Preformed Line Products has recently released its 10-K report, providing insights into its financial performance and operations. The company, incorporated in 1947, designs and manufactures products and systems used in the construction and maintenance of overhead and underground networks for the energy, telecommunication, cable, data communication, and other industries. It offers a range of products including optical ground wire products, connectors for substations, string hardware products, polymer insulators, and outside plant closures, among others. The company serves public and private energy utilities, communication companies, cable operators, governmental agencies, contractors, and distributors across the Americas, Europe, the Middle East, Africa, and the Asia-Pacific region.
In the year ended December 31, 2024, Preformed Line Products reported net sales of $593.7 million, marking a decrease of $76.0 million compared to the previous year. The decrease was mainly attributed to continued inventory destocking in the U.S. markets. Gross profit for 2024 was $189.8 million, reflecting a decrease of $45.0 million compared to 2023. The company's costs and expenses for 2024 amounted to $139.1 million, representing a decrease of $11.6 million compared to the previous year.
The impact of foreign currency exchange rates on net sales was unfavorable, resulting in a decrease of $4.2 million for the year ended December 31, 2024. Despite challenges such as customer destocking efforts and inflationary pressures related to raw materials, the company's international segments had sales amounts comparable to the previous year, indicating cyclical benefits from its international footprint. Preformed Line Products also reported a consolidated decrease in debt of $33.7 million as of December 31, 2024, primarily due to improved cash conversion and reduced funding needs for capital expenditures and business acquisitions.
As a result of these announcements, the company's shares have moved 20.6% on the market, and are now trading at a price of $149.0. Check out the company's full 10-K submission here.
