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Shares of Preformed Line Products Company PLPC have gained 0.2% since reporting results for the first quarter of 2025. This compares with the S&P 500 index’s 1.5% rally over the same time frame. Over the past month, the stock has risen 2.6% compared to the S&P 500’s 12.4% growth.
Earnings & Sales Performance
In the first quarter ended March 31, 2025, Preformed Line Products reported net sales of $148.5 million, a 5% increase from $140.9 million in the prior-year period. The company posted net income of $11.5 million, or $2.33 per diluted share, up 20% from $9.6 million, or $1.94 per share, a year ago.
Gross profit rose year over year to $48.7 million from $44.1 million, with the gross margin expanding 150 basis points to 32.8%. Management attributed the margin expansion to a favorable product mix and better leverage on fixed costs. Excluding the $4.4-million negative foreign currency translation impact, sales increased 9% year over year.
Preformed Line Products Company Price, Consensus and EPS Surprise
Preformed Line Products Company price-consensus-eps-surprise-chart | Preformed Line Products Company Quote
Other Key Business Metrics
Pre-tax income came in at $13.7 million, up 15% from $11.9 million in the year-ago quarter, with the pre-tax margin improving by 80 basis points to 9.2%. Sales grew across both the USA and Americas regions, with USA sales increasing 5% and the broader Americas region rising 39% year over year.
The communications business recorded a 15% increase in revenues from the first quarter of 2024 due to higher fiber closure product sales. Energy segment sales also rose 4%, driven by strength in transmission line products, while the special industries segment saw a 10% decline, mainly attributed to weakness in the EMEA region.
Management Commentary
Rob Ruhlman, executive chairman, noted that the company had a solid start to 2025, following a strong finish in 2024. He highlighted the USA communications business and international operations as key contributors to top-line growth.
However, Ruhlman expressed caution regarding the potential impacts of newly enacted tariffs on customer demand. He stated that PLPC's domestic manufacturing presence positions the company to better manage the high-tariff environment. The company expects cost increases related to steel and aluminum inputs. It is implementing targeted pricing adjustments and cost-containment strategies to mitigate margin pressures.
Factors Influencing Headline Numbers
The 5% year-over-year revenue rise was largely driven by demand in the USA and other Americas markets. The product mix was favorable, contributing to margin improvement and enhanced fixed-cost leverage. Sales were particularly robust in the communications segment, wherein PLP-USA experienced 30% year-over-year growth. On the downside, softness in EMEA impacted special industries’ sales. Additionally, higher personnel-related costs slightly offset the gains from increased gross profit.