10-K - National Presto Industries, Inc. | StockGist

AI Analysis

AI-generated analysis. Always verify with the original filing.

National Presto Industries reported FY 2025 net sales of $503.5M, a 30% increase from the prior year, driven by a 43% surge in Defense segment sales to $405.9M. However, net earnings declined 20% to $33.1M, primarily due to a significant gross profit contraction in the Housewares/Small Appliance segment (from 25% to 8% margin) caused by tariffs and distribution center relocation costs, and a $2.7M impairment loss on a vendor deposit. Operating cash flow was negative $9.1M due to increased investments in inventory and accounts receivable to support Defense segment growth. The company ended the year with $3.3M in cash, $105.6M in total liabilities, and stockholders' equity of $395.1M.

Key Takeaways

1Defense segment sales surged 43% YoY to $405.9M, driving overall revenue growth.

2Housewares segment gross margin collapsed from 25% to 8% due to tariffs and relocation costs.

3Net earnings decreased 20% to $33.1M despite 30% revenue growth.

4Operating cash flow was negative $9.1M due to working capital investments.

5Company recorded a $2.7M impairment loss on a vendor deposit in Q2 2025.

Key Financial Metrics

EPS

$5.00

$5.84 prior year

Revenue

$503.5M

+30%

Net Income

$33.1M

-20%

Gross Margin

16.0%

20.7% prior year

Gross Profit

$80.3M

+2%

Operating Income

$40.2M

operating margin

8.0%

Business Segments

Housewares/Small ApplianceGross margin declined from 25% to 8% due to tariffs and relocation costs

$95.6M-7% YoY

DefenseSales increased due to higher shipments from backlog

$405.9M+43% YoY

SafetyStartup segment with negative gross margins

$2.0M+41% YoY