What changed in this filing

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Item 1. Financial Statements

2025-05-02 compared with 2024-10-31 · 156 added, 205 removed, 360 unchanged (50% of the section changed)

2 unchanged sentences

CONSOLIDATED BALANCE SHEETS

September 30, 2024 December 31, 2023

March 31, 2025 December 31, 2024

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

27 unchanged sentences

SHAREHOLDERS' EQUITY

Common shares – $ 2 par value per share, 15,000,000 shares authorized, 4,897,450 and 4,908,413 issued and outstanding, at September 30, 2024 and December 31, 2023

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

13,820 13,752

Common shares issued to rabbi trust, 222,741 and 243,118 shares at September 30, 2024 and December 31, 2023, respectively

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

( 9,594 ) ( 9,575 )

2 unchanged sentences

Retained earnings 563,678 553,179

Treasury shares, at cost, 1,959,512 and 1,894,419 shares at September 30, 2024 and December 31, 2023, respectively

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

( 127,812 ) ( 126,800 )

7 unchanged sentences

STATEMENTS OF CONSOLIDATED INCOME

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

2024 2023 2024 2023

(Thousands of dollars, except per share data)

Three Months Ended March 31,

(Thousands, except per share data)

Net sales $ 148,541 $ 140,904

12 unchanged sentences

Other income, net 407 35

38 ( 502 ) 205 ( 1,832 )

INCOME BEFORE INCOME TAXES 13,671 11,858

12 unchanged sentences

STATEMENTS OF CONSOLIDATED COMPREHENSIVE INCOME

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

2024 2023 2024 2023

Three Months Ended March 31,

(Thousands of dollars)

2 unchanged sentences

Foreign currency translation adjustment 6,671 ( 6,565 )

Recognized net actuarial gain 89 89 267 267

Pension adjustment, net of tax 123 89

Other comprehensive income (loss), net of tax 6,794 ( 6,476 )

4 unchanged sentences

STATEMENTS OF CONSOLIDATED CASH FLOWS

Nine Months Ended September 30,

Three Months Ended March 31,

(Thousands of dollars)

12 unchanged sentences

Proceeds from the sale of property and equipment 91 3,237

Acquisition of businesses, net of cash - ( 12,089 )

Proceeds from sale of investments 1,679 —

Purchases of investments ( 451 ) —

NET CASH USED IN INVESTING ACTIVITIES ( 9,657 ) ( 681 )

FINANCING ACTIVITIES

Proceeds (payments) of notes payable to banks 914 ( 6,792 )

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

Proceeds from long-term debt 8,628 33,232

2 unchanged sentences

Proceeds from issuance of common shares 68 60

Stock incentive plan payments ( 3,799 ) —

Purchase of common shares for treasury ( 131 ) —

Purchase of common shares for treasury from related parties ( 881 ) ( 5,452 )

Other ( 2,473 ) -

NET CASH USED IN FINANCING ACTIVITIES ( 22 ) ( 11,666 )

14 unchanged sentences

Total comprehensive income 18,311 36 18,347

Share-based compensation 383 383 383

Purchase of 860 common shares

( 131 ) ( 131 ) ( 131 )

Issuance of 52,354 common shares

104 67 171 171

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

Share-based compensation 934 934 934

Purchase of 4,540 common shares

Stock incentive plan activity

68 ( 2,888 ) ( 881 ) ( 3,701 ) ( 3,701 )

Issuance of 146 common shares

Common shares issued to rabbi trust of 147 , net

2 unchanged sentences

( 1,018 ) ( 1,018 ) ( 1,018 )

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

Share-based compensation 632 632 632

Purchase of 17,822 common shares

( 2,234 ) ( 2,234 ) ( 2,234 )

Issuance of 1,776 common shares

4 115 119 119

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

PREFORMED LINE PRODUCTS COMPANY

STATEMENTS OF CONSOLIDATED SHAREHOLDERS' EQUITY

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

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

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

3 unchanged sentences

Total comprehensive income 3,120 7 3,127

Share-based compensation 1,066 1,066 1,066

Purchase of 41,573 common shares

( 3,740 ) ( 3,740 ) ( 3,740 )

Issuance of 72,477 common shares

Stock incentive plan activity

104 450 ( 5,452 ) ( 4,898 ) ( 4,898 )

4 unchanged sentences

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

Net income 20,472 20,472 ( 8 ) 20,464

Foreign currency translation adjustment 2,301 2,301 2,301

Pension adjustment, net of tax 89 89 89

Total comprehensive income 22,862 ( 8 ) 22,854

Share-based compensation 1,725 1,725 1,725

Purchase of 40,078 common shares

( 6,100 ) ( 6,100 ) ( 6,100 )

Issuance of 9,655 common shares

18 262 280 280

Common shares distributed from rabbi trust of 502 , net

37 ( 37 ) — —

Cash dividends declared – $ 0.20 per share

( 1,024 ) ( 1,024 ) ( 1,024 )

Balance at June 30, 2023 $ 13,509 $ ( 10,039 ) $ 10,039 $ 56,943 $ 500,726 $ ( 109,143 ) $ ( 59,272 ) $ ( 4,314 ) $ 398,449 $ - $ 398,449

Net income 15,130 15,130 15 15,145

Foreign currency translation adjustment ( 6,934 ) ( 6,934 ) ( 6,934 )

Pension adjustment, net of tax 89 89 89

Total comprehensive income 8,285 15 8,300

Share-based compensation 1,299 1,299 1,299

Purchase of 50,717 common shares

( 8,559 ) ( 8,559 ) ( 8,559 )

Issuance of 26,285 common shares

50 1,306 1,356 1,356

Common shares distributed from rabbi trust of 185 , net

( 30 ) 30 — —

Cash dividends declared – $ 0.20 per share

( 1,018 ) ( 1,018 ) ( 1,018 )

Balance at September 30, 2023 $ 13,559 $ ( 10,069 ) $ 10,069 $ 59,548 $ 514,838 $ ( 117,702 ) $ ( 66,206 ) $ ( 4,225 ) $ 399,813 $ 15 $ 399,828

See notes to consolidated financial statements (unaudited).

6 unchanged sentences

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.

The interim period results are not necessarily indicative of the results to be expected for the full year.

Management has evaluated subsequent events through the date this Form 10-Q was filed with the Securities and Exchange Commission.

2 unchanged sentences

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

Operating results for the three and nine months ended September 30, 2024 are not necessarily indicative of the results to be expected for the full-year ending December 31, 2024.

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

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.

10 unchanged sentences

Lastly, all current required annual segment reporting disclosures under Topic 280 are now effective for interim periods.

The ASU is effective for fiscal years beginning after December 15, 2023, and interim periods within fiscal years beginning after December 15, 2024, with early adoption permitted.

The Company is evaluating the impact of adopting this ASU and expects the standard will only impact its segment disclosures with no material impact to the consolidated financial statements.

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.

3 unchanged sentences

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 and interim periods beginning after December 15, 2024.

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

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.

NOTE 2 - REVENUE

1 unchanged sentence

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.

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.

1 unchanged sentence

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

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 %

Three Months Ended September 30, 2023

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

Energy 68 % 80 % 60 % 75 % 69 %

Communications 28 % 18 % 35 % 3 % 23 %

Special Industries 4 % 2 % 5 % 22 % 8 %

Total 100 % 100 % 100 % 100 % 100 %

Nine Months Ended September 30, 2024

Three Months Ended March 31, 2025

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

3 unchanged sentences

Total 100 % 100 % 100 % 100 % 100 %

Nine Months Ended September 30, 2023

Three Months Ended March 31, 2024

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

9 unchanged sentences

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,

Three Months Ended March 31,

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

7 unchanged sentences

The components of inventory are as follows:

September 30, 2024 December 31, 2023

March 31, 2025 December 31, 2024

Raw materials $ 74,990 $ 75,138

4 unchanged sentences

Inventories at LIFO cost $ 135,098 $ 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 $ 48.8 million at September 30, 2024 and $ 60.1 million at December 31, 2023.

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

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

1 unchanged sentence

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

During the three-month periods ended September 30, 2024 and 2023, the net change in LIFO inventories resulted in expense of $ 0.2 million and $ 0.6 million, respectively, to Cost of products sold.

During the nine-month periods ended September 30, 2024 and 2023, the net change in LIFO inventories resulted in expense of $ 0.6 million and of $ 1.7 million, respectively, to Cost of products sold.

The Company’s reserves for slow moving and obsolete inventory were $ 18.6 million at September 30, 2024 and $ 17.6 million at December 31, 2023.

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

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

NOTE 4 - PROPERTY AND EQUIPMENT, NET

Major classes of property, plant and equipment are stated at cost and were as follows:

September 30, 2024 December 31, 2023

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

March 31, 2025 December 31, 2024

Land and improvements $ 25,927 $ 20,204

5 unchanged sentences

Property, plant and equipment, net $ 203,083 $ 195,086

NOTE 5 – CONTINGENT LIABILITIES

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.

3 unchanged sentences

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.

In November 2016, the Company and its subsidiaries Helix Uniformed Ltd.

(“Helix”) and Preformed Line Products (Canada) Limited (“PLPC Canada”), were each named, jointly and severally, with each of SNC-Lavalin ATP, Inc.

(“SNC ATP”), HD Supply Canada Inc., by its trade names HD Supply Power Solutions and HD Supply Utilities (“HD Supply”), and Anixter Power Solutions Canada Inc.

(the corporate successor to HD Supply, “Anixter”) and, together with the Company, PLPC Canada, Helix, SNC ATP and HD

Supply (the “Defendants”), in a complaint filed by Altalink, L.P.

(the “Plaintiff”) in the Court of Queen’s Bench of Alberta in Alberta, Canada in November 2016 (the “Complaint”).

The Complaint stated that the Plaintiff engaged SNC ATP to design, engineer, procure and construct numerous power distribution and transmission facilities in Alberta (the “Projects”) and that through SNC ATP and HD Supply (now Anixter), spacer dampers manufactured by Helix were procured and installed in the Projects.

The Complaint alleged that the spacer dampers have and may continue to become loose, open and detach from the conductors, resulting in damage and potential injury and a failure to perform the intended function of providing spacing and damping to the Projects.

The Plaintiff was seeking damages jointly and severally from the Defendants representing the costs of monitoring and replacing the spacer dampers and remediating property damage, due to alleged defects in the design and construction of, and supply of materials for, the Projects by SNC ATP and HD Supply/Anixter and in the design of the spacer dampers by Helix.

On September 26, 2023, the Defendants and the Plaintiff entered into a settlement agreement which dismissed the action against all Defendants with prejudice.

Net of insurance, the total settlement amount paid by the Company in the fourth quarter of 2023 was $ 4.3 million Canadian dollars ($ 3.2 million US dollars).

The settlement reflects the Company’s desire to eliminate the burden, expense, distraction and further uncertainties of litigation, and the settlement does not constitute an admission of liability, wrongdoing or fault by the Company and its subsidiaries.

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, 2024 and December 31, 2023, there were zero reserves for known global legal matters.

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

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

NOTE 6 - PENSION PLANS

1 unchanged sentence

Net periodic pension expense for the U.S.

Plan for the three and nine month periods ended September 30, 2024 and 2023, respectively, follows:

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

2024 2023 2024 2023

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

Three Months Ended March 31,

Interest cost $ 395 $ 387

3 unchanged sentences

There were no contributions to the U.S.

Plan during the nine months ended September 30, 2024 and 2023.

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

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

5 unchanged sentences

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

Three Months Ended September 30, 2024 Three Months Ended September 30, 2023

Benefit Cost Cumulative

Adjustment Total

Benefit Cost Cumulative

Adjustment Total

Balance at June 30 $ ( 4,300 ) $ ( 68,364 ) $ ( 72,664 ) $ ( 4,314 ) $ ( 59,272 ) $ ( 63,586 )

Other comprehensive income before reclassifications:

Foreign currency translation adjustment — 7,483 7,483 — ( 6,934 ) ( 6,934 )

Amounts reclassified from AOCI:

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

Net current period other comprehensive income (loss) 89 7,483 7,572 89 ( 6,934 ) ( 6,845 )

Balance at September 30 $ ( 4,211 ) $ ( 60,881 ) $ ( 65,092 ) $ ( 4,225 ) $ ( 66,206 ) $ ( 70,431 )

Nine Months Ended September 30, 2024 Nine Months Ended September 30, 2023

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

Benefit Cost Cumulative

6 unchanged sentences

Amounts reclassified from AOCI:

Amortization of defined benefit pension actuarial gain (a) 267 — 267 267 — 267

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

Net current period other comprehensive income (loss) 123 6,671 6,794 89 ( 6,565 ) ( 6,476 )

Balance at September 30 $ ( 4,211 ) $ ( 60,881 ) $ ( 65,092 ) $ ( 4,225 ) $ ( 66,206 ) $ ( 70,431 )

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

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

NOTE 8 - DEBT AND CREDIT ARRANGEMENTS

The Company maintains a credit facility (the "Facility") with a capacity of $ 90.0 million that expires March 2, 2026.

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

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

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

as an additional borrower.

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 2.25 to 1, at which point the SOFR spread becomes 1.600 %.

At September 30, 2024, the Company had utilized $ 12.7 million with $ 77.2 million available on the Facility.

There were no long-term outstanding letters of credit on the Facility as of September 30, 2024.

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

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

Our bank debt to equity percentage was 8.0 %.

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

At September 30, 2024, the Company was in compliance with these covenants.

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

On January 19, 2021, the Company received funding for a term loan from PNC Equipment Finance, LLC in the principal amount of $ 20.5 million for the full amount of the purchase price for a new corporate aircraft.

1 unchanged sentence

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

Of the $ 13.2 million outstanding on this debt facility at September 30, 2024, $ 2.1 million was classified as current.

The loan is secured by the aircraft.

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

The aircraft has been pledged as collateral against the loan.

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

At September 30, 2024, and December 31, 2023, $ 9.3 million and $ 13.3 million were outstanding, of which $ 8.6 million and $ 11.4 million were classified as current, respectively.

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

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

The Company's Asia-Pacific segment had $ 0.1 million and $ 0.2 million in restricted cash used to secure bank guarantees at September 30, 2024 and December 31, 2023, respectively.

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

The 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, 2024 and 2023, the Company’s effective tax rate was 26 % and 23 %, respectively.

The higher effective tax rate for the three months ended September 30, 2024 compared to the three months ended September 30, 2023 was primarily due to limitations on the deductibility of compensation and a lower excess tax benefit on share-based compensation which was partially offset by the favorable impact from the mix of earned income in certain foreign jurisdictions.

For the nine-month period ended September 30, 2024 and 2023, the Company’s effective tax rate was 20 % and 24 %, respectively.

The lower effective tax rate for the nine months ended September 30, 2024 compared to the nine months ended September 30, 2023 was primarily due to the favorable impact from discrete benefits recorded as a result of amending prior year federal tax returns and an increase in excess tax benefits on share-based compensation in relation to overall lower pre-tax book income.

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

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

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, 2024, the Company did not record any additional valuation allowances in various jurisdictions on its deferred tax assets.

For the nine-month periods ending September 30, 2024 and 2023, the Company did not record any new uncertain tax positions.

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

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

NOTE 10 - COMPUTATION OF EARNINGS PER SHARE

1 unchanged sentence

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

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

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

2024 2023 2024 2023

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

Three Months Ended March 31,

Net income $ 11,517 $ 9,596

6 unchanged sentences

Diluted $ 2.33 $ 1.94

For the three and nine months ended September 30, 2024 and 2023, there were zero share-based awards excluded from the calculation of diluted earnings per share as there was no anti-dilutive effect .

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

NOTE 11 - GOODWILL AND OTHER INTANGIBLES

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

September 30, 2024 December 31, 2023

March 31, 2025 December 31, 2024

Gross Carrying

11 unchanged sentences

The Company performs additional interim impairment assessments as circumstances warrant.

There were no indicators of impairment noted for the period ending September 30, 2024.

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

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

4 unchanged sentences

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, of which are affected by expectations of future market or economic conditions.

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, 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.

5 unchanged sentences

Currency translation — 387 674 — 1,061

Balance at September 30, 2024 $ 3,078 $ 9,756 $ 15,838 $ — $ 28,672

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

NOTE 12 - FAIR VALUE OF FINANCIAL ASSETS AND LIABILITIES

6 unchanged sentences

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

The following table summarizes the Company’s assets and liabilities, recorded and measured at fair value, in the Consolidated Balance Sheets as of September 30, 2024 and December 31, 2023:

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

Description Balance as of

September 30, 2024 Quoted Prices in Active Markets for

March 31, 2025 Quoted Prices in Active Markets for

Identical Assets or Liabilities

2 unchanged sentences

Foreign currency forward contracts $ — $ — $ — $ —

Fixed income investments

Total assets $ — $ — $ — $ —

7 unchanged sentences

Foreign currency forward contracts $ 65 $ — $ 65 $ —

Fixed income investments

1,142 1,142 — —

Total assets $ 1,207 $ 1,142 $ 65 $ —

3 unchanged sentences

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.

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.

2 unchanged sentences

These contracts are not designated as hedging instruments under U.S.

Accordingly, the changes in the fair value of the foreign currency forward contracts are recognized in each accounting period in Other operating expense, 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, 2024, the Company recognized net losses of zero and $ 0.2 million, respectively, on foreign currency forward contracts.

For the three and nine months ended September 30, 2023, the Company recognized net losses of $ 0.5 million and $ 0.9 million, respectively, on foreign currency forward contracts.

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

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

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

The liability for the unfunded Supplemental Profit Sharing Plan was $ 9.1 million at September 30, 2024 and $ 8.2 million at December 31, 2023.

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

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

2 unchanged sentences

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

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

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

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

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, 2024 and December 31, 2023, the fair value of the Company’s long-term debt was estimated using discounted cash flows analyses, based on the Company’s current incremental borrowing rates for similar types of borrowing arrangements that are considered to be Level 2 inputs.

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

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

September 30, 2024 December 31, 2023

March 31, 2025 December 31, 2024

Carrying Value Fair Value Carrying Value

1 unchanged sentence

NOTE 13 - SEGMENT INFORMATION

Operating segments are defined as components of an enterprise about which separate financial information is available that is evaluated by the CODM, or decision making group, in deciding how to allocate resources to an individual segment and in assessing performance.

The following tables present a summary of the Company’s reportable operating segments for the three and nine months ended September 30, 2024 and 2023.

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

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

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

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

Three Months Ended March 31, 2025

PLP-USA The Americas EMEA Asia-Pacific Total

$ 76,420 $ 24,458 $ 31,577 $ 25,005 $ 157,460

Intersegment sales

( 2,414 ) ( 2,179 ) ( 1,584 ) ( 2,742 ) ( 8,919 )

74,006 22,279 29,993 22,263 148,541

Cost of products sold

47,168 15,192 21,116 16,394 99,870

26,838 7,087 8,877 5,869 48,671

Costs and expenses 17,154 5,488 7,350 5,549 35,541

Operating income

9,684 1,599 1,527 320 13,130

Interest income

79 338 55 38 510

Interest expense

( 85 ) ( 7 ) ( 151 ) ( 133 ) ( 376 )

Other (expense) income, net ( 199 ) 31 22 553 407

Income before income taxes 9,479 1,961 1,453 778 13,671

Income tax expense

1,042 565 229 282 2,118

Total noncontrolling interest

— — ( 36 ) — ( 36 )

Total net income attributable to Preformed Line Products Company shareholders

$ 8,437 $ 1,396 $ 1,188 $ 496 $ 11,517

Three Months Ended March 31, 2024

PLP-USA The Americas EMEA Asia-Pacific Total

Gross sales $ 73,083 $ 20,825 $ 30,028 $ 26,919 $ 150,855

Intersegment sales ( 2,346 ) ( 2,467 ) ( 1,374 ) ( 3,764 ) ( 9,951 )

Net sales 70,737 18,358 28,654 23,155 140,904

Cost of products sold 46,041 13,393 20,336 17,003 96,773

Gross profit 24,696 4,965 8,318 6,152 44,131

Costs and expenses 18,164 4,721 6,129 3,558 32,572

Operating income 6,532 244 2,189 2,594 11,559

Interest income — 915 37 20 972

Interest expense ( 433 ) ( 11 ) ( 157 ) ( 107 ) ( 708 )

Other (expense) income, net ( 10 ) 18 26 1 35

Income before income taxes 6,089 1,166 2,095 2,508 11,858

Income tax expense 772 269 509 705 2,255

Total noncontrolling interest — — ( 7 ) — ( 7 )

Total net income attributable to Preformed Line Products Company shareholders $ 5,317 $ 897 $ 1,579 $ 1,803 $ 9,596

Three Months Ended March 31,

Expenditure for long-lived assets

PLP-USA $ 702 $ 2,293

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Asia-Pacific 435 152

Total net sales $ 146,973 $ 160,438 $ 426,597 $ 524,076

Intersegment sales

Total expenditure for long-lived assets $ 10,976 $ 3,918

Depreciation and amortization

PLP-USA $ 3,099 $ 2,785

The Americas 805 1,371

EMEA 1,396 3,514 4,194 6,470

Asia-Pacific 751 761

Total intersegment sales $ 10,302 $ 17,723 $ 29,936 $ 63,266

Total depreciation and amortization $ 5,560 $ 5,792

March 31, 2025 December 31, 2024

Identifiable assets

PLP-USA $ 243,401 $ 245,388

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Asia-Pacific 98,869 100,020

Total gross profit $ 45,778 $ 54,137 $ 134,182 $ 186,748

Net income attributable to Preformed Line Products Company shareholders

Total identifiable assets $ 592,451 $ 573,877

Long-lived assets

PLP-USA $ 117,245 $ 119,114

2 unchanged sentences

Asia-Pacific 34,249 34,283

Total net income attributable to Preformed Line Products Company shareholders $ 7,680 $ 15,130 $ 26,642 $ 57,000

NOTE 14 – ACQUISITIONS OF BUSINESSES

Acquisition of Pilot Plastics

On February 1, 2023, the Company acquired substantially all of the assets of Pilot Plastics, headquartered in Akron, Ohio.

Pilot Plastics is an injection molding manufacturer and the acquisition expanded the Company's injection molding capabilities and further enhanced the Company's domestic manufacturing footprint.

The purchase price was approximately $ 13.8 million, net of cash as of the closing date.

The purchase price is subject to a holdback of approximately $ 1.7 million.

To fund the Pilot Plastics acquisition, the Company borrowed on the Facility.

The acquisition of Pilot Plastics 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 and assumed liabilities requires the use of judgment in determining the appropriate assumptions and estimates.

During the measurement period, opening balance sheet adjustments were made to finalize the fair value estimates based on the final valuations received, which are summarized in the table below.

Final Allocation

Accounts receivable $ 970

Inventory 585

Property, plant and equipment and other assets 13,628

Accounts payable ( 1,299 )

Other current liabilities ( 71 )

Total identifiable net assets 13,813

Total consideration, net of cash received $ 13,813

Due to the consideration transferred equaling the fair value of the assets acquired, no residual goodwill was recognized.

All measurement period adjustments were completed within a year from the acquisition date, and such adjustments did not have a material impact on the Company's results of operations and financial position.

Total long-lived assets

$ 203,083 $ 195,086

NOTE 14 - ACQUISITION OF BUSINESSES

Subsequent Event - 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 (R$ 26.1 million).

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

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

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

What changed 10-Q

Item 1. Financial Statements