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PREFORMED LINE PRODUCTS ANNOUNCES FOURTH QUARTER 2024 FINANCIAL RESULTS

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Preformed Line Products (NASDAQ: PLPC) reported its Q4 and full-year 2024 financial results. Q4 net sales reached $167.1 million, up 15% from Q4 2023, with diluted EPS of $2.13, a 65% increase. International subsidiaries drove growth through energy market sales.

However, full-year 2024 performance showed mixed results with net sales declining 11% to $593.7 million compared to 2023's $669.7 million. Net income for 2024 was $37.1 million ($7.50 per diluted share), down from $63.3 million ($12.68 per diluted share) in 2023.

The company achieved significant debt reduction of $33.7 million in 2024 through strong cash generation. The annual decline was primarily attributed to U.S. market slowdown, customer inventory destocking, and delayed BEAD Program stimulus funding.

Preformed Line Products (NASDAQ: PLPC) ha riportato i risultati finanziari del quarto trimestre e dell'intero anno 2024. Le vendite nette del quarto trimestre hanno raggiunto 167,1 milioni di dollari, con un aumento del 15% rispetto al quarto trimestre del 2023, e un utile per azione diluito di 2,13 dollari, con un incremento del 65%. Le filiali internazionali hanno contribuito alla crescita attraverso le vendite nel mercato energetico.

Tuttavia, le performance dell'intero anno 2024 hanno mostrato risultati misti, con un calo delle vendite nette dell'11% a 593,7 milioni di dollari rispetto ai 669,7 milioni di dollari del 2023. L'utile netto per il 2024 è stato di 37,1 milioni di dollari (7,50 dollari per azione diluita), in calo rispetto ai 63,3 milioni di dollari (12,68 dollari per azione diluita) del 2023.

L'azienda ha raggiunto una significativa riduzione del debito di 33,7 milioni di dollari nel 2024 grazie a una forte generazione di cassa. Il calo annuale è stato principalmente attribuito al rallentamento del mercato statunitense, alla dismissione delle scorte da parte dei clienti e al ritardo nel finanziamento del programma BEAD.

Preformed Line Products (NASDAQ: PLPC) informó sus resultados financieros del cuarto trimestre y del año completo 2024. Las ventas netas del cuarto trimestre alcanzaron 167,1 millones de dólares, un aumento del 15% en comparación con el cuarto trimestre de 2023, con una utilidad por acción diluida de 2,13 dólares, un incremento del 65%. Las subsidiarias internacionales impulsaron el crecimiento a través de las ventas en el mercado energético.

No obstante, el desempeño del año completo 2024 mostró resultados mixtos, con una disminución del 11% en las ventas netas a 593,7 millones de dólares en comparación con los 669,7 millones de dólares de 2023. La utilidad neta para 2024 fue de 37,1 millones de dólares (7,50 dólares por acción diluida), en comparación con los 63,3 millones de dólares (12,68 dólares por acción diluida) de 2023.

La empresa logró una reducción significativa de la deuda de 33,7 millones de dólares en 2024 gracias a una fuerte generación de efectivo. La disminución anual se atribuyó principalmente a la desaceleración del mercado estadounidense, la reducción de inventario de los clientes y el retraso en la financiación del programa BEAD.

프리폼드 라인 프로덕츠 (NASDAQ: PLPC)는 2024년 4분기 및 연간 재무 결과를 발표했습니다. 4분기 순매출은 1억 6,710만 달러에 달해 2023년 4분기 대비 15% 증가했으며, 희석 주당 순이익은 2.13달러로 65% 증가했습니다. 해외 자회사가 에너지 시장 판매를 통해 성장을 이끌었습니다.

하지만 2024년 전체 실적은 혼합된 결과를 보였으며, 순매출은 2023년의 6억 6,970만 달러에 비해 11% 감소한 5억 9,370만 달러를 기록했습니다. 2024년 순이익은 3,710만 달러(희석 주당 7.50달러)로, 2023년의 6,330만 달러(희석 주당 12.68달러)에서 감소했습니다.

회사는 2024년에 강력한 현금 생성 덕분에 3,370만 달러의 상당한 부채 감소를 달성했습니다. 연간 감소는 주로 미국 시장의 둔화, 고객 재고 조정 및 BEAD 프로그램 자금 지원 지연에 기인했습니다.

Preformed Line Products (NASDAQ: PLPC) a publié ses résultats financiers du quatrième trimestre et de l'année complète 2024. Les ventes nettes du quatrième trimestre ont atteint 167,1 millions de dollars, en hausse de 15 % par rapport au quatrième trimestre 2023, avec un bénéfice par action dilué de 2,13 dollars, soit une augmentation de 65 %. Les filiales internationales ont soutenu la croissance grâce aux ventes sur le marché de l'énergie.

Cependant, la performance de l'année complète 2024 a montré des résultats mitigés, avec une baisse des ventes nettes de 11 % à 593,7 millions de dollars par rapport à 669,7 millions de dollars en 2023. Le bénéfice net pour 2024 s'est élevé à 37,1 millions de dollars (7,50 dollars par action diluée), en baisse par rapport à 63,3 millions de dollars (12,68 dollars par action diluée) en 2023.

L'entreprise a réalisé une réduction significative de sa dette de 33,7 millions de dollars en 2024 grâce à une forte génération de liquidités. La baisse annuelle a été principalement attribuée au ralentissement du marché américain, à la réduction des stocks des clients et au retard dans le financement du programme BEAD.

Preformed Line Products (NASDAQ: PLPC) hat seine Finanzzahlen für das vierte Quartal und das Gesamtjahr 2024 veröffentlicht. Die Nettoumsätze im vierten Quartal erreichten 167,1 Millionen Dollar, was einem Anstieg von 15 % im Vergleich zum vierten Quartal 2023 entspricht, mit einem verwässerten Gewinn pro Aktie von 2,13 Dollar, einem Anstieg von 65 %. Internationale Tochtergesellschaften trugen zum Wachstum durch Verkäufe im Energiemarkt bei.

Die Gesamtjahresleistung 2024 zeigte jedoch gemischte Ergebnisse, da die Nettoumsätze um 11 % auf 593,7 Millionen Dollar im Vergleich zu 669,7 Millionen Dollar im Jahr 2023 zurückgingen. Der Nettogewinn für 2024 betrug 37,1 Millionen Dollar (7,50 Dollar pro verwässerter Aktie), ein Rückgang von 63,3 Millionen Dollar (12,68 Dollar pro verwässerter Aktie) im Jahr 2023.

Das Unternehmen erzielte 2024 eine signifikante Schuldenreduzierung von 33,7 Millionen Dollar durch starke Cash-Generierung. Der jährliche Rückgang wurde hauptsächlich der Verlangsamung des US-Marktes, der Entnahme von Kundenbeständen und der Verzögerung der BEAD-Programm-Finanzierung zugeschrieben.

Positive
  • Q4 net sales increased 15% year-over-year to $167.1 million
  • Q4 diluted EPS grew 65% to $2.13
  • Gross profit margin improved by 30 basis points in Q4
  • Strong debt reduction of $33.7 million in 2024
  • International subsidiaries showed robust performance
Negative
  • Full-year net sales declined 11% to $593.7 million
  • Annual net income decreased 41% to $37.1 million
  • Full-year EPS dropped from $12.68 to $7.50
  • U.S. communications market weakness due to reduced customer deployment
  • Foreign currency translation reduced net sales by $4.2 million

Insights

PLPC's Q4 2024 results showcase significant improvement in financial performance with quarterly net sales of $167.1 million, representing a 15% year-over-year increase and 14% sequential growth. The quarter's diluted EPS of $2.13 jumped 65% compared to Q4 2023, demonstrating substantial profit acceleration despite challenging market conditions.

The company's international operations drove this growth primarily through increased energy market sales, partially offsetting weakness in the U.S. business. Gross profit margin improved to 33.3%, up 30 basis points year-over-year, indicating enhanced operational efficiency.

However, full-year 2024 performance tells a different story, with net sales declining 11% to $593.7 million and net income falling to $37.1 million ($7.50 per diluted share) from $63.3 million in 2023. This decline stemmed primarily from inventory destocking and reduced customer deployment in U.S. communications markets due to higher borrowing costs and delayed government stimulus funding.

Notably, PLPC generated sufficient cash to reduce debt by $33.7 million during 2024 through cost reduction initiatives, lower capital expenditures, and reduced acquisition activity. This strengthens the company's balance sheet and maintains flexibility for future investments in product development, facility modernization, and strategic acquisitions.

The sequential quarterly improvement suggests the inventory destocking cycle may be nearing its end, potentially positioning PLPC for improved performance in 2025 if market conditions normalize and delayed BEAD Program funding materializes.

PLPC's Q4 2024 results reveal a company potentially turning the corner after weathering significant headwinds throughout most of 2024. The 15% year-over-year revenue growth combined with an impressive 65% EPS increase demonstrates substantial operating leverage in the business model, with modest revenue gains translating into outsized profit improvements.

The divergence between quarterly strength and annual weakness tells an important story about PLPC's business cycle. The 14% sequential quarterly improvement is particularly significant as it suggests the inventory destocking that plagued the communications sector throughout 2024 may be approaching completion. With customers having now aligned their inventory levels with current manufacturing lead times, PLPC could be positioned for more normalized order patterns.

The geographic shift in performance is noteworthy, with international subsidiaries - particularly in energy markets - offsetting domestic weakness. This geographic diversification has proven valuable during the U.S. market downturn, though it also raises questions about the sustainability of the current sales mix as U.S. markets potentially recover.

Most impressive is the company's financial discipline during challenging conditions. The $33.7 million debt reduction represents approximately 5.6% of the company's market capitalization, creating meaningful shareholder value through balance sheet improvement. This debt reduction, achieved while maintaining investment in core capabilities, positions PLPC with enhanced financial flexibility.

While full-year results reflect the reality of market challenges, the accelerating quarterly performance combined with the CEO's comments about approaching the end of inventory destocking suggests PLPC has weathered the worst of the cycle and may be positioned for improved performance as delayed BEAD Program funding eventually flows through to infrastructure deployment.

CLEVELAND, March 13, 2025 /PRNewswire/ -- Preformed Line Products Company (NASDAQ: PLPC) today reported financial results for its fourth quarter of 2024 and full year ended December 31, 2024.

Q4/Full Year 2024 Highlights:

  • Quarterly net sales of $167.1 million, an increase of 15% from Q4 2023 and 14% from Q3 2024
  • Diluted EPS of $2.13, an increase of 65% from Q4 2023 and 38% from Q3 2024
  • Debt reduction of $33.7 million in 2024 due to strong cash generation

Net sales in the fourth quarter of 2024 were $167.1 million compared to $145.6 million in the fourth quarter of 2023, a 15% increase. The international subsidiaries accounted for the majority of the sales increase primarily due to an increase in energy market sales and to a lesser extent the communications end market. Foreign currency translation reduced fourth quarter 2024 net sales by $3.0 million.

Net income for the quarter ended December 31, 2024, was $10.5 million, or $2.13 per diluted share, compared to $6.3 million, or $1.29 per diluted share, for the comparable period in 2023. The fourth quarter of 2024 net income was impacted by an increase in gross profit from higher sales levels, lower period expenses, and lower interest expense. Gross profit as a percentage of net sales was 33.3% for the fourth quarter of 2024, an increase of 30 basis points versus the same quarter in 2023.

Net sales decreased 11% to $593.7 million for the full year 2024 compared to $669.7 million in 2023. The year-over-year decline in sales is due primarily to the slowdown in spending and inventory de-stocking within the U.S. energy and communications end markets. Foreign currency translation rates reduced net sales by $4.2 million for the year ended December 31, 2024.

Net income for the year ended December 31, 2024 was $37.1 million, or $7.50 per diluted share, compared to $63.3 million, or $12.68 per diluted share, for the comparable period in 2023. YTD December 31, 2024 net income was impacted by decreased gross profit resulting from the decrease in sales, which was partially offset by lower period expenses and lower interest expense.

Rob Ruhlman, Executive Chairman, said, "The increase in fourth quarter sales of 15% versus the fourth quarter of 2023, as well as the sequential increase of 14% from last quarter, indicate we are approaching the end of inventory destocking within our primary end markets. Full year net sales declined 11% versus 2023, primarily due to the softness in the U.S. communications end market, caused by a reduction in customer deployment due to higher borrowing costs, a delay in Broadband Equity, Access, and Deployment ("BEAD") Program stimulus funding and customer inventory de-stocking to re-align inventory levels with current manufacturing lead times. While 2024 was a challenging year, I am encouraged by the contributions made by our international subsidiaries, which mitigated some of the weakness in our U.S. business. Our cost reduction activities along with reduced capital expenditures, reduced acquisition activity and lower borrowing costs in 2024 resulted in strong cash generation enabling debt reduction of $33.7 million. Our strong balance sheet and liquidity allows for continued investment in new product development to satisfy customer requirements, facility modernization and automation for our global manufacturing operations as well as opportunities for continued growth through logical acquisitions. Our current focus is unchanged: provide our customers with the high-quality products and timely service they have come to expect from PLP."

A presentation on fourth quarter and full-year results will also be available on PLP's website at www.plp.com/investor-relations.

FORWARD-LOOKING STATEMENTS

This news release contains "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934 regarding the Company, including those statements regarding the Company's and management's beliefs and expectations concerning the Company's future performance or anticipated financial results, among others. Except for historical information, the matters discussed in this release are forward-looking statements that involve risks and uncertainties which may cause results to differ materially from those set forth in those statements. Among other things, factors that could cause actual results to differ materially from those expressed in such forward-looking statements include the uncertainty in global business conditions and the economy due to factors such as inflation, rising interest rates, tariffs, labor disruptions, military conflict, political instability, exchange rates, natural disasters and health epidemics, the strength of demand and availability of funding for the Company's products and the mix of products sold, 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, the Company's continued access to financing, opportunities for business growth through acquisitions and the ability to successfully integrate any acquired businesses, changes in regulations and tax rates, security breaches, litigation and claims and the Company's ability to continue to develop proprietary technology and maintain high-quality products and customer service to meet or exceed new industry performance standards and individual customer expectations, and other factors described under the headings "Forward-Looking Statements" and "Risk Factors" in the Company's 2023 Annual Report on Form 10-K filed with the SEC on March 8, 2024 and subsequent filings with the SEC. The Annual Report on Form 10-K and the Company's other filings with the SEC can be found on the SEC's website at http://www.sec.gov. The Company assumes no obligation to update or supplement forward-looking statements that become untrue because of subsequent events.

ABOUT PLP

PLP protects the world's most critical connections by creating stronger and more reliable networks. The company's precision-engineered solutions are trusted by energy and communications providers worldwide to perform better and last longer. With locations in 20 countries, PLP works as a united global corporation, delivering high-quality products and unparalleled service to customers around the world.

 

PREFORMED LINE PRODUCTS COMPANY
CONSOLIDATED BALANCE SHEETS



December 31, 2024


December 31, 2023

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




ASSETS




Cash, cash equivalents and restricted cash

$                         57,244


$                         53,607

Accounts receivable, net

111,402


106,892

Inventories, net

129,913


148,814

Prepaid expenses

11,720


8,246

Other current assets

5,514


7,256

TOTAL CURRENT ASSETS

315,793


324,815

Property, plant and equipment, net

195,086


207,892

Goodwill

26,685


29,497

Other intangible assets, net

9,656


12,981

Deferred income taxes

6,546


7,109

Other assets

20,111


20,857

TOTAL ASSETS

$                       573,877


$                       603,151

LIABILITIES AND SHAREHOLDERS' EQUITY




Trade accounts payable

$                         41,951


$                         37,788

Notes payable to banks

7,782


6,968

Current portion of long-term debt

2,430


6,486

Accrued compensation and other benefits

25,904


28,018

Accrued expenses and other liabilities

30,346


32,057

TOTAL CURRENT LIABILITIES

108,413


111,317

Long-term debt, less current portion

18,357


48,796

Other noncurrent liabilities and deferred income taxes

24,783


26,882

SHAREHOLDERS' EQUITY




Common shares – $2 par value per share, 15,000,000 shares authorized, 4,913,621
and 4,908,413 issued and outstanding, at December 31, 2024 and December 31,
2023

13,752


13,607

Common shares issued to rabbi trust, 222,887 and 243,118 shares at December 31,
2024 and December 31, 2023, respectively

(9,575)


(10,183)

Deferred compensation liability

9,575


10,183

Paid-in capital

65,093


60,958

Retained earnings

553,179


520,154

Treasury shares, at cost, 1,961,772 and 1,894,419 shares at December 31, 2024 and
December 31, 2023, respectively

(126,800)


(118,249)

Accumulated other comprehensive loss

(82,909)


(60,306)

TOTAL PREFORMED LINE PRODUCTS COMPANY SHAREHOLDERS' EQUITY

422,315


416,164

Noncontrolling interest

9


(8)

TOTAL SHAREHOLDERS' EQUITY

422,324


416,156

TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY

$                       573,877


$                       603,151

 

PREFORMED LINE PRODUCTS COMPANY
STATEMENTS OF CONSOLIDATED INCOME



Three Months Ended December 31,


Twelve Months Ended December 31,


2024


2023


2024


2023

(Thousands of dollars, except per share data)








Net sales

$                 167,117


$                 145,603


$                 593,714


$                 669,679

Cost of products sold

111,488


97,503


403,903


434,831

GROSS PROFIT

55,629


48,100


189,811


234,848

Costs and expenses








Selling

12,576


12,945


48,722


51,078

General and administrative

19,205


20,019


67,477


74,643

Research and engineering

5,589


5,688


21,923


22,481

Other operating expense, net

746


2,502


932


2,492


38,116


41,154


139,054


150,694

OPERATING INCOME

17,513


6,946


50,757


84,154

Other income (expense)








Interest income

717


610


2,573


1,811

Interest expense

(381)


(707)


(2,221)


(3,905)

Other (expense) income, net

(528)


119


(339)


284


(192)


22


13


(1,810)

INCOME BEFORE INCOME TAXES

17,321


6,968


50,770


82,344

Income tax expense

6,876


659


13,659


19,007

NET INCOME

$                   10,445


$                     6,309


$                   37,111


$                   63,337

Net loss (income) attributable to noncontrolling
interests

7


23


(17)


(5)

NET INCOME ATTRIBUTABLE TO
PREFORMED LINE PRODUCTS COMPANY
SHAREHOLDERS

$                   10,452


$                     6,332


$                   37,094


$                   63,332

AVERAGE NUMBER OF SHARES OF COMMON
STOCK OUTSTANDING:








Basic

4,897


4,864


4,908


4,920

Diluted

4,917


4,902


4,947


4,997

EARNINGS PER SHARE OF COMMON STOCK
ATTRIBUTABLE TO PREFORMED LINE PRODUCTS
COMPANY SHAREHOLDERS:








Basic

$                       2.13


$                       1.30


$                       7.56


$                     12.87

Diluted

$                       2.13


$                       1.29


$                       7.50


$                     12.68









Cash dividends declared per share

$                       0.20


$                       0.20


$                       0.80


$                       0.80

 

Cision View original content to download multimedia:https://www.prnewswire.com/news-releases/preformed-line-products-announces-fourth-quarter-2024-financial-results-302401469.html

SOURCE Preformed Line Products

FAQ

What was PLPC's Q4 2024 revenue growth compared to Q4 2023?

PLPC's Q4 2024 revenue grew 15% to $167.1 million compared to $145.6 million in Q4 2023.

How much debt did Preformed Line Products (PLPC) reduce in 2024?

PLPC reduced its debt by $33.7 million in 2024 through strong cash generation.

What caused PLPC's full-year 2024 sales decline?

The 11% sales decline was due to U.S. market slowdown, inventory destocking, higher borrowing costs, and delayed BEAD Program funding.

What was PLPC's earnings per share (EPS) for full-year 2024?

PLPC reported diluted EPS of $7.50 for full-year 2024, compared to $12.68 in 2023.

How did PLPC's international operations perform in Q4 2024?

International subsidiaries showed strong performance, driving majority of sales increase through energy market sales and communications end market.
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