National Presto Industries (NPK) Q2 2025 earnings summary

Executive summary

• Net sales rose 42% year-over-year in Q2 2025, driven by a 51% increase in Defense segment sales and a 9% rise in Housewares/Small Appliances sales, while Safety segment revenues remained limited due to its startup nature.

• Gross profit increased 26% year-over-year, but net earnings declined 15% due to higher selling and general expenses, a $2.7M vendor deposit impairment, and lower other income.

• For the first six months, net sales grew 39% year-over-year, with net earnings up 1% as higher Defense sales offset margin pressures and increased expenses in Housewares/Small Appliances.

Financial highlights

• Q2 2025 net sales: $120.4M (Q2 2024: $85.1M); gross profit: $18.5M (Q2 2024: $14.7M); net earnings: $5.2M (Q2 2024: $6.1M).

• Six months ended June 29, 2025: net sales $224.1M (2024: $161.7M); gross profit $36.7M (2024: $28.6M); net earnings $12.8M (2024: $12.6M).

• Q2 EPS: $0.72 (Q2 2024: $0.85); six-month EPS: $1.79 (2024: $1.78).

• Operating profit for Q2: $6.1M (Q2 2024: $6.4M); six months: $15.2M (2024: $12.6M).

• Cash and cash equivalents at June 29, 2025: $1.8M (Dec 31, 2024: $17.7M); working capital: $278.4M.

Outlook and guidance

• Management expects sufficient liquidity from operations and credit facilities to meet capital requirements, dividend payments, and fund future growth, including acquisitions.

• The company will continue to evaluate acquisition opportunities and invest in capital projects aligned with business segments.