What Preformed Line Products Co. told the SEC could break it.

The high tariff environment — especially on steel and aluminum raw-material imports — cost PLP ~$15.1M in 2025 plus $9.0M of accelerated LIFO inventory-valuation charges; further tariff increases could require price hikes that dampen demand, with refund recovery uncertain.

“In 2025, the Company incurred tariff costs of approximately of $15.1 million. Additionally, PLP-USA's LIFO inventory valuation costs have accelerated due to tariffs, resulting in pre-tax charges of $9.0 million for the year ended December 31, 2025.”

PLP's products are made from metals (ferrous castings, steel/aluminum, various metal racks) and fiber-optic cable/connectors; prices of these inputs — amplified by tariffs — drive its cost of goods and margins.

“ferrous castings, fiber optic cable and connectors and various metal racks. The Company believes there are multiple sources of supply for these products.”

While PLP says it is not dependent on a small group of customers, one (unnamed) customer accounted for 10.7% of consolidated revenue in 2025 (spanning its PLP-USA, Americas and Asia-Pacific segments); loss of that customer would notably reduce revenue.

“The Company has one customer accounting for 10.7% of the Company's consolidated revenues.”

In limited circumstances PLP relies on sole-source manufacturers/suppliers for certain raw materials; a supplier going out of business or being unable to meet demand could cause delays in establishing alternatives and harm operating results.

“In limited circumstances, the Company relies on sole source suppliers for certain materials and may face challenges or delays in establishing an alternative source. As a result of these factors, the Company's operating results and financial condition could be adversely affected.”