Track market-moving stories before they get noisy

Applied Optoelectronics reported a healthy quarter and discussed winning major new orders from large hyperscale customers. Powell Industries secured several large data center wins, complementing a steady stream of utility-related awards in recent periods. Vital Farms faces a temporary supply glut in the egg market after last year's avian influenza outbreak quickly subsided.

Powell Industries, Inc. reported Q2 headline misses, but a surging backlog ($1.8B, +33% y/y) and new orders (+96% y/y) drive optimism. POWL secured a $400M data center megaproject, not yet in Q2 results, supporting robust multi-year growth visibility through at least fiscal year 2028. The book-to-bill ratio hit 1.7x, reflecting demand outpacing capacity; management is prudently expanding its footprint to avoid overbuilding and margin erosion.

Key Takeaways Powell saw strong Q2 revenue growth in commercial, industrial and electric utility markets.POWL benefited from energy transition projects and rising power generation investments.Backlog reached $1.8 billion as diversified orders drove strong sequential bookings growth. Powell Industries, Inc.’s (POWL - Free Report) diversification efforts beyond its core oil, gas and petrochemical markets have enhanced its market share across the electric utility, light rail traction power and commercial & other industrial markets. In second-quarter fiscal 2026 (ended March 2026), revenues from the commercial & other industrial sector and electric utility sector surged 35% and 14% year over year, respectively, while those from oil & gas increased 11%.

Several favorable trends across the oil and gas market, including growth in energy transition projects, have been proving beneficial for the company. Also, growing investments across power generation and electrical distribution markets have been driving demand for the company’s products. Its increased participation across the electrical power value chain has enabled it to generate solid bookings from the electric utility and commercial & other industrial markets.

This has led to impressive growth in the backlog level, which was $1.8 billion (up 12% sequentially) while exiting the fiscal second quarter. New orders totaled $490 million in the quarter, reflecting growth of 11.6% on a sequential basis. Importantly, the new orders consisted of awards across all key markets that reflected the company’s core competencies and well-balanced portfolio.

A strong pipeline of projects, particularly within the electric utility and commercial and other industrial markets, along with a solid backlog, is likely to support the company’s growth in the quarters ahead.

Segment Snapshot of POWL’s PeersEnerSys (ENS - Free Report) is witnessing strength in the Energy Systems segment, supported by the expansion of U.S. communications networks and AI-driven data demand. Revenues from EnerSys’ Energy Systems segment increased 2.6% to $399.5 million in third-quarter fiscal 2026 (ended Dec. 31, 2025). The global megatrends, including the expansion of 5G, rural broadband build-outs, the modernization of energy grids, electrification, automation and decarbonization, are likely to be favorable for EnerSys.

Eaton Corporation plc’s (ETN - Free Report) Electrical and Aerospace segment backlog growth remained strong as orders and the supply chain began to normalize gradually. Rising backlog and solid orders for its products will continue to drive the performance of the company in the long run. The transition in Utility space and Aerospace growth will also benefit Eaton, as its customized products will fulfill the needs of these sectors. Eaton’s backlog, at the end of first-quarter 2026, increased 44% in Electrical Americas, 26% in Aerospace and 73% in Electric Global on a rolling 12-month basis.

POWL’s Price Performance, Valuation and EstimatesShares of Powell Industries have surged 65.2% in the past three months compared with the industry’s growth of 1.3%.

Image Source: Zacks Investment Research

From a valuation standpoint, POWL is trading at a forward price-to-earnings ratio of 50.92X, below the industry’s average of 24.39X. Powell Industries carries a Value Score of F.

Image Source: Zacks Investment Research

On May 18, 2026, Powell Industries Inc POWL shares fell 8.8% today, bringing the current price to $266.80. This decline follows a one-week performance of -17.2%, amidst a 52-week range that saw a high of $328.00 and a low of $54.75.

GF Value™ verdict: The current price is $266.80, representing a 253.9% overvaluation against a GF Value™ of $75.38.GF Score™ of 75/100 indicates an above-average ranking, suggesting solid fundamentals.Notable signal: Insiders sold $32.9 million in shares over the last three months, with no insider buying reported. Is POWL Overvalued or Undervalued? Powell Industries Inc POWL is currently trading significantly above its GF Value™, which is calculated at $75.38. This suggests that the stock is overvalued by approximately 253.9%, indicating a considerable margin of safety for potential investors looking for undervalued opportunities. The GF Valuation label indicates that POWL is "Significantly Overvalued," which aligns with the current price being more than three times its estimated fair value.

The risk associated with investing in overvalued stocks is that they may face downward pressure as the market corrects itself, and investors may experience losses if they enter at such inflated prices. In contrast, if a stock were undervalued, it would present an attractive opportunity, albeit with caveats regarding the company's future performance and market conditions. GF Value™ is GuruFocus' proprietary measure of intrinsic value, calculated from historical trading multiples, past business growth, and future performance estimates.

How Does POWL's Valuation Compare to Its History? Metric Current Historical P/E (TTM) 52.2x 22.7x Forward P/E 48.5x N/A The current P/E ratio of 52.2x is 130% above its 5-year median P/E of 22.7x, which indicates that POWL is trading at a premium compared to its historical valuation. This P/E analysis reinforces the GF Value™ verdict, confirming that the stock is overvalued and may not be a wise investment choice at this time.

What Does POWL's GF Score™ Tell Us? The GF Score™ ranks stocks from 0 to 100 based on five key aspects: Financial Strength, Profitability, Growth, Valuation, and Momentum. Stocks with higher GF Score™ values have been found to generate higher long-term returns (backtested 2006-2021).

Metric Rating GF Score™ 75/100 Financial Strength 8/10 Profitability 7/10 Growth 10/10 Valuation 1/10 Momentum 3/10 The scores indicate that while POWL has strong Financial Strength (8/10) and exceptional Growth potential (10/10), it faces significant challenges in terms of Valuation (1/10) and Momentum (3/10). The above-average GF Score™ of 75 suggests that despite its overvaluation, POWL has robust fundamentals that may support its long-term performance, but investors should remain cautious about its current price levels.

What Are Insiders Doing with POWL Stock? In the past three months, insiders at Powell Industries Inc have sold a total of $32.9 million worth of shares, with no reported buying activity. This pattern of selling may suggest a lack of confidence among insiders regarding the stock's future price potential, which could serve as a cautionary signal for outside investors. Typically, insider selling can indicate that those closest to the company believe the stock is overvalued or that they are taking profits in anticipation of a price correction.

What This Means for Investors Based on the GF Value™ assessment, Powell Industries Inc POWL is currently overvalued. The significant disparity between the current stock price and the GF Value™ indicates a high potential risk for investors considering entering this market. Caution is advised, as the stock may not provide favorable returns in the near future.

For the complete analysis, visit the Powell Industries Inc POWL stock page. You can also explore the GF Value™ page for detailed valuation methodology, or use the GuruFocus Stock Screener to find similar opportunities.

Frequently Asked Questions What is POWL's GF Score™?

POWL's GF Score™ is 75/100, which indicates above-average fundamentals and suggests potential for higher long-term returns.

Is POWL overvalued or undervalued?

POWL is significantly overvalued with a GF Value™ of $75.38 compared to the current price of $266.80, marking a 253.9% overvaluation.

What is POWL's P/E ratio?

POWL's P/E ratio is currently 52.2x, which is substantially above its 5-year median P/E of 22.7x, further supporting the conclusion that the stock is overvalued.

This stock alert was generated using automated technology and GuruFocus financial data to provide readers with timely and accurate market reporting. This content was reviewed by GuruFocus editorial team prior to publication. Please send any questions or comments about this story to [email protected].

Key Takeaways Powell backlog reached $1.8 billion as utility and industrial demand fueled new orders.POWL secured major data center and electric utility awards, including a $400 million order.Electric utility and commercial industrial revenues rose sharply in fiscal Q2 2026. Powell Industries, Inc. (POWL - Free Report) is witnessing persistent strength and healthy levels of project activity across the electric utility and commercial & other industrial markets. Growing investments across power generation and electrical distribution markets have been driving demand for the company’s products in the electric utility market.

The company’s increased participation across the electrical power value chain has enabled it to generate solid bookings from the electric utility and commercial & other industrial markets. This has led to a strong backlog level, which was $1.8 billion (up 33% year over year and 12% sequentially) while exiting second-quarter fiscal 2026 (ended March 2026). Exiting the quarter, Powell’s new orders totaled $490 million, much higher than $439 million at the end of the previous quarter.

The new orders consisted of a solid volume of small, medium and large-sized awards that reflected the company’s core competencies and well-balanced portfolio across markets. It’s worth noting that in the second quarter, the company secured a data center and an electric utility order, each with about $75 million of value. Also, it booked another mega data center order with a value of more than $400 million.

In the fiscal second quarter, revenues from the electric utility sector increased 14% year over year, while those from the commercial & other industrial sector surged 35%. A strong pipeline of projects and its growing presence across the data center and electric utility sectors are expected to drive its performance in the quarters ahead.

Segment Snapshot of POWL’s PeersEnerSys (ENS - Free Report) is benefiting from the expansion of U.S. communications networks, fueled by AI-driven data demand. Increased demand for products from industrial customers is driving the Energy Systems segment’s results. Revenues from EnerSys’ Energy Systems segment increased 2.6% to $399.5 million in third-quarter fiscal 2026 (ended Dec. 31, 2025).

Franklin Electric Co. (FELE - Free Report) is benefiting from strength in the Energy Systems segment. Net sales from Franklin Electric’s Energy Systems segment totaled $71.8 million in first-quarter 2026, an increase of 7% year over year. The segmental results were driven by an increase in volumes and price realization.

POWL’s Price Performance, Valuation and EstimatesShares of Powell have surged 46.4% in the past three months compared with the industry’s growth of 1.6%.

Image Source: Zacks Investment Research

From a valuation standpoint, POWL is trading at a forward price-to-earnings ratio of 42.10X, above the industry’s average of 23.67X. Powell carries a Value Score of F.

Image Source: Zacks Investment Research

The Zacks Consensus Estimate for POWL’s fiscal 2026 (ending September 2026) earnings has increased 2.8% over the past 60 days.

Image Source: Zacks Investment Research

The company currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Key Takeaways Powell invested about $11M to expand its Houston product factory and manufacturing capacity.POWL plans to complete a $12.4M Jacintoport expansion project by fiscal 2026-end.POWL's Houston investments support backlog execution and growth in the electric utility market. Powell Industries, Inc. (POWL - Free Report) remains focused on strengthening its growth pipeline through investments in lucrative projects and manufacturing facilities.

The company’s facility expansion project at the product factory in Houston augmented its manufacturing footprint and added significant capacity to serve growing orders. POWL spent approximately $11 million on the expansion project. This has been allowing Powell to meet strong demands in several sectors like data centers, hydrogen, carbon capture and other transitional energy markets. The expansionary efforts, which were completed in third-quarter fiscal 2025, are also playing a critical role in commercializing new products through organic investment in R&D.

Also, in August 2025, Powell announced an investment of $12.4 million to expand its production capacity at the Jacintoport fabrication yard facility in Houston. The company is on track to complete the Jacintoport expansionary project by the end of fiscal 2026 (ending September 2026). This announcement brings the cumulative investment across Powell’s three Houston manufacturing facilities to approximately $40 million over the past few years.

These investments will allow the company to boost its operational capacities, execute its current backlog and provide better services to its customers, thereby supporting its long-term growth.

Lucrative Projects of POWL’s PeersEnerSys (ENS - Free Report) has been making significant investments to expand the Thin Plate Pure Lead (TPPL) manufacturing capability. EnerSys announced its decision to shut down its lead-acid battery manufacturing plant in Tijuana, Mexico. The company will work on transitioning the majority of the production to its existing TPPL plant, based in Springfield, MO. This will help EnerSys to scale its TPPL platform, optimize its U.S. manufacturing footprint and better serve its data center customers.

Eaton Corporation plc (ETN - Free Report) has also been making multiple investments for a while to boost growth. Since 2023, the company has invested more than $1 billion in manufacturing facilities for electrical solutions across North America. Eaton remains committed to increasing the production of electrical assemblies as well as power distribution and electric grid infrastructure solutions.

POWL’s Price Performance, Valuation and EstimatesShares of Powell have gained 7.1% in the past month against the industry’s decline of 4.6%.

Image Source: Zacks Investment Research

From a valuation standpoint, POWL is trading at a forward price-to-earnings ratio of 43.91X, above the industry’s average of 23.45X. Powell carries a Value Score of F.

Image Source: Zacks Investment Research

The Zacks Consensus Estimate for POWL’s fiscal 2026 (ending September 2026) earnings has increased 2.8% over the past 60 days.

Image Source: Zacks Investment Research

The company currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Key Takeaways Powell's backlog and utility market strength continue driving orders and revenue growth.EnerSys benefits from aerospace, defense and AI-driven communications demand growth.ENS trades at a lower forward P/E than POWL, with stronger earnings estimate revisions. Powell Industries, Inc.  (POWL - Free Report) and EnerSys (ENS - Free Report) are both prominent names operating in the electrical components and equipment sector. As rivals, these companies are engaged in providing highly engineered electrical equipment and energy storage solutions in the United States and internationally.

While Powell has been enjoying growth opportunities in electric utility and industrial markets, EnerSys is benefiting from growing needs for eco-friendly energy storage solutions across transportation, aerospace and defense markets. But which one has the better upside potential? Let’s take a closer look at their fundamentals, growth prospects and challenges to make an informed choice.

The Case for PowellPowell’s results in second-quarter fiscal 2026 (ended March 2026) indicated strong year-over-year growth, with revenues growing 6% to $297 million. The results were driven by persistent strength and healthy levels of project activity across the electric utility and commercial & other industrial markets. Growing investments across power generation and electrical distribution markets have been driving demand for its products in the electric utility market.

Several positive trends across the oil and gas market, including growth in energy transition projects, such as biofuels, sustainable aviation fuel, carbon capture and hydrogen production, are likely to be favorable for the company. Although currently subdued, the company expects the petrochemical market to recover from a gradual increase in commercial activity in the quarters ahead.

Its increased participation across the electrical power value chain has enabled it to generate solid bookings from the electric utility and commercial & other industrial markets. This has led to a strong backlog level, which was $1.8 billion (up 33% year over year and 12% sequentially) while exiting the second-quarter fiscal 2026. Exiting the fiscal second quarter, new orders totaled $490 million, higher than $249 million in the previous fiscal year quarter.

POWL’s solid liquidity position with no debt also supports its shareholder-friendly activities. Exiting the fiscal second quarter, Powell had cash equivalents and short-term investments of $544.9 million compared with $475.5 million at the end of fiscal 2025.

Despite the positives, the company has been grappling with high operating costs and expenses. In the first six months of fiscal 2026, its cost of sales rose 3% year over year, while selling, general and administrative expenses increased 17.9%. In the fiscal second quarter, the company’s gross profit margin contracted 30 basis points (bps) to 29.6%, while the operating margin declined 170 bps to 19.4%.

The Case for EnerSysEnerSys has been witnessing strength in its Specialty segment, driven by solid momentum in the aerospace and defense end markets. The segment’s revenues increased 8.1% year over year in the fourth quarter of fiscal 2026 (ended March 2026). The Energy Systems segment is benefiting from the expansion of U.S. communications networks, fueled by AI-driven data demand. Increased demand for products from industrial customers also bodes well. The segment’s revenues increased 7% in the fiscal fourth quarter.

The global megatrends, including 5G expansion, rural broadband build-outs, modernization of energy grids, electrification, automation and decarbonization, are aiding the company. Driven by strength across its businesses, EnerSys expects net sales to be in the band of $915–$955 million for fiscal 2027 (ending March 2027), indicating 5% year-over-year increase at the midpoint.

The company is making progress in new areas, including lithium battery solutions for data centers and energy storage systems for warehouses, both of which moved into customer testing and commissioning in the fiscal fourth quarter.

EnerSys announced its decision to shut down its lead-acid battery manufacturing plant in Tijuana, Mexico. The company will work on transitioning the majority of the production to its existing Thin Plate Pure Lead (TPPL) plant, based in Springfield, MO. This will help EnerSys to scale its TPPL platform, optimize its U.S. manufacturing footprint and better serve its data center customers.

EnerSys remains committed to rewarding its shareholders through dividends and buybacks.  In fiscal 2026, it paid out dividends of $38.1 million and bought back its shares worth $370.7 million. Also, the company hiked its quarterly dividend by 9% to 26.25 cents per share in August 2025.

However, ENS has been witnessing weakness in its Motive Power segment. The slowdown is caused by deferred customer capital spending in logistics and warehousing. Also, tariff-related pressures and softer demand from smaller customers have weighed on the company’s higher-margin product mix and ordering patterns. The segment’s revenues declined 5.7% year over year in the fiscal fourth quarter.

Price PerformanceIn the past month, Powell’s shares have increased 4.2%, while EnerSys stock has gained 7%.

Image Source: Zacks Investment Research

ENS’ Valuation Attractive Than POWLPowell is trading at a forward 12-month price-to-earnings ratio of 45.32X, above its median of 18.24X over the last three years. ENS’ forward earnings multiple sits at 18.17X, higher than its median of 10.91X over the same time frame.

Image Source: Zacks Investment Research

The Zacks Consensus Estimate for POWL & ENSThe Zacks Consensus Estimate for POWL’s fiscal 2026 sales and earnings per share (EPS) implies year-over-year growth of 8.7% and 10.5%, respectively. While EPS estimates for fiscal 2026 have decreased over the past 60 days, the estimate for fiscal 2027 have increased.

Image Source: Zacks Investment Research

The Zacks Consensus Estimate for ENS’ fiscal 2027 sales and EPS implies year-over-year growth of 3.3% and 14.4%, respectively. The EPS estimates for both fiscal 2027 and fiscal 2028 have increased over the past 60 days.

Image Source: Zacks Investment Research

Final TakePowell and EnerSys currently have a Zacks Rank #3 (Hold) each, which makes choosing one stock a difficult task. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Powell’s strong momentum in the electric utility, commercial and other industrial markets, driven by solid order rates and robust backlog, bodes well for growth. However, POWL's strength in the markets has been dented by rising operating expenses, which might affect its margins and profitability. Also, the stock’s expensive valuation warrants a cautious approach for existing investors.

In contrast, EnerSys’ strong momentum in aerospace, defense and industrial markets, and strategic investments bode well for growth in the quarters ahead. Additionally, ENS’ upwardly revised estimates instil confidence. Given these factors, ENS seems to be a better pick for investors than POWL currently.

Investors with an interest in Manufacturing - Electronics stocks have likely encountered both Vestas Wind Systems AS (VWDRY - Free Report) and Powell Industries (POWL - Free Report) . But which of these two stocks presents investors with the better value opportunity right now? Let's take a closer look.

We have found that the best way to discover great value opportunities is to pair a strong Zacks Rank with a great grade in the Value category of our Style Scores system. The proven Zacks Rank puts an emphasis on earnings estimates and estimate revisions, while our Style Scores work to identify stocks with specific traits.

Right now, Vestas Wind Systems AS is sporting a Zacks Rank of #2 (Buy), while Powell Industries has a Zacks Rank of #3 (Hold). The Zacks Rank favors stocks that have recently seen positive revisions to their earnings estimates, so investors should rest assured that VWDRY has an improving earnings outlook. But this is just one piece of the puzzle for value investors.

Value investors also try to analyze a wide range of traditional figures and metrics to help determine whether a company is undervalued at its current share price levels.

Our Value category grades stocks based on a number of key metrics, including the tried-and-true P/E ratio, the P/S ratio, earnings yield, and cash flow per share, as well as a variety of other fundamentals that value investors frequently use.

VWDRY currently has a forward P/E ratio of 20.94, while POWL has a forward P/E of 52.00. We also note that VWDRY has a PEG ratio of 1.40. This figure is similar to the commonly-used P/E ratio, with the PEG ratio also factoring in a company's expected earnings growth rate. POWL currently has a PEG ratio of 3.71.

Another notable valuation metric for VWDRY is its P/B ratio of 6.16. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. For comparison, POWL has a P/B of 14.61.

Based on these metrics and many more, VWDRY holds a Value grade of B, while POWL has a Value grade of F.

VWDRY is currently sporting an improving earnings outlook, which makes it stick out in our Zacks Rank model. And, based on the above valuation metrics, we feel that VWDRY is likely the superior value option right now.

Powell Industries (POWL - Free Report) closed the most recent trading day at $262.43, moving -7.44% from the previous trading session. This change lagged the S&P 500's daily loss of 1.62%. Meanwhile, the Dow lost 1.87%, and the Nasdaq, a tech-heavy index, lost 1.98%.

The energy equipment company's shares have seen a decrease of 7.97% over the last month, not keeping up with the Industrial Products sector's gain of 0.72% and the S&P 500's loss of 0.03%.

Analysts and investors alike will be keeping a close eye on the performance of Powell Industries in its upcoming earnings disclosure. It is anticipated that the company will report an EPS of $1.49, marking a 12.88% rise compared to the same quarter of the previous year. In the meantime, our current consensus estimate forecasts the revenue to be $318.25 million, indicating a 11.17% growth compared to the corresponding quarter of the prior year.

For the annual period, the Zacks Consensus Estimates anticipate earnings of $5.47 per share and a revenue of $1.2 billion, signifying shifts of +10.51% and +8.73%, respectively, from the last year.

Investors should also pay attention to any latest changes in analyst estimates for Powell Industries. These revisions typically reflect the latest short-term business trends, which can change frequently. Consequently, upward revisions in estimates express analysts' positivity towards the business operations and its ability to generate profits.

Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system.

The Zacks Rank system, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed a 0.68% decrease. Powell Industries presently features a Zacks Rank of #3 (Hold).

From a valuation perspective, Powell Industries is currently exchanging hands at a Forward P/E ratio of 51.83. This expresses a premium compared to the average Forward P/E of 22.39 of its industry.

One should further note that POWL currently holds a PEG ratio of 3.7. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. The Manufacturing - Electronics industry currently had an average PEG ratio of 1.76 as of yesterday's close.

The Manufacturing - Electronics industry is part of the Industrial Products sector. This industry, currently bearing a Zacks Industry Rank of 90, finds itself in the top 37% echelons of all 250+ industries.

The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Remember to apply Zacks.com to follow these and more stock-moving metrics during the upcoming trading sessions.

CLEVELAND, March 18, 2026 /PRNewswire/ -- The Board of Directors of Preformed Line Products (Nasdaq: PLPC) on March 13, 2026, declared a regular quarterly dividend in the amount of $0.21 per share on the Company's common shares, payable April 20, 2026, to shareholders of record at the close of business on April 1, 2026.

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.

SOURCE Preformed Line Products Company

Preformed Line Products (NASDAQ: PLPC - Get Free Report) and American Battery Technology (NASDAQ: ABAT - Get Free Report) are both small-cap computer and technology companies, but which is the superior business? We will contrast the two companies based on the strength of their valuation, analyst recommendations, earnings, risk, institutional ownership, profitability and dividends. Profitability This table

, /PRNewswire/ -- Preformed Line Products Company (NASDAQ: PLPC) today reported financial results for its first quarter of 2026.

Q1 2026 highlights:

Quarterly net sales of $176.3 million, an increase of 19% from Q1 2025. USA sales growth of 26% from Q1 2025, driven by robust demand in energy and communications markets. Gross profit margin of 31.3%, up 150 basis points from Q4 2025. Diluted EPS of $2.14 per share, up 24% from Q4 2025. Net sales in the first quarter of 2026 were $176.3 million compared to $148.5 million in the first quarter of 2025, a 19% increase. All segments recorded sales growth compared to the first quarter of 2025, with the PLP-USA business growing by 26%, primarily due to higher demand for energy and communications products. Foreign currency translation had a favorable impact of $7.2 million on the first quarter of 2026 net sales.

Net income for the quarter ended March 31, 2026, was $10.5 million, or $2.14 per diluted share, compared to $11.5 million, or $2.33 per diluted share, for the comparable period in 2025. While gross profit was up approximately $6.5 million from Q1 2025, period expenses were impacted by increased personnel costs supporting strategic market growth in core product offerings in both energy and communications, primarily for sales, sales support and engineering resources. Net income for the first quarter of 2026 was affected by an income tax charge of $1.3 million related to PLP's French subsidiary. Foreign currency translation had a favorable impact of $0.1 million on the first quarter of 2026 net income. Compared against Q4 2025, which contained many of the same tariff headwinds that impacted Q1 2025, gross profit margins, net income, and diluted EPS all increased.

"As we reflect on the first quarter of 2026, I am proud of the Company's continued resilience in a challenging and dynamic global environment," said Rob Ruhlman, Executive Chairman. "Our team achieved exceptional sales growth this quarter, propelled by outstanding results from our U.S. manufacturing operations and our ability to meet rising demand. We faced margin pressure from higher manufacturing and ongoing tariff-related costs, as well as volatility in commodity prices. However, our impressive 150 basis point increase in gross profit percentage from Q4 2025 shows that we are actively managing these challenges through supply chain optimization, pricing strategies, and investment in efficiency and innovation. Our healthy balance sheet and strong liquidity provide flexibility to pursue strategic acquisitions, while also investing in facility modernization and returning capital to our valued shareholders. While the ongoing tariff and geopolitical uncertainties present challenges, I believe our team is well prepared to adapt. Our focus is unchanged: provide our customers with the high-quality products and superior customer service they have come to expect from PLP."

A presentation on first quarter 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, international hostilities, political instability, exchange rates, natural disasters and health epidemics, the strength of demand and availability of funding for the Company's products (including in light of price increases) 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 and customer demand, 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 2025 Annual Report on Form 10-K filed with the SEC on March 5, 2026 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 (PLPC)

CONSOLIDATED BALANCE SHEET

March 31, 2026

December 31, 2025

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

(Unaudited)

ASSETS

Cash, cash equivalents and restricted cash

$                69,452

$                83,389

Accounts receivable, net

130,840

113,175

Inventories, net

151,810

148,730

Prepaid expenses

12,998

12,961

Other current assets

6,287

5,206

TOTAL CURRENT ASSETS

371,387

363,461

Property, plant and equipment, net

225,279

222,781

Goodwill

30,351

30,684

Other intangible assets, net

9,837

10,140

Deferred income taxes

6,794

7,481

Other assets

18,181

19,074

TOTAL ASSETS

$               661,829

$               653,621

LIABILITIES AND SHAREHOLDERS' EQUITY

Trade accounts payable

$                56,766

$                49,520

Notes payable to banks

1,318

1,213

Current portion of long-term debt

5,891

5,392

Accrued compensation and other benefits

24,084

29,207

Accrued expenses and other liabilities

35,532

29,378

TOTAL CURRENT LIABILITIES

123,591

114,710

Long-term debt, less current portion

34,737

32,860

Other noncurrent liabilities and deferred income taxes

29,919

30,500

SHAREHOLDERS' EQUITY

Common shares $2 par value per share, 15,000,000 shares authorized, 4,888,012 and 4,907,787 issued and outstanding, at March 31, 2026 and December 31, 2025

13,890

13,860

Common shares issued to rabbi trust, 222,506 and 222,506 shares at March 31, 2026 and December 31, 2025, respectively

(9,586)

(9,586)

Deferred compensation liability

9,586

9,586

Paid-in capital

66,047

67,217

Retained earnings

593,869

584,360

Treasury shares, at cost, 2,056,379 and 2,021,940 shares at March 31, 2026 and December 31, 2025, respectively

(145,492)

(136,554)

Accumulated other comprehensive loss

(54,790)

(53,365)

TOTAL PLPC SHAREHOLDERS' EQUITY

473,524

475,518

Noncontrolling interest

58

33

TOTAL SHAREHOLDERS' EQUITY

473,582

475,551

TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY

$               661,829

$               653,621

PREFORMED LINE PRODUCTS COMPANY

STATEMENTS OF CONSOLIDATED INCOME

Three Months Ended March 31,

2026

2025

(Thousands, except per share data)

(Unaudited)

Net sales

$               176,278

$               148,541

Cost of products sold

121,058

99,870

GROSS PROFIT

55,220

48,671

Costs and expenses

Selling

13,769

12,181

General and administrative

21,053

17,626

Research and engineering

6,736

5,479

Other operating (income) expense, net

(54)

255

41,504

35,541

OPERATING INCOME

13,716

13,130

Other income (expense)

Interest income

777

510

Interest expense

(232)

(376)

Other income, net

69

407

614

541

INCOME BEFORE INCOME TAXES

14,330

13,671

Income tax expense

3,781

2,118

NET INCOME

$                10,549

$                11,553

Net loss (income) attributable to noncontrolling interests

(25)

(36)

NET INCOME ATTRIBUTABLE TO PLPC SHAREHOLDERS

$                10,524

$                11,517

AVERAGE NUMBER OF SHARES OF COMMON STOCK OUTSTANDING:

Basic

4,906

4,928

Diluted

4,927

4,950

EARNINGS PER SHARE OF COMMON STOCK ATTRIBUTABLE TO PLPC SHAREHOLDERS:

Basic

$                   2.15

$                   2.34

Diluted

$                   2.14

$                   2.33

Cash dividends declared per share

$                   0.21

$                   0.20

SOURCE Preformed Line Products Company

, /PRNewswire/ -- Preformed Line Products Company (Nasdaq: PLPC), a global leader in the design and manufacture of innovative solutions for the energy and communications industries, today announced the acquisition of Delta Star Conetores Eletricos Ltda., a Brazil-based manufacturer specializing in high-voltage (HV) and extra-high-voltage (EHV) substation connectors.

Delta Star's headquarters in Salto, Brazil.

Overhead view of Delta Star's facility in Salto, Brazil, where the company manufactures HV and EHV substation connectors. Founded in 1985 and headquartered in Salto, Brazil, Delta Star manufactures high-quality substation connectors designed to support reliable, long-term grid performance. The company has built a strong reputation for its engineered solutions and maintains deep, longstanding relationships with leading substation equipment manufacturers.

This acquisition represents a key step in PLP's strategy to strengthen its global leadership in substation hardware and components. Delta Star complements PLP's recent acquisitions of SubCon Electrical Fittings in Austria, Maxxweld Conectores in Brazil, and Delta Conectores in Mexico, further expanding the company's global footprint and technical capabilities while significantly enhancing operational support to PLP's growing U.S. substation business.

"This acquisition is a natural extension of our long-term strategy to expand PLP's global substation platform," said Dennis McKenna, Chief Executive Officer of PLP. "Delta Star brings strong customer relationships, specialized product expertise, and proven performance in the substation market. Their capabilities will significantly enhance our ability to serve customers across the Americas while strengthening our global engineering, manufacturing, and supply chain network."

With this acquisition, PLP continues to expand its global portfolio of critical infrastructure solutions, strengthening its ability to support utilities and EPCs with reliable, high-performance products for evolving grid and energy demands.

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 over 20 countries, PLP works as a united global corporation, delivering high-quality products and unparalleled service to customers around the world.

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, international hostilities, political instability, exchange rates, natural disasters and health epidemics, the strength of demand and availability of funding for the Company's products (including in light of price increases) 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 and customer demand, 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 2025 Annual Report on Form 10-K filed with the SEC on March 5, 2026 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.

SOURCE Preformed Line Products

On May 22, 2026, Preformed Line Products Co PLPC shares rose 4.9% today, reflecting a strong performance amidst a backdrop of significant gains over the past year. The stock currently trades at $357.82, with a 52-week range of $133.27 to $371.80.

GF Value™ verdict: Current price is $357.82 vs GF Value™ of $167.51, indicating a 113.6% overvaluation.GF Score™ of 80/100 signifies a strong overall company performance based on key metrics.Most notable signal: Financial Strength rated at 9/10, indicating robust financial health. Is PLPC Overvalued or Undervalued? According to the GF Value™, Preformed Line Products Co PLPC is significantly overvalued, with a current stock price of $357.82 compared to an estimated intrinsic value of $167.51. This represents a staggering 113.6% premium over the calculated fair value, suggesting that the stock is trading at a price that may not be sustainable in the long run. The GF Valuation label categorizes PLPC as significantly overvalued, raising concerns about potential downside risk for investors if the market corrects to align with intrinsic value.

With the substantial gap between the market price and GF Value™, the margin of safety appears to be minimal, indicating that investors might be paying a premium for PLPC shares that could lead to a decline in value. GF Value™ is GuruFocus' proprietary measure of intrinsic value, calculated from historical trading multiples, past business growth, and future performance estimates.

How Does PLPC's Valuation Compare to Its History? Metric Current Historical P/E (TTM) 51.5x 11.8x Forward P/E 36.7x N/A The current P/E ratio of 51.5x is significantly above its 5-year median P/E of 11.8x, indicating that the stock is trading at a valuation level well beyond its historical norms. This analysis aligns with the GF Value™ verdict of overvaluation, reinforcing the notion that the stock is priced excessively compared to its historical valuation metrics.

What Does PLPC's GF Score™ Tell Us? Metric Rating GF Score™ 80/100 Financial Strength 9/10 Profitability 8/10 Growth 9/10 Valuation 1/10 Momentum 6/10 PLPC's GF Score™ of 80/100 reflects a strong performance in several key areas, particularly in Financial Strength (9/10) and Growth (9/10). These high scores indicate that the company is well-positioned financially and has demonstrated robust growth. However, the Valuation rank of 1/10 is a significant concern, highlighting that the stock is perceived as highly overvalued relative to its intrinsic value. This discrepancy suggests that while the company's fundamentals are solid, the current market price does not reflect a favorable investment opportunity.

What Are Insiders Doing with PLPC Stock? There have been no insider transactions in the last three months for Preformed Line Products Co PLPC . This lack of activity could suggest that insiders are either confident in the current valuation or are awaiting clearer signals before making any moves. The absence of buying or selling activity may indicate that insiders do not see an immediate opportunity to capitalize on the stock’s current price levels.

What This Means for Investors Based on the GF Value™ assessment, Preformed Line Products Co PLPC is currently overvalued. The significant difference between the current price and the estimated intrinsic value suggests that caution may be warranted for potential investors examining this stock.

For the complete analysis, visit the Preformed Line Products Co PLPC stock page. You can also explore the GF Value™ page for detailed valuation methodology, or use the GuruFocus Stock Screener to find similar opportunities.

Frequently Asked Questions What is PLPC's GF Score™?

PLPC has a GF Score™ of 80/100, indicating a strong overall performance based on financial strength, profitability, growth, valuation, and momentum.

Is PLPC overvalued or undervalued?

PLPC is currently overvalued, with a GF Value™ of $167.51 compared to its market price of $357.82, indicating significant overvaluation risk.

What is PLPC's P/E ratio?

PLPC's P/E ratio is 51.5x, which is 337% above its 5-year median P/E of 11.8x, reinforcing the view of overvaluation.

This stock alert was generated using automated technology and GuruFocus financial data to provide readers with timely and accurate market reporting. This content was reviewed by GuruFocus editorial team prior to publication. Please send any questions or comments about this story to [email protected].