Preformed Line Products Company

Preformed Line Products stock surged 28% after the wire products manufacturer reported second-quarter earnings that crushed analyst forecasts. The company earned $4.49 per share on $212.7 million in sales, far above Wall Street expectations of $2.58 per share on $193 million in sales. Sales rose 25% year over year to a quarterly record, driven by 32% growth in the U.S. market, while gross margin expanded 1.6 percentage points to 34.3%. Management highlighted strong U.S. demand and a focus on domestic manufacturing as growth drivers, and noted the recent acquisition of Brazilian wire producer Delta Star is expected to accelerate sales to U.S. electrical substations and expand international sales in South America.

Preformed Line Products Company reported record second-quarter 2026 results, with net sales rising 25% to $212.7 million and diluted earnings per share increasing 75% to a record $4.49. Net income attributable to PLPC shareholders rose to $21.5 million from $12.7 million a year ago, driven by higher sales volumes, favorable product mix, fixed-cost leverage, and price increases implemented in 2025. Gross profit increased 32% to $73 million, while gross margin expanded 160 basis points to 34.3%. Energy sales were the largest contributor, reaching $148.9 million, supported by continued growth in the transmission market, while communications sales improved to $48.9 million and special industries sales increased to $14.9 million. The company also completed the acquisition of Delta Star Conetores Electricos Ltda. in Brazil, which contributed $1.2 million to sales and is expected to support growth in the U.S. substation business.

Jim Cramer recommended Preformed Line Products Company on Mad Money, calling it a great derivative play on the AI data center build-out. He highlighted the company's latest monster earnings beat and noted that the electric grid is seeing colossal spending to become faster and more powerful after decades of little growth. Cramer said the stock has doubled over the last year but is now at a better entry point after a recent pullback, trading at 35 times earnings. He pointed to analyst projections of nearly $13 per share in earnings by 2028 and gave his blessing to buy the stock, though he would ideally like a further pullback.