties and a reduction in proceeds from long term debt.

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

At March 31, 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.

At June 30, 2026, we had $1.9 million of current operating lease liabilities and $6.8 million of noncurrent operating lease liabilities.

Total liabilities related to finance lease obligations were approximately $0.6 million at June 30, 2026.

As of June 30, 2026, the Company had total outstanding guarantees of $13.8 million.

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

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

As of June 30, 2026, the Company had total outstanding letters of credit of $3.6 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.

At June 30, 2026, and December 31, 2025, $26.5 million and $20.9 million were outstanding, of which $4.8 million and $4.6 million were classified as current, respectively.

Of the $26.5 million outstanding at June 30, 2026, $17.7 million is attributable to the Poland subsidiary and $7.1 million is attributable to the Spain subsidiary.

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

4 unchanged sentences

As a general matter, forward-looking statements are those focused upon future plans, objectives or performance (as opposed to historical items) and include statements of anticipated events or trends and expectations and beliefs relating to matters not historical in nature.

Use of words such “anticipates,” “believes,” “may,” “should,” “will,” “would,” “could,” “plans,” “projects,” “expects,” “estimates,” “predicts,” “targets,” “forecasts,” “intends,” “contemplates,” and similar words may identify forward-looking statements.

Use of words such as “anticipates,” “believes,” “may,” “should,” “will,” “would,” “could,” “plans,” “projects,” “expects,” “estimates,” “predicts,” “targets,” “forecasts,” “intends,” “contemplates,” and similar words may identify forward-looking statements.

Such forward-looking statements are subject to uncertainties and factors relating to the Company’s operations and business environment, all of which are difficult to predict and many of which are beyond the Company’s control.

1 unchanged sentence

The following factors, among others, could affect the Company’s future performance and cause the Company’s actual results to differ materially from those expressed or implied by forward-looking statements made in this report:

• 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 overall demand for cable anchoring and control hardware for electrical transmission and distribution lines on a worldwide basis, which, historically, 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 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.

19 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