CLEVELAND – October 29, 2026 -- Preformed Line Products (NASDAQ: PLPC) lifted third-quarter 2026 net sales 18% to $209.5 million, from $178.1 million a year earlier, while gross margin widened 370 basis points to 33.4%.
Net income reached $18.0 million, or $3.56 per diluted share, against $2.6 million, or $0.53 per share, in Q3 2025. Adjusted for charges tied to the U.S. Pension Plan termination in Q3 2025, diluted EPS rose 70%. Currency translation added $3.1 million to quarterly sales and $0.4 million to net income.
PLP-USA drives growth on transmission and distribution demand
PLP-USA delivered more than $100 million in net sales for the second consecutive quarter, driven mainly by transmission and distribution markets. For the first nine months, PLP-USA net sales grew 28%.
Among the international segments, The Americas grew 7% in constant currency, helped by the May 2026 acquisition of Delta Star Conetores Electricos Ltda and higher communications volumes. Asia-Pacific grew 17% in constant currency on higher energy sales.
Price increases and fixed-cost leverage lift earnings despite tariffs
Management attributed the profit gain to higher volumes, favorable product mix, fixed-cost leverage and price increases enacted in 2025 and early 2026. Higher selling and freight costs and investments in personnel supporting core product growth partly offset those gains. Tariffs continued to weigh on net income.
Nine-month sales climb 21% to $598.5 million
Net sales for the first nine months rose to $598.5 million from $496.2 million, with every segment posting year-over-year growth on higher energy and communications volumes. Currency translation contributed $16.2 million.
Nine-month net income was $50.1 million, or $10.18 per diluted share, compared with $26.8 million, or $5.42, a year earlier. Adjusted for the pension termination charges, diluted EPS increased $3.20, or 46%. A higher effective tax rate, along with higher personnel, selling, freight and tariff expenses, partly offset the gains.
Operating cash flow reaches $68.1 million through nine months
Quarterly operating cash flow increased 95% from Q3 2025, and nine-month operating cash flow rose 32% to $68.1 million. PLP ended the quarter with $99.3 million in cash and $53.9 million of available credit.
Executive Chairman Rob Ruhlman said the cash position lets PLP invest in people and facilities, pursue targeted acquisitions and keep returning capital to shareholders. He described the quarter as showing "resilience in a challenging operating environment."
Ruhlman said tariffs remain a headwind and the geopolitical landscape keeps shifting. He cited domestic U.S. manufacturing investments, a footprint across 20 countries and product breadth as buffers. In early October, U.S. Senator Bernie Moreno visited PLP's Peninsula, Ohio operations.